AN ANALYSIS OF THE RELIABILITY OF CUSTOMER RELATIONS PRACTICES IN SELECT BANKS IN UYO METROPOLIS
CHAPTER ONE
INTRODUCTION
1.1Â Â Â Â Background to the study
The contribution of banking industry to the national economy is increasingly phenomenal in Nigeria. This is not only visible in the prominent role the sector plays in stabilizing the money market and trade transactions, but also in the efforts to increase public awareness of it activities. With public awareness of what and how the banking industry operates as well as contributes to their personal and group well-being, the confidence of the public toward the sector, as custodians of their micro and macro economics is at stake.
The banking industry is therefore sad steel with the big task of creating and sustaining the image of reliability, good service delivery and innovativeness. The image building task therefore rests not with the mainstream banking activities, but with the field of public relations. The custodians of image making and reputation management business.
As Jeff (2007:121) notes, most business concerns today are tied to efforts to maximize profit by lowering cost and sustaining customer’s satisfaction, through consistent routine and loyal patronage. In response to the increasing interest in creating and maintaining good customer patronage and satisfaction, the public relations business has extended its focus by adding a fresh and specially called customer relation. Although the practice of customer relation is not entirely new to most sectors of national life, it has, in recent time become a major tool of competition in the Nigeria baking sector (Simeon 2005). This trend is not surprising. Because, all the banks appears to offer similar services under different packages to customers. So customers do not necessarily have to patronize a bank because of the range of services but must consider how such services are rendered. Among the range of complaints that customers seem comfortable to talk about banks in Nigeria include: lack of prompt attention survey responses to customer’s enquiries; hoarding of information meant for customer’s enlightenment staff resentment toward how depositors, stringent and almost impossible response process toward customers complaints.
These and many others unstated observations have created the need to study the customer relations practices of the baking institutions from the view point and perceptions of the public and the customers.
1.2Â Â Â Â Statement of the Problem
There is no doubt that, the Nigerian banking industry is experiencing the best of time in its history, giving the confidence, the public appears to have towards them in recent times. There is also no doubt that, such public confidence and trust are made possible by the recent consolidation policy of the Central Bank of Nigeria, which has helped to strengthen their capital base up to 25 billion naira.
What however seems doubtful about the present sate and future of the banks, in relations to public patronage, image and confidence use is the worry about first, how the 25 billion capital base can be sustained without public patronage and satisfaction and how the banks can keep pace with the changing taste and composition of customers, especially as bankers are controlled by strict professional cultures. Against this background the question is: Can customer relations practices affect the performance of banks in Uyo metropolis
1.3Â Â Â Â Objectives of the Study
The objectives guiding the study were to:
- find out the existence or non existence of customers relations practices in the banks studied;
- ascertain the customer relation policies and of the banking institution studied;
- find out the strategies and programme developed by the banks to execute their customer relation policies;
- ascertain the kinds of publics that policies and strategies of the customer relations are directed to;
1.4Â Â Â Research Questions
- Is there any customer relations practice in financial institution?
- What is the relationship between customer relations and bank policies?
- What programme can enhance customer relations?
- Who are the public that customer relations are directed to?
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1.5Â Â Â Â Significance of the Study
This study would have far reach significance to the banking institution who depend on and are alive to their responsibilities because of customers. The finding and conclusion of the study would help shapes for the better, the policies and practices of banking institutions concerning how, when, what to do when customer interest beyond core banking business are involved. The study would have particular positive impact on the scope of public relations, practices of the banking institutions. And the scholars and researchers in the field, the study will remain an outstanding resource material for further studies.
- Delimitation of the Study
The scope of customer relations is wide. But this study has focused on the depositors of the banking institutions. This therefore excluded such categories of the banking public as suppliers and others corporate/industrial investors. Besides, the study also concentrated on the branches of the four banking institution located at Uyo urban. The banking institutions were; United Bank for Africa, First Bank Plc, First City Monument Bank and Intercontinental Bank.
1.7Â Â Â Â Limitation of the Study
This study was limited by three principal variables; time, funds and subject attitude. The time requires to conduct the study was not long enough to allow more investigation which would have, perhaps, brought particulars about their corporate practices in relations to customer relations. In the term of funds this study would have enlarge the number of the banking institutions studies but for limited funds. The subject corporate and individual exhibited restrained enthusiasm or willingness to release information which there either considered a corporate secret or an individual personal or private opinions and prosperity. In all of these, the researcher was able to extract information. Which were useful to conclusion of the study? And to significance extend, the conclusion of the study still stands the test of generalizations of the practice of customer relations in the practice of customer relations in the banking institution in Nigeria.
1.8Â Â Â Â Definition of Terms
Public Relations: Process of creating a favourable public opinion for an organization, institution, individual’s commodities or for intangible things such as names, so that relevant members of the public who have something to do with these tangible or intangible things may perceive them in good way.
Customer Relations: This is the practice of applying all the techniques models, theories of public relations to a special
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