BANK CUSTOMER RELATIONSHIP IN NIGERIA AS A DEVELOPING ECONOMY (A Case Study Of Union Bank Of Nigeria Plc Okpara Avenue Enugu Branch)

ABSTRACT
The aim of the study is to find out the extent of Bank/Customer relationship bearing in mind the poor quality of services rendered in banks.
Traders to achieve a good and accurate result the researcher split the work in five distinct chapters, each with different objectives.
To guide the study, four questions were formulated. A review of literature was done to expose the researcher to what was already been done to ensure sound understanding of bank/customer relationship in a developing economy. One structured questionnaire was developed and administered to 100 bank staff management indusive and 50 customers making a total of 150 questionnaires. 25 item questionnaire was used and the data covered were analyzed using percentage findings were and recommendation based on it were also made.
Also discussion, implication of the result, limitation of the study and the conclusion were highlighted in the study.

Table Of Content
Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Proposal
Table Of Content

Chapter One
1.0 Banker/Customer Relationship In Developing Economy 
1.1 Background Of The Study
1.2 History Of U.B.N Plc
1.3 Statement Of Problem
1.4 Research Question
1.5 Purpose Of The Study
1.6 Significance Of Study
1.7 Scope Of Study
1.8 Limitation Of Study
1.9 Statement Of Hypothesis
1.10 Definition Of Terms
References

Chapter Two
2.0 Review Of Related Literature
2.1 Definition Of Bank And Customers
2.2 Bank/Customer Relationship
2.3 Duties Of The Bank To The Customer
2.4 Banker Rights
2.5 Yardstick For Measuring Bank Performance
2.6 Complaints Of The Customer. The Services Offered To Them.
2.7 Improving Bank Performance In Nigeria
2.8 The Marketing Concept And Services Orientation
2.9 Assessment Of Banker/Customer Relationship
References

Chapter Three
3.1 Research Methodology
3.2 Research Design
3.3 Area Of Study
3.4 Population Of Study
3.5 Instrument For Data Collection
3.6 Validity And Reliability Of The Instrument
3.7 Method Of Data Collection
3.8 Method Of Data Analysis
3.9 Research Question
References

Chapter Four
4.0 Presentation And Analysis Of Data
References

Chapter Five
5.1 Summary Of Findings
5.2 Recommendations
5.3 Conclusions
5.4 Suggestions For Further Study
References
Appendix And Questionnaire 

CHAPTER ONE

1.0 BANKERS/CUSTOMERS RELATIONSHIP IN A DEVELOPING ECONOMY
1.1 BACKGROUND OF THE STUDY
Most times advert on our television, radio and bill boards by banks in the country have always tried to express how excellent and prompt their services are. In the adverts, they try to show the high quality of services provided to customers that patronize their own particular bank. By implication they try to inform the public that they (bank) are capable of providing quick, prompt and courteous services to their customers.
Notwithstanding all these advertisement shown by the banking industry have been criticzed by different segment of the society over the poor quality of services it renders to the customers.
Presently in some banks slow pace of work is still observed resulting in long queues. Even to obtain a cheque booklet is characterized by the come tomorrow, come next week syndrome, bank customers are still treated with laxity and in most times banks workers still exhibit poor attitude to work. The resultant effect of this nonchalant attitude to work, which is exchange of words between the bank staff and customers still obtains. The issue of difficulty in obtaining loan in our banks have persisted.
All these problems does not augur well for bank/customer relationship especially in a developing economy like ours where banking habits have not been fully developed. Based on this, it becomes imperative for a study to be carried out with a view to find out what actually is the true position of the relationship between the bank and customers. Also with the recent development in financial sector, where customers patronage depend on how well a customer is treated. It will be interesting for managers of bank to know how to handle customer’s problems when the study is completed.

1.2 HISTORY OF UBN PLC
Union Bank of Nigeria Plc was incorporated in 1969 as a wholly owned subsidiary of Bardages Bank international limited and renamed Bardags bank of Nigeria limited, it’s ownership structure remained unchanged until 1971 where 8.33% of the bank’s shares were offered to Nigerians. In the same year, the bank was listed on the Nigeria stock exchange. As a result of the Nigeria enterprises promotion Decree 1972, the federal government of Nigeria acquired 51.67% of the bank shares, which left Bardays Bank Plc, London with 40%
In 1986, Union Bank of Nigeria Plc became the first banks in Nigeria to achieve the #1 billion mark in savings deposits. Since then, its saving deposits have increased tremendously. Currently, the bank has one of the largest asset and deposit bases among Nigeria’s financial institutions, totality #275.2 billion and #204.4 billion for the last financial year ended march 31, 2002 respectively.
Also, its gross earning stand at #31.9 billion, with a current core capital of #28.8 billion, representing an increase of 134 percent over the figure for the preceding financial year. The bank remains one of the most capitalized financial institution in the sub-Saharan region. Its share are also most sought after in the industry today. 
Last October, it offered a right issue of 838.95 million ordinary shares of 50 kobo each at #1800 per share, an ofter that reffed a total of #15.350 billion which translades to an over susscription of #249 million, approximately two percent above the initial target. This is a clear manifestation of the soundness of the bank and the high level of investors confidence.
Union Bank of Nigeria Plc’s powerful position as one of Nigeria’s leading banks is epitomized by its new head office, which at 32 high, is the favest and one of the grandest building on the west coast of Africa.
The Bank’s board is led by the chairman, Elder Kalu Uke Kala, while the group managing Directory chief Executive, Mr. Godwin Ahabue Thompson Oboh, heads the executive management team.
Union Bank of Nigeria Plc offers an unrivalled range of products to its clients. These can be placed in two categories.
a. Generalised services:- current, savings and deposit accounts, funds transfers, foreign currency domiciliation, loans and overdrafts.
Tailor made services:- equipment leasing commercial papers, bankers acceptances, credit information services trade enquiries, import export documentation and finance.
Union Bank of Nigeria Plc is one of three core shareholders in a consortium of 39 banks that promotes the use of smart-cards in Nigeria. With a 35% equity, the bank remains the largest shareholders of one of the most profitable discount Houses in the country consolidated discounts limited.
Union Bank of Nigeria Plc has over 313 branches including those of its subsidiaries, an off share branch in the city of London and a representative office in Johannesburg, South Africa – the only Nigeria bank to have a presence there.
Union Bank of Nigeria Plc has once again won the Bank of the year award for 2002. making it the third time it is clinching the award. Since its establishment in 1917 union bank of Nigeria Plc has been in the vanguard of economic development and growth of Nigeria and this has won it many laurels for three consecutive years (2000, 2001, 2002) it was named the number one bank in Nigeria by the banker magazine, a sister publication of the influential financial times of London.
Union Bank of Nigeria Plc won the central Bank of Nigeria (CBN) Best Agric Support Bank” Award since its inception in 1993, CBN “Best state farmer of the year” award, 10 times out of 12 (1988 – 2000), and CBN National Best farmer of the year Award, two time out of six since inception in 1995. it has also won the Nigeria stock Exchange presidents merit award more times than any other bank in the country.
Other awards won by the bank are securities and exchange commissions special award 2000, in recognistion of the banks meritorious service and contribution to the development of the Nigeria capital market as registrars, and the aider brand award 2001 – the brand excellence award for the banking industry, among the others.
No bank can succeed in today’s economic word with out excellent information technology provisions which include not only software but ensuring that employees are fully trained on all the banks systems, union bank of Nigeria Plc is no exception. It has vigorously implemented flex solution. Flexcube – flexible comprehensive universal Banking environment software, which is now used by at least 13 other banks in Nigeria. Sure introducing flecube, over 30 branches and 9 clearing centers have been connected and operating online, real time. The bank has also placed 50 other locations on the VSAT – enable the wide area network.

With flexcube as the backbone of its IT system, union bank of Nigeria Plc has introduced several electronic products these include union e-link, telephone banking, union value-card and Automated teller machines (AIM).
Union Bank of Nigeria Plc has developed into the largest financial supermarket with five subsidiaries and two associaled companies. The subsidiaries include union Homes savings and loans limited, a mortgage outful, union trustees limited, which under takes trasleeship and pension fund management. Union merchant bank limited, a wholesale banking sub-sector, union stock brokers, a stock broking firm and union assurance company limited which provides insurance services, each of them has stamped its foot in the relevant sub-sector.

13 STATEMENT OF PROBLEM
The aim of any manager of a bank is to satisfy the need and desires of his customers and also to create banking habit among the people with in the environment. The customer relations desk is the Heart Beat of any Banking operations. Though efforts have been made towards achieving this objective, it has not been easy due to the following problems:-
a. poor attitude to work by bank staff
b. frauds perpetrating by both bank staff and customers
c. inadequate modern equipment such as computer.
d. The problem of distress in the industry
e. Poor communication services, unreliable power supply and telecommunication system.
f. Lack of adequate training on the part of the staff.
g. Lack of educated and experienced staff.

The poor relationship existing between the bank and its customers is usually attributed to these problems, affects the bank customer relationship in a developing economy like Nigeria.

1.4 RESEARCH QUESTIONS
The research questions which will guide the study are:
a. How does poor attitude to work by staff affect the bank / customer relationship.
b. Is the prevalent communication network in union Bank Plc, good enough to enhance .
c. Bank / customer relationship in a developing economy?
d. To what extent does frauds perpetratal by both bank staff and customers affects the bank and customer relationship.
e. Does management enocourage workers by conducting inhouse training on the part of their staff?
f. How does lack of educated and inexperienced staff affects bank / customer relationship.

1.5 PURPOSE OF STUDY
The research tends to find out the true positions of bank / customer relationship in respect of the services that banks render to their customers, whether these services were cherished or not. Also looked into the course of long queues and time spent by bank customers in bid to obtain bank services. Recommendation were equally made on what can be done within the banking industries to improve their services to customers.

1.6 SIGNIFICANCE OF STUDY
The study provides means of achieving lasting solution to the problems that have prevented the harmonious bank and customer relationship various ways of providing better banking services and over all change in the attitude of work by bank staff shall also be stressed. Finally, managers of Banks will also learn how best to handles customers problems.

1.7 SCOPE OF STUDY
The study discussed in detail the bank / customer relationship in respect of services banks render. The cause of long queues and time wasted in a bid to obtain services in union bank of Nigeria Plc Okpara Avenue Enugu Branch.

1.8 LIMITATION OF THE STUDY
The research was however, focused on union bank of Nigeria Plc due to time constraints, finance and the nature of my academic programme. Other constraints included the unco-operative altitude of some customers who were unwilling to divulge some important in formation on how effective the bank services have been to them.

OBJECTIVE OF THE STUDY
This study has the following objectives which the researcher wants to achieve:-
1. Generally one of the objective of the study is to inform, educate and enlighten on the relationship between bank / customer.
2. It also seeks to stress the need for cordial relationship between bank / customer especially in this complex society like ours.
3. to instill a high sense of openness, freedom and libery among bank customers.
4. the project seek to advice policy makers especially in banking industry and the economy in general on how to come up with laudasle and comprehensive policy directive and planning.
5. finally, it seeks to re-orientace peoples attitude and perception towards banking industry. It will help people to understand banking profession as a friendly organization.

1.9 STATEMENT OF HYPOTHESIS
The hypothesis of this study is tested using statistical tool of chi-square (x2)
FIRST HYPOTHESIS
HO: There is no need for cordial relationship between bank / customers
HI: There is need for cordial relationship between bank / customers.

SECOND HYPOTHESIS
Ho: There is no sense of openness, freedom and liberty between bank / customers.
HI: There is sense of openness, freedom and liberty between bank / customers.

1.10 DEFINITION OF TERMS
Some of the terms which the researcher used in this profect are defined below.
1. BANK:- Establishment for keeping money and valuables items safely, the money being paid out on the customers order (by means of cheque).
MERCHAM BANK:- A bank whose business includes receiving deposits on deposit account, provision of finance, consultancy and advisory services relating to corporate and investment matters, making or managing investments on behalf of any person.
COMMUNITY BANK:- A bank whose business is restricted to a specific geographical area in Nigeria.
CUSTOMER: Is a person who open accounts, cash or deposit cheques, do foreign transaction business, make enquires etc with the bank.
RELATIONSHIP:- Contract agreement existing between a person and another in which the duties owe to each other is reciprocal.
DEVELOPING:- Continual and irreversible growth towards achieving full development.
CHEQUE: Written order (usually on a printed form) to a bank to pay money and pay in cash.
DEPOSIT:- Put or store for safe keeping example money, documents etc.

REFERENCE
Union Bank of Nigeria Profit (Journal) titled “This is UBN”
Oral interview from frontline (customer services) staff Mr. Uche Arinze, UBN Okpara Avenue, Enugu Branch. Personal experience and views of the writer.