Customers do not perceive quality in a uni-dimensional way but rather judge quality based on multiple factors relevant to the context. The dimensions of service quality have been identified through the pioneering research of Parasuraman A, Zeithaml V A and Berry L L,. Their research identified five specific dimensions of service quality that apply across a various of service contexts:

• Reliability: ability to perform the promised service dependably and accurately.
• Responsiveness: willingness to help customers and provide prompt service
• Assurance: employees’ knowledge and courtesy and their ability to inspire trust and confidence.
• Empathy: caring, individualized attention to customers.
• Tangibles: appearance of physical facilities, equipment, personal and written materials.

Need for the Study

Today banks have to look much beyond just providing a multi-channel service platform for its customers. With the Phase in which the banking sector is growing, Banks concentrate more on Product designing, Technology advancement, Expanding, Recruitment, etc, forgetting one main factor -Customer Satisfaction/ Expectation.

There are other pressing issues that banks need to address in order to chalk-out a roadmap for the future:

• Number of Retail bank branches have increased from 57262 ( March 2006) to 71998 ( March 2011), hence reach is no more an issue in choosing a bank for the customer.
• Banking channels like ATM, Mobile Banking, Online Banking, Phone Banking and TV banking have made banking easier and convenient.
• Dissatisfaction with banking services have gone up, as the expectations of the customers has reached a new level due to advances in technology. Complaints filed against banks have increased from 10560 ( March 2004 ) to 75927 ( March 2011 )
• Average middle class Indians have more than two bank accounts.
• Approximately 6 percentage of a retail bank’s customers are lost every year because of dissatisfaction with some aspect of its value proposition.
• Inclusive Banking, an RBIs’ strategy, to ensure all individuals have an bank account, so that any schemes launched by the government, the benefits can be rooted through bank account.

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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