INNOVATIONS AS COMPETITIVE TOOLS IN BANKING SERVICES

ABSTRACT
Innovations in banks have been the antidote the mess that befalls banks in Nigeria due to fraud. Many people lost confidence in banks and started reverting to the old systems of holding money in assets, which draws us back to the Stone Age. Hence with the emergence of innovations that shift attention from the bank to the customer, patronage has greatly increased, and many banks are busy evolving one system or the other to satisfy their customers across the globe.
This study has looked into such innovations. Questionnaires are distributed to bankers of the cadre of: Managers, supervisors and clerks.
Oral interview as well as direct observations helped in collating data. These formed the primary data while secondary data comprised the written views of people that are relevant to the topic under study.
After the analysis of data, it was discovered that innovations help banks in ensuring patronage and customer satisfaction. Hypotheses were analyzed using simply proportion statistic.
Amongst others, it is recommended therefore, that banks should:
i.            Embrace further every data, of information technology which would help in ensuring patronage.
ii.            Recruit computer literate personnel only.
iii.           Innovate on value cards to further ensure constant customer satisfaction and convenience.

iv.           Interbank relations should be computerized.

CHAPTER ONE
INTRODUCTION
1.0      INTRODUCTION
Comparatively recent phenomena in innovations are the banking profession in Nigeria. It is a development of the electronic banking that really has taken the attention of the country banking industry. It processes data by the strategic combination of most recent employers. It aims at increasing the pace of data, processing which has being the problem of Nigeria's banking sector since the inception of the country. Each sector of the bank involved in on-line banking is deeply connected to the complex computer network such that the account number of any customer appears on the computer of any branch. This is meant to facilitate depositing and withdrawing.

A customer can draw a cheque on any branch of the same bank any here in the country being connected by computer network. As he approaches the bank, his particulars anywhere appear through the connection of computers so that he cashes his money to go about his business. Because he can do this anytime, it is called on-line real-time banking. Due to the extensive nature of customer connection, any bank which practices on-line real-time banking has the ability to combine commercial and merchant banking as is obtainable in most part of the advanced Western World. Nigeria is still new to the system expect with the new generation banks, some of which we have chosen for a closer study of the work: Diamond Bank and Zenith Bank

DEVELOPMENT OF ON-LINE BANKING
Apart from the enhancement of internal operations, control and management, the modern information revolution has contributed in interactions with the environment in two broad ways. This is aside potential areas for future development which will be realized in no distant future. The two areas are funds transfer and telephone banking.

FUNDS TRANSFERS:


i.            Domestic Funds Transfer
ii.            International Funds Transfer

iii.           Domestic Funds Transfers:

The bank could fashion out means of inter-city transfers. The mode of service makes it convenient for "cash friendly" customers like traders to move large sums from one area to another. Also with the high rate of armed robbery, it is the most convenient service for suck customer.

For companies, particularly oil companies and pharmaceutical companies, such facilities would make it convenient for them to pool funds from their various up-country locations.

Some banks have gone a bit further by introducing "fund cards" like the Credit and debit cards. These are effective marketing techniques to satisfy customer needs.

INTERNATIONAL FUNDS TRANSFER

Under this service, the bank could offer:

i.            An integrated on-line real banking system which enables it to effect customer payment instructions of various parts of the world within 24 hours.

ii.            In addition to (i) the bank would offer competitive market rates of interest payable from the value dates and in line with those obtainable offshore to the currency of deposit.

iii.           Effective application of hard currency deposits towards the funding of customers' documentary credit books, journals, equipment, raw materials, etc.

iv.           Immediate conversion and credit of naira value to customers.

TELEPHONE BANKING

Telephone banking operations going on in the industry showed that Nigeria is rising to the challenges of today's global financial services industry by operating in an environment of extraordinary information liquidity. Goaded by the quest to decongest their banking ha11 and provide more precise, and timely financial information to customers without their physical......

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Item Type: Postgraduate Material  |  Attribute: 55 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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