Evaluating Branching and Sales Point Banking as Market Strategies to Raising Performance of Banks in Nigeria

Abstract

A prerequisite in a competitive market environment is a result-oriented market strategies that are customer service oriented. Good service delivery channels have been considered as relevant in this regard. This study evaluates the effect of spread of bank branches and utilization of e-payment system in form of sales point banking on return on equity of banks. Banks in Nigeria were sampled and both primary and secondary data were used. Findings from Panel regression model estimate show a strong support for more branch establishment as a relevant market channel to increase performance of banks. Sales point banking do not have significant effect on return on equity. The findings suggest the need for banks to target the geographical spread of customers and make adequate provision for more bank branches. The expected advantage of proximity is duly linked to increasing performance of banks in Nigeria.

Keywords: Market Strategy, Bank Branch, Sales Point Banking, Return on Equity

DOI: 10.7176/EJBM/13-3-11

Publication date: January 31^st 2021