Marketability And Performance Of Non Interest Banking Services In North-western Nigeria

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The difficulty in gaining entrance into the Nigerian Banking industry by the Non-interest Banking (NIB) operations as a result of prominence of conventional banks and potentiality of stiff competition necessitates aggressive marketability of NIB products. Moreover the Nigerian banking system dominated by conventional banks warrant the need for convenient environment for the practice of NIB. The study examined marketability and performance of NIB operation in North-west Nigeria. The objectives were to: (i) examine the suitability of Nigerian banking environment for NIB; (ii) assess the relationship among the marketability variables of NIB; (iii) determine the effect of service quality on the satisfaction of NIB customers; (iv) examine the differences in marketability variables of NIB; and (v) examine the effect of marketability on performance of NIB in North-west Nigeria. rnThe study adopted cross sectional design using Jaiz bank in the seven states of North-west Nigeria. Primary data were obtained through a structured questionnaire administered to 385 customers of Jaiz bank in the study area. The sample selection was purposive using Cochran model. Data were analyzed using Multiple Regression of ANOVA type at 0.005 level of significance.rnThe findings of the study were that:rni. Political, technological and socio-cultural environments of the North- west Nigerian banking system are significantly suitable for NIB operations; with p = 0.000, 0.016 and 0.002 and β = 0.440, 0.301 and 0.234 respectively; rnrnii. acceptability and perception have significant relationship with affordability, r2 = 0.62, 0.84 and p =0.015, 0.000 respectively while awareness has insignificant relationship with acceptability, perception and affordability with p = 0.147, 0.212 and 0.153 respectively ;rnrniii. service quality has significant effect on customers’ satisfaction having compliance, reliability and empathy with p = 0.000, 0.013 and 0.002 and β = 0.449, 0.241 and 0.312 respectively; rnrniv. marketability of NIB is significantly different across selected cities having awareness, affordability, acceptability and perception with F = 6.563, 24.068, 25.340 and 28.162 ,with p = 0.000, 0.012. 0.000 and 0.010 respectively; andrnrnv. marketability affects performance with affordability and acceptability having significant positive effect on Jaiz bank performance with p = 0.000 and 0.013 ; and β= 0.537 and 0.408 respectively.rnThe study concluded that NIB can survive well in the face of conventional bank with aggressive marketability. The study recommended that non-interest banks should carry out periodic environmental scanning to improve performance.

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Marketability And Performance Of Non Interest Banking Services In North-western Nigeria

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