EFFECT OF MARKETING FINANCIAL SERVICES IN DEREGULATION ECONOMY BANKING INDUSTRY
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EFFECT OF MARKETING FINANCIAL SERVICES IN DEREGULATION ECONOMY BANKING INDUSTRY
Chapter one
INTRODUCTION
1.1 Background of the Study
Financial institutions, notably banks, are economic decision-making entities designed to provide financial services to their target markets with the primary goal of achieving acceptable returns on investments while not abandoning other societal objectives.
Nigerian banks are currently facing huge hurdles as competition heats up, making survival increasingly difficult. Banks must actively organise their services to meet the financial demands of both current and potential clients in order to achieve overall corporate objectives and ensure the longevity of the firm.
As a result of the foregoing, marketing has become increasingly crucial and necessary in today’s financially competitive economy. Also, paying close attention to suitable marketing strategies cannot be overstated.
Traditionally, the necessity for marketing in banking was overlooked because, for a long time, banking was a seller’s market, with most customers believing they were privileged to receive bank services.
In recent years, customers have become so knowledgeable and conscious of their importance that disregarding them in the pursuit of a competitive advantage can be disastrous for banks.
Banks must consequently face the marketing issue in order to provide good customer service. It should be emphasised that the late adoption of marketing strategies in banking is not unique to Nigeria.
Richard Brien and James Stefford wrote in their paper “The Myth of Marketing in Banking” that marketing has traditionally been overlooked.
It may be necessary to emphasise here that, for a bank to survive and be a successful provider of financial services, the current environment necessitates a management order that views the customer as king
with his or her needs and expectations serving as the focal point of the bank’s activities. The adequate meeting of these demands will ensure customer happiness and business performance. The end product provides a competitive edge for the individual bank.
1.2 Statement of Problem
The rapid expansion of Nigerian banks as a result of industry liberalisation has made survival increasingly challenging. At this point, one is forced to appreciate the saying that ‘it is pointless to ask a river to stop flowing; instead, one should learn to swim in the direction of its flow’.
Similarly, as this tendency has persisted uninterrupted, banks should make attempts to devise a panacea that would provide a competitive advantage in the face of intense competition.
As a result, the question of marketing that provides customers with a sense of fulfilment is increasingly important, especially as they become more sophisticated and aware of their importance in the grand scheme of things in the market place, as well as recognising their pride of place in the marketing arena.
Is there an empirical relationship between financial services marketing and the success of Nigerian banks?
And if the response to the above is affirmative, what are the marketing tools available and how may they be effectively used?
1.3 PURPOSE OF STUDY
(1) This research activity must be conducted in order to analyse the effort of marketing financial services in the deregulated Nigerian banking industry, with the United Bank of Africa (UBA) serving as the contact point.
(2) To validate the research conducted to guide the effort of marketing financial services in Nigerian banks.
(3) To investigate the significance of using proper marketing tools to ensure the survival and success of Nigerian banks in the face of competition.
1.4 Significance of the Study
The goal of this study is to highlight the clear fact that the Nigerian banking industry has undergone significant changes in its way of operation since 1986, when the structural Adjustment Programme (SAP) was implemented.
This could be related to the quiet chatter in the banking industry that management and workers at various banks around the country are becoming increasingly concerned about how to market their services.
The topic for our current discussion has been chosen in light of this context.
The findings of this research will be valuable to individuals and groups of companies looking to bank with UBA.
Economic context in relation to the use of marketing strategies in the overall attainment of bank corporate goals.
1.5 SCOPE AND LIMITATION.
This study includes a brief review of the Nigerian banking industry, with a focus on UBA Bank in Abule Egba, and the importance of marketing in the survival and success of banks in the current deregulated economy, which includes the liberalisation of banking licences as well as the universal banking scheme.
The study includes an evaluation of the elements that influence consumer bank choice as well as strategic changes made by banks to react to marketing developments in the Nigerian banking industry.
Although this study was successful in revealing the correlations between customer attitudes and several variables, the importance of these relationships has not been determined. Knowing the extent to which consumer criteria for choosing a bank relate to their ages rather than the bank’s specialisation
as well as the extent to which product quality relates to consumer choice criteria, could have provided a greater insight into consumers’ images and bank choices, allowing for greater generalisation, which may not be ideal in this case. The use of only one bank for analysis in this study also limits the generalizability of the results.
Deregulated economies and a slew of other important hypotheses about the Nigerian banking system.
Chapter 3 outlines the research technique, which highlights the data sources, investigation method, and questionnaire used.
Chapter 4 presents and analyses the data, as well as providing a summary of the findings.
The findings of this research will be valuable to individuals and groups of companies looking to bank with UBA.
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