AN ASSESSMENT OF CUSTOMER SERVICE IN FINANCIAL INSTITUTION. (A CASE STUDY UNION BANK OF NIGERIA PLC ENUGU).
It is necessary to take passing glance at other writers researchers whose work preceded this one. This is because poor performance d how qualify of services of commercial banks (union bank of Nigeria Plc cyarden Avenue Enugu) not excluded have generated so much controversy that an attempt to explain their operation services towards economic development is indeed.
The review of the related literature was possible through the use of conceptual and research literature. This help to familiarize the research with problem area.
CLASSIFICATION OF COMMERCIAL BANKS.
Modern commercial banking in Nigeria dates back to the early colonial period. The deeding in barter system of trade and the rise in financial transition of the colonial government required an institution in the form of a commercial bank for safety and transmission of funds.
There are two main classification of commercial banks. In nigeria. They are the indigenous banks which are wholly owned and managed by indigenous Nigeria interest while mixed banks as their implies are banks jointly owned and managed by Nigeria and foreign interest.
Indigenous banks historically retrospect the effort of Nigerian business man to establish their own banks since the expatriate banks have not bee4n particularly interested in giving them assistance they normally require to manager their own business. Indigenous therefore is an evolution process by which the native of a country are enabled and seen to acquire ownership a control and management of the economy of their country.
The federal and state government collectively own the bulk of the equity capital of the commercial banks are banks. The federal state government collectively own the bulk of the equity capital of the commercial banks are low when compared to the expatriate banks. These banks operate mainly in their head officer at their states of origin while federal government equity interest are limited to 60% participation in the expatriate banks and for foreigner 40% equity interest. The federal government made its presence felt in the balancing septum follo0wing the acquisition of 40% share of the expatriate banks 1975 and 60% shares and subsequently control of management in 1977. These bank are new referred it as mixed banks.
- THE ROLES OF CUSTOMER SERVICE DEPARTMENT IN UNION BANK
TYPES OF CUSTOMER
WHO IS A BANK CUSTOMER?
There is no specific legal or statutory definition of a bank customer while they have some who open account with them they have others who visit the bank every day for other reason and motives. While some people come to a bank to cash their personal cheque issued in their favour by third parties others go to deposit cash or cheque of one sort or the other. All the categories of people mentioned above regard themselves as bank customers./ their positive approach to them will solidify their relationship and encourage ettrfies to open account with them.
As a service industry they are in constant with various people in their day to day operations and since individual vary in their approach and sense of reasoning there is the need for them to understand human below virus as thus would assist them in tacking difficult ditguation when they arise in their dealing with customers. Their banking services cuts across various segments of people namely individual both litgerates and alliterates corporate organization and government establishment that are usually represented by their agents. For them to appreciated their effort in pulling re sources together to derive there heed to give a brief analysis of these types of customer.
INDIVIDUAL (LITERATE AND ILLITERATES)]
This category of people operates personal account and consists off salary earners petty traders, students, craftsmen, solicitors, company director etc. generally speaking, They maintain smaller account when compared to companies but these account on the aggregate from a large revenue source for the banks. Their deposit with the bank can be invested profitably. Naturally they would feel disappointed if they are treated with disregard.
There fore unless the bank gives them the best of attention and prompt service they can not attract their patronage
CORPORATE ORGANIZATION
These are business organization incorporated under the company act of 1968 and amended by the company and allied matters degree of 1990. They trade in goods and services and their primary aim is to make profit. They open account with the bank in the business on their behalf. The modern of operation of their account involves a wider scope as distinct from individual
The idea of getting associated with big companies to some extent determines the level of importance in the society. Any good bank would want to be identified with the muti-national companies like U.AC hevntiess group, guerness Nigeria limited to mention a few. Above all, the high profit margin of these organization is incomparable with other customer as it6reflects directly on their earning.
GOVERNMENT
Some organs of the government open accounts with the bank majority of their transition sometime call for urgent attention since they could be decision taken by the government. Any lapse on there part could be adverse effect on the organization no bank would want to be identified with failure and there is no exception.
Moreover, the result of non good customer obvious hence the need for good customer service. When these customer come to the bank. All they request for is the best of service and much as the bank appreciate that they do not sell their ate that they do not sell their services cheaper than any of the other competitor the best they should do is to ensure that when ever they come to transact business in the bank they should always leave the bank with simuiley face after satisfactory attention has been given to them.
Should not expect every customer of the bank in behave alike. As human being, they also have their short coming and it is their duty to study peculiar situation identify their problem and other solution do them the bank appreciates the efforts made by these customer to pull resources together in order to service sufficient resources together in order to derive efficient revenue to operate satisfactory account with them.
Whenever they behave nicely to these customers., they would always patronize them but if they are not given satisfactory altentation that is incapable of performing. The end result is that they carry their business elsewhere.
For a customer to deduced to tanact business with a bank certain basic facts would have been considered. These include
- Nearness of the bank to his officer residence
- A good recommendation from existing customer about the quality of services rendered by the staff.
- The good public image that has been created
By that bank over the years etc. Contrary to expectation when these customer come around to transact business. The bank does not appear to care for them instead they are either shunted from department to department or delayed indefinitely on the counter or worse still simply told that such services do not exist in the bank where as the organization has made its mark already and these other banks in the hoper that they might get more satisfactory service.
THE PERCEPTION OF THE CUSTOMER
The bank perceives its customer as a service of revenue and they deserve to be treated of as such. Any thing short of this idea is not good enough.,
- SOME SERVICE FACILITIES PROVIDED BY THE BANK
In the banking industry various and facities are made available to different customer for same charges. While services can be rendead to all and sundry facilities can only be enjoyed by customers who qualify for them e.g loan and overdrafts. This is because there is certain eg inability to repay the money advanced according to stipulated conditions. These services facilities include:
- HANDLING OF CASH
As direct by the central bank thi9s involved provision of change in smaller denomination to individual trade corporate organization tp facilitate their trade pay workers wages among others. Apart from this, customer can always come up asking to change old notes for new ones. Effort should be made by cash lens and cash officers to ensure new notes are provided at all time.
- KEEPING OF ACCOUNT
The types of accounts that banks maintains on behalf of customers are:
- Saving Account
- Current Account
- Deposit Account
Short term Deposit or Fixed Deposit
- Domialiary Account
- COLLECTION OF CHEUES
The bank collects proceeds of cheques draw on other branches or bank on behalf of customer
- STANDING ORDER/ TRANSFER OF FUNDS
At the request of customer , we effect periodic / regular payments or transfer of funds to other point and debit the customer accounts.
- FOREIGN BUSINESS
The bank assists customer for the documentation introspect of international trade is transport and export of goods and services. Payments are effected for imports while proceeds of exports are received on behalf of customers respectively.
- SAFE KEEPING OF OTHER VALUABLES
Bank keeps boxes parcel containing valuables such as jewels, wills, share certificates etc on behalf customers.
- BUSINESS ADVSORY SERVICE
They advice customers on areas to invest their money for better result in order to maximize profit giving due analysis while allowing customers to take final decision they also advise them on how to keep their financial record or books for easy auditing. The unit changed with this responsibility called Business advisory and constancy service (BACS)
- BANKERS OPINION
Individual and institutions intending to go into business with their customers usually ask for status reports of such customers to enable them assess their financial worthiness. They also give report on their customers to other branches banks when they act as references for those wishing to open current account in the same view at the request of their customers. We make Enquirer on those with whom our customers intend to do business.
- CASHING CREDIT
This is facility which allows customers some drawing on their accounts at other points outside the branch where they maintain accounts. The facility would either be cumulative or non cumulative and it has a fixed period of operation. Cashing credit facility could also extend to customers having CFC account for worldwide travel. Either of this is subjected to the branch mangers approval because of the advances risk involved.
- UNICARD
This is a cheque guarantee scheme where by eligible customers of the bank are issued with cards (UNICARD) to bank with drawls over the counter in any of the union bank branches including branches where their accounts are maintained. The purpose of the scheme is basically to reduce congestion on branch counters.
- LENDING
The bank provided funds for its customer to meet personal and investment needs. This could be their form of loans or overdrafts. The nature of the lending will determine the value of security (if any) to be demanded by the bank.
- BONDS AND GUARANTEES
These are irrevocable undertaking given to banks for an agreed period of time. They are issued on behalf of customers to tyhjird parties in respect of some basic transaction between their customers and the third parties. The bonds and guarantees have strict liability on the part of the bank that issued them.
Example are
- Bank Guarantee: To secure facilities elsewhere
- performance bond To support contract execution
- Advance payment – To support contract exaction.
- Excise duty – To support capability to pay excise duty.
- Custom duty – To support capability to pay custom duty.
- INDEMNITIES
These are undertaking usually given by the bank on behalf of customer to enable them (customers) have access to some form of immoderate service (eg Bill of lading indemnity will be issued introspect of goods that have arrived at the port but for which the bill of having is yet to be received) To avoid payment of demurrage the goods can be cleared the strength of the indemnity issued by the bank to the Nigerian parts Authority. When the bill of Lading finally arrives, it will be presented and the indemnity letter retrieved for cancellation
CONCLUSION
The service listed above is not exhaustive we must not fail our attempts to render these service and to do this, we must be courteous at all times. Refer to superior officers in areas you are not sure of instead of giving wrong information to the customers. If the customers are satisfied the staff will also be pleased for a job well done.
- CUSTOMERS EXPECTATION AS FACTOR WHICH AFFECT THEIR PATRONAGE OF A BANK.
- SOUND KNOWLEDGE OF THE LAW
Nothing can replace experience. Such experience can be gained by regular practice and asking question from others who know better to them. Rotation of duties at regular interval can also go along ways to acquire a lot of experience on the job. Coupled with the practice is the bankers examination. A good blend of their and practice is an asset to them selves and the bank. This will result in bulelding up confidence in the performance of their duties and the customer will be happier for it.
- PROMPT AND EFFICIENT SERVICE
Whether customer are self employed or not, they require prompted service so that they can go about their business on time. If the bank put themselves in the position of the customers, they will appreciate the fact that they equally deserve urgently attention when ever the need Grises.” Time is money and five minutes wasted can make a customer lose a business appointment which may in turn affect their business with their bank.
- CUSTOMER RECOGNITIOON
One of their duties is the ability to identify their customer preferably by their name each time they call at the branch for business. The customer feel a sense of belonging if they are addressed by their names.
- CONDUCIVE ENVIRONMENT
The banking halls should be made as convertible as possible. The air conditioners are expected to be in good working conduction at all times. There should be sufficient seals for waiting customers instead of them standing for hours while waiting to transact business with the bank. Provision of piped in music (music while you work) can also make customers relax while waiting. The counters should be tidy enough cases of broken down equipment should be reported promptly to the appropriate authority to effect repairs.
- PLEASANT PERSONLITY
This constitutes the qualities that make up a person character which include the way the banker address customers, how they reibte among themselves as colleagues, there dressing answering phone calls etc. all these matter a lot and the way they comport themselves can either attract customers or scare them. No matter what there individual problems are, it is strongly advised that they disguise these problems. And they to be cheerful to customers.
The reward can be immense just like the consequence of misbehaving to the customers can disastrous .
- CONFIDENTIALITY
Customers expect the bank to handle their financial affairs with utmost confidentiality. It infect illegal for them as bankers to divulge the position of their customers accounts (whether DR or CR) to others without authority from the law courts or some other constituted body. The oath of secrecy” which they sign twice a year is a Pointe. To this fact. They ‘re confidential between them and the customers alone.
- UP TO DATE BANKING INFORMATION
Changes that affect banking operations goodly and customers accounts in particular should be communicated promptly to the customers, they will thus be abreast of current banking development information bordering on new products eg UNICARD, STALLION BILL and change in operation such a introduction of the computer system should be brought to the notice of the customers promptly.
Request for statement balance of account is yet another type of information regularly demanded by customers. We should endeavor to attend to such requests with dispatch. The fore going is some of the obligation, which the customers expect of the bank. They must bear in mind always that each customers has his/ her peculiar needs and they owe it a responsibility to meet their individual needs within the frame work of the banking rules and regulations. This is what marketing of their services is all about. Not until they realize that they are in business to satisfy their customers. Their competitors will “snatch” them from them before they know it. In order to avoid finding them selves in such ugly situation, all of them must strive to retain the patronage of the existing customers and even attract new ones to remain afloat in the industry.
- CUSTOMER SERVICE BENEFITS OF GOOD CUSTOMER SERVICE
In these days there is still competition among banking and other financial institutions, the survival of the bank is dependent on the quality of their services to customers. This a banks overall corporate image is determined in the customers view) by the way each staff an ambassador of the bank and he/she is expected to work toward achieving the organizational objectives, among which are to maintain a consistently good image and further more have an increasing market share to maximize profit. But these can not be achieved if the organization is staffed with non-chalant and complacent personnel.
No organization wards to be static hence the growth of the bank is closely linked with the increased patronage of customers by retaining old customers and winning new ones. This is feasible growth means increase revenue for bank advancement for staff, job opportunities for the unemployed more grants to staff in terms of better remuneration scholarship scheme for staff children etc. consequently industrial unrest would be at its barest minimum while the banking environment would be very conducive for work. On the other hand the bank would also be able to render its social responsibilities eg donating to charitable organization, sponsorship of games, construction of infrastructure etc. and our customers would want to be identified with the big strong and keliable bank. Moreover, this has a spillover effect on the staff that would also be pound that they contribute to the growth of the bank. As an individual, are you prepared to contribute to the growth of the bank or do you intend to destroy it?
So, remember that every staff is the banks ambassador and as such mush offer prompt and courteous service to customer if we are to sustain our position in the industry.
- CAUSES AND EFFECT OF POOR CUSTOMER SERVICE AND SUGGESTED SOLUTION
- Lack of sound knowledge of the job.
- Lack of functional equipment’s
- Negative selective customers service
- Lack of poor motivation frustration
- Bureaucracy
- Inadequacy of cash (ie poor planning gainst peak period)
- Poor communication flow
- Inability to sympathize
- Indifferent attitude to work
- Inefficient staff.
EFFECTS OF POOR CUSTOMER SERVICE
- Withdrawal of patronage
- Dents corporate image
- Affects staff expectation
- Loss of job
- Reduction of profits
- Loss o business to competitors
- Cold reception to customers
- Long queues long waiting hours.
- Rowdiness
SUGGESTED SOLUTION
- Easy flow of communication
- Adequate and up to data equipment
- Removal of bureaucracy signcncy limit
- Good conducive working environment
- Acquire sound knowledge of the job
- Discipline
- Recognition of customer
- Prompt and sufficient Service
- Adequate motivation of staff
- Team spirit
- Provision availability adequate cash
- Interest in the job
- Developing good listening ears
- Use simple banking terms
- Be pains taking.
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