The need for this study being the impact of new product in commercial bank performance was to introduce the rate at which the introduction of this product is helping the economic development and growth in banking industry in term of employment, income staff utilization and technology and serve as an advisory place to proprietors of commercial banks as to how these product can be use to the benefit of the customers who patronize such product.
This research work is divided into five chapters, chapter one deals with the introduction/background of the study, research questions, and scope of the study, significance of the study, limitation of the study and definition of terms.
Chapter four deals with presentation and interpretation of data presentation. And chapter five is all about summary of findings, conclusion and recommendation.
For the purpose of the study questionnaires were administered to both banks workers and customers
TABLE OF CONTENT
1.1. Background of the study:
1.2. Statement of the problem:
1.3. Objectives of the study:
1.4. Research questions:
1.5. Significance of the study:
1.6. Scope of the study:
1.7. Limitations of the study:
1.8. Definition of terms:
2.0. Literature review
Historical Background of Commercial Banking
2.2.1. New product development a business strategy:
2.2.2. New product concept:
2.3. The nature and structure of commercial banks new product:
2.3.1. New product of first bank plc:
2.3.2. New product of diamond bank plc:
2.4. Steps in production process:
2.5. Factors that enhance the effectiveness and efficiency of a new product:
2.6. Problems of indicators of product:
3.0. Research methodology:
3.2. Research design:
3.3. Sources of data:
3.3.1. Primary sources of data:
3.3.2. Secondary source of data:
3.4. Population and sample size:
3.5. Sampling techniques:
3.6. Validity and reliability of measuring instrument:
3.7. Method of data analysis:
4.0. Presentation and analysis of data:
4.2. Presentation of data:
4.3. Analysis of data:
4.4. Interpretations of result:
5.0. Summary, conclusion and recommendation
5.2. Summary of findings:
Recently, many of them has introduced new product into banking industry. Commercial banks new product can now be seen in various services offered by them to the general public as well as organization, government and industries.
This product are arranged to improve services of commercial bank and also to facilitate financial transactions for the fact that it link to opening of accounts and also result in the main function of commercial bank which is issuing of currency.
Moreover, commercial bank moved ahead in developing new products for the reason that they want to retain their stand in the industry. The banking industry has gone above or beyond acceptance of deposits and giving out loans to its customers. They has now introduced different new products into the industry.
1.1. BACKGROUND OF THE STUDY:
Over the years, it has been significant part of the financial institutions of modern society because of their structure and influence on an economy. Commercial banks through their basic roles of resources mobilization and allocation for efficient investment play a great role in economic development of any nation.
According to Nuolin, (2001), the stock in
trade of commercial bank in
There was a time when banks did not see the need for providing adequate services and encourage patronage. May be there was no need for such activities some years ago due to the fact that bankers were few and competition between banks is increasing the level of financial competition and sophistication of other banking needs by customers.
Olupitan (2002) pointed out that banking
Banks has now indicated various new products into the industry. The stimulant is traced to the unprecedented rise in the number of banks between 1992 to 2001 which resulted into creating a very competitive banking atmosphere among banks.
Olupitan (2002) also note that in the
early days of banking in
This product are usually service oriented designed to facilitate financial transactions as it relates to opening accounts and mobilizations of fund from the surplus units to the deficit unit which is referred as the major function of commercial banks as new product development, growth strategy. Some dread it because of the losses they incur, if the products fail.
However, commercial banks go into developing new product because they want to maintain their position in the industry, expand sales, meet customers demand and more importantly to maintain a product for quick enables fund to transferred means from any where in the world UBA (United Bank for Africa Plc) introduced into banking industry UBA easy card.
1.2. STATEMENT OF THE PROBLEM:
In the development countries, banks have generally made financial transactions simple than ever before. Bills can easily be settled without physical cash, exchanging hands funds can be transferred through electronic media in minutes. Financial deals are conduced in secondary through banks as intermediaries and banking profession is given its right place in society banks.
The banking industry is becoming dynamic; they are borrowing loan from their foreign countries parts by introducing some of these products into the industry.
The research therefore is profiled by the need expose customers to the various new products rendered by commercial banks as well as various cases of customers poor perception of these new product. To this end, effort would be made to conduct empirical test among customers of commercial banks new products of banks on one hand and the level of patronage of new product of bank on the hand. The relationship between customer disposable income and level of patronage of banking services would be revised. Attempt will be made to identify major factors responsible for customer dissatisfaction with new product of the bank to which bank customer sale assisted with new bank product offering.
1.3. OBJECTIVES OF THE STUDY:
The objectives of the study are;
1. To find out how new product development is a competitive strategy used by banks to increase profitability and market shares.
2. Whether if there is a any reasons for introducing new product into banking industry.
3. To send out means of introducing new products into the market.
4. To know the extent new product affect customers patronage.
5. To know the extent new products affect the bank profit level.
6. To find the impact of new product enhancing technological capabilities in banking services.
7. To know how technological in banking improved by new product.
8. To find out factors contributing to customers dissatisfaction with new product in the banks.
9. To find out problems customers encountered in the banking industry about the new products.
10. To find out extent customers have been banking with the banks.
1.5. RESEARCH QUESTIONS:
1. Do competitive strategies used by banks increase profitability and market share.
2. Are there any reasons for introducing new products into banking industry?
3. To what extents new product affect customer’s patronage?
4. What are the reasons for introducing new products in banking industries?
5. What are the extents new product affect the banks profit level?
6. What are the impacts of new products in improving the country?
7. What are the technological areas in banking improved by new product introduction?
8. What are the factors contributing to customer’s dissatisfaction with the new product in the bank?
9. To what extent have customers have been banking with the bank?
10. What are the problems the customers encountered with the banking industry about the new product?
1.5. SIGINIFICANCE OF THE STUDY:
Series though has never been given the introduction of new product by
commercial banks in
2. Furthermore, this study will help to determine the rate at which the introduction of these new products are helping the economics development and growth in the banking industry in terms of employment, income, staff utilization and technology.
4. Finally, this will serve as a spring board to further studies on related subjects thereby creating rooms for improvement in the banking industry one way or the other and touching0 the live of mankind in general.
1.6. SCOPE OF THE STUDY:
The impact of new product in commercial bank performance covers all these savings which banks introduced to their operations which facilitate then in their transactions.
1.7. LIMITATIONS OF THE STUDY:
Lack of finance and time constraint made it impossible for attainment of some facts needed for this research work.
Some of the bank officers who are in position to give information where not being too open and free releasing or complying with the research
The research finds it difficult to go to every bank to get information for their researcher work compound with the time factor and finance to the researcher at times the researchers may be in the lecture room receiving lectures which might lead not to get more information about this research work. Deposited all these problems the researcher was able to conclude the research work.