Page 36 - Banking Finance July 2019

ARTICLE

It is important to note in this context that in 2016-17, the challenge to retain the existing customers without
total number of complaints increased by 27.3 percent, up improving their operational efficiency upto the industrial
from 20.9 percent in the previous year. This is only one benchmark.
initiative out of many undertaken by the R.B.I. in the area
of ensuring customer satisfaction. Prior to moving to Banking In retail banking the different types of services offered to
Ombudsman, a customer needs to lodge their complaint the customers also plays a crucial role for the success of the
with the respective branches with the customer grievance banking business. The present competitive age cash
cell. If the proper or satisfactory redressal is not provided acceptance and payment services maybe offered to the
by the respective banks to the customers only in that case customer of retail banking at their doorstep. In addition to
they can move to Banking Ombudsman within the specified this free bankers cheque facility upto certain limit may also
period. be offered to the customer to improve the quality of services
to them. The responsiveness of the financial institution with
Therefore, the banking institutions become more conscious regard to customers' grievance becomes an indispensable
at the time of dealing with their customer. It enables them part of the customer satisfaction. Ultimately customer
to provide quality services to the customers empathically, satisfaction is having a deep impact on overall performance
in turns the institutions attain their stated institutional of the financial institutions.
objectives including achieving and improving their overall
performance. References
Bahia, K. and Nantel, J. (2000), "A reliable and valid
Conclusion measurement scale for perceived service quality of
banks", International Journal of Bank Marketing, Vol. 18
The customer satisfaction plays the significant role in
No. 2, pp. 84-91.
banking industry. Loyal customers are created with the help
of customer satisfaction only which is the lifeline of the Jamal, Ahmad and Naser, Kamal, Customer Satisfaction
banking sector business. Customer satisfaction again and Retail banking: An Assessment of Some of the Key
Antecedents of Customer Satisfaction in Retail banking,
depends on the dimensions of service quality which are
International Journal of Bank Marketing, Vol. 20 No. 4,
offered to the customer at large. Therefore there is direct
2002, pp146-160
and positive relationship between qualities of service offered
to the customer and customer satisfaction. Sureshchandar, G.S., Rajendran, C. and Anantharaman,
R.N. (2002b), "The relationship between service quality
and customer satisfaction: a factor specific approach",
There is a need to improve the service quality by overcoming
Journal of Services Marketing, Vol. 16 No. 4, pp. 363-79.
the issue of service quality gap. In this regard tangibility,
empathy assurance, reliability and responsiveness play a Navdeep Agarwal and Mohit Gupta (2005)
decisive role in measuring customer satisfaction. A satisfied "Dissemination of Customer Oriented Strategy to
Customer Contact Service Employees-Application of
customer is the secret for the success of banking business
Hartline, Macham and Mckee (2000) Model in Indian
as a satisfied customer help banking business to reach
Settings", South Asian Journal of Management, January-
optimum stage. In a banking business satisfied customer
March 2005, 12, 1, p 58-78.
helps the institution in its expansion and development in turn
of which the overall performance of the banking business Aurora S. and Malhotra M. (1997), "Customer
improves substantially. Satisfaction: A Comparative Analysis of Public and
Private Sector
Customer satisfaction is an important variable for the Debashish, S. S., and Mishra, B. Indian Banking System
banking industry, particularly in the post liberalized period (Development, Performance and Services). New Delhi:
wherein all the industrial information is easily available to Mahamaya Publishing house, 2005, pp. 175-195.
all customers. These days' customers are comparing quality Mushtaq A. Bhat (2005)," Service Quality Perceptions in
of the services they are offered with the global standard. Banks: A Comparative Analysis", Vision, the Journal of
Therefore the banking institutions are finding much Business Perspective, Vol.9, No.1.

36 | 2019 | JULY | BANKING FINANCE