STUDYOFCUSTOMERSATISFACTIONINBANKINGSECTOR ININDIA:OPPORTUNITIESANDDIFFICULTIES
HarshParekh,Dr AnkitaKathiriya
1ResearchScholar,GujaratUniversity
2AssistantProfessor,GujaratUniversity
ABSTRACT
Customer satisfaction is playing a significant role in all organizations. In products manufacturing organizations, customers should be satisfied with the products especially quality and price of the product. This study tries to get various problems or satisfaction of banking customers in India regarding physical resources, courteous services, committed services and assurance etc. It is observed that mostly customers are satisfied with the banking services but some low satisfaction regardingtheresponsivenessandindividualattentionofcustomersbythebanksemployees.Customersaredissatisfiedbecauseofnatureandbehaviorofthebanking employees.The customers are encountering problems might be because of insufficient staff or staff should be behaviorallyequipped with to satisfy their needs to enhancesatisfactionlevel.
KEYWORDS:Customerssatisfaction,Bankingservices,Bankingcustomers,bankingproblems.
INTRODUCTION
InIndia,bankingservicesareplayingsignificantroleinthedifferentdimensions oftheeconomy Bankingorganizationsarerenderingtheirfinancialservicesin differentfieldssuchaseducation,telecom,realstate,medical,hotels,restaurant, transportation,publicadministrationandespeciallyinwholesaleandretailtrade.
IndianbankingwasstartedinJune1806asBankofCulcuttaexistingaslargest banknamelyStateBankofIndia.ReservebankofIndiawasestablishedin1935 ascentralbanktogovernthebankingsysteminIndia.Indiangovernmentnationalizes14banksin1969and6banksin1980.Nowadays,Indianbanksareproviding financial services in different constituents of economy to accelerate the growthofdevelopment(Wikipedia-BankinginIndia).Deposits,loans,money transferringetc.servicesareprovidedbyIndianbanks.Tomakeeasiercheaper andfasterbankingservices,allthebanksareapplyingadvancedtelecommunication or electronic/ internet facilities and increases level of customers' satisfaction.Customers'satisfactioninIndianbanksdependuponthevariousfactorslike availability of tangibles, reliability of services, assurance of services, responsivenessorwillingnessandempathyofemployeestoservetothecustomers.Customers'satisfactionwillretaintheexistingemployeesandtriestoattractnewcustomersandultimatelyresultinginimprovementofprofitabilityandsoundfinancial position. Customers satisfaction is the main factor and responsible for the growthofanyservicesectorandsameapplicableinbankingsector Profitability is the relative measurement and measures the earning capacity of an organization.Financialpositionrevealsthefinancialsoundnessoftheconcern.Growthof an organization or company is depend upon the increased turnover which is drivenbycustomer'ssatisfaction.So,indirectlycustomer'ssatisfactionincreases profitabilityandimprovesthefinancialsoundnessofanyorganization.
OBJECTIVEOFTHESTUDY
ThemainobjectiveofthisstudyistogetcustomerssatisfactionlevelinIndian banks. The following are the specific objective for this analytical and survey basedstudy
1. Todefinelevelofcustomers'satisfactioninbanks.
2. Togetreasonsresponsibleforlowcustomersatisfactionlevel.
3. Providesuggestionstoimprovecustomers'satisfactionlevel.
HYPOTHESESOFTHESTUDY
Thenullandalternativehypothesesofthestudywerearefollow:
HypothesisI
H0-Thereisnosignificantdifferenceincustomers'satisfactionbetweenurban andruralBrach.
HypothesisII
H0 -There is no significant difference in satisfaction between customers from urbanandruralresidence
HypothesisIII
H0 -There is no significant difference in satisfaction among employees, businessmen,studentsandothers.
RESEARCHMETHODOLOGY
ThisresearchisbaseduponthesecondarydataobtainedfromtheIndianbanking customers. Questionnaire contains five factors namely tangibles, reliability, empathy, assurance and responsiveness. The measurement scale is developed withreferencetoSERVQUALmodel(Parasuramanetal.,1988).Togetdiffer-
encebetweensatisfactionlevelsofcustomersaquestionnairecontaining50questions (Demographical- 10questions, Expectations- 20 questions, and Perceptions-20 questions) were administered to 230 respondents. These respondents werefromtheallmajorcitiesofGujarat.DatacollectionwasdonebyusingMail Questionnairemethod.
Therewere202questionnairefullyfilledandusedforanalysispurpose,remainingquestionnairescancelledduetoincompleteness.Calculatedmeandifference between perceived and expected is calculated to know the variations. The Chi Square squire test is applied to know the relationship among factor that may affectcustomers'satisfactionlevelsinbanks.
SAMPLING:POPULATIONADSAMPLESIZE
The all banking services user of Gujarat were considered as population for the study and 202 random samples are obtained from different parts of country throughquestionnairefillingbydifferentmeans.
LIMITATIONSOFTHESTUDY
This study is based upon the secondary data information obtained from the respondents (banking service user). The following were the limitations of this study:
1. TherespondentswerefromonlyfewpartsofIndia.
2. Theruralrespondentsarelesserthanurban.
3. Some respondents filled questionnaire unwillingly and some returned withoutfillingitcompletely
4. The study of customers' satisfaction is static in nature, this may reveal somedeviatingresults.
LITERATUREREVIEW
Thesatisfiedcustomersarethebestmeansforbuildingapositiveimageofthe organizationinthemarketthatwillattractmoreandmorecustomersandexiting customer'sremainsinthebusiness.Satisfiedcustomersfromtheinitiallevelof any successful business and customers satisfaction leads to frequent purchase, brand loyalty, and positive mouth advertisement (Hoyer MacInnis, 2001). NevineSobhy, Abdel Megeid (2013) has also revealed the importance servicequality and positive correlation between service quality and customers' satisfaction, ultimately improves financial performance. The challenges for banksistocontrolandreducecosts,increaseoperationalefficiencyandmarket shareanditispossibleonlyimprovingthequalityofservicestoenhancecustomers' satisfaction.Attention has now turned to improving the quality of service encounter, when customers enter the bank and come into face-to-face contact withbankstaff(Chakravarty,1996).Servicequalityisconsideredasoneofthe basicfactorsresponsibleincustomersatisfaction(Parasuramanetal.,1994).
Customers' satisfaction is effecting earning capacity of banks and to helps to achieverepeatpurchasebycustomersinthesaturatedcompetitivebankingbusiness,Organizationsshouldorganizetheirservicesaccordingtoexpectations(express or implied) of their customers. Organizations should provide more than expected service to get higher customer satisfaction level. To get customers againandagain,organizationsshouldprovideservicesaccordingtotheirexpress or implied expectations.They should provide services and products to meet or even exceed customers' expectations ( Mesach G. Goyit, Teresa M. Nmadu, 2016). Atteia A. Marrie, Mohamed E Ibrahim, Amjad D al Nasser, 2018)
Copyright©2023,IERJ.Thisopen-accessarticleispublishedunderthetermsoftheCreativeCommonsAttribution-NonCommercial4.0InternationalLicensewhichpermitsShare(copyandredistributethematerialinany mediumorformat)andAdapt(remix,transform,andbuilduponthematerial)undertheAttribution-NonCommercialterms.
revealedStrongpositiverelationshipbetweenqualityofservicesandbank'sperformance (Islamic Banks) and that bank's internal operations mediate the relationshipforexternalcustomersgroup.ElizabethDuncanandGregElliott(2004) observedinhisstudythatapartfromdirectcorrelationbetweencustomersservice and financial performance, lack of uniform relationship between operational efficiency and financial performance or operational efficiency and customerservice.But,DimitriosI.Meditions(2021)foundinhisresearchthatcustomers'satisfactionandloyaltydoesnothaveFollowingtableispreparedafter consideringtheinformationof202questionnairesfilledbythebankingcustomers, related tangibility, reliability, empathy, assurance and responsiveness. The responseswereon5pointlikertscale.
DATAINTERPRETATIONANDANALYSIS
ThecalculatedvalueofChiSquareis30.8939at5%levelofsignificancetoget the difference among level of satisfaction of employees, owned business, studentsandothercustomers.So,itisconcludedthattherearesignificantdifference betweenthesatisfactionlevelofemployees,ownedbusiness,studentsandother customers(Appendix3).
RESULTS/OUTCOMESOFTHERESEARCH
Fromtheaboveanalysis,whichisbasedupontheinformationobtainedfromthe bankingcustomers,itcanbeconcludedthat:
Positivefactorsforcustomers'satisfaction
1. Urbanandruralareabranchesareequippedwithlatestinformationtechnology,employeesarewellbehavedofficesareneatandcleanwithsufficientnumberofemployees.
2. All the branches are maintaining their records accurately honestly and providing fast loan sanctioning and depositing services. TheATM servicesofthebanksaresatisfactoryandavailableinremoteareastoo.
3. There is no significant difference between level of satisfaction of customersfromruralbranchandurbanbranch.
4. There is no significant difference between level of satisfaction of customersformurbanandruralareas.
Negativefactorsforcustomers'satisfaction
Thereislackofwillingnesstohelpinprovidingdetailedinformationoftransactions,newloansanddepositsschemes,interestonloansanddepositsandbankingchargesandtransactionsetc.,especiallyinurbanareabranches.
1. There is weak consideration of individual attention to customers and theirspecificneedsinruralareas.
2. In rural areas, banking office hours are not convenient and customers havetowaitlongtogetthingsdone.
3. There are significant difference among the level of satisfaction of employees,businessmen,Studentsandothers.
So,fromtheabove,itisclearthatthereislackoflackofempathyandresponsiveness by the employees of the banks. Customers are satisfied with the physical resources,informationservicesandhonestlyrecordmaintenancebythebanks.
RECOMMENDATIONS/SUGGESTIONS
Onthebasisofaboveanalysisandinterpretation,itcanbeconcludedthatthereis need to give special training to the employees who are working in rural areas directly dealing with the customers. The rural employees training should be basedupontheanalyzingandconsideringthebehaviorofdifferentbankingcustomersandtheircordialtreatment.Thelackofemployeesareanotherreasonfor ruralemployees'dissatisfaction.Inurbanbranches,thereshouldbetechnologicalarrangementinbankswebsiteoronlinebankingservicestogetdetailedinterestandbankingchargesinformationimmediately Thereshouldnotbeanydiscriminationonthebasisofprofessionofthecustomers.
REFERENCES
1. Haque, M.I., (2013),Assessing theAdequacy of SERVQUALDimensions in Retail Banking.InternationalJournalofAcademicResearch,PartB;5(4),pp.99-104.
2. Haque,M.I.,Ali,S.andAhmadS.,(2013),VariableSelectionUsingPrincipalComponentAnalysisforRetailShoppingExperienceinSaudiArabia.JournalofAmericanScience,9(6),pp.347-354.
3. Mesach G. Goyit andTeresa M. Nmadu (2016), Service Quality and Profitability of Banks:AStudyofSelectedNigerianBank.InternationalJournalofManagerialStudies andResearch(IJMSR),Volume4,Issue1,January2016,PP29-37ISSN2349-0330 (Print)&ISSN2349-0349(Online).
4. AnanthaRajA.Arokiasamy TheImpactofCustomerSatisfactiononCustomerLoyaltyandIntentionstoSwitchintheBankingSectorinMalaysia.TheJournalofCommerce,Vol.5,No.1ISSN:2218-8118,2220-6043.
5. Attiea A. Marie, Mohamed E. Ibrahim andAmjad D. Al Nasser(2014), Effects of FinancialandNon-financialPerformanceMeasuresonCustomers'PerceptionsofService Quality at Islamic Banks in UAE. International Journal of Economics and Finance;Vol.6,No.10;ISSN1916-971XE-ISSN1916-9728.
6. NevineSobhyAbdelMegeid(2013),TheImpactofServiceQualityonFinancialPerformanceandCorporateSocialResponsibility:ConventionalVersusIslamicBanksin Egypt.InternationalJournalofFinanceandAccounting2013,2(3):150-163.
From the above table, it is clear that there is negative reflection in empathy in rural area branches and responsiveness of the employees are weaker in urban area.
HypothesisI
ThecalculatedvalueofChiSquareis1.258187at5%levelofsignificancetoget thedifferenceofsatisfactionlevelofurbanandruralbranchcustomers.So,itcan beconcludedthatthereisnosignificantdifferencebetweenthecustomers'satisfactionofruralbranchandurbanbranch(Appendix1).
HypothesisII
ThecalculatedvalueofChiSquareis1.24294at5%levelofsignificancetoget the difference of satisfaction level of urban and rural customers. So, it can be explainedthatthereisnosignificantdifferencebetweenthecustomers'satisfactionfromruralandurbanareas(Appendix2).
HypothesisIII
7. Dr SnehalkumarHMistry(2013),“MeasuringCustomerSatisfactioninBankingSector:withSpecialReferencetoBanksofSuratCity”,AsiaPacificJournalofMarketing &ManagementReview,Vol.2(7),ISSN2319-2836.
8. Elissavet Keisidou, Lazaros Sarigiannidis and Dimitrios Maditinos, Eleftherios I. Thalassinos. Customer satisfaction, loyalty and Financial performance: A holistic approachoftheGreekbankingsector InternationalJournalofBankMarketing,Vol.31 Iss4pp.259–288.
9. ElizabethDuncanandGregElliott(2020),Efficiency,customerserviceandfinancial performance among Australian financial institutions. International Journal of Bank Marketing,Vol.22Iss5pp.319–342.
10. Anis Ali and Mohammad ImdadulHaque (2014), Ratio Analysis: A Comparative StudyofNationalPetrochemicalsCo.andSaharaPetrochemicalsCo.ofSaudiArabia. InternationalJournalofManagementAcademy(2014),2(4):53-61.
11. V Zeithaml,L.BerryandA.Parasuraman.TheBehaviouralConsequencesofService Quality.JournalofMarketing,Vol.60,No.2,1996,pp.31-46.
A. Parasuraman,V ZeithamlandL.Berry SERVQUAL:AMultiple-ItemScalefor MeasuringConsumerPercep-tionsofServiceQuality JournalofRetailing,Vol. 64,No.1,1988,pp.12-40.
12. AbbasN.Albarq(2017),ApplyingaSERVQUALModeltoMeasuretheImpactof ServiceQualityonCustomerLoyaltyamongLocalSaudiBanksinRiyadh.American JournalofIndustrialandBusinessManagement,vol.3,pp.700-707.