COMPETITIVE STRATEGIES AND CHANGES IN BANKING INDUSTRY IN NIGERIA. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
The main objective of this study is to determine competitive strategies and changes in Nigeria banking industries. Competition as a market situation which holds where there are a large number of business firms that are capable of supplying the same or similar services (McKenna and Fleming, 1995).
A subsidiary objective for this study was on the effect of environmental strategies on competition in banks, the effect of financial strategies on competition in banks, and the effect of customer service on competition in banks. Based on this subsidiary objectives, a questionnaire was developed and a total of 60 respondents were administered the questionnaires. 58 respondents of a total of 60 agreed that environmental strategies affects competition in banks, 59 respondents of the total respondents was of the opinion that financial strategies affects competition in banks and 60 respondents of the total agreed with customer service as a strategy that affects competition in Nigeria banking industry with percentages of total respondents of 96.7%, 98.3% and 100% respectively for Yes.
However, it was observed that these that competitive strategies in banking industries are independent of each other, based on the findings from respondents and data collection. Using 5% level of significance.
1.1 BACKGROUND OF THE STUDY
The name Bank is derived from the Italian word banco “desk/bench” used during the Renaissance by Florentine bankers, who used to make this transaction above a desk covered by a green tablecloth. However there are traces of banking activity even in ancient time.
In fact, the word traces its origins back to the ancient Roman Empire, where money lenders would set up their stalls in the middle of enclosed courtyards called Macella on a long bench called Bancu, from which the word Banco and bank are derived.
As a money changer, the merchant at the Bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome that of the imperial mint. .
McKenna and Fleming in 1995 described competition as a market condition which exist when there are large number of business enterprise, all able to supply the same or similar products or service to a large number of purchase/buyers.
In this last decade there has been a high competition within the banking industry in Nigeria, with the licensing and establishment of more banks bringing the total number of commercial and merchant bank in the country to about eight-seven, there has been high tendency for various banks in the industry to fend for themselves for survival.
A commercial bank is defined as an establishment which accepts deposit from customers that are prepared where loans and advances and general financial business concerning all forms of trade are made. Example of such trade are retail, wholesale, import and export trade.