This research studies performance evaluation of new product development in the banking industry from 2005 – 2012. In this research work, the researcher chooses four of the products and measures the extents to which they have been able to satisfy the customers. The products selected are, smart card, international money transfer, and educational scheme and integrated banking network transaction. Data for his research were collected through questionnaires and intervenes by banks customers and the review of existing literature on the topic using systematic random procedure and descriptive method of research. The data so collected were analyzed using the simple percentage and formulated square (X2) method. Some of the findings, the performance can be measured in terms of accessibility, speed, time lines, simplicity and reliability. Customers who patronize the new products are major those who want money transfer both locally and internationally. Customer’s device high level of satisfaction from the new products. Inadequate infrastructural level in our banking industry and high cost of installing them contributed to the problem of the products. Based on the findings, the following were recommended banks should come together and established a common data communication satellite to minimize constant problems. A parallel organization that was supplying electricity in competition with PHCN should be allowed to evolved so that an efficient supply electricity can be ensured. Finally, since this study alone cannot be exhaustive of this vital subject, it is recommended for further studies

TABLE OF CONTENTS

Title page - - - - - - - - - i

Approval page - - - - - - - - ii

Dedication - - - - - - - - - iii

Acknowledgement - - - - - - - iv

Abstract - - - - - - - - v

Table of contents - - - - - - - vi

CHAPTER ONE

INTRODUCTION

1.1 Background of the study - - - - - 1

1.2 Statement of the problem - - - - - 2

1.3 Objective of the study - - - - - 3

1.4 Research questions - - - - - - 4

1.5 Research hypothesis - - - - - - 5

1.6 Significance of the study- - - - - - 6

1.7 Rational and justification for the study - - - 6

1.8 Scope of the study - - - - - 8

1.9 Limitation of the study - - - - - 8

1.10 Delimitation - - - - - - - 9

1.11 Assumption of the study - - - - - 10

1.12 Definition of terms - - - - - - 10

References 13

CHAPTER TWO

LITERATURE REVIEW

2.1 New product for effect banking operation - - - 14

2.2 The new product in the banking industry

(smart card system) - - - - - - 16

2.3 Information technology - - - - - 18

2.4 Cylobalization of banking industry - - - 21

2.5 The concept of university banking - - - - 23

2.6 Performance evaluation of the new products in the

Nigeria banking industry - - - - - 24

2.7 Review of other related completed research work -- 29

2.7 Summary and justification -- - - - - 30

References 32

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research design - - - - - - 33

3.2 Area of the study - - - - - - 34

3.3 Research Population - - - - - - 34

3.4 Sampling size determination - - - - 35

3.5 Data collection instrument and its administration -- 36

3.6 Validity of instruments - - - - - - 37

3.7 Reliability of instrument - - - - - - 38

3.8 Method of data collection - - - - - 39

3.9 Methods of data presentation - - - - 40

3.10 Method of data analysis - - - - - 41

References 42

CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1 Data analysis - - - - - - - 43

4.2 Questionnaire presentation and analysis - - 44

4.3 Test of hypothesis - - - - - - 59

CHAPTER FIVE

SUMMARY FINDINGS, RECOMMENDATION AND CONCLUSION

5.1 Summary of findings - - - - - - 66

5.2 Recommendation - - - - - - 67

5.3 Conclusion - - - - - - - 69

5.4 Suggestion for future research - - - - 70

Bibliography 72

Appendix 74

Questionnaires 75

PERFORMANCE EVALUATION OF NEW PRODUCTS DEVELOPMENT IN THE BANKING INDUSTRY 2005 -2012

(A CASE STUDY OF GTBANK OF NIGERIA ENUGU)

CHUKWU JULIANA UJUNWA

IMT/BKF/H2011/133

DEPARTMENT OF BANKING AND FINANCE

SCHOOL OF FINANCIAL STUDIES

INSTITUTE OF MANAGEMENT AND TECHNOLOGY

(I.M.T) ENUGU

NOVEMBER, 2013

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The banking industry in Nigeria which started as far back as 1862, 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 find the means of making financial intermediation easy, in the recent time between 2005 – 2010, a lot of techniques are used by bankers to facilitate customers service and customers satisfaction which has led to the introduction of the new products developed in the banking industry. These products developed in the banking industry. These new products developed in the banking industry today revolve around electronics banking and information technology.

As a result of this, the researcher seeks to study the performance and evaluation of the new products developed in the banking industries between (2005-2010)

1.2 STATEMENT OF THE PROBLEM

This research is designed to find out the performance and evaluation of the new products developed in the banking industry between 2005- 2010. Therefore the statement of the problem in the research work remains thus to what extent has the product in banking industry today been able to meet customer’s satisfaction. In looking at the statement of the problem, one need to bear in mind that some customers needs that are peculiar to their own circumstances while some come for reasons that could be general. The ability of this new product in the banking industry is to meet customers’ needs and facilitate their satisfaction to determine their efficiency.

1.3 OBJECTIVE OF THE STUDY

In the view of the problems identified this study will achieve the following objectives:

1. To identify the delivery strategies of the new products and service 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 satisfies customers needs

4. To evaluate if fund transfer is one of the performance of the new products developed by banks

5. To find out if inadequate infrastructure level is among the problems of the new products in the banking industry.

1.4 RESEARCH QUESTIONS

1. What are the delivery strategies of the new products and service in our banks?

2. Is new products developed in the banking industry convenient for customers?

3. Could those new products developed by banks satisfies customers needs?

4. Is fund transfer is one of the performance of new products developed by bank?

5. Is inadequate infrastructure level is among the problems of the new products in the banking industry.

1.5 RESEARCH HYPOTHESIS

The following hypotheses are draw from the study using null

(H0) and alternative hypothesis (HI)

H0: New products by banks have not increased customers patronage.

HI: New products by banks have increased customers patronage.

H0: customers did not derive satisfy action from patronizing the new products.

HI: customers derive satisfaction from patronizing the new products.

1.6 SIGNIFICANCE OF THE STUDY

This study will be capable of widening academics by acting as a guide for researchers. Therefore banks constitute themselves into a very powerful instrument for fostering economics development banks customer today expects a lot from their banks. Banking performance is no longer just about safety of funds and increased returns on investment, customers demand courteous treatment from their banks as well as efficient, fast and personalized service which meet their need.

1.7 RATIONALE AND JUSTIFICATION FOR THE STUDY

At the end of this research, the following banks, government, general public and future researchers should stand to benefits there from.

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 performances and evaluation of the new products.

2. Government: it will act as a starting point arousing government policy in support of the new product developed in the banking industry which facilitates economic development.

3. Banks: it will help the bank to improve in their service 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 jobs opportunities for the timing population

5. Further researchers: this study cannot be exhaustive of this vital subject so, it is hoped that the findings and recommendations will appeal to them inquisitive minds of the readers and other students as to spur them to take further studies in the area.

1.8 SCOPE OF THE STUDY

The scope of this limited to performance and evaluation of the new product developed in the banking industry in particular. Both primary and secondary data were used in aiming at the findings and conclusion.

1.9 LIMITATION OF THE STUDY

These are the major limitation of the study because of lack of funds, time, indefinite data and attitude of some respondents.

1. Due to scare resources, the research could cover all the section of the bank industry on the new products developed in the banking industry.

2. Inadequate secondary data on the activities of the banking industry on performance and evaluation of the new product developed.

1.10 DELIMITATION

This research deems it necessary for the researcher to visit all the banks and the new product developed in the banking industry but because of the time and finance at the disposal of the researcher, only a sample of respondents cutting across the various levels of the business is being conducted.

1.11 ASSUMPTION OF THE STUDY

The following assumptions are made on this research. This research work is free of bias. The date collected is true, reliable and not factious because of the question and interviews were by answered is reliable because the respondents were honest in replying the questions and those who cannot give true information were excluded. The method which constituted systematic random procedure is not questionable. The chi- square (X2) method appropriate one

1.12 DEFINITION OF TERMS

The following definition of terms will help those who are not experts in the field to understand certain technological jargons used in this research.

1. Performance: The act of achieving a targeted objective

2. Evaluation: Bringing two concepts together and seeing the difference between those two concepts.

3. Banks: A bank is any institution licensed to carryout business of banking in Nigeria and they are characterized by acceptance of deposit and facilitating withdrawal, equipment leasing, bill discounting and other financial transaction Ukemenam (2000).

4. Bank customers: Are people or organization who have account with the bank and carries financial transaction with the bank Tioh (2002).

5. New Product: these are products that are introduced newly into the banking industry to enhance and facilitate banks services to both customers and bankers. Edemodu. (1999)

6. Universal banking: this is a concept or banking policy which every banks is free to determine the type of banking transaction they can engage in or a situation whereby a commercial and merchant banks are free to engage any conventional activities of either Orjih (2001)

7. C. I. B: Chartered Institute of Banks.

8. Banking industry: is a prominent member of the service of the Nigerian economy

9. CBN: central bank of Nigeria. Known as the apex regulatory bank for Nigeria financial system. Ukemenam (2000).

10. Developed: something that is more mature or advanced.