IMPACT OF ENVIRONMENTAL FACTORS ON NON-INTEREST BANKING SERVICE A CASE STUDY OF NIGERIAN ECONOMY

Abstract

The changing world situation that resulted from the global financial catastrophe has made it necessary: for financial firms to be more diversified. There has come a swift transition in the financial services in the world including Nigeria. A new mode of banking i.e. Non-interest banking services has been introduced and accepted widely in many countries of the world including Nigeria. An enabling environment suitable for such operation is essential in all their operational activities especially being an alternative banking system that offers new kinds of banking products in a developing economy. The objective of the study is to evaluate the suitability of Nigeria environment for Non-interest banking services operations conducting empirical studies using secondary data. Findings from the study show that the socio-cultural and technological environment of the area is favorable for the marketability of NIBS while the political environment is unstable. The study recommends that Banks are encouraged to carry out periodic environmental scan to assess the adaptability and suitability of the environment to their operations as to act promptly by adjusting their operations to suit the environment.