CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The commercial banks of study, which in this research work is limited to First Bank Plc, provides their numerous customer across the country with a full, range of commercial banking products (services) (First Bank, 1997), including but not limited to current, saving and deposit accounts, loan and overdraft, provision of international banking services, export credit and financial advisory services, automated teller machine, smart card, computer and western union money transfer system. All these products and the favourable economic there is a decline in sales of these products and subsequent decline in their profit performance (Anibueze 1998). As a result the bank introduced new products such as automated teller machine, smart card, computers, and western union money transfer, which are all aimed at improving the profit performance of these banks (Nwankwo 1990).
1. WESTERN UNION MONEY TRANSFER SYSTEM: The Western Union Money Transfer Services, which took o in February 1996, has been adjusted at very fast, convenient, reliable and secured way of receiving money from relative and friends out side the side the country. The system works through telecommunication network and passes information about a transfer within minutes. 2. SMART CARDS: First bank is looking into a relevant technology (smart card) that would deliver more convenient services to customer s in the form of stored valued a complement to bank drafts and bank cheques. This is aimed at further discouraging cash transaction’s because of the risk involves. 3. COMPUTER: First Bank of Nigeria Plc has computerized all major operations in their branches nation wide. Such operation as providing instant customers balances immediately after each transaction updating of the banks accounting records, verification of customer’s signature and many others. This has improved the delivery of services to clients. 4. AUTOMATED TELLER MACHINE This is also an innovation by the First Bank Nigeria Plc. To meet the demand of customers for quality banking services automated teller machine has helped the bank in spreading out payment outlets in some parts of the country.
1.1 BACKGROUND OF THE STUDY
First bank was formed known as the Bank of British West Africa (BBWA). It was first successful bank to operate in Nigeria. The name of first bank was adopted in 1979 lever pool was the home of the founder of the bank “Bank of British West Africa. The two founding fathers of the Bank of British West African that is currently known as First Bank are Levers Tones and george William while the driving force of action necessary for the materialization of the most fertile ideas was that of Alfred Lewis Jones. The proposal for settling up this bank was made by Mr. George Neville when he made his visit to England in 1891 and the proposal was accepted during the meeting of the board of director which was hold June 4, 1891.
The Bank of British West Africa was registered and established in London as a limited liability company with an authorized capital of 1,000,000 on March 312, 1894. The head office of the bank was at Liverpool and has a branch in Lagos and Calabar that of Calabar was opened in 1907. At the board extra ordinary meeting of June, 1957 a spread resolution was passed to change the name of the bank by trooping the word British to Bank of West Africa. In 1966 the bank of the West Africa was changed to Standard Bank of West Africa (SBWA). On June, 20 1969, based on the company decree of 1968, a separate existing (SBWA) was incorporated in Nigeria under a new name ‘Standard Bank Nigeria Limited”. The indigenization policy was put in place by the government during the second national development plan 1970-1974. His objective was to alter the objective of ownership, control and management enterprise from expatriates to the indigene this affected the bank seriously. On March 19, 1976 the board approved allotine of public issue of the company’s share total 2559,674 at one Nigeria period early and this encouraged participation of small Nigeria investor in the shareholding. At the board meeting of July 24, 1999, it was approved that the appropriate name of the bank to be changed, with effect from October 1, 1979 the Standard Bank of Nigeria United took a new name and re-established.
