Commercial Banks – Improving Customer Services In Nigerian

Commercial Banks – Improving Customer Services In Nigerian

Commercial Banks – Improving Customer Services In Nigerian


Writers examine the marketing practice of commercial banks in Nigeria in retailing their financial services and relates such practices to their historical background and outline the effects of such practice and state the nations economy and suggest improvement.

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G.O. Nwankwo in line analysis point out that it is possible to run a business without a profit for a time, but it is not possible for it to survive for a day without a customer. This means that the customer is the central theme of any business and that everyone from the chairman and chief executive to the man who opens the door must realise that the business and ultimately, its own personal economic survival begins and ends with the customer.

The bank worker has to attract customers to sell deposit to them and attract them to buy loans and advance. These can be achieved by good marketing, that is designing his products to match the needs and get the customers to buy the product .

Ade T. Ojo states that ”good quality services in commercial banks can be achieved through public relation exercise in the call up plan and after sale service , the behaviour of counter staff and branch manager as an important input in the public relations advertising in banks”.

From the view of the above mentioned writers we feel that if their ideals are considered and put into practices , it will heip in no small way to improve and give good quality service to both the bank and the customer.

2.1 Bank And Customer Relationship

The relationship between banker and customer is governed by the followings:

1. DEBTOR/CREDITOR RELATIONSHIP: The relationship between a banker a banker and customer can be described as debtor/creditor relationship where a customer has a credit balance in his account, the bank is the debtor and the customer is the creditor, where the customer over draw his account, the roles are reverse, the banker become the creditor while the customer becomes the creditor while the customer becomes the debtor. It is also necessary to note that the money which the customer deposits for him, but borrowed from him with promise to repay it or any part of it.

2. MORTGAGER/MORTGAGEE RELATIONSHIP.: When granting an advance or loan secured by the real estate or other tangible assets, such assets are mortgaged to the bank. Immediately a bank take such mortgage, the relationship or mortgaged/mortgagee is established. The bank is the mortgager and the customer is the mortgagee.

3. CONTRACTUAL RELATIONSHIP: The total relationship between the bank and the customer is essentially contractual. It is contractual in the sense that there is a mutual agreement between the customer and the banker to refrain from doing certain things that can be enforced by law. These relationship commences when a prospective a customer makes an offer to the banker to open and operate an account and bank acce3pts such offer.

4. BAILOR/BAILEE RELATIONSHIP: The relationship is established when a banker takes charge of his customer’s properly for safe keeping. Under this arrangement properly is bound to take researchable care of articles expected of the bank is always very high since the bank is bailee for reward.

2.2 Duties And Rights Of Commercial Banks To Their Customers:

First, bank over the duty of receiving the customers money and cheques other instrument for collection. Secondary, banks are duty bound to pay agreed interest an deposits made y customers as and when due.

Thirdly, the bank should furnish the customer with statement of account periodically. These reflects transactions that passed through the account of the customer on periodic banks. The customer will be able to reconcile the bank statement with his own records.

Fourthly, where the bank observes any form of irregularities an the customers account the bank is duty bound to inform and advice him.

Fifthly, the bank has the right to return paid cheques are not draw regularly customers, the bank can have it stating the reason for the dishonor.

a. STAFF: Most commercial banks do not give adequate training to their staff. Most staff who has spent over two years in the service have not been on training and as such many bank workers/employees work with half baked knowledge. Furthermore, untrained staff may lack manners on how to please, his customers in orders to retain item but will only be interested in his salaries thereby frustrating the customers.

b. BANK DENSITY: The number of branches in the country are small compared with the depositing public and this gives rise to over congestion in banks which may result to poor services. Unlike in developed countries where there are many branches and the staff strength is adequate to meet customers need.

c. LACK OF MODERN EQUIPMENTS: The absence of modernized equipment for easy and better service give will hamper the level of service given to the customers such equipment are yet to be installed in many commercial banks. These will lead to performance of many banks and times may also e lost.

d. FRAUDULENT PRACTICES: Transparent honesty is a very essential quality in bank staff. A s keepers of the most sought after commodity “cash” a bank officer should be trust worthy and exercise care in in discharging his duties and responsibilities and also maintain secrecy in the affairs of his customers except where disclosure is concept every body wants to be rich over might and as a result of enriching series of frauds from the their establishment and thousands of naira are lost. Therefore, the fear of frauds shows down the checking system adopted by banks in payment of cash and has militated against perform quick and excellent quality of service.

e. INADEQUATE FUND: Insufficient fund in the bank till can lead or hamper the activities of the customer. Most customers who engages in a business that demand for immediate cash are disappointed by the inadequate fund in the bank. As a result of this, the number and customer may be reduced.

2.4 Ways And Benefits Of Good Quality Services To Customers

As we have said earlier that a business cannot survive without customer, we can look into the saying that “no customer no business:.

The good quality services bank render to their customer will also determine whether the bank will exist or will fold up because once there are no customers patronizing bank, the next is to fold up.

Banks will also benefits by gaining more equipment like computers and many other things which will aid them to give quick service to their customers. This will then attract more customers and the more the customer, the more the profit and loss incurred.

2.5 The Bank And Its Environment:

Most banks are not situated places and such banks will find it difficult to progress in their banking business. Likewise, if a bank is situated on an insecure place, it will have less customers since the environment of a bank determines near the market to reduce the risk of carrying money to a far area for depositing. Absolute security should be ensured in and deposit their money and other valuable with confident.

2.6 Central Bank Of Nigeria (CBN) Control Of Commercial Bank

The central bank issues annual credit guideline to which comes in the form of monetary policy circulars have now been established as the “Bankers general orders.” Subject to review every year. They contain specific directives to banks in respect of their general operation as they affect the economy of the country.

The credit guidelines issued annually which declares objective of government policy are outlined below.,:

a. promoting orderly growth of the financial markets and combating inflation through the regular interest rate.

b. promoting accelerated economic development of the nation by regulating the flown of credit to the favoured sectors.

c. maintaining healthy balance of payments and relative price stability through the introduction of exchange control and import restriction some of the provision s of the guidelines in recent years are selling on aggregate loan, sectional distribution of lending, interest rates chafe able of and indigenization of lending.

The monetary instruments above are the ways CBN controls. Unlike in ordinary business activities where one can decide to reduce his price in order to get customers reduction of price is not in banking business the amount of services rendered by banks to its customers makes the customers either to its customers makes the customers either to say or to charge to another bank.

2.7 Opportunities For Growth, Advancement And Self Actualization In Commercial Banks

Banks as we all know as a business unit has a very essential aim of growing. Then, we can ask ourselves a question that goes like this, how can the banks grow? A bank does not grow overnight or in twinkle of an eye instead, a bank grows advance and finally self actualizes through underlined points:

i. A bank grows through good and efficient services, it renders to its customers which we know as successful business.

ii. Oversea aid, to the bank help in no small measure to help our local bank grow as well advance. When our overseas friend give our banks aids either in the chance to grow and self actualize.

iii. A bank will as well gives through selling of shares and debentures to the public who in same to subscribe for the said shares. Therefore, there is up doubts that when the above listed points are taken into consideration, our banks will grow and as well advance and the overall in that they will be self actualized.


Based on what we have discussed about services in the bank as an aspect of improving bank and customers relationships, we have seen how important and beneficial the customers are to the bank and its customers.

This is true because all their monies at hand and also their important movies at hand and also their important documents. They need a place for safeguarding those things but if bank on the other hand fails to pay attention to their customers and offer good services to them, they will run away to other banks since their aim of coming to that bank has been defeated. And banking business in Nigeria today, as you know, is very competitive like any other business.


Although, the behaviours of the customers at times influences the bank itself, bank must learn to be tolerating and enduring, bearing in mind the saying that “customers are always right”. Bank should as well bear in mind that it ought to learn how to relate with its customer so as to retain them.

However, as we said earlier, “No customers no business.” The services in relation to customer should be improved by the bank in order to enhance the growth of banking business. As we all cow, commercial bank business. As we all know, of Nigeria (CBN) and acts according to its direction especially in the area of increasing or decreasing of interest rate and givimg of loans/advances but what differentiates bank from one another is the amount of services rendered and commission charged to its customers. There are some variable factors which affects the services of banks. Bank capital is an important strategies. The size of capital can be a constraint on the expansion of bank services and their effective marketing as well as having a psychological influences on public confidence in the bank.


All along in this write up, I have successfully enumerated various causes and effects of poor customers services, also ways and benefits for good quality services to Nigeria commercial banks.

It there becomes necessary to point out that improvement and development in the industry are required to enable they meet the demands of the changing economy in view of this, I recommend the following.:

a. Improvement in customer’s services can be made through recruitment and selection of qualified individuals for the job. This can be achieved (that in , development of employees) by educating and training them to meet the requirements of the job. They can equally be motivated to work hard through the training. Also demonstrated interested in customer problems, firmness, courteousness and friendliness, fairness, appreciation of circumstances, confidence and distraction on the part of the bank are the virtue success. Customers should be treated on “first come first serve cares. “reason(s) for their unnecessary delay should be made known to them.

b. in area of counter services, the staff should maintained a pleasant personality, contrast respect and neatness since the sum total of a workers as well known the bank service so as to explain and equally carry it out to the customers.

c. Bank states should concentrate on the customer business to avoid long queue in the banking hall. Also the cashier should be taught the ethics of human relation before making him a cashier.

d. mechanization of banks, the banks should be computerized as to ease the work of these in accounting sector which will in turn yield quick services.

e. Bank s should device more awareness for common indicating with customers such as sending monthly statements of accounts to customers, establishing a newsletter or even magazine for informing customers about trends and business opportunity, loan deposits, etc.

Commercial Banks – Improving Customer Services In Nigerian


To place an order for the Complete Project Material, pay N5,000 to

GTBank (Guaranty Trust Bank)
Account Name – Chudi-Oji Chukwuka
Account No – 0044157183

Then text the name of the Project topic, email address and your names to 08060565721.  

Enter your email address:

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  1. thanks very much for making me complete my project

  2. JimohOlayinka says:

    Tnks vry much I havnt know d importance of customers to bank

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