THE EFFECT OF QUALITY SERVICE DELIVERY ON CUSTOMERS
PATRONAGE IN FIRST BANK PLC, KADUNA
research work revealed the effect of quality service
delivery on customers’ patronage in First Bank Plc, Kaduna. The bank has failed to take note of the
importance of customers satisfaction and cost of banking service is high in the
sense that there is high interest rate on loan and time spend in transacting
business in the bank is longed. The main objective of the study is to find out
the types of service offered by first bank to their customer and evaluating if
the service guarantee the satisfaction of the customer. The methodology used in
gathering data for the research work was the interview and questionnaire method
were used. The finding of this research work was discovered that workers are
satisfied with their present level of work and the customers are always right
in first bank. It was concluded that a bank which produce and rendered good
service efficiently would embrace the patronage of the public, even when a bank
produced good service but desired the patronage of its customer. And it also
recommended that management should ensure that the legal right and
supplementary benefit of the staff are met on the best of their capacity. And
they should improve on their service rendered to their customer so that more
information would be given to customer on issues like loans, acquisition, and
TABLE OF CONTENTS
Title Page - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Approval page - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgment - - - - - - - - - v
Abstract - - - - - - - - - - vii
Table of contents - - - - - - - - - viii
Background of the study - - - - - - - 1
General Problems - - - - - - 4
the study - - - - - - - 4
Question - - - - - - - 5
the Study - - - - - - - 5
Scope of the
study - - - - - - - - 6
the study - - - - - - - 6
Terms - - - - - - - - 7
2.0 Introduction - - - - - - - - 9
and Customer Relationship - - - - - 16
Cashier and the Customer - - - - - - 17
Banker and Customer Legal Relation - - - - 19
of Customers - - - - - - - - 20
and Responsibilities of Bankers - - - - - 22
of Secrecy - - - - - - - - 23
of Service - - - - - - - - 26
Introduction - - - - - - - - - 28
Area of study - - - - - - - - 28
Research design - - - - - - - - 28
the study - - - - - - - 31
Sample size and
Sampling Techniques - - - - - 32
instruments - - - - - - 32
of research instrument - - - - 34
data Analysis - - - - - - 34
and Analysis of Data
4.0 Introduction - - - - - - - - 36
of the Respondents - - - - - - 36
of Data and Analysis - - - - - - 40
of findings - - - - - - - 43
of Findings - - - - - - - 43
conclusion and Recommendations
Summary - - - - - - - - 45
Conclusion - - - - - - - - 46
Recommendations - - - - - - - 47
OF THE STUDY
The banking industry which is various bank put together to this
industry consist of the central, commercial, merchant, development and saving
banks. Central bank being the apex bank. Though banks are classified according
to their functions, a detailed study of their various functions showed that
they have common features and functions but with a slight and important
Just like other human activities, banking has a history which
dates back to the 2500BC. The early known bankers have the jews in hombandy in
Haley who transacted their business on benches in the market place.
The project examines customers services since the banking
industry is with the aim of evaluating the level of satisfaction of customers
in response to services offered. To do this effectively FBN PLC, Kaduna has
been selected to serve as our case study.
Banking in Nigeria
The earliest recorded banking in Nigeria was by Elder Demister
company and the African banking corporation in 1894. The banking activities of
these corporations were later taken over in 1894 by the British West Africa. It
remained as until 1971, when the colonial bank opened officers in Jos, Kano,
Lagos and Port Harcourt
The bank of British west Africa later become standard bank of
Nigeria ltd and now FBN PLC. The colonial bank was also renamed Barclays bank.
Its name change against to union bank of Nigeria limited on 12th March 1979.
The first indigenous bank was the industry and commercial bank, which was
established in 1929. It collapsed in 1931 and went out of business in 1936. In
1933 the national bank of Nigeria was opened. The next important event was not
until 1945, when the Agbonmag be was established. The African continental bank
was formed in 1946 as the Tinubo bank and changed to its WEMA Bank Plc, Bank of
the North was established in 1959, Cooperative Bank was established on 1962.
There was also the emergence of the United Bank for Africa in
1949. The last four banks mentioned above are still in existence.
The first banking ordinance appeared in 1951 and ruled that no
bank would be allowed to operate without a license from the government. The
ordinance established the central Bank of Nigeria which take over the issue of
ensuring monetary stability and sound commercial banking operation in Nigeria.
In order to develop the rural area economically, the federal
government in 1991 also ensured the concept of rural banking, also known as
community banks. Community bank was found in practice of the Africa society, it
was to this end that the then central bank governor, late Alhaji Abdulkadir
pointed out that “community banks are bound to Nigeria today.
The British and French bank which was established in 1947, later
its name was changed to United Bank of Africa in 1961.
The Economic Importance of Commercial Bank in
The distinguishing feature of a commercial bank is that it hold itself
out as prepared to accept deposit of money from members of the public on
current or deposit account to honour cheques drawn by its customers on their
accounts, and to its customers and drawn on or issued by other banks.
Commercial banks deals in money, receiving it on deposit from
customers, honouring customers drawings against such deposits of demand,
collecting cheques for customers and lending or investing surplus deposits unit
they are required for repayment. From the above functions of commercial banks
it becomes clear that they are of great use to the government, the business
community and the various individual, in the society. The government requires
the corporation in execution its monetary policies, such as the restriction of
expansion of credit as and when the need arise. In developing countries like
Nigeria, the central bank is a substantial lender in the short term trough a
treasury bill purchases as a lender of last resort to customers demands.
1.2 STATEMENT OF THE
The survival of the banks depend on the number of customers, the
banks are able to satisfy. The statement of problems are cost of bank service
is high, interest rates on loans and deposit are high, time spent in
transacting business in the bank is long and there are also long queue and huge
crowd in the banking hall that tends to put one off. What is more the quality
of bank services is questionable with the increasing level of fraud, forgeries
and sometimes diversion of customer funds.
OF THE STUDY
This work is aimed at analyzing:
The types of services offered by first bank to their customers
and evaluating if the services guarantee the satisfaction of the customers.
To find out the causes of long delays queues, crowdedness and
the aggressive noise in the bank.
To enquire into the staffs attitude and response to customers
and the problems in the services rendered by this bank so as to recommendation
on the strength of the findings.
The general purpose o this research work is precondition for the
award of National diploma in Banking and Finance.
1.4 RESEARCH QUESTIONS
What are the types of services offered by First
Bank Nigeria Plc to satisfy her customers?
What are the causes of long delays,
crowdedness and the aggressive noise in the bank?
What are the staff attitude and response to
customer in the bank?
There is cordial relationship between
workers and customers in First Bank for high profitability
OF THE STUDY
First bank Nigeria Plc as a commercial bank is involved in
various banking functions among them is
the granting of qualitative service. The sole aim of this work is to examine
the experience of bank to the problems in the task of ensuring customers
satisfaction through prompt and effective customer. These will be used for the
policy makers of the bank and other banks, and again it can be useful to the
customers of the bank on how to deal with the services rendered to them and it
can be useful to students who can make reference to it when writing project
report about the bank.
In a last note the recommendations made will present a practical
attempt on the part of the researchers contribution to already existing stocks
of knowledge of ensuring effective customers services.
OF THE STUDY
The study shall limit itself to the management, applications and
procedures used in effective satisfactory customer service and possible make
recommendation to aid the effectiveness of this function of commercial banking
in this century.
Therefore it is however assumed that any information collected
with regard to the samples will reflect a true opinion of the population and
that information from first bank Nigeria Plc Kaduna is considered authentic for
1.7 LIMITATION OF THE
Financial problem as a result of several
visit to the organization which resulted in a delay in attending to the
researcher, and the cost of reaching the place due to increase in
Secrecy in the banking industry,
contributed to great extent to limiting sources of information as the writer
was not able to gain access to some vital record that would have been of
There was also difficulty in seeing the
officer assigned to help with necessary information as in most cases; he was
busy which a major trait of the banking industry.
Commercial Bank: Commercial bank
is a bank which offers full banking services to commence, industry and other
sectors of the economy. This full service implies the current, deposits account
and saving account.
Customer: There is no
statutory definition of the term “customer” hence reliance is placed on case
law definitions which to make a person a person a customer of a bank he/she
must either be operating a current account or deposit account or some similar
relationship. The relationship begins as soon as money or cheques is paid in,
and the bank accept it. So the customer is the person wishing to make
purchasing of physical product or accept service regularly.
Account: A reckoning
counting, computation of statement receipt and expenditure showing a
balance, register of debits and credits.
Current Account: This is account running from day to
day on which cheques are paid to which credits are paid in with orders from CBN
to commercial banks. This type of account is commonly use by traders. The
self-employed and other employed that the money is paid to demand.
Deposit Account: This type of account is always maintained in
credit. The balance is repayable at seven or fourteen days notice or after a
fixed term. Interest is paid at the banks scheduled deposit rate, or on agreed
rate between the bank and the customer. In this account, money is kept for a
specified period. Customer who have sufficient money standing to their audit on
current or saving accounts may instruct the banks to transfer part of the
supplies funds to a deposit account in order to earn interest.
Bank Rate: This is an
advertised minimum rate at which the central ban of Nigeria is prepared to
disrupt approved bills of exchange. This rate is used by government as a means
of controlling the money demand and checking the growth of inflation. And also
known as minimum rate.
Savings Accounts: Saving
account is similar to current account except that it is meant or the
accumulation of smaller sums and withdrawals up to a certain amount. This
customers account is designed to encourage small saving on which interest paid
at a specified rate.