MARKETING OF BANK SERVICES IN NIGERIA

MARKETING OF BANK SERVICES IN NIGERIA 


The financial sector, especially the banking system, plays a very important role in the development of any economy. This is because banks are the most important and vital intermediaries in any economy, given the fact that they mobilize savings and idle funds from the surplus sector and transfer them to the deficit sector, where they are needed. Banks may be referred to as the heart of the economy in regard to the role money plays in the economy. Commercial banks create and facilitate payments for goods and services.


Banks are economic decision units established for the purpose of providing financial services and products to the target market with a primary objective of making adequate returns or profits on the funds invested, without neglecting the other secondary of social objective of prosperity, growth and continual life of the business.
Furthermore, it has been widely accepted that money matters in economic development, and that financial intermediaries or institutions particularly banks contribute significantly to real development. (Bhatt and Khathate, 2003).


Banking services in Nigeria started in 1982 when the first bank was established in the country as the African Banking Corporation. Its name has undergone changes twice and now called the First Banks of Nigeria Limited.
The Nigerian banking industry is undergoing the greatest challenges. These challenges can be closely associated with the increasing cut-throat competition in the banking sector where marketing becomes essential as provision of services itself. This has therefore placed customers in their rightful position as “Kings”. Service quality therefore is an important component of any bank’s product. This has led banks in general to be innovative in services and purposeful in management and there is need for aggressive and persuasive marketing of banking services to protect bank’s existing customers and to acquire more to the market.