Customers’ Perception of Non-interest Banking Services by Deposit Money Banks: Evidence fromNigeria

Abstract

This paper examined customers’ perception towards non-interest banking services of deposit money banks in Jimeta, Adamawa state, Nigeria. The study sought to examine whether knowledge influences the perception of customers towards non-interest banking services of Deposit Money Banks (DMBs) in Jimeta metropolis, Adamawa state and determine whether there are differences in perception of customers towards Non-Interest Banking Services (NIBS) based on gender, educational qualification and religion. The study used a total of 450 copies of a well-structured questionnaire, administered on customers of three selected Deposits Money Banks in Adamawa state. A total of 371 copies of the questionnaire were returned and appropriately filled. The study made use of both descriptive and inferential statistics to obtain results. The findings revealed that knowledge has a significant positive influence on the perception of customers towards non- interest banking services of banks as F-statistic =46.98 at 0.05 significant level. The results also indicate that there is no significant difference in perception of customers based on gender, educational qualification and religion. The study recommends that DMBs should initiate programmes aimed at sensitizing and educating people about non-interest banking. Such enlightenment will help eliminate people’s misconception of the subject.The Central Bank of Nigeria should play more active and pragmatic role in ensuring that the staff handling noninterest services receive the relevant and required training, in order to facilitate the rapid growth of the industry.