1.0 INTRODUCTION
The banking industry, a significant and important sector of the economy, has a significant impact
on both the general expansion of the economy and the level of life of its clients. Any country’s
banking sector is the engine that drives the expansion and expansion of its economy. Numerous
commercial banks have been formed, paving the way for competitive financial services that can
satisfy their clients. These services might change based on how frequently clients use them, how
much they consume, and how much money they save. While the customer service department
has grown in importance for the majority of enterprises, there is a prevalent perception that not
enough businesses take it seriously.
Customer service can be offered by an individual, a team, or an automated system called “Self
Service.” The bank’s customer service management division is a requirement. Commercial banks
are the most significant and significant collection of financial institutions in the nation. It is
crucial for Nigeria’s commercial banks to raise the calibre of their services given the fiercer
competition between domestic and foreign banks. Because of the increased competition among
banks, the customer is now stronger because there are so many options available. In this
atmosphere of intense competition, banks that have high customer satisfaction rates flourish. A
service provider’s ability to succeed hinges on their ability to maintain a solid rapport with their
client’s satisfaction and loyalty.
Only by keeping and satisfying clients would any bank be able to realize its business goal,
“maximization of shareholders’ wealth.” This is consistent with the idea that identifying and
satisfying consumers’ requirements is the key to effective marketing of financial services. The
competition among banks to provide goods and services increases as globalization and the
liberalization of financial institutions picks up speed. Despite such a constrictive banking strategy, the fast transformation of Nigeria’s retail banking sector has changed the function of banks in
Nigeria from financing trade to one of mobilizing and more effectively channelling resources to
client requirements.
The creation of numerous new financial institutions, the introduction of new financial
instruments and services, the security of financial operations, and the eradication of rigid gender
distinctions among various client types were all signs of these changes. The Nigerian banking
sector now has a new dimension as a result of these banking system developments, where banks
must compete both vertically and horizontally for consumers’ discretionary income. Due to
statutory requirements for universal banking as well as client awareness of their rights, the
competition in Nigeria’s banking business is quite fierce.
Customers of banks are becoming more and more picky, expecting high-quality, inexpensive,
and immediate service. They want their preferred banks to continue to boost their worth.
Customer service at banks is personalized; if the system is busy, customers can either wait in line
or are served right away. The support of these consumers might be referred to as the foundation
of a highly liquid financial institution.
Receiving money and collecting drafts for clients is referred to as banking. Clients are required
to borrow money from the bank for each check that is drawn on them, up to the amount of their
current account balance. A commercial bank is a financial organization that is owned by either
the government or private businesspeople with the intention of making a profit. Without a strong
customer base, banking’s profit maximization goal may be difficult to attain because a strong
customer base improves the efficacy and efficiency of the services provided to clients. In other
words, customers would be more motivated to maintain their money with a bank if they received assistance more quickly. Customer happiness is largely determined by the quality and reliability
of products and services.
However, nearly every bank in Nigeria has the same issues while trying to satisfy customers’
expectations for services. One significant difficulty that consumers of certain banks have been
forced to deal with is the problem of money transfer in banks. Most of the time, the customer
hardly ever receives the money placed into their account right away. Most of the time, especially
when the weekend is approaching, the lengthy lines and large people in the banking halls may be
quite disheartening and demoralizing. Most often, these long lines are caused by malfunctions in
the cashiers’ computers, but they can also happen when the cashier’s jockey for position as to
whether or not to serve consumers.
1.1 STUDY’S OBJECTIVE AND GOAL
- The first goal of this study is to identify the issues with Nigerian commercial banking.
- Second, to assess the roles and responsibilities that commercial banks have toward their
- clients.
- Lastly, I want to draw attention to ways that the Nigeria Commercial Bank might
- improve its customer service.
1.2 DEFINITION OF TERMS
Customer service: is the procedure used to make sure customers are satisfied with a good or
service. Customer service frequently occurs while carrying out a transaction for the client, like
making a sale or returning an item. Customer service can be provided over the phone, in person,
through self-service kiosks, or in other ways.
Banking institution: (also known as a universal or commercial bank) can be anything from a big financial institution with an internationally recognized brand to a small business with a local
presence.
1.3 PROBLEM OF CUSTOMER SERVICE IN NIGERIA BANKING SECTION
In the post-consolidation period of the Nigerian banking sector, customers have very high
expectations. This is supported by the idea that the exercise had driven out inept institutions,
leaving only those that could compete in both the domestic and international markets. The
majority of Nigerian banks, though, have recently fallen short of this expectation. Customers
have encountered issues such as delayed transaction notifications, supply shortages, staff
shortages at service locations, rude or unprofessional behaviour on the part of bank staff, subpar
records or incorrect information, broken promises, and more.
According to Ogunnaike and Ogbari (2008), customer service in the Nigerian banking sector can
be misunderstood to represent customer delay and annoyance. Almost every bank in Nigeria
faces a similar challenge in satisfying consumers’ expectations for services. Clients of Nigerian
banks have, for example, been forced to deal with the issue of publishing transactions such as
money transfers and payments made between customers late. Most of the time, the consumer
rarely gets an immediate notification that their account has been credited or debited. In severe
circumstances, the account user might have to physically visit the bank to verify the transaction
after waiting an eternity to see the notification.
Additionally, especially when the weekend approaches, the lengthy lines and large crowds in the
banking halls may be extremely upsetting and demoralizing. The majority of the time, these
lengthy lines are caused by malfunctioning computer networks. When it comes to who should
serve the customer or not, the cash officers occasionally push the responsibility on one another.
As a result, the bank’s profitability and customer retention are issues. The ability of banks to
quickly match their service offerings with client wants is one of the key criteria for efficiency.
There has been a lot of consumer wait. Due to this circumstance, Nigerian banks deliver their
services inefficiently, which lowers client satisfaction. The general public in Nigerian banking
has thus questioned when. The nation’s banks will satisfy the unending demand to complete
banking transactions in the shortest amount of time possible. Although attracting and keeping
customers while maximizing profits is one of the banks’ top priorities, maximizing profits in the
banking sector depends on management’s capacity to give effective services to clients with little
to no wasted time.
1.4 SOLUTION TO CUSTOMER SERVICE IN NIGERIA BANKING SECTION
Quickly respond to customer complaints
The key to keeping your consumers pleased is to respond quickly and without delay. Negative
feedback and customers using social media to spread the word about the problems as a result of a
sluggish reaction time. So, to run an effective business, be informed of client messages and give
prompt attention.
Invest In A Complaint Management Software
Investing in reliable complaint software is the best approach to handling consumer problems.
Installing the most recent and updated software that can assist banks and other financial organizations in managing vast volumes of data and information is crucial. An efficient management system will not only help you store vast amounts of data, but it will also be useful for managing, tracking, and responding to consumers. By comprehending their demands and promptly addressing their complaints, it will also assist in establishing long-lasting professional relationships with clients.
Provide A Link For Feedback/Complaints
For your customers, sharing reviews or making a complaint shouldn’t be a difficult process. The last thing you want to do is make customers go through extra hoops or phone-overloaded contact numbers and endure a frustrating wait for their concerns to be heard if they are already dissatisfied with any of the services. Banks and other financial organizations can significantly simplify the procedure for their consumers by providing a direct link, an email address, or by setting up robust complaint software.
Perform A Regular Analysis
Conducting regular analyses might also benefit from having a customer complaint management
system. The banks and financial institutions can look for trends in the types of complaints being
filed and take steps to improve the related area by analyzing the various data and views shared
by various customers.
Train Your Employees for Handling Complaints
The institutions should give their staff the instruction and support needed to address client
concerns properly. The individuals tasked with handling complaints ought to be capable of
providing the consumer with the right remedies. Negative comments or criticisms ought to be
valued and used as motivation to get better. Employees should pay close attention, and then respond
swiftly and appropriately.
