Marketing of Financial Services by Deposit Money Banks in Nigeria
- February 2, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue I, January 2019 | ISSN 2454–6186
Ajugwe, Chukwu Alphonsus, PhD.
Abstracts: Deposit Money Banks (DMBs) in Nigeria are facing business uncertainty triggered by current economic recession, conflicting banking circulars and regulations issued by the Central bank of Nigeria(CBN) almost on monthly basis, coupled with globalization and introduction of banking technology that ushered in electronic processes and procedures. These brought about stiff competition among the DMBs. Consequent upon; banks must adopt aggressive marketing strategies to survive. Banks in order to penetrate and retain their marketing segments must employ effectively and efficiently the right marketing mix. The process involves planning, scanning the environment to determine the needs of the customers and producing the right financial products that will actually satisfy their financial need sat profits. Such marketing strategies will lead to effective financial service delivery wish will make the banks not only to attract new customers but will retain the old ones.
This paper will critically analyzed different financial products offered by DMBs, the impact of such financial services on the economy and the challenges facing the banks in offering such services.
One of the major players in the financial system in Nigeria is Deposit Money Banks (DMBs), they are very critical in mobilization of funds from the surplus sector to the deficit sector thereby enhancing the growth of real sector. That is the reason government attached much importance in the regulation of the Banking sector.
However, the Banking Sector has witnessed a lot of changes. Banking started really in Nigeria in 1891 with the emergence of African Banking of Corporation which was later renamed Bank of British West Africa in 1912. The main impetus was to serve the interest of the colonial masters and therefore they had no incentive to adopt any marketing tools to sale their financial products. In 1933 the National Bank of Nigeria Limited, the first Nigeria indigenous bank was established in Nigeria and that was followed by Standard Bank of Nigeria, known as First Bank of Nigeria now and then followed by other indigenous banks. These situations were accentuated due to the financial boom that resonated after the Second World War, and between 1892 and 1952 about 25 banks were in existence.