THE EFFECT OF FINANCIAL SERVICES DELIVERY ON CUSTOMERS PATRONAGE OF COMMERCIAL BANKS IN MAIDUGURI

ABSTRACT The study examines the effect of financial service delivery on customer's patronage of banks in Maiduguri, it specifically looked at demand deposit, loan and digital banking. Related literature was reviewed based on the specific objectives of the study. The research design used in this study was a survey research method. The target population of the study comprise of all Fidelity bank customers in Maiduguri, Borno State. A sample of 251 respondents was selected for the study but 250 respondents were successfully used for the study, using simple random sampling techniques. The research instrument used for this study is a modified four-point likert scale type questionnaire. The data were analyzed using frequency count and its equivalent percentages score to describe the demographic information of the respondents and answered the research questions. All respondents strongly agreed that effective demand deposits services allow customers to make withdrawals either from an ATM or from the bank's cashier which significantly encourage customer's patronage. Majority of the respondents strongly agreed that Loan encourage customers to patronize Banking services. Most of the respondents strongly agreed that Loan offers the opportunity for customers to access to build a better tomorrow for themselves hence it increases customers patronage. The result of the study also indicated that all of the respondents strongly agree that high interest rate may affect customers patronage. All the respondents strongly agree that the use of POS transaction encourage customers patronage because it is speedy, reliable and not complicated to customers. Majority of the respondents strongly agreed that Digital banking attract customers patronage because it is all about making what can be seen unseen making services so smooth and seamless that it becomes invisible to the customer. Majority of the respondents also strongly agree that digital banking initiatives is not just the automation of services, but consider the emotional aspect of banking how do customers feel about money and what do they do with it, hence it attracts customers patronage. It is therefore, recommended that the Banks should improve the quality of their demand deposit services in other to create positive perception of their customers towards their services and improve their customers patronage.