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The objective of the chapter is to emphasis on the need for improved customer service   in the banking industry with special referenced to Union Bank of Nigeria PLC

 1.1            BACK GROUND OF THE STUDY

Financial assets we all know the necessary prerequisites for nay meaningful economic development of any nation. This is so because the  entire would economy  today revolves round business while business revolves round finance. Therefore the significant is the overall development of our economy. it is on this premise on appreciates the important roles played by financial institution most especially   the commercial banks whose major function is to organize mobilize and  making funds available for investment purpose by way of granting credit facilities to individual firms and government.

 This Bank marketing has been defined by a media (1983) as “the creation and delivery of service that will satisfy the need of customers at a profit to the banks” from this definition, it is seen that the customers who is the ultimate target of bank marketing must be satisfied.  Banks must learn what satisfaction their customers seeks. The world “ creation and delivery” recognizes that marketing is an active creation process involving all the banks staff. Today the emergence of commercial banks as well as the role they play has been instrument to the rapid growth and progressive development of the economy. Banking as a service industry must adopt to the changing environment and requirement of the economy which it services and this it can do through effective marketing of its services. The Nigeria Banking environment is a typical on which lags behind in the application of modern marking principles to its service offerings. The banking image in the country is considered bad because of the deterioration in  the banking service over the years and the very poor trend in banker customers relationship which is largely due to poor marketing. The major problem is that existing services are not being provided efficiently. There is a commonly held believe that service rendered to customer is a bestowal of favour and privileges. G. Garli and M. Gilbert (1976) still maintains that the public impression of banker and the bank is very poor. A visit to any branch office will reveal long queues and struggle for the customers to get served. It can take an hour or more to  each the counter and sometimes get the impression that the counter staff is proud of the  long lines of people queuing their favours. Gadzama M.W (1989) in his chairman’s statement of allied bank annual report stated that customers are treated with lack of  seriousness by the bank staffs. They believes it is right to deliberately delay customers as a result of their non-challant attitude to work. It is always a daily occurrence to hear abuses flowing from customer to bank staff over the protected delay in competing bank transactions. Today with Nigerians attitude towards the idea of putting their money in the banks as opposed to keeping them at home banking institution face unusual marketing challenges. The level of competition  between banks is increasing as the level of financial competition sophistication of company’s of other banking needs the demand for banking service experienced an explosion that posed a challenge to the resources of the banking community.                             


This research work is aimed at addressing the problems associated with banks which include

  1. To find out if staff training and  motivation affect the ratio of services by the staff
  2. To ascertain whether customer dissatisfaction is a function of the inefficiency of the banks staff.
  3. To determine  if there is any relationship between improvement  in the service delivery of the banks and the efficiency of the bank and its profitability

 1.3            PURPOSE OF THE STUDY

The purpose of the study among other thins are stated below:

  1. To find out the extent of staff and customers relationship
  2. To determine the extent of customers compliant of non-satisfactory service
  3. To determine the adequacy of available resources both human and material in the bank.
  4. To find out the material in the bank
  5. To find out the staff customer ratio
  6. To ascertain the causes of long queues on  banks
  7. To identify the effects of inefficient service on the banks image and profitability    

 1.4            SCOPE OF THE STUDY

Due to the limitations of time and other resources the scope of this study was limited to union bank of Nigeria Plc garden Avenue off Okpara Avenue Enugu State. Hence data collected and questionnaires distribution was limited to staff and customers of the bank at Garden Avenue 

 1.5            RESEARCH HYPOTHESIS 

In this research the following hypothesis are formulated and will be tested. The customer dissatisfaction is not a function of the inefficiency of the bank staff.

 H0:   There is no correlation between improved service delivery and bank

 efficiency and profitability   

H1:    There is no correlation between improved service delivery and bank

 efficiency and profitability   

H0:    Training and motivation of staff does not affect the service rate of staff

H1:    Training and motivation of staff affect the service rate of staff


Considering the uniqueness of the problem identified in this research the findings are expected to be great importance  to. Satisfaction of customer needs through improved quality service. the earlier the problem hindering the  effective customer service by  banking industrial are identified the better for both customer and the banks

In the exposition in banks customer relations professor Nwankwo G.O (1980)express the position of the customers in such relation. He position of the customers in such relation he expressed that customers are the main reason of banks existence  that bankers are not doing any favour to the customers but that customers are doing bankers favours by entrusting his hard carried money for safe keeping. The (customers) make greatest demand on banks the most important being getting their money when they want it and some of the banks money when they need it.  It is therefore important that an efficient and courteous service system will be crucial in retaining her customers. Some commercial banks in Nigeria tends to be indifferent to delays suffered by their customers with competition increasing fast in the banking industry the problem of delays in  banks cannot be over-looked especially if they have to retain their customers. The knowledge of today’s customers are increasing and  their fore their  number and knowledge require even harder effort in this light it is just obligatory and prudent for banks to improve their service anything short of that will be fool hardy and may endanger the life of the bank

The important of this study is also to throw more light on some of the causes and effects of unsatisfactory counter service in the Nigeria banks. The bank management will find the exposition useful customers will also benefit from the study.

The study will also help to identify the correct from of motivation for the workers in the banking industry. If workers are well motivated it is likely that they will perform their duties with cheerfulness and more dedication to duty. This is likely to promote a very cordial relationship between the banks and their customers.

 1.8            LIMITATION OF THE STUDY   

Adequate coverage and study of the research work was constrained by so many factors which include.

Time: Due to the short period of time allowed for carrying out this research work the researcher was greatly hindered from covering all the branched of union bank of Nigeria PLC in Enugu State

Finance:     This is consequent on the   problem of the highlighted above. The researcher was unable to gather enough financial resources that will help to facilitate and accommodate the running expenses associated with the research work.

Responses: This attitude and behaviour of the respondents affected the effective execution of the research work. Some of respondents contacted defined its comment or make contribution to the project work some demanded for gratification before responding to questions posed to them.

Distance and location:  Due to the problems of time and finance the research was unable to reach to the remote areas where the banks had some branches. More so some roads leading to the banks branch offices in the rural area are not easily accessible.  Hence this hindered the research work 


Where as certain terms have very definite meanings, other have varying meanings for the above reasons the critical terms used in this study may be defined as give here.

i.   Customer service:      This has been defined as connection of activities performed in keeping customer happy

ii.   Effective:        This may be defined as a state capable of causing a  desired result. Effective customers service is thus a state of service capable of causing desired result such as achieving the  sport out objectives of the banks

iii.   Expectancy:   This is defined as the workers perception of the probability that a particular out come will result or occur when he/she behaves in a certain way.

iv.  Productivity:  This means that the dedication of the banks worker to their duties and their prompt attendance to their customers and their problem which are measured by the number of hours out of the total number of worker hours per day utilized efficiently by the workers in the performance of their assigned duties.

v.   Performance appraisal:        This is the personnel activity by which the enterprise determines the extent to which the employee is performing the job effectively

iv.  Motivation:    This refers to  goal directed behaviours ie. The process of influencing and activating a workers energies and  full potentials towards the performance of set task and the achievement of organizational objective 


 1.  Nwankwo G.O(1980) The Nigeria Financial System London Macmillan Press, PP, 29-30

2.    Median A (1983) “The Role of Marketing in  Banking” The Quarterly Review of Marketing spring p.58

3.    Douglas Mcgregor, (1980) The Human Side of Enterprise New York Mc Graw Hill Book P.60