The Impact Of A New Product In Commercial Banks Performance (Case Study Of First Bank Plc)

Project and Seminar Topics with material for Banking and Finance

Project and Seminar Topics with material for Banking and Finance


Abstract


The need for this study being the impact of new product in commercial banks performance was to determine the rate at which the introduction of this product is helping the economic development and growth in the banking industry in terms of employment, income, staff utilization and technology and serve as an advisory piece to proprietors of commercial banks as to how these product can be run to the benefit of the customers who patronize such product.

This research work is divided into five chapters one deals with the introduction/background of the study, statement of problems, objectives of the study, research questions, significance of the study, scope of the study, limitation of the study and definition of terms.

Chapter two deals with literature review and introduction, the commercial banking operation in Nigeria, development of new product as a business strategy, new product concept, the nature and structure of commercial banks of new product, in this chapter the new products of first bank and Diamond bank PLC were explained, the research also explained the steps in the production development process factors that increase the effectiveness and efficiency of a new products, problems indicators of bank product.

Chapter three deals with the research methodology and introduction, research design, sources and methods of data collection, population and sample size, sampling technique, validity and reliability of measuring instrument and methods of data analysis.

Chapter four deals with presentation and analysis of data and introduction presentation of data, analysis of data and interpretation of results.

Chapter five deals with summary of findings, conclusion and recommendation. Finally, suggestions were made to the bank on how they should establish a good management team for proper coordination and marketing of such products.


Table Of Contents


Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

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 Statement of hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitation of the study
  • 1.9 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 New product as a business strategy
  • 2.3 The nature and structure of commercial banks new products(first bank plc)
  • 2.4 The effectiveness of new product in commercial banks
  • 2.5 Strategies in new product development
  • 2.6 Factors that enhance the effectiveness and efficiency of a new products.
  • 2.7 Problems indications of bank product

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 Sampling technique
  • 3.6 Validity and reliability of measuring instrument
  • 3.7 Method of data analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of data
  • 4.3 Analysis of data
  • 4.4 Interpretation of results
  • 4.5 Interpretation of result(s)

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendations
  • Bibliography
  • Appendixes

Chapter One


1.0 Introduction

1.1 Background Of The Study

Commercial bank though their basic roles of resources mobilization, and allocation for efficient investment play a great role in economic development of any nation. The stock in trade of commercial bank in Nigeria in the provision of financial services like over draft facilities, discounting bills of exchange, purchasing and selling to their customers. A time was when banks did not see the need for providing adequate service and encourages patronage, due to the fact that bankers were few and competition was very low.

Today the level of competition between banks is increasing as in the level of financial competition and sophistication of other banking needs by customers. The banking in Nigeria is fast becoming not only very competition but also sophisticated of the industry has gone beyond mere acceptance of deposit, and giving out loans to its customers. New products of commercial banks can be identified as a various services offered by Bank to the generality of the public including firms, industries organization of the facilitate financial transaction as it relates to opening account and mobilization of found from the surplus unit regarded as the major function of commercial banks. Although commercial bank go into developing new product because they want to maintain their position in the industry, expand sales, meet customers demand and more importantly to maintain a profit level.


1.2 Statement Of The Problem

In must developing nation (Nigeria) today, one of the major problems facing them is usually that of economic crisis which result to them having deficit experiences in their budget, and the sacking ways of correcting it. Hence, they usually resort to obtaining loan from the CBP which instead dwindles the economy more.

As it can be seen during Nigeria’s second republic when the economy was dwindling, Nigeria applied for a loan from the institution but was met with its harsh conditionality which they were to fulfill before such loan will be given to them.

Should Nigeria have collected the loan, thereby accepting the conditionality involved, Nigeria would have turned into a new colonized nation by the way of dancing to their time of fund. The statement of the problem therefore is know if the western countries that formed the fund are using it as an instrument for controlling the economy of the developing nations and also why some of the developing nations that accepted such loan from the CBP is usually effects the patronages.


1.3. Objective Of The Study

The objectives of this research work are as follows:

  1. To find out whether customer encountered problems with the banking industry.
  2. To see how the commercial bank affect the customer patronage.
  3. To know the impact of commercial bank new product to the economic development and to the customers.
  4. To know if the new products are helpful to the customer.

1.4. Research Question

The following questions are considered necessary9 in this research work and they are as follows:

  1. Does the new product in commercial bank perform a business organization?
  2. Are the new products in commercial bank affecting customers patronage?
  3. Why customer is’s encountering problems with the banking about the new product?
  4. What would have been the outcome, if the commercial banks do not go in developing new product?

1.5 Statement Of Hypothesis

H0> the new products in commercial bank can not affect customer patronage?

H1> the new products in commercial bank can affect customer patronage?


1.6. Significance Of The Study

Furthermore, this study will help to determine the rate at which introduction of these new product are helping the economic development and growth in the banking industry in terms of employment, income, staff utilization and technology.

Also, Nigeria citizens will be better informed on what these products are, how it can facilitate the financial transaction and how much risk is reduce through their use.

Finally, this will serve as a spring board to further studies or related subjects thereby creating room for improvement in the banking industry, one way or the other touching the live of mankind in general.


1.7. Scope Of The Study

The impact of new product in commercial bank performance covers all those services which banks introduce to their operation which facilitate them in their transactions.


1.8. Limitation Of The Study

Lack of finance and time constraint made it impossible for attainment of some facts needed for this research work.
Some of the banks officers who are in position or given information were not being too open and free releasing or complying with the researcher. The researcher find it difficult to do to every banks to get information for this research work compound with the time factor and finance to the researcher, at times the researcher may be in the lecture room receiving lectures which might lead to not getting more information about this research work.


1.9. Definition Of Terms

The definition of terms is as follows:

Bank:

a bank can be defined as a financial house established for the purpose of accepting deposited and lending out funds in addition to other services. It can also be any person who carries on banking business and this includes a commercial bank, acceptance house, discount house and financial institution.

Bank Customer:

this is the person who must have opened an account with the banker and has at least one transaction on the account.

Commercial Bank:

it can be seen as a financial institution which deals in money and credit and which receivers deposit from public, institution and organization, some of which are replaceable o demand by cheque.

Profit Level:

it is difference between total bank revenue and expenditure measured in naira per year.

Advertisement:

this is no personal paid information to create awareness to stimulate the minds of the customers to make them buy the product.

Traveler Cheques:

a kind of cheque provided and process by the bank to their customer for easy foreign trips with a basic travelling allowance (where applicable)

Product Life Cycle:

these are those processes and stages a product goes through before it is developed and launched into market.

Bank Density:

is the relationship between the number of bank in an area and the population in a geographical area. It is used to determine how the quality of a product or services would affect the density of a geographical, if its density is low or high.


Chapter Five


5.0 Summary Of Findings Conclusion And Recommendation

In view of this study, we are going to summarize findings and conclude this very chapter in all the work done in this project topic.


5.1 Introduction

The introduction of the impact of a new product in commercial banks performance in the real sense is a viable strategy in order to help the growth of the bank and also it shows the profitability in business or banks but these research shows that the benefits of the impact of a new product in commercial banks performance has helped to achieve a lot in Nigerian banks, but due to the nonchalant attitude of government towards the problem of corporative societies which include high rate of illiteracy. The impact of a new product in commercial banks performance helps to advertize the bank to the public. The researcher will therefore advice or suggest that government should make policies that will favor the impact of a new product in commercial banks performance and effort should be made to see that such policies are not only made but implemented.


5.2 Summary Of Findings

The impacts of new product introduced by the commercial banks in Nigeria were examined using first bank and diamond bank plc as a case study. The study shows that new bank products are developed as a competitive strategy to gain an edge over banks. These products aim in increasing the profitability and market shares of the bank. It also affects the customer’s patronage of the bank to a considerable extent and thereby has affect in the bank’s deposit volume.

It was also discovered from the research that the other reasons for introducing new products include providing customers’ friendly and innovative product and service, delivery, and enhancing the country’s technological capacities in banking services. This product was introduced into the market by the use of

  1. Advertising in TV/Radio
  2. Bill board posters
  3. Oral lecture about the product from the banks marketing units
  4. Launching/news paper coverage

In all advertisement is a considerable impact made by new bank product in enhancing the country’s technological capabilities in banking service as stated below:

  1. Helps in improving computer technology
  2. Helping to coordinate all transaction nation and monitor wide
  3. Poor product management and control
  4. Poor marketing of the product
  5. Card and electronic banking product desire

5.3 Conclusion

From the finding discussed one can deduced that:

  1. The new introduced product by commercial banks product is a competitive strategy of positively related with increase profitability for the bank.
  2. New bank products contribute to a considerable extent in helping to develop banking technology in areas such as card and electronic banking products
  3. There is a significant relationship between development/introduction of a new bank products and a customers patronage
  4. New bank products are effectively increasing profitability for the bank and deposit volume of bank only when market have unique.

5.4 Recommendation

Based on the findings made on the companies studied, I make the following recommendations to the stakeholders:

  1. For the management, the bank should curls delay in services delivery, reduced cost of the product and fulfill claims made be the new product.
  2. For the customer, though new products development has a lot of advantages, it is possible for the customers to misunderstand the intentions of the bank so more input should be made in educating customers in the utilization of such products by organizing oral lectures educative programmed orientation of the product to avoid misconception.
  3. For the central bank of the finding showed the banking business has a bright prospect in the country, all it requires is therefore effective supervisions of the industry by the central bank of Nigeria. The Apex bank should ensure effective introduction of these new products at the appropriate time. Also the bank should establish a good management team for proper coordination and marketing of such products.

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