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This research work was aimed at list for creating customer patronage for Bank services.  Using Diamond Bank Nig. Plc as the case study.  The study also examined the commitment of the bank towards ensuring a better service and to better advice in the appropriate percentage of the Quality of service to be used so as to increase the customers patronage of the Diamond Bank Nig. Plc.

  • Other objectives are to determine how this service quality helps to generate patronage for Diamond Bank.
  • To determine how reliable is the service delivery system of Diamond Bank.
  • And determine how long is taking Diamond Bank to serve its customers of any point in time.

To achieve this, directly related literature was reviewed.  Also questionnaires were distributed to both the management/staff of the Diamond Bank Nig. Plc and their responses as well as to collect data to lest the hypotheses for the study.

The population of this study is restricted to the relevant staff/management which I about (69) sixty – nine and for the customers is about (100, 000) Hundred thousand.  The sample size was determined (Three Hundred and Ninety – eight).

In analyzing the research instrument used, Chi – Square method of statistical analysis were used to anlyse and test of hypotheses.

The findings of the study are as follows:-

  • That the productivity of bank staff depended not only on how their efforts are appreciated.
  • That the staff of the Diamond Bank have the necessary facilities which enable them to meet customers demand of the right time.
  • That the Diamond Bank ensures the security of customer deposits.
  • That the staff of the Diamond Bank are quarterly appraised to check their Job performance.

Based on the above findings, the following recommendations were equally made:-

  • The percent level of service delivery should be maintained and imposed upon in order to enhance their performance.
  • The policies establishing quality and which is a guide to quality assurance should be constantly reviewed to meet up with the ever-dynamic environment of business.
  • The numerous products on offering or to be offered to the customers should be brought to their notice through the appropriate promotional strategy.

Based on the findings and recommendations already highlighted above conclusions was therefore made that all hands must be on desk to ensure that the grounds covered are maintained and improved upon daily.

Finally, if the above recommendations are strictly adhered to the Diamond Banks Nig. Plc will definitely always involve on its service quality.


Chapter one:


  • Background of the study
  • Statement of the problem
  • Objectives of the study
  • Hypotheses formulation
  • Significant of the study
  • Scope of the study
  • Definition of the terms

Chapter two       

Literature review

  • Overview of the study

2.1.1  Service reliability

  • Importance of service to marketing
  • Overview of quality

2.3.1  Dimensions of quality

  • Dimensions of quality
  • Satisfaction an profitability
  • Measuring of service quality
  • The place of quality service.

2.5.1  Bank marketing management

  • Diamond bank and the

concept of service quality.

2.6.1  Client service

  • Bank customer relationship
  • Service delivery
  • Impact of service quality

on diamond bank nig. Plc.

  • Total quality management and

diamond bank nig. Plc.

Chapter three

Research methodology.

  • Sources of data
  • Population of the study
  • Determination of the sample size
  • Research instrument used
  • Sampling technique/data

treatment and analysis

  • Limitations

Chapter four:

Presentation, analysis and interpretation of data

4.1     hypotheses testing

Chapter five:

Summary of findings, recommendation

and conclusion

  • . Summary of findings
  • Recommendations
  • Conclusion


Appendix (I)

Appendix (II)




The performance of Banks in Nigeria has been viewed by many from different perceptivity.  Assets, quality and managerial efficiency have been seen by many as determinants of Banks performance, while a reasonable percentage of identified capital adequacy, as critical for Bank performance.  Other factors have also been seen, as determinants of bank performance like bank liquidity and volume of loan portfolio.

A service is any act or performance that one party can offer to another that is essentially intangibility of a service makes it mandatory that, the recipient must hold on to something which he or she will term to be of quality so as to encourage patronage and patronage can only be enhanced when the recipient is satisfied with the services resaved.  (See love lock 1991.300)




BRITISH BANK OF WEST AFRICAN: – Adekage (1986 pg.160: The first commercial ban – the African (BBWA) in 1893 with 810, 000 capital, later increased to #1100, 000 during the same year.  It was registered in London as a limited liability company in March 1894 and the first Lagos branches were opened in major West African cities.  Accra, Freetown Bathurst.  The bank opened its second Nigerian branch in old Calabar in 1900.  Another bank called the Anglo African bank was eatable led in old Calabar by the Royal Nigeria Company (Now U. A. C) to complete with BBWA.                                         The bank later changed its name to banks of Nigeria and established branches in Burutu, Lokoja and Jebba.  However, due to fierce competition and the monopoly for the importation of silver from the Royal Mint enjoyed by BBWA, they sold out to BBWA in 1912.


This bank opened its first branch Lagos in 1917.  (It is now known as “Union Bank” soon after other branches was opened.  The Nigeria banking scene was, therefore dominion by these two British banks.  BBWA and Berchay’s Bank DCO between 1894 and 1933.


The British and French Bank, now called United Bank for Africa Ltd.  (U. B. A) was established in 1949 making it the third expatriate bank to dominion early Nigerian Commercial banking.

The foreign banks came principally to render services in connection with international trade so their relationships at that time were chiefly the expatriate.  They largely ignored the development of local African entrepreneurship together, there three-bank deposit.  From 1914 to early 1930’s several abortive attempts were made to establish locally owned and managed banks to break the foreign monopoly


In 1929, the industrial and commercial bank was set up by a handful of patriotic Nigerians.  It folded up in 1930 due to under capitalization, poor management and aggressive competition from the expatriate banks.

In 1931 another indigenous bank, the Nigerian merchant banks was established.  Like its predecessor, it went into liquidation I n1936.

With greater courage and planning.  The same group of Nigeria Ltd. which was the first indigenous bank to survive.  The next private indigenous banks to be established was the Agbonnagbe bank founded by chief Okupe in 1945.

This bank was taken over by the Western States Government in 1969 and its name was changed up in the early 1940’s collapsed in 946 under the weight of mismanagement.

This was followed by the Nigerian farm and commercial Bank in 1947 which failed in 1953.  The merchant Bank opened business in 1953 and closed in 1960.  Indeed, this was a period of free – for – all banking between 1947 and 1952, a total of 22 banks were registered in Nigeria, according to a study conducted by C.B.N.  However, a figure as high as (185) banks was quoted from government records and was confirmed by the financial secretary as the number actually registered as banking companies between 1945 and 1952 of which 145 were registered in 1942 and 40 in 1952.  Most of the banks however, merely registered without actually commencing operation.  The nest successfully established indigenous bank was the African Continental Bank founded by (Dr. Nnamdi Azikiwe) in 1947.  The need for legislation for the control of banking in Nigeria became very apparent mainly to protect depositors.  The colonial government therefore, set up a commission of inquiry the paten commission.  Consequent upon the report of the commission the first banking legislation was passed in 1952.

Inspite of the enactment of banking ordinance of 1952 banks are still indulging in some malpractice’s, which the Act Could not effectively control.  Therefore, the necessity of establishing a central Bank of supervise and control the banks became more apparent and pressing.  Thus, the central bank came in to being in 1952.


The structure of commercial banking in Nigeria is tailored forwards that prevailing in the UK and other countries in  the common Wealth, and indeed in  most countries of the Western World, have the same structure which can be described as the branch banking system.  Branch banking system is characterised by a\ single banking company or institution operating at two or more places.  Usually, the branches are controlled from a central point.  Branch banking is practiced fully in Nigeria.  This is characterised by a few large banks with a wide network of branches extending throughout the country.


Diamond bank was licensed in Nigeria on 20th of December 1990 to carry on currently capitalized at N21, 050, 000 million.

The bank is firmly believes that getting the right people and the correct operating philosophy are essential in setting a part or bank in an dready competitive Nigeria banking industry.

The bank is a private bank with eight members in its board of directors, headed by Mr. Pascal G. Dozie as the Chairman.  It has 23 branches spread all over the Nigeria with four correspondent banks which are: –

  • Cit bank N. A. London.
  • Citi bank N. A. U. S. S. R.
  • National West minister Ltd. bank Plc and
  • ANZ banking group Ltd London.


The banks has objectives and they geared towards developing a good working relationship based real understanding of the need of the clients through efficient and responsive customer service.

The services offered include:

  • Current accounts and time deposits
  • Savings account
  • Over draft and lines of credit
  • Guarantee and indemnities
  • Foreign currency transaction
  • Warehouse and international trade finance
  • Private banking
  • Diamond integrated banking system (DIBS)
  • Diamond saving card
  • Diamond pay card
  • Syndication
  • Leasing
  • Arbitrage
  • Debt and notes trading conversion
  • Securities trading
  • Currency trading
  • Cross border transactions (Joint Ventures Structured Finance etc).
  • Investment advising and structuring.
  • Finance advice and structuring

Diamond Bank Nig, Plc lays great emphasis on service quality.

The Bank in order to assist in rendering and maintaining an international level of service has invested heavily in a micro based computer system developed by CITI CORD OVERSEA SOFTWARE LIMITED: – The Micro-banker.  Built in the state – of  – the art ICLORS 600 UNIX hardware platform.  The system also incorporated a fully integrated telecommunication and net work linking the branches and as a result, real time on line banking services can be provided to clients in various locations.

Furthermore, Citi Bank NA, National Westminster Bank Plc, and HNZ Banking Group Ltd are correspondents and with advantage of micro-banker the bank intend to look on to corresponding banks global communication and found transfer net work including electronic baking.  The VSAT satellite communication net work is a system, which enhances the ability to communicate across the entire branch net work to assure virtually one hundred percent line and liability.  It strengths the effectiveness and reliability of the diamond integrated banking system (DIBS) and diamond connect.  The bank gas also joined the E- mail system of communication worldwide through Internet.

Diamond bank is a Nigeria registered private company with 42 shareholders of diverse professional and business background.  The breadth of ownership guarantees a professionally managed bank.

In October 1996, the bank adopted a regional organizational structure grouping branches into regions.  the goal is to enhance the effectiveness of the branches current in meeting the needs of the customer nation wide.  The branches currently numbering twenty-three (23) are organized into six regions.  Lagos Island lags mainland North 1, North 11, South and East regions.  A region manger is in charge of each region.

As part of its commitment to customer service quality two programmes were adopted.  Service delivery charter, which embodies clearly defined minimum standard for every service item provided by the bank.  In addition, a quality management unit has been established.  These programmes incorporate feedback and monitoring mechanism to ensure wide improvement.  The bank however, wants to aggressively pursue the implementation of its customer service charter with emphasis on relationship management and excellent transmission turn around comparable to international level of service.  This is in realization of the importance of excellent customer’s service delivery in this are of “tight to quality” by customers seeking value for their money.

The overall success of Diamond Bank so far is attributable mainly to the quality of the staff, who posses the registered skills technical and managerial to carryout functions effectively and efficiently without loosing sight of the human aspect of customer relations.  This achievement is made possible through the aggressive man power development programmes which makes for updating the knowledge’s and skills of the staff and align them with the expectations and needs of the customers.

Then business year of the bank end on the 30th of April each

year and between is a bar chart of its profit after tax from the time it stated operation in 1999.


Recently, according to the NDIC Nigeria deposit insurance corporation rating in the heading “ THE MOST SOLD 40 BANKS IN NIGERIA (1997/98)”, Diamond Bank Nig, Plc was placed 9th inn the list.

Deposit this rating and the achievement of thew bank in the recent past, there are still fears in the winds of the investing public because of the bombshell which is feared that the NOIC will drop soon.  This bombshell which is that it is likely that 16 terminally distressed banks will soon be liquidated bringing that number to forty two (42), considering the fact that (26) banks were previously distressed.

This figure means that out of the 120 previously registered banks, if the bombshell fells then only 78 banks will be left in operation.

The questions of the investing public now are as pertinent as they are disturbing.  Ones will the liquidation of the next batch of 16 banks be the last in the industry.  If yes, what then is the true state of health of the surviving ones now is operation and with this and more, problems still exist.



  • Courtesy and concern towards customers of |Diamond Bank Nig. \Plc have found to be lacking in the attitude and conduct of the bank staff.
  • Distress in banks in the recent past has brought a lot of fears on the part of depositors with regards to the security of their deposits.
  • Efficiency and speed are missing is Diamond Bank Nig. Plc and in other banks in Nigeria thereby leading to long queues and crowded banking halls which at most times are not well ventilated.
  • The pay offs, selling proposition in some of the advertisement of Diamond |Bank Nig Plc have not been seen in their daily operations.
  • Basically to determine how this services quality helps to generate patronage for Diamond Bank Nigeria Plc.
  • To determine how reliable is the service delivery system of Diamond bank.
  • To determine how long it takes Diamond Bank to serve its customers Almay point in time.

H0:1   Service        Quality in Diamond Bank has not in any way helped in generating patronage for the Bank.

Hi:1    Service Quality in Diamond Bank has helped in generating patronage for the Bank.

H0:2   The service delivery system of Diamond Bank is not reliable.

Hi:2    The Service delivery system of Diamond Bank is reliable.

H0:3   The service delivery system of Diamond Bank is not adequate to customers.

Hi:3    The service delivery system of Diamond Bank is adequate to customers.


Quality is indispensable for the increase and heightened performance in the operation of any service institutions especially in the banking industry, which is characterized by intense competition, and is presently operation in on ear of “Flight for quality”, amidst distress in banks in the recent past.

The significance of this study to Diamond Bank of Nigerian Plc is to see quality in service as a central focus for better customer patronage, the study will also be significant to other banks or competitors and other banking institutions who will see that patronage is only better to increased through quality in service without paying lips service to customers, and this will inturn re-position the economy to better financial state.  The study will also be relevant to customers because they will get better customer services such as speed and accuracy.  The study will also broaden the knowledge of the research in the areas of banking, service quality, reasons for increase customer’s patronage etc.


This study is restricted to Diamond Bank main branch office at number 22, Okpara Avenue Enugu.  The reason for this is because of the bank system of branch net working which allows for a singular focus of the bank within a given territory to achieve the set objectives of the bank.


Service:      Is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything (LOVE LOCK H. Service Marketing, 1991)

Bank:         A bank is a place where money and other valuable are kept for proper safekeeping. (ANYANWAOKORO Banking practices, 1998 P, 18).

BANKING LIQUIDITY:       This means when a bank is usually able to settle short-term and maturing financial obligations at short notice (ANYANWAOKORO Banking pratices 1995. P. 183).

LONG PORTFOLIO:  this simply means package of loan method, types of loan and the management of loan risk (DR. ORJO ELEMENT OF BANKING 1993 P. 86).


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