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EVALUATION INTO THE NATURE PROBLEMS AND PROSPECTS OF THE NEW PRODUCTS DEVELOPED IN THE BANKING INDUSTRY

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ABSTRACT

This research studied the evaluation into the Nature, problem and prospect of the New product developed in the banking industry from 1990-2003.
In this research work, the researcher choosed four of the products and measures the extent to which they have been able to satisfy the customers. The product selected are, SMART CARD, INTERNATIONAL MONEY TRANSFER, EDUCATIONAL SCHEME AND INTEGRATED NET WORK TRANSACTION.
Data for this research were collected though questionnaire and interviews by bank customers and the review of existing literature on the topic using simple random procedure and the descriptive method of research. The data so collected were analysed using the simple percentage and the formulated hypothesis were tested with chi-square (X2) method.
Some of the findings are, the nature of the new product ca be measured in terms of accessibility, speed, timeliness, simplicity and reliability. Customers who patronize this products are mainly those who want money transfer both locally and internationally. Customers derived high level of satisfaction from the New products. Inadequate infrastructural level in our banking industry and high cost of installing them contributed to the problems of the New Products.
Based on the findings, the following were recommended, that banks should come together and establish a common data communication satellite to minimize constant problems.
A parallel organization that was supplying electricity in competition with NEPA should be allowed to evolved so that an efficient supply of electricity can be ensured.
Finally, since this study alone cannot be exhaustive of this vital subject, it is recommended for further studies.

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY
The history of banking in Nigeria dates back to pre-independence period, then the establishment of banks was motivated by the urge on the part of government to inculcate banking culture in the people and the desire of the people themselves to fund a means of making financial intermediation easy.
In the recent times, between 1990-2003 a lot of techniques are sued by banks to facilitate customers services and customers satisfaction which has led to the introduction of the New Products developed in the Banking industry. These new products developed in the banking industry today revolve around electronic banking and information technology.
As a result of this, the researcher seeks to study the nature, problems and prospects of the New products developed in the banking industries between 1990-2003.

1.2 STATEMENT OF THE PROBLEMS
This research is designed to find out the Nature, problems and prospects of the New Products developed in the banking industry between 1990-2003.
Therefore, the statement of the problem in the research work remain this to what extent has the New Product in the banking industry today been able to meet customers satisfaction. In looking at the statement of the problem, one needs to bear in mind that some customers come to the bank for certain needs that are peculiar to their own circumstances while some come for reasons that could be general. The ability of these new products in the banking industry is to meet customers needs ad facilitate their satisfaction determine their efficiency.

1.3 OBJECTIVES OF THE STUDY
In view of the problems identified, this will achieve the following objectives:
1. To identify the nature of the New products services delivery strategies in our banks.
2. To find out if the New products develop by banks is convenient to customers.
3. To find out if these New products developed by banks satisfy customers needs.
4. To find out if fund transfer is one of the prospects new products developed by banks.
5. To find out if inadequate infrastructural level is among, the problems of the New products, in the banking industry.

1.4 RESEARCH QUESTIONS
1. What is the nature of the New products and services delivery strategies in our banks?
2. Is new products developed in the banking industry convient for customers?
3. Could these products satisfy customers needs.
4. Is fund transfer one of the prospects of the 

1.5 RESEARCH HYPOTHESES
The following hypotheses are drawn from the study using will (Ho) and alternative hypothesis (H1).
1. Ho: New Products development has not increased banks profitability.
H1: New product development has increased banks profitability.
2. Ho: The acceptability of New product by customers is not dependent on Awareness. 
H1: The acceptability of New product by customers is dependent on Awareness.
3. Ho: New product development by banks has not increased customers patronage.
H1: New product development by banks has increased customers patronage.

1.6 SIGNIFICANCE OF THE STUDY
This study will be capable of widening Academics by acting as a guide for future researchers. Therefore bank constitute themselves into a very powerful, instrument for fostering Economic development. Bank customers today expect a lot from their banks. Banking nature is no longer just about safety of funds and increased returns on investment from their bank as well as efficient, fast and personalized service which meet their needs.
At the end of this research, the following group of people such as the bank customers bank, govt. general public and future researchers should stand to benefit from it.
1. BANK CUSTOMERS: They will be exposed to the idea of the new developed product in the banking industry as to clear their minds to the nature prospects and problems of the new product.
2. GOVERNMENT: It will act as a starting point in arousing government policy in support of the new product developed in the bank industry which will facilitate economic development.
3. BANKS: It will help the bank to improve on their services rendered to the customers, as well as efficient fast and personalized services which meet their needs.
4. GENERAL PUBLIC: This will further encourage savings for more investment and creation of job opportunities for the timing population.
5. FUTURE RESEARCHERS: This study above cannot be exhaustive of this virtual subject. So, it is hoped that the findings and recommendations will appeal to the luguistive minds of the readers and other students as to spur them to take further studies in this area.

1.7 SCOPE, LIMITATIONS AND DELIMITATIONS OF THE STUDY
The scope of this study is limited to the nature, problems and prospects of the new products developed in the banking industry. It runs across the various lines of the bank customers.
Being conducted by the banking industry in particular. Both primary and secondary data were collected and used in arriving at the findings and conclusion.
There are the major limitations of the study, because of lack of finance, time, inadequate data and attitude of some respondents.
1. Due to score resources, the researcher could not cover all the sections of the banking industry, on the new product developed in the banking industry.
2. Inadequate secondary data on the activities of the banking industry on the nature, problems and prospects of the new product developed.
3. death of literature of the area of the banking operation.
4. tight schedule and ignorant of most managing directors of the banks, interview and resulted in very brief tie allocated to the researcher during contact with them.
This researcher deems it necessary for the researcher to visit all the banks constituting the new product developed in the banking industry but because of time and finance at the disposal of the researcher, only a sample of respondents cutting across the various lines of the business is being conducted.

1.8 DEFINITION OF TERMS
The following definition of terms will help those who are experts in the field to understand certain technological jargons used in this research.
1. NATURE: The basic qualities or character of thing.
2. PROBLEM: A thing that is difficult to deal with or understand or a question to be solved.
3. PROSPECT: The chances of being successful (Hernbey 1999).
4. BANKS: A bank is any institution licensed to carryout business of banking, and they are characterized by acceptance of deposit and facilitating withdrawal, equipment leasing, by discounting on the type of bank. (Ukemenam 2000).
5. BANK CUSTOMERS: These are people or organization who have accounts with banks and carryout financial transactions with the bank (Iloh 2002)
6. NEW PRODUCTS: These are products that are introduced newly into the banking industry to enhance or facilitate bank services to both customers and bankers (Edemodu 1998).
7. UNIVERSAL BANKING: This is a concept or banking policy under which every bank is free to determine the type of banking transaction they can engage in or a situation whereby a commercial merchant banks are free to engage in any conventional activities of the either (Orjih 2001).
8. C.B.N.: Central Bank of Nigeria also known as the Apex regulatory bank for Nigeria Financial System (Ukemenam 2000).

REFERENCES
Hernbey A.S. (1999) “Oxford Advanced Learners 
Dictionary of correct English”, 3rd Edition London. ELBS p. 20
Ukamenam C.O. (2002) Charactered Institute Banker: 
Africana Feb. Publishers. P.48
Orjih J. (2001) Seminar in Banking And Finance Enugu: 
Bob Billion Publishing pp. 62-71
Ogwuma P. (1997) The Future Role of Technology in 
Banking Development in Nigeria: Bullion vol. 2, No. 4, Oct-Dec. p.35.
Agene, C.E. (1995) The Principles of Modern Banking, 
Abuja Gene Publishing p. 91.
Edemodu, A. (1998) “Banks New Products and Strategies 
to Keep, A flat,” Guerdian vol. 15, No 71175 July, p. 25

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