The Impact Of Efficient Service Delivery To The Growth And Profitability Of Banks (A Case Study Of Eco Bank)

Project and Seminar material for Accountancy

Project and Seminar material for Accountancy


Service Delivery firms include every other profit making organization that offers varieties of services to the public with a view of maximizing wealth or profit. The extent of profit maximization or the elastic limit of wealth obtainable by these firms lay credents on the efficiency or the extent of customer relation maintain.

In other words, that rate of profitability index recorded by this service delivery industries is directly proportional to the quality and intensity of services and relationship established between them and their potential customers. This research investigation is aimed at exposing the impacts which efficient service Delivery policies or objectives plays to the rising of bank profitability, margins and wealth’s quotients.

Service deliver industries include, Banks insurance companies. Stock exchange markets, finance houses, marketer, Accountants and their like but because of sudden rise of banking activities reality, the researcher decides to build renduts on Banking only the study a perfectly sub-divided into five main chapters, the first chapter brings the introduction, background of study, scope, limitation and definitions of critical terms of the study. While the second and third chapter brings to book, the literary review historical background, performance of banking industry and impacts of efficient service delivery together with the research design, methodology and method of data analysis. The last chapters five bring the summary Recommendation, Conclusion, Area of further researchers and some Bibliography.

Table Of Contents

Preliminary Page(s)

  • Title Page
  • Approval Page
  • Dedication
  • Acknowledgement
  • Abstract

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research questions
  • 1.5 Significance of the study
  • 1.6 Scope of the study
  • 1.7 Limitation of the study
  • 1.8 Definition of terms

Chapter Two

2.0 Review of Related Literature

  • 2.1 Historical Background of the study
  • 2.2 Meaning and Definition of the study
  • 2.3 Efficient service Delivery Versus Bank Profitability
  • 2.4 Brief profile of United Bank of Africa, Case Study
  • 2.5 Financial Reforms and Nigeria financial system
  • 2.6 The performance of the Nigerian Banking industries
  • 2.7 Impacts and Benefit of Efficient service Delivery
  • 2.8 Drawback and problems of Bank service
  • 2.9 Recommendation on efficient service Delivery

Chapter Three

3.0 Research Design and methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Sources / methods of Data Collection
  • 3.4 Population and sample size
  • 3.5 Sample technique
  • 3.6 Validity and reliability off measuring Instrument
  • 3.7 Method of Data analysis

Chapter Four

4.0 Presentation any Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data
  • 4.3 Analysis of Data
  • 4.4 Interpretation of results

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Summary of findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Appendix

Chapter One

1.0 Introduction

The impact of efficient service delivery to the profitability of Bank and other related service industry can’t be re-emphases any Business organization whose work in voles doing something, some special and unique for customers but not production of goods is simply referred to as service delivery industry.

The globalization trend coupled with high growth of service industries in the industrial evolutions of 1970’s, increased competitions in the service industry including banks such that, the lower the quality of service rendered, the lower the customers calling and the higher the efficient of service rendered, the higher the profitability, wealth and total number of customers calling on daily or weekly basis.

However, in recent times, there has been accelerated growth in the size of banking industry despite the recapitalization of which some Bank like all state trust Bank, Hallmark Bank, Union Bank. Etc. has been driven from the market due to their inability to meet up with the #25Billion capital legal requirement base of the central Bank of Nigeria.

This research was consciously segregated in to five chapters. The introduction of the study, Background of the study, Scope of the study, Limitations and Defination of terms were all review at the first chapter of this study. While the review of related literature, Historical background of the study, performance of banking sector, working capital management, profitability verses risk trade off and the impact of efficient service Delivery of Banks were equally renewed at chapter two. On the third and fourth chapter of the study, welcomes the research design, research methodology, Method of Data analysis, presentation of Data analysis of data and interpretation of findings or result. The last chapter of this study focused on the summary of findings, conclusion, recommendation, area for further research and reference from which both secondary and primary information came from.

1.1 Background Of The Study

The development of modern Banking service should be credited to the great expansion in industry and commerce which has taken place since the industrial revolution. At the time when there was small business transaction and proprietors took active part in the management of their business transactions. It was perhaps felt, that there was little or need for efficient service delivery due customers are always there for the Banks.

But as Business transaction increased and investment in banking industry came into existence, where shareholders are not the managers of their capital, the need for the manager to account to the shareholders become the need for Banks to strive in order to see above the stiff competitions. The shareholder and managers of banking industries therefore require every marketing researcher cum strategies necessary to increase service quotience which could in return contribute in raising its general profitability index.

The government as a controlling agent of all economic activities in the country also has to make provisions for the accounts for the account of these banks to be examined and service efficiency recorded. Now in obsession there is this lingering case of incompatibility which arqes so much on the obnoxious facts that industry depends largely on the efficiency of service rendered to its actual and potential customers or depositors.

1.2 Statement Of The Problem

Since the nature of Banking service are critical and complex as it involves high rate of specialization. The research discovered the following nagging problem as militating factors which its solutions contributes positively to the services of the study.

Some service Delivery and Goodwill are invisible and intangible Assets how to measure and determine its efficiently is yet another problem of this research study.

The best accounting system to apply by Banks in order to accurate capture the current financial position which includes its Assets and liabilities.

How to apply adequate marketing strategies and such tools like, promotion, Advertising and bonus to perfect service Delivery mechanisms.

Not considering the consumerism principle which focused on the kingship and sovereignty of consumers cum their satisfactions

Inability of bonus to apply marketing concepts which insist that firm should first identify the need of consumers and channel their strength and creative browses towards meeting their needs.

The problem of effective management of the firm working capital to avoid failing to meet its financial obligations as at when due or rather went into liquidation and Bankruptcy.

1.3 Objective Of The Study

The following include the fundamental objective on which this research study is based upon.

  1. To examine the impacts of efficient service Delivery to the growth and profitability of the Banking industry.
  2. To find out if lack of effective service Delivery policies could really contribute to liquidation and down trodden of Banks
  3. To initiate powerful and workable service orientation objectives that will educate bank staffs on treatment of customers.
  4. To expose all the in comprising and in separately role played by service efficiency in recording high profitability.

1.4 Research Questions

The following questions are considered quite adequate as regards to its relevance to the service of this project, this is owing to the fact that, a perfect solution to these questions would imperably go ahead way to case binaries on all and Sunday

  1. What is this service Delivery all about and how can it impact positively to Banks high profitability index?
  2. How can service Delivery and Goodwill of Banks be measure and estimated despite their intangibility nature?
  3. What kind of accounting system is considered best to be applicable in united Banks for accurate accounting/Bookkeeping?
  4. Do marketing strategies and Advertisement play any role in the achievements of banks efficient service delivery policies?
  5. Has proper education of banking staffs on the need for consumer sovereignty any role to play in this respect?
  6. Has effective management of the Banking activities and working capital any role to play to culture service delivery efficiency any high profitability index?
  7. What recommendatory steps and policies must Banks follow in order to arriver at high profitability and service Delivery?
  8. Are there any other short cuts to achieving high profits and maximizations of banks wealth without effective service Delivery?
  9. Have legal regulations competition and central Bank monetary policies any role to play in Banks profitability?

1.5 Significance Of The Study

The qualitative research study is of great relevance to both potential and actual bankers. The finding of this study among other to enable Banks builds adequate and efficient service delivery policies that will positively contribute to its high profitability index.

Also the findings will contribute even in small dimension to the pool of banking knowledge and further increase the awareness in service rendering policies.

The nonchalant attitudes of banking staffs was equally considered as some of the reasons responsible for banks how profitability index and service delivery. It is equally expected of this research to greatly aid and inversely assist the top managements of Banking. Organizations in forming or rather, drafting service delivery policies that would stand the taste of stiff competitions and equally contribute positively in rising their profit merging.

Lastly, this study is expected also expected to cud researchers, educationist, governmental and other forms of organization that might equally desires to improve their service delivery quotient in one way or the other.

1.6 Scope Of The Study

This equalities and educative research study is to a reasonable extent limited to the impacts of efficient service Delivery to the growth and profitability of Banks.

By Jurisdiction rights and ceramic justice this study was supposed to cover all the service rendering industries of this federation consequent upon certain stoppages on side of the school management and the researcher respectively, its elastic limit was built on the banking industries alone.

The reason for this limited scope is not far fetched as the researcher was moved by the deteriorating trend of services rendered by most banks in divers, vise-visa, the large queue in banks, complains and sudden reduction of customers.

1.7 Limitation Of The Study

Sucks is never an accidental discharge but a passion submitted by so many great mountains, wall and barriers. So many drawbacks limitations, hindrances and of cause barriers militated against the posterities and out come of this all comprehensive and in comprising, quantitative exercise, the following include some fundamental stoppages recorded.

1.8 Definition Of Terms


This refers to the powerful, positive effect or advantage one has over the other.
It could equally be seen as an advantage or merits that passed from one party to the other just freely.


This is the quality of doing something well and perfectly in order without waste of assets, materials and resources.
It equally implies carrying out ones responsibility thoroughly with no waste of time, energy and resources.


This implies, producing the most wasted and desired result which is of course quite successful and speeded.
It many equally be viewed to mean the achievement of the goals and long waiting objective and mission policies of an organization.


This is a place where money, cash and other relevant valuables are kept and store. They include that financial institution which collects cash deposits, saves it and issues out the customers at demands.


To provide something unique and so special which the public or other organizations need disparately.
It could be a business whose work is doing something for it customers at an agree payment in compensation.


By this, we mean the proposed income and net profit of a given organization over a defined period of time.
It could be equally seen as a desired margin or standard set by the management of a given entity to be achieved before the end of each accounting year.


This is the quality or state of preserving the economic activities and respective sectors to sustain and maintain the profitability or otherwise accruable in a particular government.


This is the inability of banks to meet up with its current financial obligations to both creditors and shareholder as at when due.


This is a technique tool used to make banks stronger by strategizing out new formulars and ways of tackling its nagging problems as it relates to customer relation.

Exchange Rate:

This is the price at which a country’s currency substitutes or changes in the other and likewise that of other countries of the world.


By this we mean, the persistence removal of unnecessary laws rules regulations, enactments and control in the entire industry in order to pave way for more competition and enhancement of good profitability index.


This could be viewed to mean, powers or measures given to the banks when considered adequate to avoid a foreseeable loss or liquidation.

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.2 Summary

After a clear analysis of the data obtained from ECOBank and ECOTRANSNATIONAL Plc, the researcher was able to present the finding as follows.

The extension of service in union Bank and UBA bank has gone a long way in hoping individuals and organizations. Service entails risks and is granted with expectation that increased lending will increase that Banks profits. These Banks (Ecobank, and ECOTRANSNATIONAL plc) consider the capacity, collateral and character of the applicant for service, thus granting of service is the rule, not the exception. The researcher has also found out that the problem is not whether to extend it in the two banks in question bit rather how much to grant (the limits) to whom and what conditions.

Again, if service delivery is not granted by these banks or if the standards that apply are extremely tight, thus in effect denying service, the cost of service delivery may be low and losses will not be experience. If their services terms are too lose, the losses resulting from non-payment by customer may exceed the advantages of increase ending of the banks. The role of service delivery is to arrive at a policy that will maximize the benefits of these granting banks.

Competence in service delivery policies requires a lot of skills and knowledge of the economics underlying the granting of service as well as creativity in the development of screening techniques as in applicable to these two banks.

Policies are assumption and risks. Management also anticipants that certain losses will be incurred in the extension of service, and these in effect becomes port of the cost of exceeding service. Total avoidance however, from the data collection, analysis presentation and some personal interviews granted to the researcher by the service managers of the two banks in question, it is very clear that the very essence of service delivery of all losses can only be achieved if all service is denied. Any way, service managers who boast that under his guidance no defaults occur obviously not understanding the trade of analysis required to arrive at the proper service delivery policy for the bank. In the overall analysis the researcher found out that Ecobank, and ECOTRANSNATIONAL plc give out service delivery policies to its customers based on the relationship built for a long time and again on the ability of the customer to present collateral to cover for the service out incase of default. The service delivery policies they give out help them and their customers. Hence, it is a very good means of promoting the bank lending.

From the finding, the types of service are not the same and there objective differ from the analysis, there is a need for the bank under comprise to learn from each other, to enhance economic growth in the economy. More so, many of the respondents favored the idea of Spiro, Herbert T. (1977), page 161, finance for the non-financial manager where they said: “The granting of service is the rule, not the exception, the problem is not whether to extend it but how much to grant to who and under what conditions.

5.2 Conclusion

Lending is the major business of banking like it is said in history that “No mile; No Egypt”. It is also correct to say that “No lending, No banking”. This is where all the business of banking is embodied; hence the department handing loans and overdrafts should be treated with utmost care that it desires.

Having examined industry, comprise is made between Ecobank, and ECOTRANSNATIONAL plc Plc. The researcher is to the opinion that performance of their service delivery policies departments is very weak. Many of the bank depositor’s funds are tied up in huge core loans which are often cosmetically presented in the balance sheet as “other Assets.

The increasing population of banks and the increased rate of default of the customers have give rise to the proper efficient service delivery policies. There is no double the strict hurdle a customer has to cross before he gets service from the banks. It therefore implies that for a personnel to be recruited into the service department of the banks, he must be professionally sound and really available to the customers, but in must cases in the past, the apposite was, the cases as some of banks report to “rat race in employing unsaved personnel through indiscriminate and ridiculous emoluments and in some cases have even recruited mediocre who take wrong decisions. Consequently, putting the banks into trouble. All these show the trauma of competition at the expense of survival.

More so, central Bank of Nigeria examiners should be involved at the crucial stages of giving out service delivery policies to customers.

5.3 Recommendation

The researcher having made some findings in the course of this work has taken time to make a very useful suggestion that would assist to correct the efficient service delivering policies in the banking industry.

The bank should seek to adopt other methods of assessing the service worthiness of its customers apart from using the customer’s bank reference alone. The financial statements of the customers who want to take service should also be analyzed using relevant ratios like liquidity ratios to find out how liquid the customers are.

The bank service delivering policies should be applied with flexibility; adjustment should be made as conditions change.

Banks should never efficient service delivery policies without any collateral, which goes ahead to scare the service it grants.

They should organize seminars where such issues will be addressed so that they can learn from each other. Any staff that gives unauthorized overdraft to loan should be adequately punished by dismissal after he must have paid all the money. Hence, other staff will desist from such fraudulent act. The management of these banks (Ecobank, and ECOTRANSNATIONAL plc) must ensure that they adhere strictly to the provisions of prudential guidelines with respect to efficient service delivery policies.

If all these on proper are strictly adhered to by the banking industry, the high risk of default will be greatly reduced.
Efficient service delivery policy is essentially, important to banks as it will kept a health growth of the banks to participate more effectively in the economy.

Get Complete Project Material

5,000 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…

Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to the Account Below

Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card

CLICK HERE To Purchase Material ($15)

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: The Impact Of Efficient Service Delivery To The Growth And Profitability Of Banks (A Case Study Of Eco Bank)

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply

  Contact Our Help Desk

Need a Different Topic? Perform a Quick Search

List of Related Works

Click on Any Topic to Preview the Content

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.