To Identify Service Quality Gaps in Banking Sector: A Comparative Analysis of Standard Chartered, Bank AI-Habib and Bank Alfalah in Pakistan.

Abstract

The banking sector in Pakistan is already improving and thus comparative study has been conducted to identify service quality gaps offered by retail banking industry in Pakistan. I have taken local and international banks under study and conducted a detail comparative study. The study helps local and international banks to recognize their service quality gaps which they can take under consideration for improvement. We have taken Bank Alfalah, Bank Al-Habib and Standard Chartered for comparative analysis. The research also helps in better understanding of importance of service quality in banking sector. In Pakistani banking sector, the financial products are somehow same thus banks have to recognize the importance of service quality in banking sector which can be used as a primary weapon to create competitive edge in the market. Moreover, it also highlights the expected and perceived service quality offered by above stated three banks. I have taken five important types of service quality under consideration and are listed as below: l. Customer Satisfaction 2. Reliability 3. Responsiveness 4. Empathy 5. Assurance The above stated service quality helps in conducting comparative study of service quality offered by Banks. The sample of population is further divided into four groups based on the Gender, Age, Education and Income Level. Further, We have conducted analysis by doing comparative analysis of responses on the basis of Tangibility, Reliability, Assurance and responsiveness. A quantitative research approach is opted in which a questionnaire was filled by bank customers of different age, sex and education. The data was collected through the questionnaire filled by a population of sample size of 150 people availing services of the Standard chartered, Bank AIHabib and Bank Alfalah in Pakistan. The data was obtained from the random people present at the moment and agreed to participate in the research study. The Likert scale was used in the designed questionnaire in which a scale was used for addressing people perception and approach towards the aim of the study. The data was collected and then re- arranged in a systematic manner to get it examined. Data was supplementary inspected and assessed through descriptive statistics and frequency diagram has been constructed represented through bar diagrams. After analyzing the responses, Icome to know that tangibility of foreign banks Iconsidered to be more good and satisfying as compared to the local bank. It appears to be a huge difference in the physical appearance, Staff, Machinery Between local Banks and Foreign banks. People are more satisfied with the foreign bank in terms of Foreign banks. People also feel more reliability in using services of foreign banks as compared to the local banks. People feel more assured while using services of foreign banks especially people living abroad put more trust in foreign banks while transacting money. Based on the responses, people put more trust in foreign banks as compared to the local banks which highlighted a huge service quality gap offered by local banks, The research helps local banks to identify the service quality gap in order to improve their service.