Impact Of Public Relations In The Banking Industry (A Case Of First Bank Nigeria Plc)

Project and Seminar Topics with material for Banking and Finance

Impact Of Public Relations In The Banking Industry (A Case Of First Bank Nigeria Plc)


Abstract


This research project was embarked upon to evaluate the impact of public relations in the banking Industry, a case of First bank Nigeria Plc., Enugu, an current issues of public relations contribution. to the effectiveness and growth of banks, the development of cordial relationship between management and employees of organization, the establishment and maintenance of mutual understanding between banks and its relent publics, and attainment of the marketing goals of the banks. This study has study objectives as to ; find out whether the bank show genuine desire to implement the provisions of its policies on employees relations; determine whether the bank always maintains satisfactory community relations in its areas of operations; and ascertain whether or not the management of the bank &en communicate effectively with its employees. The survey covered such major publics of the Nigeria Banking Industry as employees, customers and host communities touching sensation indices measurement of public relations practices- as philosophy, policies, actions and communication.


Chapter One


Introduction

1.1 Background to the Study

Banking business in Nigeria started in 1892 by African Banking Corporation. The bank was taken over by the British Bank for West Africa, now First Bank Nigeria Plc, in 1894. Barclay Bank, now Union bank of Nigeria Plc was established in 1917. The two expatriate banks dominated the banking scene until 1933 when National bank of Nigeria was established. Many indigenous banks were established 1929 and 1952 but most of them failed due, probably, too, poor public experiences, apart from low capitalization and stiff completion from owned foreign banks.

Only three indigenous banks and the two foreign banks survived the period by 1952, the First banking Ordinance was introduced. It stipulated minimum capital base and licensing for Banks. The period that followed, 1952 to 1959 was first era of banking boom. But between I962 and 1970, there were no new banks established in Nigeria, presumably because of the impact of regulation and the Civil war (1967 to 1970). The period 1959 – 1970 witnessed the era of regulations. The Central bank of Nigeria was established in 1959 with powers to promote and integrate the Nigeria financial systems. The Central bank encouraged the development of money and capital markets. It also encouraged public relations, human resources development in the banking industry. Other useful development within the period that affected human resources and public relation development in banks are: –

The Companies Decree (1968) which made it mandatory for all companies in Nigeria, including banks to register locally and be subjectec1 to Nigeria laws;

  1. Indigenization Decree (1972) which introduced the system deliberate Nigerian;
  2. The acquisition of controlling shares in the three big expatriate banks.

The period 1986 to date is called banking boom era because of the rapidity with which banks were established due to deregulation of the economy. The government and the private sector now rely on the banks for the allocation of public relations and human resources practitioners. The industry had, merchant and 29 commercial banks in 1986 but December 1990 there were 48 merchant banks and 58 commercial banks apart from 5 development banks and the People’s Bank established in 1989. The Community Banks, a unit banking system meant mainly for rural communities started springing up towards the end of 1999. As at may, 19991, there were 120 merchant and commercial banks, excluding Central Bank, four development Banks, People Bank and Commercial Banks. The Federal Saving Bank was recently converted to what they call a “Wholesale Commercial Bank” instead of being a development Bank. The rapid growth within the industry and financial system in Nigeria as a whole has over-stretched the management cadre of banks. There is a lot of movement from old banks. It has created rapid uplift and promotion for many staff of banks.

Such a situation surely calls for rapid training and retaining of public relations practitioners in the industry to maintain a high level of competence seen in the industry today. As public Relation practitioners are the major link between the banking industry and the public, there is every need that effective communication and communication channels are developed to take advantage of the challenging industry.


1.2 Statement of the Problem

Before the establishment of Central bank of Nigeria in 1959 training of Nigerian bankers was not taken seriously by most banks especially the foreign-owned banks. There was a gentleman’s agreement within the foreign-owned banks on competition for business and staff. Except in big cities could not see the offices of two foreign banks located in the same town and mobility of staff among them was not allowed. However, the indigenous banks had to snatch some Nigerians from these banks to start survive and stay in business, since they needed some experienced hands to forge ahead in the industry. It is on record that foreign banks in the part of this century employed Nigerians mainly as menial workers and clerk. Their management and intermediate staff was expatriates. Until the seventies, one could see white faces as Accountants, Managers, and head office executives in banks. There was no conscious effort to groom Nigerians for management position. In fact, the caliber of people employed were either dropout from schools or school certificate holders with lower grade so that they could stay on the jobs No encouragement was given for staff to take the profession examination of the Institute of bankers, which was however, London based. The first set of Nigeria University degree holders to be employed in the Banks were recruited in the early sixties. However, a few Nigerians were sent on attainment to home offices of foreign banks. It was in 1955 that First bank took their staff and to send three Nigerians London every year and their first batch of Nigerian were sponsored that year.

The first banking institution that opened a training center locally was Union Bank in 1957. First Bank did not have a Public Relations development or a local Centre until 1960. The services of most banks without exception are so sloppy that one is left to wonder if they are in competition to determine who amongst them is the sloppiest. There is therefore every need to check this can Furthermore, the rate of labor turnover in the banks especially commercial banks is very high compared with what it used to be. There is no doubt that this high rate of mobility contributes to the poor services rendered by banks. Public relations is a new development in this country and its functiorzs are grossly misunderstood by many business organizations including banks.


1.3 Objective of the Study

The objective of the study is to document the public relations practices of the First Bank of Nig. (PLC).

More specifically the following objectives were formulated;

  1. To find out whatever the bank shows genuine desire to implement the provisions of its policies on employee relations;
  2. To determine the bank always maintains satisfactory community relations in its areas of operations;
  3. To ascertain whatever or not management often communities effectively with its employees.
  4. To find out, the extent to which the public relations policy of the bank contribute to the establishment and maintenance of mutual understanding between the bank and its public.

1.4 Research Question

The specific question to be are as follows:

  1. Does it show genuine desire to implement the provision of its policies on employee relations?
  2. Does the bank maintain satisfactory community relations in its areas of operation?
  3. Does management communicate effectively with its employees?
  4. To what extent does the public relations policy of the bank contribute to the establishment and maintenance of mutual understanding between the bank and its publics?

1.5 Significance of the Study

This study has a number of significant dimensions on it.

The results of this study should provide information to the industrialist on the progress so far made the First Bank of Nigeria Plc, East Admigistration, Enugu, towards the development of industry harmony with the role of public relations practitioners. The results should also reveal how much progress has impacted on the growth of First Bank of Nigeria PIC: East Administration, Enugu.

More importantly the study should draw the attention of both management and employees on the valve of cordial relationship existing between them. And how the relationship can contribute to the banks’ growth and effectiveness.

This study also help the shareholders of the bank earn their due share as effective communication made possible’ by P R will reduce the industrial problems which usually result in strikes. The study should also help government planners to know the category of Banks to extend incentives and tax breaks.

This study also helps the government planners to determine areas to assist the banks. This is important because the sub-sector constitutes a veritable engine of economic growth. Thus the contitlued neglect of the sector by the government will spell a disaster for the global economy. The recommendations of the study should serve as important palliatives for the various economic and structural ills that affect the growth of the First Bank of Nigeria PIC in particular and the nations banking industry as a whole.


1.6 Limitation of the Study

Every human policy has its inherent weaknesses and strengths. As a result every researcher needs to make inferences with caution. This study is riot without limitations nor is it without some inherent pitfalls caused by some extraneous variables.

A major constraint on the researcher is that the study limits to the role of PR

In banking industry-study of First Bank of Nigeria PIC East Administrative unit Enugu. Also, incomplete response and some information from respondents constituted another limitation of the study. However, the researcher has been as objective as possible as possible in analyzing the data received. To that extent, therefore, the research has some limitations hut none is considered so serious as to affect its validity


1.7 Definition of Terms

Growth:

According to the chamber 20th Century Dictionary, growth is defined as an increase in value or providing n increased capital rather interest ( Kirkpatrick (ed), 1983, P.555). According to Bennet ( 1989, P 16) growth means increasing profits.

Two-way Communication:

Is a situation a receiver receives a message and then sends it to the sender; there is effective two-way

Structure:

Defines the role relationships of people in organizations.

Public Relation:

Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.” Public relations can also be defined as the practice of managing communication between an organization and its publics.


Chapter Five


Summary, Recommendations and Conclusion

5.1 Summary

This research work evaluate the impact of public relation first bank Nigeria Plc. based on the existing practice the banks’ public relations contribute to the effectiveness and growth of banks and that its public relations policies helps in the development of cordial relationship between management and the relevant publics of the organization. In addition, that its public relations policies contribute to the establishment and maintenance of mutual understanding between First bank of Nigeria PLC and its relevant publics, that public relations contribute immensely towards the attainment of the marketing goals not’ the Banks. The frequency distribution responses collated based on the questionnaire distributed yielded sample proportions from the research question, which also gave room for authentic validity.


5.2 Recommendation

Having studied and reflected on the role of public relations in the banking industry, the researchers hereby, make the following recommendations; If we are to make a generalization of the outcome of then evaluation of public relations practices in First bank of’ Nigeria Plc. the researchers hereby state

  1. That Nigerian banks should not relax on their oars thinking that all its well between it and its relevant publics. They are therefore, expected to maintain and possibly improve the current tempo of public relations practices.
  2. A research should he conducted by scholars on the effective use of suggestion boxes in Banks and even in other organizations.

5.3 Conclusion

To the researcher having extensively and intensively evaluated the public relations practices of the Nigeria banking Industry using First Bank of Nigeria LC as case study, with data conducted from such major- publics as employees, customers, and host communities ties and over such issues as philosophy, policies, actions and communications, conclusion is hereby made based on available statistics, and evidence, that public relations is practiced in the Nigeria Banking industry. All that is needed is its sustenance and improvement to meet with the sophisticated needs, expectations and desires of, this 21″ century publics.


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