RETAIL FINANCIAL SERVICES IN THE NIGERIAN BANKING INDUSTRY: OPPORTUNITIES AND CHALLENGES POST CONSOLIDATION (A STUDY OF DIAMOND BANK PLC)

ABSTRACT
The banking industry in Nigeria has been undergoing transformation both through government regulations and the dynamic  nature  of the finance sector generally. In the same fashion, retail financial services and products have changed tremendously both in design and delivery. These changes and transformation have therefore prompted my research interest in the area of retail financial services. This research work appraises the impact and effects of the consolidation and reform of the banking industry in Nigeria on the retail financial services and products.

Equally assessed are the effects of the consolidation and reform exercise on the overall performance of banks in Nigeria in the areas of;
1.         Effective and efficient services delivery.
2.         Corporate and business performance as regards earnings generation.
3.         Confidence level of the banking public on the consolidated banks.
4.         Opportunities and challenges facing the consolidated banks.
5.         Contributions of the banks on the general economic growth and development in Nigeria post consolidation.

This study will also x-ray the framework and operations of the consolidated banks and the regulatory authorities. This work also looked into new financial products and services by Nigerian banks. The study goes further to determine how the consolidation and reform have encouraged savings and investments by the banking public.
The way forward for sustaining the confidence level of the banking public on the sector is recommended. Similarly, post consolidation outlook of banks in Nigeria, together with current innovations by both government and operators in the sector are examined. The impact of these innovations and trends on the development of banking and finance institutions are critically examined. The effects of all these on the growth, development and stability of the banking and finance sector in particular and on the economy in general are appraised.
The data for this research work came both from secondary sources and primary sources. These comprise administration of personal interview and questionnaires on bank staffs and sources from Diamond Bank Annual Report and Accounts, on
the  one hand and  CBN  and NDIC Annual Report and Publications, Business  Journals, Periodicals, Magazines and Newspapers, Internet, Newsletters, Seminar papers, Text books, etc, on the other.

The result of this study has shown overall improved performance of banks in Nigeria both in products and service delivery and equally on increased level of confidence of the banking public on the sector. This study has also shown that there are increases in savings and investments in the economy. However, there are now greater opportunities and challenges in the banking industry thus making it more imperative for proper regulations by the regulatory authorities. It is recommended that government and the regulatory authorities regularly and continuously monitor, supervise and regulate the activities, practices and operations of the banking industry to achieve optimal performance, efficiency and stability in the sector. The general public should be enlightened and educated on the products and services offering by banks to encourage more savings and investments. Banks should engage their staffs in training and retraining in modern information technology and other areas of modern banking.Banks should strive to increase their capital base to at least one hundred billion naira (N1,000.00b) billion so as to be globally competitive.

CHAPTER ONE
INTRODUCTION

1.1 Overview and Background of Study
Banks in any given economy are one of the main engines towards the growth of that economy (Ndukaife, 2004:21).

Banks, basically in any economy are financial intermediaries that perform two main traditional functions which include deposit collection and lending. According to Hanson (1972:409), a bank is an institution that is prepared to accept deposits of money and repay cash on demand. However, today banks’ functions, have been greatly transformed and expanded to include trading in financial instruments and foreign exchange and its derivatives, underwriting of new securities, equity issues, brokerage , investment management and insurance. 

The Nigerian banking industry has grown over the years, and a lot of changes, reforms and development have taken place to position the sector for transformation and optimal performance, and at the same time align their operations and practices with international standards. 

Globalization and internationalization in the 21st century have thrown up new challenges, opportunities and threats in the banking and finance industry. Advancement and sophistication in Information and Communications Technology (ICT) have made banking and financial transactions more robust, flexible, efficient and standardized. 

The era of manual and paper works in financial services transactions extincted with the 19th century. Today, automation and electronic banking have taken over. 

The banking industry is the engine and wheel that drive economic activities, and thus is strategic in a nation’s efforts at development. In the words of Ojiakor (2003-2006:28) “the role of banks in the economic life of any nation is so strategic that every effort is made by appropriate national authorities to regulate and effectively supervise the banking business”. The Nigerian banks provide a wide range of retail financial services, geared toward customers’ satisfaction and stimulation of economic activities in all the sectors of the economy. Banks in the 21st century have moved a step further....

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Item Type: Postgraduate Material  |  Attribute: 172 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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