Nexus Between Marketing of Financial Services and Banks’ Profitability in Nigeria: Study of United Bank for Africa Plc (Uba)

Abstract

Customer are the centerpiece of any business, but for a longtime, Nigerian banks had operated in the sellers’ market, the situation has changed in line with development within and outside the country which made Nigerian banks to appreciate the need to put the customer at the center of their activities. Banks are endowed with the ability to efficient allocate financial resources hence banks adopt marketing tool for survival with introduction varieties of new product modified to fit into the customers’ need. The specifically, this paper analyses the relationship between marketing of banking service and bank profitability.Data were sourced from primary source of data collection making use of questionnaire. Samples were drawn from United Bank for Africa branches in Badagry, Alaba, Egbeda and Ikeja all in Lagos. The respondents were made up of 100 staff and customers. Data collected were analyzed using non parametric statistical tool of Chi-Square ( X 2 ). It was discovered that majority of respondents agree that they were encouraged to open an account due to sales promotion by the bank and the advertisement. It was established that marketing of banking services has correlation to profitability of the industry in Nigeria and that marketing strategies employed has improved the performance of banking sector in Nigeria. It was recommend that banking organization should employ more of promotional activities to capture the market areas that are yet to be reached and engage broader marketing planning concepts because of the increasing market opportunities. Keywords: Bank Performance, Bank Efficiency, Bank Productivity DOI : 10.7176/RJFA/10-24-10 Publication date: December 31 st 2019