CUSTOMER

SATISFACTION
IN
BANKING SERVICES

Under the guidance of: Prepared by:

Dr. Ashutosh Mohan Saurabh Agarwal
M.B.A.(I.B.)-2ndSem
Roll No -39
 INTRODUCTION
Banking operations are becoming increasingly customer dictated. The demand for
'banking supermalls' offering one-stop integrated financial services is well on the
rise. The ability of banks to offer clients access to several markets for different
classes of financial instruments has become a valuable competitive edge.
Convergence in the industry to cater to the changing demographic expectations is
now more than evident. Bancassurance and other forms of cross selling and
strategic alliances will soon alter the business dynamics of banks and fuel the
process of consolidation for increased scope of business and revenue. The thrust on
farm sector, health sector and services offers several investment linkages. In short,
the domestic economy is an increasing pie which offers extensive economies of
scale that only large banks will be in a position to tap.With the phenomenal
increase in the country's population and the increased demand for banking
services; speed, service quality and customer satisfaction are going to be key
differentiators for each bank's future success. Thus it is imperative for banks to
get useful feedback on their actual response time and customer service quality
aspects of retail banking, which in turn will help them take positive steps to
maintain a competitive edge.

The working of the customer's mind is a mystery which is difficult to solve and
understanding the nuances of what customer satisfaction is, a challenging task.
This exercise in the context of the banking industry will give us an insight into the
parameters of customer satisfaction and their measurement. This vital information
will help us to build satisfaction amongst the customers and customer loyalty in the
long run which is an integral part of any business. The customer's requirements
must be translated and quantified into measurable targets. This provides an easy
way to monitor improvements, and deciding upon the attributes that need to be
concentrated on in order to improve customer satisfaction. We can recognize
where we need to make changes to create improvements and determine if these
changes, after implemented, have led to increased customer satisfaction. "If you
cannot measure it, you cannot improve it." - Lord William Thomson Kelvin
(1824-1907).

The Need to Measure Customer Satisfaction:

Satisfied customers are central to optimal performance and financial returns. In

many places in the world, business organizations have been elevating the role of
the customer to that of a key stakeholder over the past twenty years. Customers are
viewed as a group whose satisfaction with the enterprise must be incorporated in
strategic planning efforts. Forward-looking companies are finding value in directly
measuring and tracking customer satisfaction (CS) as an important strategic
success indicator. Evidence is mounting that placing a high priority on CS is
critical to improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the

actions required to meet the customers' needs. They can identify their own
strengths and weaknesses, where they stand in comparison to their competitors,
chart out path future progress and improvement. Customer satisfaction
measurement helps to promote an increased focus on customer outcomes and
stimulate improvements in the work practices and processes used within the
company.

 When buyers are powerful, the health and strength of the company's relationship
with its customers – its most critical economic asset – is its best predictor of the
future. Assets on the balance sheet – basically assets of production – are good
predictors only when buyers are weak. So it is no wonder that the relationship
between those assets and future income is becoming more and more tenuous.  As
buyers become empowered, sellers have no choice but to adapt. Focusing on
competition has its place, but with buyer power on the rise, it is  more important to
pay attention to the customer.

Customer satisfaction is quite a complex issue and there is a lot of debate and
confusion about what exactly is required and how to go about it. This article is an
attempt to review the necessary requirements, and discuss the steps that need to be
taken in order to measure and track customer satisfaction.
 OBJECTIVE
I. To know the satisfaction level of people of their respective banks.
II. To know the overall service quality of banks.
III. To know the perception of individuals about bank.
 RESEARCH METHODOLOGY
RESEARCH DESIGN

 A research design is a framework or blueprint for conducting the

marketing research project. It details the procedure necessary for
obtaining the information needed to structure or solve a marketing
research problem. The research design specifies the details –the
nuts and bolts-of implementing that approach.

 The research design adopted in this project is DESCRIPTIVE

RESEARCH
 SAMPLE DESIGN
i. Sampling frame: People of Varanasi
ii. Sampling Unit: Individual Persons(Account holders)
iii. Sample size: 20
iv. Instrument: Questionnaire
v. Sampling technique: Non-probability sampling technique-
convenience sampling
vi. Location: Varanasi

TYPE OF DATA COLLECTED

Primary data: Through questionnaire

Secondary data:
Secondary data collected from ,
(1) Journal
(2) Internet
 Questionnaire
Dear sir/ madam,

We are the student of MBA-international business II semester at faculty of

management studies at Banaras Hindu University, Varanasi. We are conducting a
research on customer satisfaction in banking services.

1. Name :

2. Address :

3. Occupation : a) govt. employee b)self employed c) pvt. Employee

d) others

4. Annual Income : a) < 1 lakh b) 1-3 lakhs c) 3-5 lakhs d) >5 lakhs

5. Name of your Bank :

6. Do you think that your bank caters all your banking needs?
(a) Yes (b) No

7. For the past how many years are you using the services of the bank?
a) <1 yr b) 1-5 yrs c) 5-10 yrs d) >10 yrs

8. What kind of account do you maintain in this bank?

(a)Current (b)Savings (c)cash-credit a/c (d)Demat (e)Credit card

9. Which of the following facilities is given more importance in your bank?

(a)Loan facilities (b)O/D facilities (c)ATM facilities d) internet and tele banking.

10. Does your bank conduct any recreation facilities for customers?
(a) Yes (b) No

11. Does your bank have core banking facility for the customers?
(a) Yes (b) No

12. Are you satisfied with the charges that bank charges to you for
your account?
(a) Yes (b) No
13. Does your bank offers competitive services?
(a) Yes (b) No

14. Do you think your bank offers competitive interest rate?

(a) Yes (b) No

15. Do you use the service of alternative bank?

(a) Yes (b) No

16. What do you feel about overall service quality of your

bank?
(a)Excellent (b)very good (c)good (d)average (e)poor

17. Would you recommend this bank to your friends,relatives,

associates?
(a) Yes (b) No

18. When you think of your bank what comes first in your mind?
(a)Personalised service (b)Wide branch network (c)Customer
service (d)computerised banking (e)Core banking
 FINDINGS

Behaviour and attitude of the staff in banks is the first reason of

Customer dissatisfaction.
Time taken to process the transaction is the second reason of
customer dissatisfaction.
Internet Banking and Mobile banking is also not provided by
many of the Public sector banks.
Continuous services are not provided by ATM machines
installed by various Public sector banks
 INFERENCE
 This study is geographically restricted in Varanasi only.
 The sample size is small due to specified reasons.
 Findings are based on sample survey through questionnaires
method.
 Hence there is a scope for the respondents to be biased or

pretentious.