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A Survey On Problems Of Marketing Commercial Bank Services A Case Study Of Union Bank Of Nigeria Plc, Garden Avenue, Enugu

Chapter one of A Survey On Problems Of Marketing Commercial Bank Services



for bank to survive in   today’s growing dynamic highly competitive bank environment the marketing  of the banking service is indeed inevitable so that they can serve its customers with a well tail over package and creating programme in order to meet adequately  the various needs of its customers and other company specific requirements.

Marketing starts when one social unit anticipates identifies  and designs the feature of a product or services to march the need structure of other social units.  These efforts are made with the intent to obtain a transaction between competent social units Okafor U. (1994:9)

The marketing concept as a management orientation according to Philip kofler holds that the key to achieving organization goal is imbibed in the organization determining  the need  and  wants of target market undercutting    itself to delivering the desired  satisfaction more effecting and efficiently than its competitors.  Bank marketing therefore could be described as the process through which banks affect and keep customers by designing  and offering service and inventions that make banking advantages to those customers.

Marketing  did not come into banks with “marketing  concept but with the advertising and promotion concept.

Banks were facing increased completion and a few stinted to embark on aggressive advertising people to a    bank in easy but converting them to loyal customers is difficult hence the interdiction of the marketing concept.

Here they had to formulate programmes to please these customers and in achieving this they tried to offer a veracity of financial and specialized service to them.

they used tried to install a lot of effective systems for efficient marketing analysis implementation and control (kotler, 1994: 28)

The central bank of Nigeria (CBN) has the responsibility of defining the requirements for the establishment of various classes of bank have on their own defined  their service requirement some example are shown in the table over-leaf


Name of bank   Classification of services Nature of financial requirement Nature of services required

NAL merchant bank Whole sale banking Accept large deposits for major financiers Provisions of leans for long term projects and ensuring the service of such leans.

Nigeria bank for commerce and industry (NBC) financing and merchant banking Equity capital grant from federal government and CBN plus short falls on loans to small and medium seals enterprise Cranking of loans share under writing , project identification and feasibility studies.

Union bank of Nigeria plc Commercial Required to deposit 200,000,000,as capitalization fee Provision of loans and short term credit facilities  the needing public

Nigeria industrial development bank Aiding industrial development Total assets are 50.4 billion naira Provides credit and other facilities to industries

First bank Nigeria plc Commercial Required to deposit 200,000,000 as capitalization fee. Provision of loans and short term credit facilities to the needing public.

Form this we discover that different kinds of banks provide different service and the service of commercials banks are unique because they meet the personal needs of their customers.  It is an the strength of this uniqueness that a definition of commercial banks and their services will be given.

Commercial bank can be defined as those banks whose naira purpose is to grant short term loans to individuals grounds organizations and government agencies and channel them to more profitable investments (Okafor. U  1994 pg .10) commercial  banks provide a wide range of service to their different customers.  There service identified separately via the provision of satisfaction and they have the  following characteristics.

(a) inseparability: The provider of  each service cannot be separate from the service itself .

(b) perish ability: service cannot be stored till later without loss of revenue no matter have much business is generate on subsequent days.

(c) heterogeneity: The service differ since it is impossible for a customer to get the same level of service on each trip to his bank.  This make it difficult for the bank to standardize each unit of the same service package to different customers.

(d) intangibility: these service rendered cannot  be touched or felt.  Through research   discoveries commercial.


Union  bank of Nigeria plc was established as a commercial  bank in Nigeria in 1917 with the name colonial bank. After a merger with some other banks in the union kingdom  in 1925 the was christened “Bardays” bank dominion colonial overseas” other wise known as Bardays bank D.C.O. in 1969 the bank was legally incorporated in international limited of loudon and was renamed Bardays bank of Nigeria limited.

In 1978 due to some national and poetical restructure the bank assumed the new name union bank   limited with its ownership structure at 80% Nigeria and  20% foreign.  Bardays bank  plc later divested it 20%  equity share holding in the union bank of Nigeria limited by offering for sale its 50.8m ordinary share to the Nigeria public.  Hence union bank is now 100 percent Nigeria owned.  The company was converted to a public company in 1970 with all over her shares quoted on the Nigeria stock exchange.  Due to some  socio-political and economic changes in 1989, the banks name was changed to the present “UNION BANK OF NIGERIA PLC”

Union bank of Nigeria plc has its registered office of stallion plaza 36, marina  Lagos. It currently has 28 branches and 11 area offices nationwide.  The banks staff strength as at 30th September 1999, stood at 8,593 country wide.  By the end of the 1999 financial year the  bank deterred a profit after taste of # 3.1 billion showing as increase of 80% over the  previous years sum of #1.7 billion.  Similarly under the same period there was a remark  improvement with the company’s total assets which stood at # 126.2 billion.  The bank, till date remains the most capitalized in the industry with its come capital at # 7.6 billion, an on salvation that corroborates the banks robustness and its ability to balance back from any adversity.  Union bank of Nigeria Plc provides a full range of normal commercial banking services.  As a financial service conglomerate, the bank operates a merchant banking outfit recently represented union merchant bank limited and the primary mortgage institution known as union house savings and loans LTD.  In addition, it operates an international money transfer service called rage

To achieve a, corporate repositioning that will match the new millennium, Union bank of Nigeria Plc and re-equipping of its staff and branches to fit into the new culture of technologically driven, anywhere banking.  It is this need to be customer – focuses more flexible that the bank embarked, in 1999, its business process improvement.  (BPI) project code-named the stallion- 2000 project.  These positive indices underscore the public confidence in the bank in discharging its care functions under high conditions of risk and banking fragility.  Banks have come to realize that they can only remain in business, profitability if they give to the custom what he wants, when he want it and at an affordable competitive price.  According customer need to be informed and convinced that a persecutory bank has facilities that help provide extra ease and comfort to customers.  For instance, most banks provide computerized identity cards through which customers could withdraw money even from far off locations bank office.  Some commercial bank also have introduced weekend (Saturday) banking as extra services to their customers.  They as well make their interest rate flexible for certain categories of  customers.


In Nigeria. The problem of marketing commercial bank services trans

risen because effecting marketing techniques have really not been applied to the marketing of these services until recently.  Ours the years there has been serous competition-amongst banks over deposit of bank customers and this has led to a lot of innovations in the services offered by these commercial banks.  In spite of these innovations introduces into the system, the bank still need to inform the customer of the enter services it offers.

Okwudike (1982), speaking on the Nigerian banks asked the question:  How often have the banks used promotional activities to bring the customer into the awareness of their services.  It is because of this unawareness that people lack proper banking culture and as such, they would rather keep their money with themselves believing it to be more safe than making use of the banking services provided for them.  A few example of many ways commercial banks bank services is faced with certain problems that militate against.  These problems include.

1. Inadequate portfolio funding for customer:  These portfolio funding include loans, over drafts, prompt payment to customers etc.  These services are not properly provided to the customers many a time, because of inadequate sources of fund.

2. High interest rates: Interest rates of banks are so high that they do not famous a wide range of their customers.  Also because of the non feasibility of their interest rates, a wide range of customers do not benefit from their services and this does not let the bank compare favorably with competitors

3. Public relations:  Most commercial banks are yet to fully appreciate the fact that the status image of any bank is extremes important and that this can be improved or enhanced tremendously with a sound public relations strategy coupled with the altitude of the employees of the banks location.

4. Lack of research:  For effective marketing of bank services, a lot of research work is required.  It is very unfortunate however, that most commercial banks have not wholeheartedly come to integer research work in their activities.


The purpose of this study includes

1. To find out the extent to which inadequate portfolio dunging for customer operate in Union bank Plc.

2. To examine the extent to which high interest rate affect customer not to benefit in their services.

3. To ascertains the extent to which public relations affect the application of marketing commercial bank in union garden avenue Enugu.

4. To find out the extent to which lack of research occur in union bank of Nigeria PLC garden Avenue Enugu


The scope of this study is restricted to the problems militating against

the effective marketing of commercial bank services and the prospects of effective marketing of commercial bank services using union Bank Nigeria, avenue, Enugu as a case study


For a researcher to be in absolute control of his research and thus create a good impact on his area of research there in need for the researcher to ask some fundamentally questions bordering on the already felt problems

Hence to guide this study for research question were formulate as follows:

1. To what extent hast the inadequate portfolio funding for customer affected the banking operations in Union bank of Nigeria PLC, Garden avenue?

2. To what extents to when public relations affect the application of marketing commercial bank in Union bank, garden avenue?

3. What are the extents to which public relations affect the application of marketing commercial bank in union bank, garden avenue?

4. To what extent has lack of research occur in union bank of Nigeria PLC, garden avenue Enugu?


Ogili (1999:41) have stated that null hypothesis must address the issue raised in a research questions, if it is not involved alone.   Therefore to further test the result of the research questions to issue clarity and meaningful conclusions.

The hypothesis of this study includes (HO 1) there is no significant difference (PLOS) between the mean perception of the effect of inadequate portfolio funding for customer services operation union bank Garden Avenue Enugu.  (HO2) There is no significant difference (PLOS) between the mean perception of the effect of high interest rates in banks on the operations of union Bank of Nigeria PLC garden avenue Enugu.

(HO3)  There is no significant difference (PLOS) between mean messaged effect of public relations as it concern the operations of union bank of Nigeria PLC garden avenue Enugu.

(HO4)  There is no significant difference (PLOS) between the mean perception of lack of research on the overall operations of Union bank of Nigeria PLC, garden avenue, Enugu.


This research work on the problems of marketing commercial bank services will contribute a great deal in solving the problems faced by commercial bank services of great significance to the following.

1. Banking institution:  In this sense effective management bank services will contribute a great deal in solving the problems faced by commercial bank services.  Therefore the hindrance problems of distress in the banking institution will be minimize reduced

2. Government:  It will be significance to the government of Nigeria for the purpose of planning effective utilization of economic strategies for the banking industries as government is a stake holder through the central bank of Nigeria.

3. Banking services consumers:  The study will be significance to the banking services consumers.  If the problems are discovered through the research, solutions will be provided.  This will enhance confidence in the mind of commercial bank consumers.  They will bank without fear of using their deposit.  Therefore creditability can be achieved.

4. Investment opportunities:  The understanding of the problems of marketing commercial bank services in Nigeria setting will encourage investors to have confidence in investing in Nigeria.  For investment to take place in any economy, they must be investment.  More so, it will be significance to poverty altercation by reduction of unemployment.

5. Education/enlightened the public.


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