The need for this study being the impact of new product in commercial bank performance was to introduce the rate at which the introduction of this product is helping the economic development and growth in banking industry in term of employment, income staff utilization and technology and serve as an advisory place to proprietors of commercial banks as to how these product can be use to the benefit of the customers who patronize such product.

This research work is divided into five chapters, chapter one deals with the introduction/background of the study, research questions, and scope of the study, significance of the study, limitation of the study and definition of terms.

Chapter four deals with presentation and interpretation of data presentation. And chapter five is all about summary of findings, conclusion and recommendation.

For the purpose of the study questionnaires were administered to both banks workers and customers



Title page –      –      –      –      –      –      –      –      i

Approval page –      –      –      –      –      –      –      ii

Dedication      –      –      –      –      –      –      –      iii

Acknowledgement  –      –      –      –      –      –      iv

Abstract  –      –      –      –      –      –      –      –      v

Table of content     –      –      –      –      –      –      vi



1.0. Introduction:

1.1. Background of the study:

1.2. Statement of the problem:

1.3. Objectives of the study:

  • Research questions:

1.5. Significance of the study:

1.6. Scope of the study:

1.7. Limitations of the study:

1.8. Definition of terms:



2.0. Literature review

  • Introduction:
  • Historical Background of Commercial Banking operation in Nigeria:

2.2.1.      New product development a business strategy:

  • New product concept:
  • The nature and structure of commercial banks new product:

2.3.1.      New product of first bank plc:

2.3.2.      New product of diamond bank plc:

2.4. Steps in production process:

2.5. Factors that enhance the effectiveness and efficiency of a new product:

2.6. Problems of indicators of product:




3.0. Research methodology:

3.1. Introduction:

3.2. Research design:

3.3. Sources of data:

3.3.1.      Primary sources of data:

3.3.2.      Secondary source of data:

3.4. Population and sample size:

3.5. Sampling techniques:

3.6. Validity and reliability of measuring instrument:

3.7. Method of data analysis:



  • Presentation and analysis of data:

4.1. Introduction:

4.2. Presentation of data:

4.3. Analysis of data:

4.4. Interpretations of result:


5.0. Summary, conclusion and recommendation

5.1. Introduction:

5.2. Summary of findings:

5.3. Conclusion:

5.4. Recommendations:



















       Banking in Nigeria is getting more competitive, this is because bank industries have started introducing various new products in their bank. As a result, there is tremendous increase in the number of banks which leads to competitive among them.

Recently, many of them has introduced new product into banking industry. Commercial banks new product can now be seen in various services offered by them to the general public as well as organization, government and industries.

This product are arranged to improve services of commercial bank and also to facilitate financial transactions for the fact that it link to opening of accounts and also result in the main function of commercial bank which is issuing of currency.

Moreover, commercial bank moved ahead in developing new products for the reason that they want to retain their stand in the industry. The banking industry has gone above or beyond acceptance of deposits and giving out loans to its customers. They has now introduced different new products into the industry.



       Over the years, it has been significant part of the financial institutions of modern society because of their structure and influence on an economy. Commercial banks through their basic roles of resources mobilization and allocation for efficient investment play a great role in economic development of any nation.

According to Nuolin, (2001), the stock in trade of commercial bank in Nigeria in the provision of financial savings lei over draft facilities, discounting bills of exchange. Purchasing and selling securities etc. to their customers.

There was a time when banks did not see the need for providing adequate services and encourage patronage. May be there was no need for such activities some years ago due to the fact that bankers were few and competition between banks is increasing the level of financial competition and sophistication of other banking needs by customers.

Olupitan (2002) pointed out that banking in Nigeria is fast becoming not only competitive but also sophisticated. The banking industry has gone beyond acceptance of deposit and loans giving to the customers.

Banks has now indicated various new products into the industry. The stimulant is traced to the unprecedented rise in the number of banks between 1992 to 2001 which resulted into creating a very competitive banking atmosphere among banks.

Olupitan (2002) also note that in the early days of banking in Nigeria, the use of banks services was limited to government, business house and for affluent in the society. Now, to our customers many banks introduce new products in to banking industry. New products of commercial banks can therefore be seen in the height of various services offered by banks to the general public including firms and government.

This product are usually service oriented designed to facilitate financial transactions as it relates to opening accounts and mobilizations of fund from the surplus units to the deficit unit which is referred as the major function of commercial banks as new product development, growth strategy. Some dread it because of the losses they incur, if the products fail.

However, commercial banks go into developing new product because they want to maintain their position in the industry, expand sales, meet customers demand and more importantly to maintain a product for quick enables fund to transferred means from any where in the world UBA (United Bank for Africa Plc) introduced into banking industry UBA easy card.


       In the development countries, banks have generally made financial transactions simple than ever before. Bills can easily be settled without physical cash, exchanging hands funds can be transferred through electronic media in minutes. Financial deals are conduced in secondary through banks as intermediaries and banking profession is given its right place in society banks.

The banking industry is becoming dynamic; they are borrowing loan from their foreign countries parts by introducing some of these products into the industry.

Nigeria banks face their greatest challenges in the area of customer service. The ultimate aim of any organization is to constantly satisfy the need and wants of its customers with right product at the right price using the right promotion and making it available in the right place at the right time. The new product is described as “rasion d” atv” of business enterprises. The issue, then is that much interest is not given to these new product by the customers because of ignorance and the fear of high incidence of distress in banking industry. Fear have the nation that these new product bank changes while others are worried about the delay in banking service and frequency cases of fraud in the bank industry.

The research therefore is profiled by the need expose customers to the various new products rendered by commercial banks as well as various cases of customers poor perception of these new product. To this end, effort would be made to conduct empirical test among customers of commercial banks new products of banks on one hand and the level of patronage of new product of bank on the hand. The relationship between customer disposable income and level of patronage of banking services would be revised. Attempt will be made to identify major factors responsible for customer dissatisfaction with new product of the bank to which bank customer sale assisted with new bank product offering.


       The objectives of the study are;

  1. To find out how new product development is a competitive strategy used by banks to increase profitability and market shares.


  1. Whether if there is a any reasons for introducing new product into banking industry.


  1. To send out means of introducing new products into the market.


  1. To know the extent new product affect customers patronage.


  1. To know the extent new products affect the bank profit level.


  1. To find the impact of new product enhancing technological capabilities in banking services.


  1. To know how technological in banking improved by new product.


  1. To find out factors contributing to customers dissatisfaction with new product in the banks.


  1. To find out problems customers encountered in the banking industry about the new products.


  1. To find out extent customers have been banking with the banks.


  1. Do competitive strategies used by banks increase profitability and market share.
  2. Are there any reasons for introducing new products into banking industry?
  3. To what extents new product affect customer’s patronage?
  4. What are the reasons for introducing new products in banking industries?
  5. What are the extents new product affect the banks profit level?
  6. What are the impacts of new products in improving the country?
  7. What are the technological areas in banking improved by new product introduction?
  8. What are the factors contributing to customer’s dissatisfaction with the new product in the bank?
  9. To what extent have customers have been banking with the bank?
  10. What are the problems the customers encountered with the banking industry about the new product?



Series though has never been given the introduction of new product by commercial banks in Nigeria. Therefore, information about these products will serve as an advisory price to proprietors of commercial banks as to how these products can be run. Whether or not to continue with one particular type of products or the other and how advertisement expenses can be reduced or increased while keeping a check on the profit margined.


  1. Furthermore, this study will help to determine the rate at which the introduction of these new products are helping the economics development and growth in the banking industry in terms of employment, income, staff utilization and technology.
  2. Also Nigeria citizen will be better informed on what these products are how it can facilitate their financial transactions and how much risk is reduced through their use.


  1. Finally, this will serve as a spring board to further studies on related subjects thereby creating rooms for improvement in the banking industry one way or the other and touching0 the live of mankind in general.


       The impact of new product in commercial bank performance covers all these savings which banks introduced to their operations which facilitate then in their transactions.



       Lack of finance and time constraint made it impossible for attainment of some facts needed for this research work.

Some of the bank officers who are in position to give information where not being too open and free releasing or complying with the research

The research finds it difficult to go to every bank to get information for their researcher work compound with the time factor and finance to the researcher at times the researchers may be in the lecture room receiving lectures which might lead not to get more information about this research work. Deposited all these problems the researcher was able to conclude the research work.



BANK:    A bank can be defined as a financial house established for the purpose of accepting deposit and lending out funds in addition to other services. It can also be any institution which carries out banking business and this includes a commercial bank acceptance house, discount houses and financial institute.


BANK CUSTOMERS:    This is the person who must have opened an account with the banker and has at least one transaction on the account.


COMMERCIAL BANK:   This can be defined as a financial institution which deals in money and credit and which receives deposit from public institutions and organization, some of which are replaceable on demand by cheque.


PERCEPTION:             This is the complex process by which people received, select, organized and interpret sensory stimulation (information relating to the product) into a meaningful picture.


NEW PRODUCT:   This is the modification of the existing product, an innovation or complete invention of entirely new product or concept.

PROFIT LEVEL:     This is defined as difference between total bank revenue and expenditure measured in naira per year.  


EFFICIENCY:        This is the degree of or to produce a satisfactory result without wasting resources or time.


PRODUCT POSITIONING:   This is the activities that are directed towards trying to create and maintain a firms intended product concept in customers mind.


PRODUCT:     These are those services rendered to the customer by customers. It is anything of value offer to the market for attention, acquisition and consumption. In order to satisfy customers.


ADVERTISEMENT:              This is a non personal paid form of information about a product, idea by an identify sponsor in order arouse interest in the mind of the customer for them to buy the product.


BILL:      This is unconditioned order in writing address by one person to another signed by the person to whom it is address to buy at a fixed or determinable future time a sum certain in money to the order of a main person or the bearer.


SMART PAY:  Consortium that is accepted at over 400 location nation-wide.


TRAVELER CHEQUES:  This is a kind of cheque provided and processed by the bank to their customer for easy foreign trips with or basic traveling allowances (where application)


PRODUCT LIFE CYCLE:              These are those processes and stage a product goes through which entails the sales and profit industry of that product over a specific period of time.


BANK DENSITY:   This is the relationship between the number of banks in an area and the total population in a geographical area. It is use to determine how the quality of a product or services could affect the density of a geographical area if its density is low or high.


CURRENT ACCOUNT:   This is the account where a customer’s credit balance is withdraw able on demand by the issue of cheque.




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