AN EVALUATION INTO THE NATURE PROBLEMS AND PROSPECTS OF THE NEW PRODUCTS DEVELOPED IN THE BANKING INDUSTRY 1990 – 2003.

(A CASE STUDY OF FIRST BANK PLC, ENUGU)

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

• Background of the Study 1
• Statement of the Problems 2
• Objective of the Study 2
• Research Questions 3
• Research Hypotheses 4
• Significance of the Study 4
• Scope, Limitations and Delimitation 6
• Definition of Terms 8

Reference                                                                                 10

CHAPTER TWO

Review of Related Literature                                                             11

2.1     New Products for Effective Banking Operation                      12

2.2     The Nature of the New Products in the Banking Industry                12

2.3     Information Technology                                                                   15

2.4     Globalization of Banking Industry                                          17

2.4     The Concept of Universal Banking                                         19

2.5     Prospects and Problems of the New Products in the Nigeria   20

2.6     The Review of Other Related Completed Research Work                 24

2.7     Summary and Justification                                                      25

Reference                                                                                 27

CHAPTER THREE

• Research Design and Methodology 28
• Research Design 28
• Area of Study 28
• Population 28
• Sample and Sampling Techniques 29
• Instruments of Data Collection 29
• Method of Data Presentation 29
• Method of Data Analysis 30

Reference                                                                                 33

CHAPTER FOUR

4.1     Data Presentation and Analysis                                                        34

4.2     Questionnaire Presentation and Analysis                                34

4.3     Test of Hypotheses                                                                 44

CHAPTER FIVE

Findings, Recommendation and Conclusion                                               51

5.1     Summary of findings                                                               51

5.2     Recommendation                                                                     52

5.3     Conclusion                                                                              53

5.4     Suggestion for Further Research                                             53

Bibliography                                                                           54

 

 

 

 

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.

 

 

 

• 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.

 

• 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.

 

• 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.

 

• 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.

 

• 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. 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”, 3^rd 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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THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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THE EXTENT OF RELIANCE ON FINANCIAL ACCOUNTING INFORMATION FOR EFFECTIVE BUSINESS AND FINANCIAL DECISION IN CORPORATE ORGANIZATIONS

A CASE STUDY OF FIRST BANK OF NIGERIA PLC

Abstract

The study was directed towards examining the extent of reliance on financial accounting information for effective business and financial decision in corporate organization in  Nigeria (A case study of First Bank of  Nigeria PLC)

 

In carrying out the examination, certain problems were identified. These problem include the fact that some business are managed in intuitively, in their words regardless of the information content of financial statement.

 

Secondly, some organizations may unknowingly employ incompetent and unskilled manpower in sourcing financial accounting information.

 

The objective of the study include factors which may constrain or promote the effective use of financial accounting information, analyzing impact of and roles of financial accounting information ascertaining whether there is a direct relationship between financial accounting information and the decision made in corporate organizations, identifying the information derived from financial accounting, with these objectives in mind, two hypothesis were formulated, the first hypothesis is that financial accounting information has contributed to effective decision making in First Bank of  Nigeria Plc and the information content of annual financial statement of the bank is effective.

 

The descriptive research approach was chosen for this study and both primary and secondary data sources were explored. Two sets of questionnaire were distribute and in analyzing the data generated, simple percentages, statistical tables and chi-square were used. After data analysis, it was discovered that financial accounting information has contributed  to effective decision making in the bank. It was also discovered that the information content of annual financial statement in the organization is effective.

 

Other findings made include that inconsistent accounting policies and reporting practices make comparison of the performance of organizations difficult, the level of information given in financial statement is highly reliable.

At the end of the study answers were provided to some basic questions such as:

• How reliable is the level of information in financial statement?
• The rate of effectiveness of financial accounting information in achieving organizational objectives.
• Whether organizations rely mainly on financial accounting information for making business and financial decision.

CHAPTER ONE

• Introduction 1
• Statement of problem 3
• Objectives of the study 5
• Significance of the study 6
• Research hypothesis 7
• Scope and limitations of the study 8
• Definition of terms 9

 

CHAPTER TWO: LITERATURE REVIEW               11

• The nature of accounting information in –

First bank of nig. Plc                                          11

• Its financial accounting processes 13
• Its accounting standard 14
• Its accounting statement 15
  • Balance sheet 17
  • Income statement 22
  • Analysis of financial statement 22
• Financial accounting information and decision making in first bank of Nig.                                                 24
• The nature of decision making 25
  • Classification of decision-making processes in first bank of Nig. Plc.                                                 29
  • Levels of information available for decision making in first bank of nig. Plc.                                                 30
  • Effective decision making 31

 

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY                  34

• Introduction 34
• Sources of data 34
  • Primary data sources 35
  • Secondary data sources 35
• Research method of approach 36
• Research instruments 36
• Sample selections 37
  • Statistical determination of sample size 37
• Method of questionnaire allocation 39
  • Allocation of questionnaire among first –

Bank of Nig. Plc for managers.                        39

• Contact method 41
• Method of data analysis 41
• Method of testing hypothesis 42
• Decision rule 43

References                                                                  44

 

CHAPTER FOUR: PRESENTATION

ANALYSIS AND COMPUTATION OF DATA           45

• Introduction 45
• Allocation and rate of returns of questionnaire45
• Analysis of data from questionnaire 47
• Testing of hypothesis 52

CHAPTER FIVE: SUMMARY OF FINDINGS          58

CONCLUSIONS AND RECOMMENDATION          58

• Summary of findings 58
• Recommendations 63

Appendices                                                        66

Shareholders questionnaire                             69

Bibliography                                                        73

 

CHAPTER ONE

1.1    INTRODUCTION

accounting is the recording, classifying and interpreting financial data relating to a particular organisation or person (Aspinall, 1970:37).

Accounting has one or more of the following objects:

1. The maintenance of a classified records of cash debtors and other property, of creditors and of changes in them.
2. The maintenance of a record of transactions classified to show gains or losses resulting from the various activities.
3. The periodic preparation of statements summarizing the economic results of the activities, and the financial position.
4. The use of such statements, by the management of an undertaking to assist them in the conduct of its business by the proprietors to assist them in assessing the efficiency of the management and in determining policy with regard to further investment and the withdrawal of profit, and by the government in determining tax liability.

The owners of any business naturally wishes to run their business as efficiently as possible in order to be able to do this, accounting information is kept). These accounting information enable the owner of the business to make comparisons of the amount of each cost and each expense, it also serves as a guide to business and financial decisions.

 

Accountants are responsible for preparing financial accounting information. Some if these accountant exercise their profession as the employees of commercial industrial and public practice of accountancy.

 

The financial accounting information prepared by accountants are of quantitative nature because it is usually expressed in monetary terms, through, non monetary information are also often contained in accounting reports.

The method and/or procedure for preparing financial accounting information are based upon definite principle which are usually rules and conventions which have been adopted as a general guide to action by the accountancy profession.

These principles are formulated in such a way that the practical details of accounting may differ from one company to another.

However, in order to secure acceptance such an accounting principle must be useful in copying with a practical recording problem, it must be reasonably objective, that is provides a similar answer in the hands of qualifies practitioners, and it must be feasible and as such not expensive to apply. These accounting principles are known as generally accepted accounting principle (GAAP).

 

1.2    STATEMENT OF PROBLEM

Most corporate organizations may have sound accounting system which enable them not only in their decision making but also in monitoring operating expenses relies on the information content of the financial statement is quite uncertain because they may be managing the business intuitively.

 

Financial accounting information involves technicalities such as quantitative analysis, adequate recording, reporting etc. some organisation may unknowingly employ incompetent and unskilled manpower and as such the financial accounting information prepared may not show a true and fair view of the financial strength. Profitability and future prospects of the organistion.

 

Some organistions have to realize that accounting information is the only medium through which both the management and external users get a clear picture of an orgnisation. They fail to realized, appreciate an accountants analysis in respect of the accounting information generated, this often leads to poor management decisions which will have negative effects on the performance of organization.

 

OBJECTIVES OF STUDY

The core objectives of the study if to examine the extent of reliance on financial accounting information for effective business and financial decision in corporate organisation in  Nigeria and in First Bank of  Nigeria to be precise.

 

More so, the research intends to accomplish the following objective:

1. To ascertain whether there is a direct relationship between the performance of First Bank of Nigeria and effective use of financial accounting information.
2. To ascertain whether there is a direct relationship between financial accounting information and the decision make in the bank.
3. To analyse the impact of and roles of financial accounting in First Bank of  Nigeria Plc.
4. To identify factors which may constrain or promote the effective use of financial accounting information.

SIGNIFICANCE OF THE STUDY

Business organization exists to provide goods and services and in return provide rewards to its owners. These two needs are linked to each other in the sense that profitable organizations are those that normally receive more resources from their customers in exchange of goods and services.

 

Some business organizations are non- profit oriented. However, irrespective of the types of organisation therefore always have accounting information regarding the value/normally in monetary terms, of the resources used in generating the required product and/or services used in generating the required product and/or services on the one hand and on the other, a fairly accurate measurement of income or profit or value of benefits earned from the disposal of their products and or services.

 

The study provide insight into the nature and roles of financial accounting information, as well as management needs for accounting information which may be said to resolve around the purpose of planning and controlling the affairs of an organisation making policy decisions and making choices among a number alternative options under circumstance which may be unexpected. This work will serve as a guide to others who may intend to undertake a review of the work or other related topics in the future.

 

RESEARCH HYPOTHESIS

In view of the nature and extent of the problem outlined for this study, it was considered appropriately to formulate the following research hypothesis in order to have a sound basis for a research of this nature.

These are:

 

Ho:    Financial accounting information has contributed to effective decision making in first bank of  Nigeria

Hi      Financial accounting information has not contributed to effective decision making in the bank

Ho:    The information content of annual financial statement of the bank is effective.

Hi:     The information content of annual statement in the bank is not effective.

 

SCOPE AND LIMITATIONS OF STUDY

This study was limited at various stages by several factors which include the following:

1. The time conduct, compile, produce and submit this work was not adequate due to compacted academic and non academic programme.
2. Accounting information is very vast, it covers various branches of accounting such as public sector accounting, financial accounting, management accounting etc. consequently the study is limited.
3. There were financial constraints however judicious use of available resources was made in order to achieve the objective of the study.

DEFINITION OF TERMS

Accounting : The provision of relevant economic information to permit informed judgement and decisions by users of the information.

Accountant: A person whose profession is to keep and examine business accounts.

Accounting assumptions/concepts: These are conventions which have been adopted on a general guide to action by the accountancy profession.

Generally Accepted Accounting principles (GAAP): They are accounting principle that have been developed largely in accounting practice that have been developed largely in accounting practice or have been established by an authoritative organistion.

Liabilities: Debts owned by a company e.g. trade creditors.

Owner equity: That shares of the business that owners own out – right.

Financial accounting information: These are information obtained as a result of systematic gathering, identifying, summarizing and reporting of business transaction in monetary terms.

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COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

WE HAVE SECURITY IN OUR BUSINESS.   

MONEY BACK GUARANTEE