THE EVALUATION OF CUSTOMER SERVICES IN BANKING INDUSTRY
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THE EVALUATION OF CUSTOMER SERVICES IN BANKING INDUSTRY
1.0 INTRODUCTION TO CHAPTER ONE
Banking forms have existed since around 500 BC. The early bankers (the Jews) lombandy in Italy conducted their business on market benches. The term “bank” It is taken from the Italian term “BANCO,” which means “Bench.”
When a banker failed them, the furious people (i.e. depositors) broke up the bench, and thus the word “BANKRUPTCY” was obtained from the word “BANKCORRUPTION,” which means “broken bench.”
Banking as we know it now did not begin until the seventeenth century. When such valuables are represented and therefore began to change hand in lieu of numerous and valuables,
Italian goldsmiths operating in London began to expand their commercial activities to include safe keeping of valuables and money. And eventually became our current bank notes.
The goldsmiths with a profit motive were quick to recognise that some of the money deposited with them could be safely withdrawn and earned interest. The practise was intended to be lucrative, and many businesses attempted to benefit from it.
Unfortunately, due to poor management, there was unconditional leading, which resulted in the business’s demise. In an effort to alleviate. In response to this unfavourable scenario, the British government formed the Bank of England in 1694 and granted it exclusive authority to produce banknotes.
Being England’s first bank, it quickly brought about the closure of the primary banking system contained throughout the years, until there are only big banks in England, all of which can trace their origins back to the 16th and 17th centuries.
1.1 BACKGROUND OF THE STUDY
Banking is all about offering numerous services to people all around the world. These services include taking deposits from consumers, paying checks on their behalf, and making advances and loans to them. All of this is geared at increasing customer loyalty in areas where the bank provides effective and efficient services.
Customers service is any effort intended at gratifying or satisfying a client or customers in order to attract repeat business.
Banks are included since their existence is contingent on how much satisfaction they can provide to their clients.
However, customer service in the banking business has been steadily declining for some time. Bankers no longer understand the value of client pleasure in terms of corporate growth.
They keep them on the grave for longer than required, cause them shame by treating them cruelly, and in some situations, there is unusual harassment from the banks security guys.
The security guards have a history of harassing their clients in the parking lot, possibly because some of them are uneducated and do not understand that a customer is regarded a king, and a king can do no wrong.
Banks are also weak in the area of maintaining total secrecy regarding all issues connected to customer accounts and other transaction problems.
Customers are losing faith in their bank as a result of this. A bank with a high client base is more likely to make a profit than one with a low customer base.
In this research work, the researcher will look at the areas where banks fall short in terms of providing efficient and effective services to customers, the relationship between customers and bankers, their rights as customers, and provide recommendations on how banks, particularly First Bank of Nigeria Plc, can improve their customer service relationships.
1.2 STATEMENT OF THE PROBLEMS
Banking companies can offer a variety of services to its customers. These services span from deposit acceptance to cheque payout. And shortly, on behalf of the clients, offering advise and loans to customers, although these services have not been effective due to the following reasons:
a. Inadequate manpower: The absence of qualified employees has resulted in the delayed performance of their services to clients.
b. Inadequate incentives provided by banks to their employees: Incentives have a long way to go in motivating employees to do their best in completing their duties. Individuals should be encouraged to do their best.
In performing out his obligation. However, most of our banking sectors today find it extremely difficult to respond to this aspect of their employment, which has resulted in significant setbacks in their customer service.
c. Unqualified officers/employees: One of the major challenges we face in our banking industries today is the problem of unqualified employees who are not competent in carrying out their duties,
which has resulted in significant delays when attending to customers in their day-to-day activities in the banking sectors. This eliminates the need for customers to question before being catered to.
d. Lack of infrastructural facility, such as power, which has frequently resulted in network failure; this problem has, of course, caused fluctuations in the services rendered by banks to their customers over the years; unstable power supply is one of the major challenges that have hampered the effective services banks could have provided to their customers.
e. High interest charges: Most consumers find it difficult to request loans from our banks due to the level of interest they may be charged, which has resulted in slow saving and investment, which has hampered the growth of our nation’s economy in Nigeria.
1.3 OBJECTIVE OF THE STUDY
This study’s objectives can be summarised as follows:
a. To assess the level of service provided by banks to its consumers.
b. to assess the bank’s employees’ capacity to offer effective and efficient customer service.
c. In order to learn whether or not clients are satisfied with the services provided to them.
d. to be aware of potential areas in which banks might improve the quality of their customer care.
a. Evaluate areas where they have not been able to provide satisfactory services to their clients.
f. Analysing the customers’ requirements and desires from a marketing standpoint, as if the customers were monarchs and the cause for their existence as banks.
1.4 RESEARCH HYPOTHESIS
In general, customers face a slew of issues on a daily basis. It has been discovered that there are constantly long lines, rudeness, and aggressive noise in the banking hall, indicating that the bank is not providing good services.
Since the study/observations are often provisional, this statement has the potential to be accepted or rejected. The following hypothesis will be tested in order to achieve the goals of this research project. A hypothesis is a provisional statement regarding a problem.
Ho: Effective customer relationships do not improve bank performance.
Hi: Effective client relationships improve bank performance.
1.5 THE SIGNFICANCE OF THE STUDY
This study is aimed at examining customer services in our banking sectors, which have historically not been as efficient as customers anticipate. Since designed to improve the effectiveness of customer care in the banking sector.
This research will be extremely beneficial to undergraduates and other shareholders in the banking business who want to know how to provide good customer service without excessive delay or waste of time in the bank.
It is also carried out to look for possible means or ways in which banks may provide their customers full trust to do business with them without worry of poor service delivery, as has been the case in the past.
At the end of the study, we want to investigate prior problems, the reasons of such problems, and make recommendations that will greatly assist our banking industry in providing services to their consumers.
1.6 SCOPE OF THE STUDY
This research work’s case study is registered with First Bank of Nigeria Plc, Yakubu Gowon Way, Kaduna.
The goal of this work is to examine customer services in the banking business over the years that have not yet met the demands and satisfaction of consumers.
a. Determine the causes of banks’ failures in customer satisfaction.
b. to assess issues or discrepancies in banking sectors that have contributed to poor customer service delivery.
c. Analyses areas that require immediate attention in order to give superior services to their customers.
1.7 HISTORICAL BACKGROUND OF THE FIRST BANK OF NIGERIA PLC
For over a century, First Bank of Nigeria Plc has distinguished itself as a prominent banking institution and a vital contributor to Nigeria’s economic success and development.
The bank began as a tiny enterprise at the office of Elder Skip and Co in Lagos in 1894, discovered by a maritime magnet from Liverpool named Sir Alre Jones.
It was formed as a limited corporation in March 1984, with its headquarters in Liverpool. After absorbing, it began operations under the corporate name Bank for British West Africa (BBWA) with a paid-up share capital of 12000 pounds. Its forerunner, the Africa Banking Corporation.
To justify its West African coverage, a branch was opened in Accra, Gold Coast (now Ghana) in 1896, followed by another in Freedom, Sierra Leone in 1898, marking the beginning of the bank’s international banking operation. In 1900, the bank opened a branch in old Calabar, and two years later, services were extended to northern Nigeria.
To meet the demands of its customers, First Bank has expanded into a variety of banking techniques, including corporate and retal banking relationships. Trusteeship as well as insurance brokerage.
To reposition itself and capitalise on opportunities in a changing environment, the bank embarked on several restructuring initiatives in 1957. In 1969, the bank changed its name from Bank of British West Africa to stand Bank of Nigeria limited. Changes in the name of the bank occurred in 1979 and 1991, respectively, to First Bank of Nigeria Plc.
The Bank established a decentralised structure with four regional administrations in 1985. This was changed in 1992 to improve the bank’s operational efficiency. In 1996, the bank launched the FBN Century 11 initiative to revolutionise its operations in response to environmental changes.
In addition, as part of its growing internationalisation strategy, the bank became the first financial institution in Nigeria to establish a subsidiary bank in the United Kingdom in November 2002.
To demonstrate its dedication to its clients and the growth of the Nigerian economy. Since then, the bank has expanded its lending and credit portfolios to include various sectors of the economy.
The bank has greatly improved in a variety of characteristics, including the number of branches, the growth and deposit base bold, and the amount of loans and advances reliability.
The bank has maintained its top position through sound banking practises. In keeping with its purpose statement, it strives to provide the greatest financial services available.” As it enters its second century of providing quality banking services to customers and the nation as a whole, the bank will continually alter itself.
1.8 DEFINITION OF TERMS
Accounts current:
Account in the form of a bank account from which the consumer can withdraw funds whenever he wants using a check book or an ATM card. Customers pay a commission on turnover rather than interest. Account for saving.
Investing account:
This account is intended to assist lower-income earners to develop a savings habit. It is now being withheld by a third party. It piques the attention of the passbook, which is needed for withdrawal.
Banker:
A person in a high-ranking position in a bank. He is a financial doctor who acts as a go-between for the economy’s deficit and surplus sectors.
Customer:
Is a person or legal entity who has a bank account, whether current, savings, or deposit.
Bailee
Person (bank) who obtained property from the bank for a specific period.
Bailor:
Customer who holds property with the bank over an extended period of time
Bankruptcy:
(Person) who has been declared by a court to be incapable of repaying his obligation and whose affairs are in the hands of the court.
Make a call to:
This is a method of verifying the accuracy of items put in multiple accounts by directing two people other than the ledger keeper from the voucher to the entry.
Clearing:
This is the process of collecting cheque revenues by presenting to the drawee banker branch of cheques drawn on them that are received by the bank clearing the day’s activity. This presentation is generally made at the central bank’s clearing house.
Banker for Collections:
A banker who accepts cheques issued on other banks or branches and receives the money for credit to a customer’s account.
Advance:
Overdrafts are loans made to customers, and the department in charge of granting money is known as the advance department.
Collateral: These are an individual’s assets, goods, and property of any kind supplied as a semblance of a loan to be given.
Bearer:
The individual who has a bill of cheques payable to him.
Cross checks:
These are two parallel transverse lines drawn across the face of a cheque to ensure the safe transfer of funds from sender to receiver.
Drawer:
A person who signs checks or bills of exchange.
Drawee:
A bank where a cheque is written on the individual to whom a bill of exchange is addressed.
Account Is Dormant:
Is an account that has not been used over a period of time, usually a year.
Treasury:
It is a safe or strong room where a bank’s cash and valuables are kept.
Proof:
This is a daily record of all transactions made on any account, as well as a way to check the correctness of data.
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