DUE TO THE IMPORTANCE OF CUSTOMERS SERVICE IN THE BUSINESS WORLD. MANY PRIVILEGED ORGANIZATIONS MOST ESPECIALLY THE FINANCIAL INSTITUTIONS ARE NOW DEPENDING STRONGLY ON IT TO ENHANCE OR IMPROVE THEIR PROFITABILITY. IDEAS AND OPINIONS WERE RECEIVED FROM STAFF AND REPUTABLE CUSTOMERS OF UNION BANK OF NIGERIAN PLC, OKO BRANCH, WHICH WAS USED AS A CASE STUDY.

THESE IDEAS AND OPINIONS WERE GOT THROUGH THE USE OF OPEN AND CLOSE ENDED QUESTIONNAIRES, INTERVIEWS AND OBSERVATION. THE DATA COLLECTED WAS ANALYSIS WITH THE USE OF CHI-SQUARE (X2) WHICH IS A STATISTICAL TECHNIQUE USED IN COMPARING THE DIFFERENCES BETWEEN OBSERVED AND EXPECTED FREQUENCIES. ACTUALLY ONLY BANKS WITH FORESIGHT WITH RESPECT TO CUSTOMER SERVICE WILL SUCCEED AMIDST COMPETITION.

MEANWHILE UNION BANK OF NIGERIA PLC WILL REALLY BENEFIT MORE IF THEY TAKE ADVANTAGE OF THE RESULT OF THIS RESEARCH WORK, HERE BY SUSTAINING ITS CUSTOMERS AND AT THE SAME TIME KEEPING THEM HAPPY.

TABLE OF CONTENT

Title page i

Approval ii

Certification iii

Dedication iv

Acknowledgement v

Table of content viii

Abstract vi

Chapter One

1.0 Introduction 1

1.1 Background of study 4

1.2 Statement of the problem 5

1.3 Purpose of the study 6

1.4 Hypothesis 7

1.5 Scope/Limitation of the study 9

1.6 Significance of the study 10

1.7 Definition of terms 11

Chapter Two

Review of Related Literature 15

2.0 Introduction 15

2.1 Budget 15

2.2 Budgeting

2.3 Historical development pf budgeting 21

2.4 Reasons for budgeting 23

2.5 Types of budget 29

2.6 Variance Analysis 38

2.7 Importance of Variance Analysis 38

2.8 Controllable and uncontrollable cost 44

2.9 Responsibility accounting 44

2.10Budget Administration 45

2.11Budgetary Control 46

2.12Objectives of Budgetary control 47

2.13Basic requirements for a good Budgetary

Control System 48

Chapter Three

Research Methodology 51

3.0 Introduction 51

3.1 Population of the study 51

3.2 Sample Size 52

3.3 Sample method of data 52

3.4 Sources of data collection 53

3.5 Administration and Retrieval of Questionnaire 53
3.6 Procedure used for data analysis 54

Chapter Four

Presentation and data analysis 56

4.0 Introduction 56

4.1 Presentation and Analysis 56

Chapter Five

5.0 Introduction 75

5.1 Summary of findings 75

5.2 Conclusion 76

5.3 Recommendation 77

5.4 Suggestion for further research 78

5.5 Limitation of the study 79

References 81

Appendix A 83

Appendix B 84

CHAPTER ONE

INTRODUCTION

The topic of this research work is of course, customer services in the financial institutions, a step towards improving profitability (a case study of Union Bank Plc Oko).

Woodruff (1997) defines profitability as the ability of an investment or a company to make a profit after costs. Overhead, etc. profit on the other hand, is the difference between the income of the business and all its costs and expenses over a period of time.

Shaw (1990) defines a service as a performance that delivers some combination of benefit to the customer.

Union Bank of Nigeria Plc, a bank established in 1917, as Bank of Colonial Africa, increased its profits after tax from 5.035 billion in 2001 to 9.375 billion naira in 2005. In July 2009, the bank was rated the 556^th largest bank in the world and the 14^th largest bank in Africa, with an asset base of US $826 million.

However, the bank was one of the banks that were controversially indicated by the Central Bank of Nigeria in November 2009, for what the apex bank termed as improper loan and financial management.

The profitability of banks could be increased through a plethora of ways. These include the aforementioned financial management, the recruitment and training of seasoned personnel, honesty of staff intensive/extensive selling efforts and other factors. Nevertheless, the focus of this work is to examine how profitability could be increased through improved customer services. This line of thought is congruent with the marketing concept, which makes consumer satisfaction the fulkrum of all organizational activity, banks not being exceptions.

1.1 BACKGROUND OF THE STUDY

In the last ten years there have been important changes in the business of consumer financial services. The main characteristic that has marked the evolution of the financial system has been paradoxical (in the sense of reduction in number of banks but increase in their ability to compete, through bank consolidation) increase in competition in the sector. The banking business has undergone changes in the regulation of the sector, changes in consumers demand for services, technological changes and the entry of new competitors from businesses outside banking (Gardner et al, 1999). Due to this an increasingly open and competitive framework has been formed, in which many financial entities are beginning to be concerned about developing defensive strategies, in order to avoid in discriminate loss of customers. According to Jacuhy and Chestnut (1978), firms should strive to maintain long-term relationships with their customers, in order to obtain the advantages of a clientele loyal to the firm.

Union Bank of Nigeria Plc was established in 1917, as Bank of Colonial African. It opened its bank at Oko in August 15,1995. The bank, since its inception has initiated several customer friendly innovations and strategies which it also extended to its Oko branch. These innovation and strategies include the use of Automatic teller machines (ATM), Computerized banking services, automated security check doors, bullet proof bullion services, flash me cash, air conditioned banking hall, cable television etc.

We will examine, in the course of this research work of course, at a macro level, how these customer services innovations and strategies have increased the profitability of the bank. we will also recommend ways in which the bank could improve the effectiveness and efficiency of its service delivery system.

1.2 STATEMENT OF THE PROBLEM

i. Lack of customers satisfaction.

ii. Loss of market share

iii. Poor customer relationship

iv. Lack of improved customer service

v. Poor quality services rendered to their customers