.PERFORMANCE EVALUATION OF NEW PRODUCTS DEVELOPED IN THE BANKING INDUSTRY
A CASE STUDY OF FIRST BANK OF NIGERIA PLC ENUGU
This research studied performance evaluation of new product developed in the banking industry from 1999 – 2004
In this research work, the researcher chooses four of the products and measures the extents to which they have been able to satisfy the customers. The products selected are, smart card, international money transfer, and educational scheme and integrated banking network transaction.
Data for this research were collected through questionnaires and intervenes by banks customers and the review of existing literature on the topic using systematic random procedure and descriptive method of research. The data so collected were analyzed using the simple percentage and formulated hypothesis were testing with chi square (X2) method.
Some of the findings. The performance can be measured in terms of accessibility, speed, timelines, simplicity and reliability. Customers who patronize the new products are Marjory those who want money transfer both locally and internationally. Customers device high level of satisfaction from the new products.
Inadequate infrastructural level in our banking industry and high cost of installing them contributed to the problem of the new products.
Based on the findings, the following were recommended banks should come together and establish a common data communication satellite to minimize constant problems.
A parallel organization that was supplying electricity in competition with NEPA should be allowed to evolved so that an efficient supply electricity can be ensured.
Finally, since this study alone cannot be exhaustive of this vital subject, it is recommended for further studies.
BACKGROUND OF THE STUDY
The history of banking in Nigeria dates back to pre-independence period, the establishment of banks was motivated by the urge on the part of government to inculcate banking culture in the people and the desire of the people themselves to find the means of making financial intermediation easy,
In the recent time between 1999 – 2004, a lot of techniques are used by bankers to facilitate customers services and customers satisfaction which has led to the introduction of the new products developed in the banking industry. These new products developed in the banking industry today revolves around electronics banking and information technology.
As a result of this, the researcher seeks to study the performance and evaluation of the new products developed in the banking industries between (1999 – 2004)
1.2 STATEMENT OF THE PROBLEM
This research is designed to find out the performance and evaluation of the new products developed in the banking industry between 1999 – 2004.
Therefore the statement of the problem in the research work remain thus to what extent has the new product in the banking industry today been able to meet customers satisfaction. In looking at the statement of the problem, one need to bear in mind that some customers needs that are peculiar to their own circumstances while some come for reasons that could be general. The ability of this new products in the banking industry is to meet customers needs and facilitate their satisfaction to determine their efficiency.
1.3 OBJECTIVE OF THE STUDY
In the view of the problems identified, this study will achieve the following objectives.
1 to identify the delivery strategies of the new products and services in our banks.
2 To find out if the new products developed by banks is convienent to customers.
3 To find out if these new products developed by banks satisfies customers needs.
4 To evaluate if fund transfer is one of the performance of the new products developed by banks.
5 To find out if inadequate infrastructure level is among the problems of the new products in the banking industry
1.4 RESEARCH QUESTIONS
1 What is the delivery strategies of the new products and services in our banks?
2 Is new products developed in the banking industry convenient for customers?
3 Could those new products developed by banks satisfies customers needs?
4 Is fund transfer is one of the performance of the new products developed by banks?
5 Is inadequate infrastructure level is among the problems of the new products in the banking industry?
1.5 RESEARCH HYPOTHESIS
The following hypothesis are drawn from the study using null (Ho) and alternative hypothesis (Hi)
Ho: new product by banks have not increased customers patronage.
Hi: new product by banks have increased customers patronage.
Ho: customers did not derive satisfaction from patronizing the new products.
Hi: customers derive satisfaction from patronizing the new products.
1.6 PURPOSE OF THE STUDY
This research is aimed out for academic purpose to meet the requirement for the award of the Higher national Diploma.
1.7 SIGNIFICANCE OF THE STUDY
This study will be capable of widening academics by acting as a guide for researchers. therefore banks constitutes themselves into a very powerful instrument for fostering economic development banks customers today expects a lot from their banks. Banking performance is no longer just about safety of funds and increased returns on investment, customers demand courteous treatment from their banks as well as efficient, fast and personalized service which meet their needs.
1.8 RATIONALE AND JUSTIFICATION FOR THE STUDY
At the end of this research, the following banks, government, general public and future researchers should stand to benefits there from.
1 bank customers: they will be exposed to the idea of the new developed product in the banking industry as to clear their minds to the performances and evaluation of the new products.
2 Government: it will act as a starting point arousing government policy in support of the new product developed in the banking industry which will facilitate economic development.
3 Banks: it will help the banks to improve in their services rendered to the customers as well as efficient fast and personalized services which meet their needs.
4 General public: this will further encourage savings for more investment and creation of jobs opportunities for the timing population.
5 Future researchers: this study cannot be exhaustive of this vital subject so, it is hoped that the findings and recommendations will appeal to them inquisitive minds of the readers and other students as to spur them to take further studies in this area.
1.9 SCOPE OF THE STUDY
The scope of this study is limited to performance and evaluation of the new products developed in the banking industry. Being conducted by the banking industry in particular. Both primary and secondary data were used in aiming at the findings and conclusion.
1.10 ASSUMPTION OF THE STUDY
The following assumptions are made on this research. This research work is free of bias. The data collected is true, reliable and not fiticious because of the question and interviews were by answered by the right person. The information replied by the respondents is reliable because the respondents were honest in replying the questions and those who cannot give true information were excluded.
The method which constituted systematic random procedure is not questionable. The chi – square (X2) method used in testing hypothesis is the most appropriate one.
1.11 DEFINITION OF TERMS
The following definition of terms will help those who are not experts in the field to understand certain technological jargons used in this research.
1. Performance: The act of achieving a targeted objective.
2. Evaluation: Bringing two concepts together and seeing the difference between those two concepts.
3. Banks: A bank is any institution licensed to carryout business of banking in Nigeria and they are characterized by acceptance of deposit and facilitating withdrawal, equipment leasing, bill discounting and other financial transactions depending on the type of bank. Ukemenam. C. O (2000)
4. Bank customers: Are people or organization who have account with the bank and carries financial transaction with the bank. Iloh. J. C. (2002)
5. New product: These are products that are introduced newly into the banking industry to enhance and facilitate banks services to both customers and bankers. Edemodu. A. (1999)
6. Universal banking: This is a concept or banking policy which every banks is free to determine the type of banking transaction they can engage in or a situation whereby a commercial and merchant banks are free to engage in any conventional activities of either. Orjih. J. (2001)
7. C.I.B: Chartered institute of bankers
8. Banking industry: Is a prominent member of the service of the Nigerian economy
9. CBN: Central bank of Nigeria. Known as the apex regulatory bank for Nigeria financial system. Ukemenam. C. O. (2000)
10. Developed: something that is more mature or advanced.