REPORT ON EFFECTS OF SERVICE QUALITY AND CUSTOMER SATISFACTION IN THE RETAIL BANIKING SECTOR OF PAKISTAN.

Abstract

The work Banks is derived from an Italian word Banko which denotes a Bench. This term came into existence from a market place where it was mandatory to exchange money. It was a place where an individual or any business could lend, borrow, invest or change their money into other currencies. It was Jews of Italy who started this exchange business in AD 808. Initially the banking system provided just the basic services like deposits for safe keeping, saving, borrowing for personal or business use which is as old as human civilization. These services were usually provided to the merchants, travelers, businessmen of the 13th century. Proper banking services which are a bit organized started in around 16th and 19th century in Europe and this was the time when banks started putting up their Branches in commercial areas of large cities. This brought a revolution in itself and then came the retail banking system, it not only helped in mobilizing the deposits from various individuals but also provided the facilities like loan for house, auto loan, debit and credit card facilities etc. And today the banking sector has come up with various ADCs (Automated Delivery Channels) for the benefit and ease of its customers which includes online banking, telephone banking, ATMs, Credit and Debit card facilities etc. The most important thing for a bank is to anticipate and address the requirements, the needs of its customers and to deliver high service quality consistently to the customers. Service quality is a very important tool for the customer satisfaction in this retail banking sector. Service quality itself is a very vast terminology which caters a lot of things itself, providing on the job training, looking after the functionality of the bank and its branches, its security, its operations, transfer order posting of employees, audits, renovation, putting up new or upgrade old systems, installation of machines, monthly assessments and appraisals, etc fall under the category of service quality. If service quality is up to the mark definitely the customers would be satisfied, loyal to the bank and would be a good source of positive advertisement. After this research it is quite clear that service quality is a very important tool for the customer satisfaction in retail banking sector.