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Effect of Quality Service Delivery on Customer’s Patronage in the Banking Industry of Nigeria; a case study of First Bank of Nigeria (FBN) Barkin– Ladi Branch

Effect of Quality Service Delivery on Customer’s Patronage in the Banking Industry of Nigeria; a case study of First Bank of Nigeria (FBN) Barkin– Ladi Branch




The banking industry an economy sector of business and finance that existed in human civilization for thousands of years. The banking industry is made up of various banks put together which consist of the Central Bank being as the apex bank. Community banks, Merchant banks, financial bank, community banks and so on. This means that in a country, there exist many kinds of financial institution (organization) and different kinds of people choose different banks based on their attitudes on people mind. The banking industry provides clients with variety of services and the effects of these services by the banks and the satisfaction derived by the esteem customers are becoming perceptible.

Though banks are classified according to their function, commercial banks are commonly seen in the society and are easily accessed by both government and business organization including individual business men and women. These banks offer services like deposit of money, withdrawal of money and supplying of loans to business organizations and individuals.

As earlier mentioned above, there are various banks that made up the central bank, so also there are several banks put together that made up the commercial banks and other non banking institutions most of which perform commercial activities. Therefore, there is keen competition in the banking industry. LeBoeuf state postulated that, meeting their (customers or client) expectations as regard satisfaction is increasingly becoming difficult. To be able to survive the prevailing intense competition in the banking industry, many bank introduced e-banking, credit card and debit card (ATM card) so as to eliminate necessary queues and facilitates every transaction but till date pressure of work on the bankers, long queues, delay in receiving services and other frustrating situation experience by customers leads to dissatisfaction as their expectations are not met. Egwuatu, (2011) rating declared that Nigerian banks are operation in increasingly difficult condition as this may result in a deteriorating of their profitability, asset quality, liquidity and capital ratio. Nigerian banks are highly exposed to their domestic market and their economic showdown which affect their performance. He explained that Nigerian banks had to contend in recent months with the increase vulnerability of Oil and Gas, pressure on naira. The slower economy and lightening bank liquidity. These all are credit negative for the sector.

According to Woldie (2003) Bank customers in Nigeria been found to be dissatisfied with the quality of services provided by banks. This call for the need to actually investigate how customers behave or get satisfied with regards to their service of commercial banks in Nigeria. However, to reduced or control the difficulties in rendering effective services to customers, it is necessary for banks to know what are the needs and expectations of their customers are. This is very fundamental and important for the success of my organization because such knowledge gives them the framework to effectively deliver quality services to their customers and the customers in turn derived or gain benefits they are offering for patronage.

Barkin –Ladi been a commercial area on the Plateau has many banks the First Bank of Nigeria PLC serving all customers. The bank is well situated rendering the right service individuals organization businesses alike. Although not devoid of challenges, the bank has always witness high level of patronage, it requires and more e-banking is into facilitate services. The quality of services rendered has boosted business activities in the area.


Totally satisfied customers have a repurchased rate that is 3 – 10 times higher than that of a “some what satisfied” customer. This means that if you have made sure to delight your customers, they are more likely to patronize your bank in the future and contribute to the success of the bank. Existing customers of the bank are to be treated as kings but many businesses make the mistake of forgetting to focus on existing customers.

In a nutshell, the survival of the banks depends on the number of customers the banks are able to satisfy. The banking activities now-days are expected to be very effective, especially when compared with the change in time (technology). However, in spite of the bank performance, it is yet beset with some problems.  This study is therefore sets out to investigate the customers’ patronage in the banking industry.

            These problems are stated as follows:-

  1. Cost of bank services is high
  2. Interest on the loan and deposits are high
  3. Offensive behavior and poor attitudes of the bank staff in their dealing with existing customers
  4. Long queues and time spend in transacting business
  5. Huge crowd in the banking hall that leads to aggressive noise.


The following were the specified objectives raised for this study:

  1. Examine the effect of attitudes of bank staff towards their customers
  2. To ascertain the extend bank staff display their skills in smooth transaction with their customers.
  3. To examine the effectiveness of the bank staff towards their duties.
  4. Determine the strategies put in place by banks to enhance good customer patronage.


With respect to the above mentioned objectives, this research work seeks to address the following questions

  1. To what extend does the attitude of the bank staff affect it customers?
  2. To what extend do bank staff display high skills in dealing and satisfying customers?
  3. How effective, active and responsible are the staffs of the bank towards their duty?
  4. What are the strategies put in place to enhance                                              customer’s patronage?


            (HO1) Quality service does not affect customer’s patronage



In every business organization, there is need to plan and ensures quality service delivery and there is impact which service delivery creates on customer’s patronage. This         research will be of paramount importance to First Bank of Nigeria (F.B.N) Barkin Ladi. This will be used by the           policy makers of the banks and other concerned and also is useful to customers of the bank and how to deal with their services rendered to them. In addition, this will serve as a source of reference to students who will write similar report about the same bank in the future.

Finally, the recommendation made at the end of this work will present a practical attempt on the part of researcher’s contribution to already existing stock of knowledge of ensuring effective customer services.




The study attempt to examine the effect of quality service delivery on customer’s patronage in the banking industry        of Nigeria. However, considering a lot of commercial banks in the banking industry in Nigeria and in order not to lose back of the subject matter, the study is concentrated        on First Bank of Nigeria (F.B.N) Barkin – Ladi branch and   its customers whom are mostly business men and women, teachers and commercial farmers in settlement known as Bassa (Directly opposite the study area) in Barkin Ladi            Plateau Ladi L.G.C Plateau State. The study is delimited     base on the fact that there are no sufficient resources to   see to the whole Nation. That is, the study will be very wide if it were carried out all commercial banks in the banking industry. It is however assumed that any information collected with regard in the samples will reflect a true opinion of the population and that            information from First Bank of Nigeria PLC Barkin Ladi is considered authentic for this study.


                        The following terms used in the study should be taken to     mean following:

SERVICE QUALITY: An assessment on how well a delivered service performs to the client’s expectation. Service quality is seen as the difference between customers’   expectations and perceptions of service with the view of building a competitive advantage.

COMMERCIAL BANK: Commercial bank which offer full banking        service to its customers, industries and other sector of the economy. A commercial bank can be defined as a           monetary institution owned by either government or private    businessmen for the purpose of profit.

            ATM: ATM is an abbreviation which stands for “Automated          Teller Machine.”

            CUSTOMER SERVICE: Customer is the provision of service to customer before, during and after purchase.

CUSTOMER LOYALTY: This is a deeply held commitment to re-          buy or repatronizing a preferred product service consistently in the future despite, situational influence    and marketing efforts have the potential to cause switching behavior.

BANKING INDUSTRY: Banking industry simply means banks collectively. All the banks operating in a country put together made up what is known as banking industry.

            BANK RATE: This is the rate used by government through the      central bank as a means of controlling money demand and          checking the growth of inflation.

DEBTOR: Debtor is an expression used in accounting world          to specify a party who owes money to a company or          individual. Debtor is an individual or organization that         owes a debt or has an obligation to another.

            CREDITOR: Creditor is expressions used in accounting world      in specify a party who has delivered a products service or   loans and is owed money by one or more debtors. Creditor              is one whom funds are owed, a person or company to whom       one owes money.

A banker refers to a person or company carrying on the      business of receiving moneys and collecting drafts of  customers subject to the obligation of honouring cheques drawn upon them from time to time by the customers to the extent of the amount in their account.


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