CHAPTER ONE

1.0 INTRODUCTION

ADVERTISING AND BANKING INDUSTRY (MICRO FINANCE BANK)

Banking are economic decision units that are set up for the provision of financial services and products to targeted market. This service tendered to both public and private sector of the economy includes: collection of deposits, clearing of cheques and other exchange, granting of loans and over drafts guarantee of joint financing by two or more banks foreign exchange transaction, fund transfer and insuring drafts services rendered include safe keeping facility and financial advice to customers.

The operation of micro finance bank initially community bank were perceived to be incorporated for efficient sustainable economy. Micro finance bank help to provide financial assistance and credit to its customers, including formal and informal self – help groups, individuals and association: except public sector deposits from government agencies.

To this end, micro finance bank have to come up with more efficient and effective services for example, full-fledged computerization becomes the order of the day, processing of loans and advances reduction in member of clearing day for clearing instrument.

However, to communicate these services effectively in enhancing profitability the need for advertising in Micro Finance bank becomes inheritable. Advertising which until this time had little or no significance in the banking industry becomes strong information and persuade tool to reach target customers.

1.1 BACKGROUND OF THE STUDY

Advertising is one phrase that has been given different definitions by authors. A critical analysis of all the variable definitions shown that they have something in common.

Talking about the importance and relevance of financial services in every one’s life. This includes ordinary life circle events like, birth, marriage and deaths; it also includes the possibility to invest, to increase our wealth.

Micro finance target people who do not have access to the formal financial sector and are under-banked at the moment. This affects not only their economic activities but also improves their health, education and living circumstances. In the end, the overall objectives are to elevate poverty.

The practice of micro finance is not new and has probably been around for as long as currency itself has. Informal credit and savings services probably formed around social services where the members got together to help one another as a community. Savings and credit groups that have operated for Centuries include the “Susus” of Ghana, “Chit fund” in Idia, “Tarda” in Mexico, “Asian” in Indonesia, “Cheetu” in Sri Lanka tontines” in West Africa, and “Pasanaku” in Bolivia

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