An evaluation of debit fee transparency on consumer trust in banking: a case study of United Bank for Africa
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Consumer trust is paramount in the banking industry, and fee transparency plays a significant role in building and maintaining that trust. United Bank for Africa (UBA) has recently reformed its debit fee structure to enhance transparency, providing clear and detailed explanations of fees associated with debit transactions (Adeleke, 2023). The bank’s initiative involves communicating fee changes through multiple channels, including digital platforms, branch communications, and customer service interactions, to ensure that customers fully understand the cost implications of their transactions. Transparent fee structures are believed to reduce customer skepticism and foster a stronger sense of trust and loyalty (Ikechukwu, 2024). Academic research supports that when customers perceive fee structures as fair and transparent, their overall trust in the bank increases, leading to higher customer satisfaction and retention (Chinwe, 2023). However, challenges remain in ensuring that all customer segments receive and interpret the fee information correctly. This study aims to evaluate the impact of debit fee transparency on consumer trust at UBA by analyzing customer feedback, trust metrics, and transaction data.
Statement of the Problem
Despite efforts to improve fee transparency, UBA continues to face challenges in building consistent consumer trust. A primary problem is that variations in fee communication across different channels lead to misunderstandings among customers (Emeka, 2023). Some customers remain unaware of the rationale behind fee structures, resulting in dissatisfaction and potential attrition. Additionally, the complexity of certain fee schedules may still be perceived as opaque, undermining the bank’s efforts to present a clear and fair pricing model. External factors such as competitive fee structures and economic pressures further complicate customer perceptions. The study seeks to determine whether enhanced fee transparency has effectively improved consumer trust and to identify factors that may still impede a clear understanding of fee policies.
Objectives of the Study
• To evaluate the effect of debit fee transparency on consumer trust at UBA.
• To identify challenges in communicating fee structures effectively.
• To recommend strategies for further enhancing fee transparency to improve trust.
Research Questions
• How does fee transparency impact consumer trust in UBA?
• What challenges affect the communication of debit fee structures?
• How can UBA optimize fee communication to enhance consumer trust?
Research Hypotheses
• H1: Enhanced fee transparency positively influences consumer trust.
• H2: Inconsistent fee communication negatively impacts trust levels.
• H3: Clear and simplified fee structures lead to improved customer satisfaction.
Scope and Limitations of the Study
This study examines UBA’s fee transparency initiatives over the past three years, using customer surveys, trust indices, and transaction data. Limitations include external competitive influences and variations in customer financial literacy.
Definitions of Terms
• Debit Fee Transparency: The clarity and openness with which debit fee structures are communicated to customers.
• Consumer Trust: The confidence customers have in the fairness and integrity of the bank’s practices.
• Fee Structure: The system of charges applied to banking transactions.
Related Project Materials
The Impact of Combined Economic Indicators—GDP, FDI, and Inflation—on Fiscal Policy in Nigeria
Background of the Study:
Fiscal policy in Nigeria is deeply influenced by the interplay of key economic indicators such as...
An Appraisal of Nutritional Interventions in Reducing Hospital-Acquired Infections in Kogi State
Background of the Study
Hospital-acquired infections (HAIs), also known as nosocomial infections, are a...
An Appraisal of the Effects of Market Liberalization on Nigeria’s Banking Sector
Background of the Study
Market liberalization refers to the process of reducing government restrictions and fostering a mo...
EFFECTS OF CORRUPTION ON ACADEMIC ACTIVITIES IN HIGHER INSTITUTIONS IN NIGERIA
EXCERPT FROM THE STUDY
This study shows that academic corruption is commonplace in the universities as indicated by student...
The impact of school language policies on Igbo language acquisition in Enugu
Background of the study
School language policies play a fundamental role in shaping the linguistic compet...
An Investigation into the Use of Network Honeypots for Cybersecurity Research in Federal University, Wukari, Taraba State
Background of the Study
Network honeypots are decoy systems or networks set up to attract cybercriminal...
The Role of Family Support in Improving Teenage Mothers' Health in Jigawa State
Background of the Study
Teenage pregnancy presents significant health, social, and economic challenges,...
The Impact of Supply Chain Optimization on Cost Reduction in Nestlé Nigeria, Borno State
Background of the Study
Supply chain optimization involves streamlining operations within the supply chain to improve efficiency and redu...
An Examination of Diachronic Changes in Pragmatic Markers in Nigerian Indigenous Languages
Background of the Study
Over time, pragmatic markers—words or expressions that organize discourse&md...
EVALUATION OF MONETARY POLICY AND ITS IMPACT ON NIGERIA BANKING INSTITUTION
INTRODUCTION
Monetary policy is a scheme of intervention initiated by the monetary authorities, ty...
