AN APPRAISAL OF NEW CONSUMER CREDIT PRODUCT IN THE NIGERIA COMMERCIAL BANKS. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
In this project research study (work) is a very crucial study for the Nigerian Commercial Banks, this study was actually motivated by the necessity of effects of development of new consumer credit products in Nigeria commercial banks. To solve the research problem, both primary and secondary data were collected. The research instrument used in collecting data were interview and questionnaire, the respondents were bank staff and some bank customers of the user of the product. The population and population sample is 50 and 40. Also in organizing and presenting data collected, tables, frequencies, charts and percentages were used. The various hypothesis were tested using the chi-square. Data analysis and interpretation gave the following findings:- The problems encounterable in the process of product development have effects on the commercial banks. The consumer credit products of commercial banks in Nigeria have not been satisfying their customers’ needs. The education of customer on the usage of products and their level of awareness has effect on the bank’s credit products development. Based on the findings, the researcher recommends that: The management of our commercial banks should try as much as possible to equip their research and development department and for those that have not, they should try to establish one. There should be increase in product awareness mechanisms such as good adverts, seminars for bank customers on product usage by the bank customers etc. These should be a good research before embarking on a new product development. In conclusion of the whole matter, one commercial banks customers credit products have not been satisfying their customers’ needs but if improved at an appealing price will satisfy their customers’ needs.
CHAPTER ONE
INTRODUCTION
Background of Study
As far back as 1892 when banking started in Nigeria, the need for the development of new consumer credit products was not much needed as few banks then were in operation. But as of 1986 when the Structural Adjustment Programme (SAP) was introduced by the federal government of Nigeria a new era characterized by deregulation of the banking system took place. Worse still, deregulation gave room for the formation and licensing of numerous new command and merchant banks. This however brought what we call aggressive competition among the commercial banks, which finally led to the introduction of new consumer credit products in the Nigeria commercial banks.
This period brought a total disappearance of armed char banking in Nigeria. As new banks sprang up, heavy competition becomes the order of the day. This with commercial banks and about 190-branch offices in 1960, there emerged no fewer than 124 commercial and merchant banks (with 2076 branches) as it the end of December, 1994 according to report released by the Central Bank of Nigeria.