Exploring the New Dimensions of Service Quality in Banking Sector

Excellent service quality and customer satisfaction has become the latest buzzword for every organization. But today, it is more prominent in banking sector as it is more service oriented. The concept of banking transactions has also been shifted from traditional banking to modern banking due to the technological advancement in banking transactions as e-banking, internet and mobile banking, electronic fund transfer facility and electronic clearing services, ATM facility and many more. Nowadays, it becomes a challenge for an organization to satisfy their customers on grounds of traditional banking only by providing a better quality of service. Thus, this research paper presents a study which explores and pinpoints various new dimensions of service quality in banking sector related to customer satisfaction on the basis of modern and technological banking. Thus, the purpose of this paper is fulfilled by determining new dimensions of service quality for banking sector so that the bank managers can satisfy their customers on each segment including these dimensions. This analytical study based on the primary data collected has been through a questionnaire survey conducted in Haryana and National Capital Region on the sample of 486 respondents of public and private sector banks. The sample constitutes 246 respondents of public sector and 240 respondents of private sector banks. The factor analysis is applied on 35 items related to various services provided by the banks to their customers to determine new dimensions for the further study. The research conducted in the study consists of consumers of both public and private sector banks that are availing the services of banking sectors to explore the dimensions of service quality in a bank, factor analysis is applied on a sample of total 486 respondents. The results based on a factor analysis identify ten factors that influence users' evaluation of service quality of banking services. These factors are responsiveness, tangibility, reliability, assurance, and empathy and customer relationship management, grievance handling, and competitiveness, customer friendly and e-banking. The findings from the study facilitates the bank managers to have a better understanding of customers' perception and expectations in the form of various new service quality dimensions of banking sector and correspondingly suggests how to improve the satisfaction level of customers regarding these dimensions enclosing various services provided by the banks.