An Assessment of Bank Service Charges and Customer Retention in Retail Banking: A Case Study of FCMB, Lagos State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Bank service charges are an integral part of retail banking revenue models; however, they can also influence customer behavior and satisfaction. FCMB in Lagos State employs various fee structures for transactions, account maintenance, and other services, which significantly affect customer perceptions of value and fairness. While these charges are necessary to cover operational costs, excessive or opaque fee structures can lead to customer dissatisfaction and attrition (Okoro, 2023). FCMB has implemented initiatives to enhance transparency and align fees with customer expectations, such as detailed fee schedules, digital notifications, and periodic reviews of charge structures. These measures are designed to ensure that customers perceive the service charges as justified by the quality of service provided. Nevertheless, discrepancies in fee communication and unexpected increases in charges can erode trust, leading to lower customer retention rates. This study examines the relationship between bank service charges and customer retention at FCMB, evaluating how fee policies affect long-term customer loyalty and identifying strategies to optimize charge structures for improved satisfaction (Chinwe, 2024; Akinola, 2025).
Statement of the Problem
FCMB faces challenges in balancing the need to generate revenue through service charges with the imperative to maintain high customer retention. Customers often express dissatisfaction when fees are perceived as excessive or not transparent, leading to a decline in loyalty and an increased likelihood of switching to competing banks. Inconsistent communication regarding fee structures and sudden changes in charges further exacerbate customer frustration. These issues not only affect individual customer experiences but also have broader implications for the bank’s reputation and market share. The challenge lies in ensuring that service charges are both competitive and clearly justified by the value of services rendered. A misalignment in this balance may result in reduced customer satisfaction and lower retention, ultimately impacting the bank’s profitability. This study aims to identify the key factors in fee-related dissatisfaction and propose strategies to enhance customer retention through improved charge transparency and value alignment.
Objectives of the Study
• To assess the impact of service charges on customer retention at FCMB.
• To identify factors contributing to customer dissatisfaction with fee structures.
• To recommend strategies for optimizing service charges to improve retention.
Research Questions
• How do service charges affect customer retention at FCMB?
• What aspects of fee structures lead to customer dissatisfaction?
• What improvements can be made to align fee policies with customer expectations?
Research Hypotheses
• H₁: Higher service charges are negatively correlated with customer retention.
• H₂: Transparent fee communication is positively associated with customer loyalty.
• H₃: Adjusted fee structures that reflect service value improve retention rates.
Scope and Limitations of the Study
This study is confined to FCMB’s fee policies and customer retention practices in Lagos State. Limitations include regional variations in customer expectations, potential self-reporting biases, and the influence of external market dynamics.
Definitions of Terms
• Service Charges: Fees imposed by the bank for providing various financial services.
• Customer Retention: The ability of a bank to keep its customers over time.
• Fee Transparency: The clarity and openness with which fees are communicated to customers.
Related Project Materials
The Impact of Language Policy on Nigerian Phonology: A Comparative Study of Educational Broadcasts
Background of the Study
Language policy plays a critical role in shaping linguistic practices, and its influence is partic...
DEVELOPMENT OF AUTOMOBILE DISK BRAKE PADS USING ECOFRIENDLY PERIWINKLE SHELL AND FAN PALM SHELL MATERIALS
Excerpt from the Study
The problem identified by this research is health risk associatedwith the use of asbestos as a fr...
The impact of socio-cultural factors on students’ attitude towards education in Ede South Local Government Area, Osun State.
Background of the study:
Socio-cultural factors are pivotal in influencing students’ attitudes toward education, enco...
AN EVALUATION OF CITATION PATTERNS AMONG POSTGRADUATE STUDENTS OF NNAMDI AZIKIWE UNIVERSITY, AWKA, ANAMBRA STATE
Background of the Study
Citation patterns offer a window into the research behaviors and academic rigor of postgraduate stu...
An investigation of integrated risk management approaches on improving credit quality in banking: a case study of First City Monument Bank
Background of the Study
Effective credit quality management is essential for ensuring the financial health of banks. First...
The Effect of Cultural Beliefs on Vaccine Refusal Among Mothers in Kaduna State
Background of the Study
Vaccine refusal has become a significant public health issue in many parts of the world, including Nigeria. In Ka...
An examination of nurses' knowledge and response to workplace bullying and harassment in hospitals at Osun State Specialist Hospital
Background of the Study
Workplace bullying and harassment are pervasive issues that negatively impact the well-being of...
AN INVESTIGATION OF BIBLIOMETRIC APPROACHES TO TRACKING GREY LITERATURE CITATIONS AT ANCHOR UNIVERSITY, LAGOS STATE
Background of the Study
Grey literature, such as technical reports, theses, and conference papers, represents a substantial...
An assessment of the contributions of local government councils to grassroots development in Ibadan North-East Local Government Area, Oyo State
Background of the Study
Local government councils are fundamental to grassroots development, serving as the closest admini...
The Role of Digital Media in Enhancing Tourism in Bauchi Local Government Area, Bauchi State
Chapter One: Introduction
