MARKETING OF COMMERCIAL BANK’S SERVICES

0
468

CHAPTER ONE

INTRODUCTION BACKGROUND OF STUDY

Marketing in relation to commercial bank’s services in Nigeria has not been able to play its part or role in the banking sector for the reason that it is being regarded as mere advertisement or ordinary public relation. And so marketing was linked to manufacturing firms, with service inductance such as banks, insurance etc being left to roast. In present time, marketing activities have acquired increased importance. This is due to the fact that competition in banks has increased.

Apart from the increase in the number of banks, other types of financial institutions exist coupled with the fact that the federal military government in 1992 introduced community banking in Nigeria under the community bank’s decree (1992) promulgated by ibralim babangida, the then head of s Tate. These institutions offer services similar and comparable to those offered by commercial banks. In this way competition arises as a good consolidation for marketing to exist in the banking industry or sector. Some of the example, of these other financial institutions are fiance house, investment club, credit co- operative societies, and loan association etc. they have also expanded their services in order to compete favorably for demand and time deposits etc for their customers banks for the simple reason that they operate in environment near and know to their clients. Although the bank customer has and is becoming more and more sophisticated in his needs of the non basic services of commercial banks, still the greater percentage of the Nigeria population is yet to know and avail themselves the opportunity. For instance, in some local communities even with the introduction of community banking, about 90 percent of their inhabitant, if not more are yet to know and avail themselves of these services. Again most of these commercial banks are situated in urban area, thereby marketing the services to the urban dealers who are already aware of such services. At least a proportion if not in totality. And this is the reason customers cluster at banks offices with the bankers paying little or no attention to their customers. To overcome all these, the banks must adapt to the changing environment and requirements of their customers. Since operation orientation had dominated the banking activities while marketing has not played and significant role. The provision of financial services to customers is the stock in trade of commercial banks in Nigeria. Some of the services of include: collection and payments of cheques, granting of credit facilities, acting as trustees and executors, buying and selling of stock and shares, issuing of bankers draft etc.

MARKETING OF COMMERCIAL BANK’S SERVICES