THE EFFECT OF EFFECTIVE SERVICE PROVISION ON BANK GROWTH AND PROFITABILITY

1.1 Introduction

The impact of efficient service delivery to the profitability of Bank and other related service industry can't be re-emphases any Business organization whose work in voles doing something, some special and unique for customers but not production of goods is simply referred to as service delivery industry. The globalization trend coupled with high growth of service industries in the industrial evolutions of 1970's, increased competitions in the service industry including banks such that, the lower the quality of service rendered, the lower the customers calling and the higher the efficient of service rendered, the higher the profitability, wealth and total number of customers calling on daily or weekly basis. However, in recent times, there has been accelerated growth in the size of banking industry despite the recapitalization of which some Bank like all state trust Bank, Hallmark Bank, Union Bank. Etc. has been driven from the market due to their inability to meet up with the #25Billion capital legal requirement base of the central Bank of Nigeria.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

1.2 Background of Study

The development of modern Banking service should be credited to the great expansion in industry and commerce which has taken place since the industrial revolution. At the time when there was small business transaction and proprietors took active part in the management of their business transactions. It was perhaps felt, that there was little or need for efficient service delivery due customers are always there for the Banks. But as Business transaction increased and investment in banking industry came into existence, where shareholders are not the managers of their capital, the need for the manager to account to the shareholders become the need for Banks to strive in order to see above the stiff competitions. The shareholder and managers of banking industries therefore require every marketing researcher cum strategies necessary to increase service quotience which could in return contribute in raising its general profitability index.

The government as a controlling agent of all economic activities in the country also has to make provisions for the accounts for the account of these banks to be examined and service efficiency recorded. Now in obsession there is this lingering case of incompatibility which arqes so much on the obnoxious facts that industry depends largely on the efficiency of service rendered to its actual and potential customers or depositors.

The globalization trend coupled with high growth of service industries in the industrial evolutions of 1970’s, increased competitions in the service industry including banks such that, the lower the quality of service rendered, the lower the customers calling and the higher the efficient of service rendered, the higher the profitability, wealth and total number of customers calling on daily or weekly basis. However, in recent times, there has been accelerated growth in the size of banking industry despite the recapitalization of which some Bank like all state trust Bank, Hallmark Bank, Union Bank. Etc. has been driven from the market due to their inability to meet up with the #25Billion capital legal requirement base of the central Bank of Nigeria.

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effect of Effective Service Provision on Bank Growth and Profitability.

1.3 Statement of Problems

Investigation revealed that problem of effective management of the firm working capital to avoid failing to meet its financial obligations as at when due or rather went into liquidation and Bankruptcy. Since the nature of Banking service are critical and complex as it involves high rate of specialization. Some service Delivery and Goodwill are invisible and intangible Assets on how to measure and determine it’s efficiently is yet another problem of this research study.

The research discovered the following nagging problem as militating factors which its solutions contributes positively to the services of the study. Inability of bonus to apply marketing concepts which insist that firm should first identify the need of consumers and channel their strength and creative browses towards meeting their needs.

Not considering the consumerism principle which focused on the kingship and sovereignty of consumers cum their satisfactions. Inability of bonus to apply marketing concepts which insist that firm should first identify the need of consumers and channel their strength and creative browses towards meeting their needs.

The problem of effective management of the firm working capital to avoid failing to meet its financial obligations as at when due or rather went into liquidation and Bankruptcy.

1.4 Aim and Objectives of Study

The aim of the study is to investigate the Effect of Effective Service Provision on Bank Growth and Profitability using Eco Bank as a case study. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the impacts of efficient service Delivery to the growth and profitability of the Banking industry;
2. To find out if lack of effective service Delivery policies could really contribute to liquidation and down trodden of Banks;
3. To expose all the in comprising and in separately role played by service efficiency in recording high profitability; and
4. To initiate powerful and workable service orientation objectives that will educate bank staffs on treatment of customers.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Do marketing strategies and Advertisement play any role in the achievements of banks efficient service delivery policies?
• Has proper education of banking staffs on the need for consumer sovereignty any role to play in this respect?
• Has effective management of the Banking activities and working capital any role to play to culture service delivery efficiency any high profitability index?
• Are there any other short cuts to achieving high profits and maximizations of banks wealth without effective service Delivery?
• Have legal regulations competition and central Bank monetary policies any role to play in Banks profitability?
• What is this service Delivery all about and how can it impact positively to Banks high profitability index?
• How can service Delivery and Goodwill of Banks be measure and estimated despite their intangibility nature?
• What kind of accounting system is considered best to be applicable in united Banks for accurate accounting/Bookkeeping?
• What recommendatory steps and policies must Banks follow in order to arrive at high profitability and service Delivery?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There are no significant factors that inhibit effective service provision on Eco bank growth and profitability in Nigeria
• H1: There are significant factors that inhibit effective service provision on Eco bank growth and profitability in Nigeria

1.7 Significance of Study

The qualitative research study is of great relevance to both potential and actual bankers. The finding of this study among other to enable Banks builds adequate and efficient service delivery policies that will positively contribute to its high profitability index. Also the findings will contribute even in small dimension to the pool of banking knowledge and further increase the awareness in service rendering policies.

The nonchalant attitudes of banking staffs was equally considered as some of the reasons responsible for banks how profitability index and service delivery. It is equally expected of this research to greatly aid and inversely assist the top managements of Banking. Organizations in forming or rather, drafting service delivery policies that would stand the taste of stiff competitions and equally contribute positively in rising their profit merging.

Lastly, this study is expected also expected to cud researchers, educationist, governmental and other forms of organization that might equally desires to improve their service delivery quotient in one way or the other.

1.8 Scope of Study

The scope of the research is focused on the Effect of Effective Service Provision on Bank Growth and Profitability using Eco Bank as a case study.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 Definition of Terms

Impact: This refers to the powerful, positive effect or advantage one has over the other. It could equally be seen as an advantage or merits that passed from one party to the other just freely.

Efficient: This is the quality of doing something well and perfectly in order without waste of assets, materials and resources. It equally implies carrying out ones responsibility thoroughly with no waste of time, energy and resources.