Abstract:
Banking and finance industry has been rapidly growing over the past decade resulting in an intense
competition which has allowed the customers to use multiple banks and switching from one bank to
another seeking better opportunity. Most of the banking product developments are easy to be
duplicated and when banks provide nearly identical services the main differentiator is the level of
service quality and how the customers perceive it. This study attempts to analyze the relationship
between the service quality and the level of customer satisfaction and to analyze the influence of
each separate service quality parameter on the customer satisfaction. Research was conducted by
using a sample of 250 randomly selected customers of CSE listed banking firms located in a slightly
remote area. This study measures the service quality in terms of tangibility, reliability,
responsiveness, assurance and empathy. Findings revealed that the service quality has a significant
influence on the customer satisfaction. Assurance was identified to have the strongest influence on
customer satisfaction.
