Customer Service Quality in Banks

Introduction

Most of businesses in the service industry played different roles in the customers’ perspectives. Moreover, the business leaders are well-endowed in contributing the best of the service they can give to their customers. The customers, on the other hand, are the people who are being prioritized will be the same person who will measure the impact of the service they receive that can affect their decision to make another transaction with the business.

Background of the Study

Customer service is an important part of bank managers and be part of their plans to think and rethink about the ways on how to improve the customer satisfaction. Through the idea and principle of service quality, the bank managers can heighten the kind of service they can give to their principles. Because of the competitive world in today’s economy, providing the excellent kind of service for their customers is one of the vital strategies in every aspect of various businesses, most especially in banking.

Research Objectives

The study understands the different factors that affect the success of the business and the importance of the customer service and its quality. In this case, the first objective of the study is fully centered in the customer services of different bank institutions. Second objective is to promote the idea of placing the quality in their services they give to the customers. And third is to measure the customer service quality of Banks where in return can affect the overall performance of the business in the industry.

Research Questions

The study prepared several questions regarding the importance and as well as the impact of the customer service quality in banking industry.

1. What are the strategies that most of the banks incorporated in their services to achieve the quality?

2. What are the other roles of the employees to foster the quality in their services?

3. Is there any technological intervention being applied by the banks to meet the quality of service?

Literature Review

Through the huge challenges on the globalization and rapid growth of economic changes, the banking industry should remain strong and survive to compete effectively. Banks must therefore, recognize the participation of the customers in planning their success. The customer perceptions of the service quality play an important role in the success of the business, and the banking sector is not an exception. The service quality has been widely used to evaluate the overall performance of the banks in terms of their services. Banks should understand the loyalty of the customers and its impact in the competition. To be more effective in the market, banks should focus more on their service and paying attention on the core competitive strategy. Most of the customers base their perceptions on how fast the banks’ processes and employees serve them that mainly evaluate their performance (Hossain and Leo, 2009). The competition to gain the loyalty and trust of the customers has different process and variations of services. The continuous approach to deliver the quality of service created a significant improvement as much as the strategic focus in the financial services. Most of the valuable things that might create an impact and progress in the services are the state-of –the-art technology that might change the entire organization (Frei, Kalakota, and Marx, 1997). The idea of the collaboration of human skills and knowledge and the technology is another brilliant idea in the banking industry. The automated service quality in the banking service created the word “e-commerce” or electronic commerce might influence the success of the banks in delivering the kind of service. The focus of the employees and the managers is to deliver the kind of service beyond their reach (Al-Hawari, Hartley, and Ward, 2005).

Methodology

The applied method of the study is the use of the questionnaires regarding the customer services being implemented in most of the banks. The employees and the administrators are the participants of the study wherein the age, gender, position, and number of years in industry is also determined. The gathered data is believed to provide additional information on how the employees or the managers’ handles customer relations.

Conclusion

Because of the intensified competition in banking industry, the excellent deliverance of the customers’ service is viewed to play a vital role in a company’s success and failure. Based on this idea, most of the manager and other employees though that through the variety of business-to-business transaction products and services they offer, they can gain the favor of their clients. However, it is also determined that other employees thought that the technological advancement will help them gain the competitiveness in the banking industry or in financial market.

References:

Al-Hawari, M., Hartley, N., & Ward, T., 2005. Measuring Banks’ Automated Service Quality: A Confirmatory Factor Analysis Approach, Marketing Bulletin, Vol. 16, Art. 1. [Online] Available at: http://marketing-bulletin.massey.ac.nz/V16/MB_V16_A1_AlHawari.pdf [Accessed 22 Feb 2010].

Frei, F., Kalakota, R., & Marx, L., 1997. Process Variation as a Determinant of Service Quality and Bank Performance: Evidence from the Retail Banking Study [Online] Available at: http://fic.wharton.upenn.edu/fic/papers/97/9736.pdf [Accessed 22 Feb 2010].

Hossain, M., & Leo, S., 2009. Customer Perception on Service Quality in Retail Banking in Middle East: The Case of Qatar, International Journal of Islamic and Middle Eastern Finance and Management, Vol. 2, No. 4. [Online] Available at: http://www.instituteofat.org/magazine/customer_perception.pdf [Accessed 22 Feb 2010].