BANK/CUSTOMER RELATIONSHIP IN NIGERIA AS A DEVELOPING ECONOMY

BANK/CUSTOMER RELATIONSHIP IN NIGERIA AS A DEVELOPING ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Most advertisements on television, radio, and billboards by banks in the country have always tried to emphasise how wonderful and timely their services are. In the advertisements, they attempt to demonstrate the high quality of services supplied to people who patronise their specific bank.

By implication, they attempt to inform the public that they (the bank) are capable of providing prompt, courteous service to their customers. Despite all of these advertisements, the banking industry has been criticised by various segments of society for the poor quality of services it provides to customers.

Currently, in some banks, a slow speed of work is still observed, resulting in long waits even to receive a cheque booklet, bank customers are still treated laxly, and most bank employees continue to exhibit a negative attitude towards work. The influence of this casual attitude towards work, which is the exchange of words between bank employees and customers, persists.

The issue of difficulties obtaining a loan from our banks has persisted. All of these issues bode good for the bank-customer relationship, especially in a developing economy like ours where banking habits have not fully formed.

Based on this, it is necessary to conduct a study in order to determine the genuine state of the bank’s relationship with its customers.

Also, with recent developments in the financial sector, client patronage is determined by how well a customer’s problem is resolved once the study is concluded.

History of UBN Plc.

Union Bank of Nigeria plc was founded in 1969 as a wholly owned subsidiary of Bardages Bank International Limited and later renamed Bardages Bank of Nigeria Limited. The bank’s ownership structure remained unchanged until 1971, when 8.33% of its shares were exchanged.

As a result of the Nigeria Enterprises Promotion Decree 1972, the federal government of Nigeria purchased 51.67% of the bank’s shares, leaving Bardays Bank Plc London with 40%.

Union Bank of Nigeria Plc became Nigeria’s first bank to reach N1 billion in savings deposits in 1986. Since then, its savings deposits have expanded dramatically. Currently, the bank has one of the largest asset and deposit bases among Nigeria’s financial institutions, with N275.2 billion and N204.4 billion for the fiscal year ending March 31, 2002, respectively.

Also, its total earnings are at N3.19 billion, with a current core capital of N28.8 billion, marking a 134 percent rise over the previous fiscal year.

The bank continues to be one of the best-capitalized financial institutions in Sub-Saharan Africa. Its shares are likewise highly sought after in the sector today.

Last October, it offered a right issue of 838.95 million ordinary shares of 50 kobo each at N1800 a share, for a total of N15.350 billion, resulting in an oversubscription of N249 million, or about 2% more than the initial objective.

This is a wonderful demonstration of the bank’s stability and the high degree of investor confidence. Union Bank of Nigeria Plc’s dominant position as one of Nigeria’s top banks is exemplified by its new headquarters, which stands 32 stories tall and is one of the biggest structures on Africa’s west coast.

The chairman, elder Kalu Uke Kola, leads the bank’s board, while the group managing director leads the Chief Executive Management Team. Union Bank of Nigeria Plc provides its clients with an unrivalled selection of goods. These can be created in two types.