BANK RECAPITALIZATION AS A MARKETING STRATEGY IN A COMPETITIVE BANKING INDUSTRY:A STUDY OF UNITED BANK FOR AFRICA(UBA)PLC
The Nigerian banking system was at no time immune to reforms. This was confirmed by the central bank of Nigeria in her 2006 Annual report.The proliferation of banks in the country over the past decade or two have resulted in banks developing various strategies to survive despite the competition that threatened to drag them under.In Nigeria, most banks have not lived up to expectations of providing better and adequate goods and services to their customers,they have low capital base thereby forcing some of them to fold up,with people’s money and other valuable items. Therefore, bank recapitalization as part of the strategy adopted by the central bank of Nigeria(CBN) to raise the capital base of the banks in the country, with the aim of strengthening and consolidating the banking sector came at the right time.Today’s United Bank for Africa Plc (UBA), is the result of the merger of the Old UBA,Standard Trust Bank(STB) and subsequent acquisition of Continental Trust Bank(CTB). The work employed both primary and secondary methods of data collection technique and made use of percentages and Z-Scores for the analysis. The study has shown among other factors that Bank recapitalization is an effective tool for marketing management in UBA Plc and that marketing is actually a high level integration of several functions designed to sense, serve and satisfy consumers while meeting the goals of the organization.The study recommends fundamentally that the Bank’s marketing department which is responsible for research work of the company should embark on a more aggressive research on customer’s view about its products and services,this will enable the bank know the needs and problems of the customers and the best strategy to use in reaching its target market.There should also be periodic review of of the bank’s performance so that it can evaluate its strength and weaknesses to enable it take adequate measures to avoid being merged with other banks.