Speak your Mind

Speak your Mind

Monday, August 19, 2013

10 Inefficiency in Nigeria Banking system and suggested way forward






Banking system is one of commercial hubs in nation economy that gives citizen opportunity to keep their money as individuals, corporate, business and for other commercial reasons. It is important because it provide basis for security for citizen’s financial asset and other related forms being as one of the important sector that drives the economy in focus, more management attention usually put in place to ensure efficiency in the system. Although, several management and ethical practice has being put in place courtesy   of central bank of Nigeria to upgrade the sector to global acceptable standard.
“Banking system is a very sensitive sector as it holds the fate of any country economy”.

This is because a common man on the street relied on his money in the bank”. This is not for individuals alone but also activities of government also depend on smooth running of the banking system. Relative to importance of banking system in any developing economy, any form of inefficiency must not be allowed to thrive as this will be inimical to prompt developing of the economy”. As a result of this, most banks in Nigeria are perpetrator of one or two of this inefficiency which has been identify overtime in their operation and however seek the way forward 

1.     flaw at customers care services point
Majority of banks in Nigeria are guilty of this, this is as result of inadequate staff to attend to long awaited customers in the bank. My observation of this in most Nigeria banks constitutes major problems in our banking system. “It is good for our banking industry to know that customers care service point is one of the most important services point in the banking system”. Therefore, in most Nigeria banks, two staffs are usually left to manage the customer care service point for God, people and Nigeria sake, this is not sufficient to attend to tenth of long awaited customers for enquiries, complaints and responses.

“At least six out of ten people entering a bank need customer service attention and this are the reason why six out of ten persons spent more than thirty minute before getting attention”. I remember, I have spent three hours before at this point depending on area, time of the day and days of the week. Also, only versatile, accommodating and customer friendly person should be allowed at this point so as to keep the customers in focus. Oftentimes,  banks usually allow persons of limited knowledge about their operation to manage this point, this should be corrected because information gotten at this point tell so much about the bank, in case whereby customer services representative cannot confidentially guided customers on their operation then it tell so much about the bank incompetence.

2.     Illegal deduction of transaction cost
Transaction cost is a compulsory charge levy against customers by service provider. This charge as good as it is must be deducted by banks with fairness. Of recent, a friend close  her account with one of the new generation bank as a result of what she describe as illegal charges on her account in recent time. Any transaction cost which must be deducted in customer account must be known to him for trusting purpose.
“However, it is better if all banks concerned can organize public enlighten and awareness programme on transaction cost for their customers”. Adequate management security measure is also needed by banks to prevent this act from any quarters whether from management lapses or from any banking internal sources

3.     Customers waiting too long before serving
Majority of banks in Nigeria are guilty of this. “This is one of the most important inefficiency in Nigeria banking system”. The time waiting for customers to be served is alarming. “However must bank keeps their customers on a long queue for hour in hot weather is not a welcome development”. The bank should be able to predict ahead the arrival rate in relation to serving rate of their customers instead of allowing long frustrating queue in banking hall. People suppose to get to bank and be served immediately without too much of delay. The number of people waiting at the counter should be equivalent to number staffs ready to serve customers

4.     Allow long queue of customers in banking hall
Have you ever walked to a banking hall before and you could not manage to walk freely as a result of human traffic. Customers should be able to walk freely within a banking hall. Hence, the banking industry should have a conducive waiting area to accommodate waiting customers and service rate should also be improve upon so that customers can be served in a short time as expected

5.     Staff incompetence
Have you ever been to customer care service point before for enquires and response you get from customer service point representative is “I will find out later”. This is not good for our banking system. Competent staff should be allow to man and managed some key service point in the bank, places such as: customer care, counter, western union, fund transfer etc

6.     Slow or lack of response to customers grief and complains
A times, customers are dissatisfied with a particular term of service and demand explanation. In this situation, explanation must not be denied or handle with levity. Customers are the backbone of banking system, however, adequate provision must be made to help the customers to sort out their complains to enhance further trust. Oftentimes, customers are dissatisfied for a particular term of service yet there is no timely responses to relieve their grief thus downturn the right of the customer



7.     Inadequate service provision to meet customer satisfaction
It is quite unfortunate that some banks do not have basic provisions for some services such as ATM terminals, payment of western union in naira equivalent rather than foreign currency, customer searching for bureau de exchange foreign agent to get foreign currency to carry out foreign transaction. This is not good for customer security and privacy. All transaction should be carry out within the same bank building instead of taking financial security  risk to patronize non professional that can expose bank users to danger

8.     Unpredicted and unreliability of service
Have you ever get to bank on Monday morning to get set for business of the week and you are told that there is no network or server is down? Those are some of the problems that customers face atimes. Therefore, bank should find alternative means of service for their customers in case this happen and always develop a management foresight to minimize the incidence of unreliable service to their customers

9.     Wrong use of phone and other electrical gadgets within the banking hall
I remember that, the use of phone was suspended within the baking environment some years back, which is good for security of both the bank and the customers. Hence, I noticed these days that, the use of phone within the banking hall is alarming. Improper use of phone by some customers within the banking hall is not a welcome development as this is dangerous to security and safety of bank users. If a customer can sit conveniently in banking hall playing distracting games on ipad causing distraction to bank users then this must be quickly address and check

10.                        Staff inadequate
Banking operation is a technical operation which needs a lot of management caution and competence. When I studied the management operation in banking system, bank staff are usually overwork and overstress relative to customer satisfaction and impatient. “Keeping just two staff in customer care service point, three on counter service point etc is not good for staff efficiency at work” no doubt most banks are all guilty of this problems I guess they do that to minimize cost of operation!!.
However, I will advice that, allocation of staffs to service point, must be done relative to location, and prospect of market in the area. Prior to this, banks should increase their staff strength by getting more hands to do more jobs so that all staff assign to any service point can work at his/ her best

Good luck to Banks in Nigeria

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