A Seminar Paper On The Impact Of Effective Service Delivery On Customers’ Patronage In The Nigerian Money Deposit Banks

THE ECONOMIC IMPORTANCE OF MONEY DEPOSIT BANKS IN NIGERIA

The distinguishing features of a money deposit bank in Nigeria is that it holds itself out as prepared to accept deposit of money from members of the public on current or deposit accounts, to honour cheques drawn by its customers on there accounts. 

Money deposit banks deals in money, receives it in form of deposits from customers, honour customers drawings against such deposit on demand, collecting cheques for customers and lending or investing surplus deposits until they are required for repayment. From the above functions of money deposit banks, it is clear that they are of great use to the government, the business community, and the various individuals in the society. The government requires the corporation in execution of its monetary policies, such as the restriction of expansion of credit as and when the need arise. In developing countries like Nigeria, the Central Bank of Nigeria is a substantial lender in the short term trough treasury bill purchase as a lender of last resort to customers demands. 

In the 80’s, the provision of banking services in Nigeria could be described as orthodox and armchair affairs. Customers sought for banks to provide the services. 

The orthodox nature of banking system makes the bank manager feel that customers are to accept whatever services that is offered to them good or bad since they were not sought for but brought themselves to such offices. Looking at it carefully, one expects the banking industry to be dynamic which should change, with and adapt to the changing conditions of the economy. Apart from changes in legal status, commercial banking in Nigeria is still basically orthodox except now that the new generation banks have come into being thus threatening the share in the market and showing into faces of the money deposit banks their competitive tendencies and supplicated services. 

Ono (1982) describe banking in Nigeria as orthodox, a process whereby the banker sets costly in their offices watching for business which could certainly come. In contracts to orthodox banking which is dynamic, as the banker goes out scouting for potential customers. 

Money deposit bank officials should take cognisance of the customers as the people who are behind their continuous stay in the luxurious offices and banking halls. They should also understand that bank is a service industry that must market the services they render, these services must be made convenient, accessible and efficient to be patronized, unfortunately this has not been the case with Nigerian banking system until the advent of the first generation banks. 

Ono (1982) further expressed that the habit of banking, the banker must recognise that he must provide good services to his customers efficient and satisfactory services must be accrued to its customers. However, where the accommodation cannot be granted, the banker should make firmly clear to the customers to discharge his obligations without fear or favour.