An Analysis Of Service Quality In The Banking Industry

Abstract

The banking industry in India has undergone significant transformations, particularly due to reforms initiated in the 1990s and recent consolidation of public sector banks. As the demand for banking services continues to rise, both private and public banks face opportunities and challenges in meeting customer expectations and improving the quality of service. This study aims to explore the dimensions quality of services within the contemporary banking sector in India, Concentrating on the variance between customer anticipation and interpretations. Using an exploratory approach, data on customer anticipation and interpretations of service quality were collected from bank customers in the Dehradun region. The study assessed the significance of service quality dimensions as delineated by the RATER framework. Furthermore, it analyzed the disparities between customer expectations and perceptions regarding service quality. The findings suggest that customers attribute similar levels of importance to each service quality dimension, emphasizing the need for banks to balance their focus across all dimensions. While the gaps between expectations and perceptions were not statistically significant overall, Tangibility and Responsiveness dimensions showed lower mean ratings, indicating areas where improvements might be needed. Despite limitations related to the sample size and geographic scope, this study provides valuable insights into the quality of services in the Indian banking sector. Future research should consider broader samples and comparative analyses between private and public sector banks to provide a more comprehensive understanding quality of services dynamics.