H1ba: There is a positive correlation between reliability and customer satisfaction in the banking sector.

H1b0: There is no correlation between reliability and customer satisfaction in the banking sector

The table shows that the correlation (r) is 0.488 for reliability and the p-value is 0.000, which is less than the significant level (0.01). Therefore, the null hypothesis is rejected and concluded that reliability and customer satisfaction is positively (medium) related in the banking sector .


H1ca: There is a positive correlation between responsiveness and customer satisfaction in the banking sector.

H1c0: There is no correlation between responsiveness and customer satisfaction in the banking sector

It can be observed in the table that the correlation (r) of responsiveness is 0.493 and the p-value is

0.000, which is less than 0.01. Therefore, the null hypothesis is rejected and it can be concluded that responsiveness is positively (medium) related to customer satisfaction in the banking sector .


GLOBAL BANKING SURVEY: Data collection procedures

Data collection procedures

Data were gathered from the banking customers .A set of questionnaire distributed to bank customers. Five post graduate students (interviewers) administered the survey. They administered the survey during two weeks period in July and August, 2011, between 25th July to 7th August, 2011. The first part of the questionnaire consists of the general information of the respondent. Service quality attributes were used in the second part, which is the independent variable of this research. The third part of the questionnaire explains the customer satisfaction and this is the independent/dependent variable of this research. The final part consists of customer loyalty and this is the dependent variable of this research. The interviewers explained each part of the questionnaire to the respondents.



1. Analyzing what is relevant to a successful and banking relationship, so that banks can achieve and maintain customer satisfaction in the new climate.

2. Identifying and commenting in what we see as the key actions that bank must take to retain and expand their customer ease in this challenging and increasingly sophisticated market.

The main objective of this research is on the interrelationships among service quality, customer satisfaction and customer loyalty in the banking sector. Therefore, the sample for this study was selected from the bank customers.


GLOBAL BANKING SURVEY: Service Quality and Customer

Quality and Customer

There is a great deal of discussion and disagreement in the literature about the distinction between service quality and satisfaction. The service quality school view satisfaction as an antecedent of service quality – satisfaction with a number of individual transactions “decay” into an overall attitude towards service quality. The satisfaction school holds the opposite view that assessments of service quality lead to an overall attitude towards the service that they call satisfaction. There is obviously a strong link between customer satisfaction and customer retention. Customer’s perception of Service and Quality of product will determine the success of the product or service in the market. If experience of the service greatly exceeds the expectations clients had of the service then satisfaction will be high, and vice versa.. In the service quality literature, perceptions of service delivery are measured separately from customer expectations, and the gap between the two provides a measure of service quality.


GLOBAL BANKING SURVEY: 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.




“Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy ”. According to Oliver (1980), the customer satisfaction model explains that when the customers compare their perceptions of actual products/services performance with the expectations, then the feelings of satisfaction have arisen. Any discrepancies between the expectations and the performance create the disconfirmation. 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 last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favorably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. However, improved regulations, innovation, growth and value creation in the sector remain limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries. A weak banking structure has been unable to fuel continued growth, which has harmed the long-term health of their economies. In this “white paper”, we emphasize the need to act both decisively addressed, could seriously weaken the health of the sector. Further, the inability of bank managements (with some notable exceptions) to improve capital allocation, increase the productivity of their service platforms and improve the performance ethic in their organizations could seriously affect future performance.


Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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