Banks and inefficient services

THE  Central Bank of Nigeria (CBN)  last week came hard on commercial banks in the country, accusing them of poor and inefficient services. Consequently, the apex bank threatened to sanction any deposit money bank that fails  to improve on its services to customers. This is a step in the right direction, and the warning is timely, and perhaps long overdue.
The warning from the CBN followed a series of complaints and petitions by customers over poor services rendered by the banks.  The services complained about by customers include transactions via the Automotive Teller Machines (ATM), money transfers and updating of accounts. Other complaints border on what the CBN calls “illegal charges” by the commercial banks.
The Director of Banking and Payment System Department of the CBN, Mr. Dipo Fatokun who issued the warning, said sanction is on the cards against erring banks. He, therefore, urged members of the public not to withhold such complaints, but speak out against such inefficiencies by the banks. Describing such inefficiencies as unacceptable, the CBN noted that it is saddening that simple bank transactions such as money transfers and updating of customers’ accounts take some banks much time to complete. But many banks have reportedly blamed such delays on “system failures”.
It is reassuring that the CBN has finally moved against inefficient services in the banking sector. Across many banks’ branches in the country, customers lament their inability to withdraw money with ease from  their accounts. Businesses suffer as a result of this. Good services are the cutting edge of banks and failure to satisfy customer requirements defeats that cherished banking tradition.
Therefore, the warning from the CBN should be seen as a wake-up call to reassess their core functions as financial intermediaries that should supply financial services to customers effectively and efficiently. The customer remains the “king”, and that means that, at all times, the needs of the customer and the satisfaction of those needs should supersede everything else. It remains to be seen how the banking sector has fulfilled these core mandates. On a daily basis, customers complain of going through long hours carrying out routine transactions that ought to take five minutes to complete.
Indeed, these developments have raised concerns about the availability of skilled personnel to carry out the basic operations, especially in view of the recent downsizing in the sector. Nevertheless, that is not an excuse for inefficient services. Modern banking thrives on the acquisition and knowledge of sophisticated softwares. But this will only achieve the intended objectives  if the equipment are manned by  trained personnel.
Nigerian banks will remain at the back seat of global bank ranking if they do not take customer satisfaction seriously. Considering the role of the banking system in the economy, and the fact that  banks’ equities in the Nigerian Stock Exchange (NSE) make up about 60 percent of the total equities in the capital market, the banks must be up and doing in the discharge of their duties to customers.    In 2014, the CBN disclosed that commercial banks in the country illegally withdrew N17 billion from customers’ accounts.
We commend the CBN for acting in the interest of bank customers. However, the  relevant departments of the apex bank should constantly monitor the activities of the commercial banks to ensure that they do not act outside the statutory rules and regulations.
Though recent economic headwinds such as scarcity of foreign exchange, introduction of the Treasury Single Account (TSA), low oil prices in the international market and non-performing loans, have affected the fortunes of the banks, the way forward is for the banks to improve their survival instincts through innovative ideas, while the regulatory authorities  should be more diligent in their supervisory and monitoring duties. Let banks avoid unethical practices that could shortchange customers.