Motivation As A Way Of Reducing Fraud In Banking Industry (A Case Study Of Chartered Bank Plc Onitsha)

Project and Seminar material for Banking and Finance

Project and Seminar material for Banking and Finance


For quite sometimes now, Fraud has become a serious food for though for many corporate bodies. As a result of this more time is being spent on board meeting in an attempt to find solution to the persistent fraudulent practices among management ands non-management staff.

According to Omotosho (1992) “Fraud” is any activity that is taunted with criminal intention to cheat or deceived” The rate at which fraud is pertrated has led to loose of confidence in banks and motivation as a way of reducing frauds in banking industry.

The research work covered the area of motivation and provides a dear explanation on how workers can be adequately motivated in order to reduce fraud plaguing the banking sectors and performance enhancement.

Questionnaire were used as the main instrument for data collection they gathered through the questionnaire were processed using simple percentage so as to facilitate an easy understanding of the analysis of data.

Recommendations were also preferred based on the research finings. It is hoped if the recommendations are put in use; it will go a long way in reducing fraud in banking industry and lead to improvement in performances.

Table Of Contents

Preliminary Page(s)

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

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 Significance of the study
  • 1.5 Statement of hypothesis
  • 1.6 Scope of the study
  • 1.7 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Concept of Fraud and status
  • 2.2 Types of fraud in banking system
  • 2.3 Effects of fraud on bank performance
  • 2.4 Fraud prevention and control through motivation And its policies
  • 2.5 History of chartered bank of Nigeria PLC and Fraud prevention
  • 2.6 The Nigeria Deposit Insurance corporation (NDIC) Report on Fraud
  • 2.7 The implications of fraud
  • 2.8 Fraud prevention measure

Chapter Three

3.0 Research Methodology

  • 3.1 Introduction
  • 3.2 Source of data
  • 3.2.1 primary source of data
  • 3.2.2 secondary source of data
  • 3.3 Method of data collection
  • 3.4 Population size
  • 3.5 Sample size
  • 3.6 Techniques for data Analysis
  • 3.7 Questionnaire design

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Data presentation
  • 4.2 Data analysis
  • 4.3 Test f hypothesis
  • 4.4 Interpretation of Result

Chapter Five

5.0 Summary, Conclusion and Recommendations

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography
  • Appendix

Chapter One

1.0 Introduction

1.1 Background Of The Study

One of the greatest challenges facing any economy today is the structuring of the bank and other financial industry institution. The banking industry plays an important role in the financial market and very individual in the economy.

It has been noted that some banks face distress syndrome simply because the activities of fraud are found to be on increase and this has resulted to mass space withdraw of the government and public fund firm the banks and other financial institutions that are affected.

In the annual report and statement of account of Nigeria deposit Insurance corporation (NDIC) year 2000 section 2, it was reported that fraud and forgery cases in commercial banks increased significantly by about 119.8% form 182 in 1999 to 400 in 2000. Most employees engage in commercial banks increased frauds because probably they do not enjoy high degree of satisfaction or perhaps they fall what they earn are not commensurate with the kind of effort they put into their work.

If the forgery is true, then a good motivational policy helps workers to attain on satisfaction and invaluably reduce fraud in banking industry. Basically, management involves planning, organizing, coordinating, budgeting and control.

Similarly, management cannot achieve its objectives in the atmosphere of chaos, unfriendliness and lack of motivation. Therefore, motivation can be defined as inner state that energizes, activates more and direct or channel behavior towards achieving organizational objectives. On the other hand fraud can be defined as an act of depriving person dishonesty of something. So which is or might but for the perpetration of fraud entitled?

Generally motivation includes rewards shown in cash and in king. It is not an empty promise but demonstration of reality. It is an acceptable act that management cannot operate in isolation or employees. Employees are human beings and utilize in a reckless manner.

And note management has to be cautious and responsible in dealing with affairs that affect its work in the industry, given the inherent benefit derivable from highly motivated workers. There is need for proper study of motivation and how it can used to reduce the fraudulent practice in banking industry.

1.2 Statement Of The Problem

Until very recently, most Nigeria industries, mostly banks have been treating the moderation which is infact, borders on staff welfare with lending.

This is why most industries are faced with series of fraudulent practices consciously and unconsciously, perpetuated by the employees of the organization.

Investigations revealed that most organizations found it difficult to see motivation as being capable of making a meaningful contribution to their organization. This therefore resulted into the employees becoming frustrated ad easily involved in fraud.

The non-inclusion of denied and focused motivational strategy that will spare employees performance could be fell in the banking industry especially in the areas of efficiency and effectiveness that would have served as barriers to prudence of any kind.

In this way, a lot still need to be done to put the industry on a second footing in the area of motivation. In order to bring about transparency and accountability in the banking sector.

The problem of motivation is not peculiar to the banking industry alone. It is a problem to be curiously addressed by the way majority of the Nigeria industries today other wise the fraudulent practice will continue unchecked.

1.3 Objective Of The Study

The general objective of this is to find out if motivation serves as strategy of reducing fraudulent acts in most Nigeria industries given the high incident of banks fraud of the others as a result of lack of commitment on the part of management to boost the morale of the staff though motivation on welfare packages.

Therefore the general objective of this industry establishes the impact of motivation on employee’s performance and job satisfaction in Nigeria banking industry.

Asides, it ascertains whether motivation as a tool of improving workers performance facilitates transparency and accountability such that frauds in banking industry are minimized. If not completely eradicated.

1.4 Significance Of The Study

The research work will be of importance ad good use to those who are directly in charge of labour in either private or public sector of the economy.

  1. Motivation as a spur of the employees’ performance is not new, historically motivational varies and was designed to suit particular purpose of the employees’ vis-avis their status and need in any organization with a new to explore the best out of them.
  2. It plays an important role in assisting regulatory authority in the area of motivation essentially when formulating policy and implementing it that could lead to reduction in fraudulent act in Nigeria.
  3. This project work is useful to any person undertaking research on motivation.
  4. Consequently, the research describes how appropriate motivation improves low performance and reduced, if they completely eliminate frauds.

1.5 Statement Of Hypothesis

  1. H1: Monetary motivation can prevent fraud at all levels of workers in banking industry.
  2. H2: Motivation packages improves profit of banks

1.6 Scope Of The Study

This research work covered the area of motivation and provides a clear explanation on how employee can be motivated to achieve higher performance and hence reduce fraudulent practice in banking industry.
Researcher can not reach all the banks in the state and the country at large, so the study is restricted to few selected in eastern regions, precisely Onitsha metropolis taking chartered bank plc branch as the case study.

1.7 Definition Of Terms


This is the willingness to extent high-level of effort towards organizational goals. It is also the action or the causes to action that we take to certify a need. It is concerned with low behavior is stated, sustained or stopped and what kind of subjective reaction is present with person. It is also an inner state that energizes, activates or more and direct or channel behavior towards achieving organizational objectives.


It is the crime of deceiving somebody or a company in order to get money or goods, illegally. It is an act of depriving person his dishonesty of something, which he is or might, but perpetration of fraud is entitled.

Motivational Policy:

This is a principle that guides the person why somebody does something or behaves in a particular way. It is also a principle, which a company adopts to see how best its workers or employee could be treated to get the best of their attention to work.

Motivation Theory:

Is a speculative plan or underlying principles of motivation which was theory of need, content theory of motivation etc.


It is something that encourages to do something. It is a stimulus to motive. It could be inform of money, leave allowance, holiday abroad, bonus, wardrobe allowance, housing allowance, children and maids allowance etc.


It is the crime of coping money documents etc in order to deceive people. This could be done by any cadre of management or staff an industry and it usually as a result of improper motivational factors. Example altered signature and counterfeit currency.

Intrinsic Motivation:

means deriving satisfaction of your needs and therefore your motivation factor that influence people to behave in a particular direction. The factors include responsibility i.e. feeling that the work is important and having control over ones resources.

Extrinsic Motivation:

This means using work as means to an end. It is most called instrument approach. It also refers to what is done to or for people to motivate them; it could be rewards such as increase pay, praise or promotion.

Bank Failure:

A bank is said to have failed if it has not succeeded in achieving any of the objective for which it was established. That is when it cannot meet any of its obligations. These obligations are due. First and foremost to its customers as well as its shareholders and even the community where it is established. `


This is a person who commits fraud. That is somebody who is involved in the crime of deceiving somebody or companies in order to get money.

Cashiering Fraud:

This is a crime of deceiving to get money or stealing customers money which is received by the person whose job is to receive and pay out money in a bank e.g. in appropriate customer money.


To change a written records or information so that it is no longer there. To falsify data, records or accounts of a company.

Fraud Prevention;

It is the act of stopping the occurrence of an act of Depriving a person dishonesty of something when he is or might but for the perpetration of fraud be entitled

Financial Management:

Is the act of running and controlling the fineness of a company, it must set upon objective plan ad how this may be achieved which is done by the effect of a financial manager.


It is the amount of work that is paid to somebody for the work they have done, it could be salary, wages and so on.

Public Fund:

It is the money which is deposited in the bank but which belongs to the ordinary people in the society in general. It could also be government fund provided especially for the use of people in general.

Chapter Five

5.0 Summary, Conclusion And Recommendations

5.1 Summary

The research work has attempted to unravel effect of welfare packages for employee and the role pf motivational policy in reducing fraud.

The chapter one of this study introduced the paper as a field of studies the historical background of the research and field was employed. The chapter goes to state the significance of the study and the scope within which the paper is expected to cover. Motivation and the role it plays in reducing fraud in banking industry using fraud in banking industry using chartered bank placed a case study.

Chapter two focuses on the review of related literature. In this chapter, the research examined the people’s view on motivation the role of motivation in preventing and controlling fraud in an organization and finally the effect of fraud in banks.

Chapter three deals with the design of the study which comprises of the methodology, population of the study, instrument of data collection, reliability of the instrument and the method of data analysis used in analyzing the data.

In chapter four, the data collected through the use of questionnaires were analyzed showing the total respondents response on the issue.

Chapter five, which is the last chapter, contains the summary, conclusion and recommendations based on the findings from the study.

Summary Of Major Findings

The analysis of data obtained to the question relation to the research topic, that motivational policy or strategy plays a vital role in the enhancement of employee performance and reduction in fraudulent practices among employee in the banking sector.

The result of the analysis carried out have been able to establish that stiffer penalty like dismissal and imprisonment of crying staff would curb fraudulent acts in the banking industry. It is also established that the provision of welfare packages for employees in any organization is capable of enhancing the organizational objectives

The provision of these incentives will go a long way in reducing the act of fraudulent practices in the banking sector. In view of these, motivation has therefore, become an aspect of the organizational strategy that cannot be waved aside in any organization or establishment most especially in the banking sector. If fraud which becomes a concerned worm that has eaten deep into our economy could be checked.

As it has been established trough this research, work that providing necessary incentives and welfare packages would ensure employees commitment to the realization and the organization objective and this will in doubt afford he employee the opportunity of blocking the availability of fraudulent practices in the organization.

5.2 Conclusion

The success of failure of any organization is largely dependent upon the performance and efficiency of the employees, from the summary of the finding, it is revealed that lack of welfare packages makes employees to perform below expectation and also results in fraudulent practice.

The findings also revealed that good motivational packages could improve worker’s performance, efficiency in profit making. And also that stiff penalty like instant dismissal of erring stiff could cub the fraudulent act

Finally it has also revealed that monetary alone cannot fulfill the desire of enhancement in performance even through money is important, it is not the onlyu prime motivation of employees especially in banking sector.

5.3 Recommendations

After thorough understanding of the topic the processes of carrying out this research deem it necessary to give useful recommendation based on her findings.

The recommendation id carrie3d out, the researcher belief it will contribute immensely to the government, CBN and employees in our country Nigeria.

  1. The government should legislate motivation as a common practice in every corporate and private parastatal.
  2. The view that monetary motivation alone can bring improvement in performance is not true and such is not applicable in all situation or other motivational packages should be introduced.
  3. Central bank of Nigeria should thorough in their area of supervision of the banking sectors.
  4. The employers should be sensitive to their employees various need. Any staff found indulging in fraudulent practice should be given a commensurate punishment in the court o law.

Lastly, the researcher improved all Nigerian managers and all employers of labour to note the method and manner they use in directing, monitoring and controlling the activities of their subordinates in the banking industry they manage and their ability to relate and understand the environment they operate in, in which will influence their success of failure and therefore, this topic is of special concern to the monetary control and supervisory authorities who are charged with the safety of individual banks and the soundness of the banking system.

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