Bank Service Delivery And Customers Satisfaction In Nigerian Banks

This study is on bank service delivery and customers satisfaction in Nigerian banks. The total population for the study is 200 staff of selected banks in Oredo local government of Edo state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up human resource managers, accountants, customer care officers and marketers was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.

Introduction

1.1 Background of the Study

Bank service delivery is concerned with the provision of quality services to customers. Obviously, one of the factors that separate competitors (banks) from the other (other banks) in the Nigerian banking industry is their level of services delivery. This is because service delivery determines the level of customers" satisfaction and consequently, the customer patronage of any bank. The patronage by customers on the service delivered by a given Bank, no doubt is a function of the satisfaction they so derive from it. Satisfaction in relation to bank service delivery is the customers" evaluation of the service in terms of whether that service met their needs and expectations (Babatunde and Olukemi, 2012).

Happy and satisfied customers behave in a positive manner. The effect of service delivery by banks and the satisfaction derivable by the customers are becoming perceptible. Given that the contemporary customers are more informed than ever before, Leboeuf (1987) posited that meeting their expectation as regards satisfaction is increasingly becoming more difficult. According to Woldie (2003), bank customers in Nigeria have been found to be dissatisfied with the quality, of services provided by banks. This calls for the need to actually investigate how customers behave or get satisfied with regards to the services of commercial banks in Nigeria. No doubt that information from current technologies in banking operations has improved efficiency and effectiveness of their operations so that more transactions can be processed faster and most conveniently. However, this development in the Nigerian banking industry seems not to have achieved the very essence and goal of satisfying the myriad of customers (Babatunde and Olukemi, 2012). Long queues are still seen in the banking halls, bank customers still handled too much cash, and hardly the people talk about the electronic banking service delivery that are presumed to enhance customers satisfaction in Nigeria banking industry. Against this backdrop, this study examines Bank services delivery and customer satisfaction in Nigeria.

1.2 Statement of the Research Problem

Satisfaction is a challenge particularly in a bank based service, in that customers can easily switch from one bank to another of a better service delivery. However, almost every Nigerian bank encounters problems in meeting customers expectation of services and satisfaction. The long queue and huge crowd in the banking halls are obvious indication that bank service delivery may not actually meet the needs of customers in a satisfactory way. It is important to know customers perception concerning bank services and therefore it is pertinent that answers to the following research questions needs to be ascertained

How does customer service influence customer satisfaction in the Nigerian banking industry?

If there a relationship between bank service delivery and customers" loyalty in Nigeria?

Which service/activities do Nigerian banks deliver that really satisfy customers?

1.3 Objectives of the Study

The general objective is to examine how bank service delivery affects the level of customers" satisfaction in Nigeria.

The specific objectives are stated as follows:

To find out how bank service delivery affects customer satisfaction in the Nigerian banking sector.

To establish if there is a relationship between service delivery and customer loyalty in the Nigeria banking sector.

To identify which service/ activities, customers will regard as satisfactory in Nigerian banks.

1.4 Statement of Research Hypotheses

In this study, the following hypotheses tested:

Ho: There is no relationship between service delivery and customer satisfaction in the Nigerian banking sector
H1: There is relationship between service delivery and customer satisfaction in the Nigerian banking sector

Ho: There is no relationship between services delivery and customers" loyalty.
H1: There is a relationship between services delivery and customers" loyalty.

1.5 Significance of the Study

Bank has customer service as one of its products, hence the need to find out whether they really are providing that service and what ways they can improve so as to have competitive advantage over rivals in the market or banking environment. This work will therefore provide information regarding excellent customer service and its effects on customer satisfaction in the branches of banks in Oredo local government Area of Edo State. This piece will be available to the bank being researched for the management to know the perception of their customers on services being provided or delivered to them and to help improve on service quality with a view to ensuring customers satisfaction. It will benefit other business service providers to make informed decisions as far as service is concerned. Educational institutions, corporate entities, business policy makers and other researchers will also benefit from this research in making informed decisions when it comes to quality customer delivery to satisfy the customers. Furthermore researchers no doubt will find this study useful in terms of reference material on a similar subject.

1.6 Scope and Limitation of the Study

This study specifically investigates the perception of the customers regarding the satisfaction they derive from bank services in Oredo Local Government Area. Though this study aimed at bank service delivery, however, the focus is on bank customers in Oredo Local Government Area.

The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definition of Terms

Bank Service:

Bank Accounts. Individual BankingBanks typically offer a variety of services to assist individuals in managing their finances, including: Checking accounts.

Customer Satisfaction:

Customer satisfaction (often abbreviated as CSAT, more correctly CSat) is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation.

Banking Sector:

The banking sector is the section of the economy devoted to the holding of financial assets for others, investing those financial assets as leverage to create more wealth and the regulation of those activities by government agencies

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.

Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.

Chapter three deals on the research design and methodology adopted in the study.

Chapter four concentrate on the data collection and analysis and presentation of finding.

Chapter five gives summary, conclusion, and recommendations made of the study

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain bank service delivery and customers teacher"s satisfaction in Nigeria banks

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of bank service delivery and customers teacher"s satisfaction in Nigeria banks

5.2 Summary

This study was on bank service delivery and customers teacher"s satisfaction in Nigeria banks.Four objectives were raised which included:To find out how bank service delivery affects customer satisfaction in the Nigerian banking sector, to establish if there is a relationship between service delivery and customer loyalty in the Nigeria banking sector, to identify which service/ activities, customers will regard as satisfactory in Nigerian banks. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected banks in Oredo local government of Edo state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up human resource managers,accountants,customer care officersand marketers was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.

5.3 Conclusion

There is no doubt that the banking sector reforms programme is the right step to take by the CBN as it is capable of prompting healthy competition among banks and making banks to be more creative and innovative. It also has the potential of accelerating the rate of economic growth and development of the country. However, to ensure that the synergy it promises is fully harnessed, and to mitigate post consolidation conflicts, adequate steps should be taken to train and retrain the staff of all the banks that have scaled the capitalization huddle while the regulatory environment has to be tightened to close all the loopholes that could come up as a result of the increased size of the firms in the industry. Based on the findings, the study concludes that banking reforms have impact on service delivery of the banking sector in the area of increased in customers deposit and profits of the banks are enhanced as well. The importance of customer service is increasingly becoming a vital business issue, as organizations have become sensitive to the benefits of customer service and customer satisfaction.

5.4 Recommendation

The CBN should provide the enabling supervisory environment to ensure the viability of the envisaged banking industry. The apex bank should foster on environment in which the interest of all parties is protected, vis-à -vis investors, depositors, borrowers and the larger society. Specifically, the CBN has to be disciplined and committed to its agenda for improving the industry. As such, the necessary internal machinery for effective supervision of the industry must be put in place. The current CBN change program, tagged eagles is designed to deliver this. Also, banks are also expected to imbibe best practice corporate governance, improve in self-regular, enhance the capital base, institute IT driven culture, and seek to be more competitive in today‟s globalizing world. There is still the need to set up Asset Management Company (AMC) soonest in order to reduce the risk exposure of the banks that have survived the consolidation programme while enhancing their asset quality

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