Customer Perception of Islamic Banking Products and Services

Topics: Bank, Online banking, Commercial bank Pages: 10 (2925 words) Published: July 29, 2012
International Journal of Business and Management Tomorrow

Vol. 1 No. 1

Alternative Banking Channels and Customers’ Satisfaction: An Empirical Study of Public and Private Sector Banks

Vijay M. Kumbhar , M. A. SET, NET, GDC&A, DIT and M. Phil (Economics) and recently, he has submitted PhD Thesis in Alternative Banking and Its Impact on Customers Satisfaction to Shivaji University, Kolhapur

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International Journal of Business and Management Tomorrow

Vol. 1 No. 1

The present empirical study focuses on identifying key factors that have influences customers satisfaction in alternative banking service provided by public and private sector banks. For the purpose of the present study primary data were collected using likert scale based questionnaire. Result of this study shows that, there was significant relationship between age, education and profession of the bank customers and customers‘ satisfaction in alternative banking. There was significant relationship between service quality, band perception and perceived value with overall customer satisfaction in alternative banking. Factor analysis test indicates that, efficiency, security/assurance, cost effectiveness, problem handling,

responsiveness, fulfillment and accuracy were first factors, Perceived value, brand perception, contact facilities, convenience, system availability and easy to use are second factor and compensation is third factor. Overall result directs that, bankers should consider the facts and enhance service quality of alternative banking services in order to increase customers‘ satisfaction and its further adoption also. JEL: G20, G21 Keywords: Alternative Banking, Service Quality, Brand Perception, Perceived value, Satisfaction

Technology in the banks is presently catching up with a high level of development around the world. The gaps between the Indian banks and their counterparts in the technologically advanced countries are gradually narrowing down. The world has witnessed an information and technological revolution of late. This revolution has touched every aspect of public life including banking (Siam, 2006). Since two decades, due to an increasingly competitive, saturated and dynamic business environment, retail banks in many countries have adopted customer-driven philosophies to address the rapid and changing needs of their customers (Walker et al., 2008). Technological advances have changed the world radically, altering the manner in which individuals conduct their personal and business affairs. Over the past two decades in particular, the banking industry has invested substantial resources in bringing ICT to customers. The banking industry is undergoing through the significant technological changes; it has several impacts on customer satisfaction and loyalty. ―It has revolutionised every industry including

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International Journal of Business and Management Tomorrow

Vol. 1 No. 1

banking in the world by rendering faster and cost effective delivery of products and services to the customers. According to Chakrabarty, (2007) core banking solution enables banks to extend the full benefits of ATM, tele-banking, mobile banking, internet banking, card banking and other multiple delivery channels to all customers allowing banks to offer a multitude of customercentric services on a 24x7 basis from a single location, supporting retail as well as corporate banking activities. Now, Indian banks are investing heavily in the technologies such as branch automation and computerization, core banking, tele-banking, mobile banking (M-banking), internet banking, automated teller machine (ATMs), data warehousing etc. ICT innovations in the previous few years have changed the landscape of banks in India (Mittal and Dhingra, 2007; Kour and Kour, 2011). Today public sector and private sector banks are offering online banking services. Various alternative channels to...
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