MARKETING OF FINANCIAL SERVICES BY NIGERIAN BANKING INDUSTRY

MARKETING OF FINANCIAL SERVICES BY NIGERIAN BANKING INDUSTRY

ABSTRACT

This project was a through research into marketing of financial services by Nigerian banking industry in Nigeria. It is to investigate the performance of bank marketing, and what extent they have contributed to the Nigerian economy. Chapter one of this project deals with general introduction of what marketing of financial services is all about, objectives, significance and limitation of the study. Chapter Two deals with the research used, two distinct types of data collection instruments on the write-up questionnaire and library research. Chapter Three deals with the research methods used by the project work; sources of data, secondary data, collection of data and methods of data collection. Chapter four deals with the findings of the study. Chapter five deals with recommendation and conclusion were drawn from the findings of the study.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Bank marketing has been defined as the creation and delivery of services that will satisfy the needs of customers at a profit to the bank. From the definition above, it is seen that the customer who is the ultimate target of bank marketing must be satisfied. With the cut throat competition in the banking sub-sector, marketing becomes imperative equally as the provision of services itself. There is need for aggressive and persuasive marketing of banking services to protect a banks existing customers base and to acquire more chunk of the market. Nation-wide, banking institutions are recognized as a very vital institutions for economic development of a nation and in this state specifically, the banking sector is said to play a more important role in the national economy than it does in any other developing countries.

In Nigeria, the business of banking was stated in 1893 by the bank of British West African while demand for banks owned by Nigerian businessmen or by the Nigerian government dates bank to over five decades ago. Marketing and banking, though distinct disciplines can be said to be inter-related since they belong to the family of Business administration. This inter-relationship, however, is more and broader as for as their study is concerned. Traditionally, banking is dominated by operation orientation, and marking has played a limited role typically being equated with public relations or land advertising.

And infact, the application of marketing techniques to service in general, and to banking in particular is a relatively new science thought the world. The Nigerian banking environment is a typical example. Marketing of financial services in fraught with diverse impediments including, lack of will structural approach and under-developed nature of available services. Apart from conventional lending tools such as  loan and over draft, availability of other services such as insurance and insurance broking, pensions, equity finance, leasing and hire purchase, computer bureau services and international services is close to zero. Even though some banks provide most of these services, the limited to a few outlets.

1.2 STATEMENT OF THE STUDY

Marketing of financial services in our banking industries today still lacks the technical approach to creating a marketing culture at the banks. The greatest challenge for Nigerian Bank marketers is practicing what they preach. If a bank says it has all the information on a certain service, the people on the line should be in a position to answer question when customers walk in. Services are still very poor, although the increase in the number of banks has led to an intense competition even then the competition has not gone beyond that of attracting deposits through an array of innovations rather than a complete improvement in their