Customer Satisfaction towards banking services

A study on Customer Satisfaction towards banking Services
 Introduction of the Project

Now a day’s banking has changed because banking services are no more based
on traditional structure. Due to Continues growth of technology, increasing
customer base, evolution of alternate banking channels, has changed the way of
banking services, so hence the customer satisfaction. Banking is a customer-
oriented service industry and customer satisfaction has become the most
important aspect of any banking business due to immense competition. Banks
are more determined to retain their existing customers by providing quality
services leading to customer satisfaction. This can be done by intuitions
analyzing quality control and assurance measure as well a strong monitoring
and evaluation system for the services quality.
In today's competitive banking landscape, customer satisfaction has become a
crucial differentiator for financial institutions. With the rise of digital banking
and increasingly discerning customers, banks must prioritize delivering
exceptional service quality to retain and attract customers. Customer satisfaction
is a key indicator of a bank's performance, influencing loyalty, retention, and
ultimately, profitability.
This study aims to investigate the level of customer satisfaction towards
banking services, exploring factors that influence satisfaction and identifying
areas for improvement. By understanding customers' needs and expectations,
banks can tailor their services to meet evolving demands, foster loyalty, and
maintain a competitive edge in the market.
The modern banking industry is a network of financial institutions licensed by
the state to supply banking services. The principal services offered relate to
storing, transferring, extending credit against, or managing the risks associated
with holding various forms of wealth. The digital payments system in India has
evolved the most among 25 countries with India’s Immediate Payment Service
(IMPS) being the only system at level five in the Faster Payments Innovation
Index (FPII). Today the banking industry has become an integral part of any
P15JL22C012016 Bhandari and Rathi College, Guledgudd Page 1

nation’s economic progress and is critical for the financial wellbeing of

individuals, businesses, nations, and the entire globe. In this article, we will
provide an overview of key industry concepts, main sectors, and key aspects of
the banking industry’s business model and trends. Banks are a subset of the
financial services industry and play an important role in the global economies.
They are a key player in stimulating economic growth. Banking is an important
undertaking.
 Objectives of the Study

1. The Prime objective is to study on customer satisfaction towards
banking service.
2. To analyze consumer perception about online banking service.
3. To know the satisfaction level of the consumer.
4. To analyze how many use online banking.
 Need for the Study

The deeper the company understands of consumer’s needs and satisfaction,
earlier the product or service is introduced ahead of competition, the greater the
expected contribution margin. Hence the study is very important.
1. This study will help companies to customize the service and product,
according to the consumer’s need
2. This study will also help the companies to understand the experience
expectations of the existing customers.
3. This Study will help us to understand the consumer’s satisfaction about
banking services and products.

 Scope of the Study

For doing this project, the sample size considered 80 samples of different
banking customers. It covers the Guledgudd city only. The 80 samples involve
different age groups and income levels along with students, Professionals,
Business holders and entrepreneurs.
 Research Methodology
1. Primary Data
Based on the questionnaires the primary data collected by 80 respondents.
2. Secondary Data
Websites and online journals, Published reports & Review of study.
 Structure of Questionnaire
Questionnaire was divided into two sections. First part was designed to
know the general information about customers and the second part
contained the respondent’s opinions about customer’s experience.
 Analytical Tools:
Percentage analysis
 Bar chart
 Pie chart
 Line Chart etc
 Limitations of the Study

1. There is time constraint.
2. The sample is only 60 respondents and it covers only Guledgudd city.
3. The respondents tend to give misleading information it is difficult to
know if all the respondents gave accurate information.

 Introduction
In the current banking scenario it is obvious that banks gain competitive

advantage by rendering efficient service and thereby enhancing customer
relationship. More emphasis on creating loyal customers is the need of the hour.
It is pivotal for all players in the financial service industry to understand the
needs of the customer and customize services based on their needs. This in turn
will pave way for achieving customer satisfaction to a larger extent. The
measurement of the same is an important factor in banking sector.
In this ICT (Information, Communication and Technology) era, the mode of

direct pay, online financial services has gained value. Now a day, customers
need flexible hours of operation, customization and transparency. Due to
increased market competition, customers’ defection rates are higher. Thus,
research on service quality and satisfaction of customers in banking sector is
considered important.
In this research paper, the researchers have focused on service quality and
customer satisfaction literature that has been receiving significant attention over
the last few years. This research paper is classified in two fold namely Quality
of Service and satisfaction of customers in banks across various countries.
Origin of banking: Its origin in the simplest form can be traced to the origin of
authentic history. After recognizing the benefit of money as a medium. The
origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called
“bancheri” According to viewpoint banking is derived from German word
“Branck” which mean heap or mound.

 History of Banking in India

The history of banking in India dates back to the 18th century, with the
establishment of the first bank, the General Bank of India, in 1786. However, it
was the State Bank of India (SBI), established in 1955, that played a crucial role
in shaping the country's banking sector.
Banking system in India: Without a sound and effective banking system in India
it cannot have a healthy economy. The banking system of India should not only
be free but it should be able to meet new challenges posed by the technology
and any other external and internal factors. For the past three decades India's
banking system has several outstanding achievements to its credit. The most
striking is its extensive reach. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's
growth process.
Banks in India:
In India the banks are being segregated in different groups. Each group has
their own benefits and limitations in operating in India. Each has their own
dedicated target market. Few of them only work in rural sector while others in
both rural as well as urban. Many even are only catering in cities. Some are of
Indian origin and some are foreign players. All these details and many more is
discussed over here. The banks and its relation with the customers, their mode
of operation, the names of banks under different groups and other such useful
information’s are talked about. One more section has been taken note of is the
upcoming foreign banks in India. The RBI has shown certain interest to involve
more of foreign banks than the existing one recently. This step has paved a way
for few more foreign banks to start business in India.

 Nationalization of Banks
In 1969, the Indian government nationalized 14 major commercial banks,
followed by the nationalization of six more banks in 1980. This led to a
significant expansion of banking services across the country.
 Liberalization and Reforms

The 1990s saw a significant shift in India's banking sector with the introduction
of liberalization and reforms. This led to the entry of private and foreign banks,
increased competition, and improved services.
With years, banks are also adding services to their customers. The Indian
banking industry is passing through a phase of customers market. The
customers have more choices in choosing their banks. A competition has been
established within the banks operating in India. With stiff competition and
advancement of technology, the services provided by banks have become easier
and more convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being
cleared inone month in the south. This section of banking deals with the latest
discovery in the banking instruments along with the polished version of their
old systems.
What is Banking?
Banking is essential for managing and safeguarding money. Financial
institutions, like banks and credit unions, gather deposits from individuals. They
then lend these to those in need, acting as intermediaries. Banks offer many
financial services that help people save, manage and invest money. These
services benefit both individuals and businesses.

Banking refers to the business activity of accepting and safeguarding money

owned by other individuals and entities, and then lending out this money in
order to earn a profit.
Banking is the business of protecting money for others. Banks lend this money,
generating interest that creates profits for the bank and its customers.
A bank is a financial institution licensed to accept deposits and make loans. But
they may also perform other financial services.
The term “bank” can refer to many different types of financial institutions —
including bank and trust companies, savings and loan associations, credit unions
or any other type of institution that accepts deposits.
Definition
Banking is defined as “Accepting of deposits of money from public for the
purpose of Lending or Investment, repayable on demand or otherwise and
withdrawable by cheque, draft, or otherwise”
 Types of Banks
There are several types of banks, including:
1. Commercial Banks: Provide basic banking services to individuals and
businesses.
2. Central Banks: Regulate the money supply and oversee the banking system.
3. Investment Banks: Specialize in investment services, such as underwriting
and mergers and acquisitions.
4. Savings Banks: Focus on accepting savings deposits and providing mortgage
loans.
5. Cooperative Banks: Owned and controlled by their members, often
providing financial services to specific communities.

 Banking Services
Banks offer a wide range of services, including:
1. Accepting Deposits: Safeguarding money for customers.
2. Making Loans: Providing credit to individuals and businesses.
3. Facilitating Payments: Enabling transactions through checking accounts,
credit cards, and online banking.
4. Investment Services: Offering investment products, such as stocks and
bonds.
5. Cash Management: Providing services for businesses to manage their cash
flow.
 Banking Services in India

Indian banks offer a wide range of services, including:
1. Basic Savings and Deposit Accounts
2. Loans and Credit Facilities
3. Payment and Settlement Services
4. Investment and Insurance Services
5. Mobile and Internet Banking
6. ATM and Debit Card Services
 Features of Banking
1. Deals with money
The bank accept deposits from the public and advancing them as loans to
the needy people. The deposits may be current, fixed saving etc.
2. Provide loans
The banks are the institutions that can create credit i.e. creation of
additional money for lending Thus ‘creation of credit is the unique
features of banking.

Banks make extra money by providing loans for different Product to the
loan. The bank makes the extra money by lending money to the eligible
person at certain rates. Nowadays, banks provide loans for various
requirements such as study loan, car loan, home loan, personal loans, etc.
Different banks provide different loans at different interest rates. You can
compare the interest rates of different banks to get a loan at minimum
interest rates
3. Middle man
Banks serve as a middle man from the money surplus unit to be money
deficit unit. They are intermediaries, who transfer funds from savers to
investors through grants for business, commerce, education, housing etc.
4. Deposits must be withdrawable

The deposits are usually withdrawable on demand. it may be
withdrawable by cheque, draft or otherwise.
5. Internet Services
Bank is that modern banks are also providing internet services. The
development of the internet and its inclusion in the banking sector has
made it even more easy for people to carry out various transactions.
Banks are providing online services through their apps. You can pay bills,
buy food, go shopping without having cash with you. With the help of
banking apps, you can pay for everything online.
6. Commercial in nature
Since all the banking activities of Commercial banks are carried on with
the aim of Making profit, it is regarded as an commercial institution .

The bank uses our money to lend it to others or by investing it in

profitable businesses to make profits. If you think your money is sitting in
a banks locker, then you are wrong.
You might have digits of the money mentioned in your passbook, but you
might be rotating between one person to another to make more money to
the investor.
7. Size transformation
Bank Create a reservoir of fund from the numerous small deposits collect
from customer, and then provide large loan to Investor.
8. Nature of agent
Beside the basic function of accepting deposits and lending money as a
loan ,bank ,possess the characteristics of an agent because of its various
agency services .
 Recent Developments
1. Digital Banking: Increased focus on digital channels and mobile banking.
2. Financial Inclusion: Initiatives to expand banking services to rural and
underserved areas.
3. Payment Banks: New category of banks focused on payment and remittance
services.
Overall, India's banking sector has undergone significant transformations over

the years and continues to evolve with changing customer needs and
technological advancements.

 The Following Are The Scheduled Banks In India (Public Sector):

• State Bank of India
• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Saurashtra
• State Bank of Travancore
• Andhra Bank
• Allahabad Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
 The Following Are The Scheduled Banks In India (Private Sector):

• ING Vysya Bank Ltd
• Axis Bank Ltd
• Indusind Bank Ltd
• ICICI Bank Ltd
• South Indian Bank
• HDFC Bank Ltd
• Centurion Bank Ltd
• Bank of Punjab Ltd
• IDBI Bank Ltd

 Here are some important banking services in India:

1. Savings Accounts: Basic deposit accounts for individuals and businesses.
2. Current Accounts: Checking accounts for businesses and individuals with
high transaction volumes.
3. Fixed Deposits (FDs): Time deposits with fixed interest rates and maturity
periods.
4. Recurring Deposits (RDs): Regular savings plans with fixed monthly
deposits.
5. Loans: Personal, home, car, education, and business loans.
6. Credit Cards: Payment cards with credit limits and rewards programs.
7. Debit Cards: Payment cards linked to deposit accounts.
8. Internet Banking: Online banking services for account management and
transactions.
9. Mobile Banking: Banking services through mobile apps and SMS.
10. ATM Services: Cash withdrawal and deposit facilities through Automated
Teller Machines.
11. Payment and Settlement Services: Services like NEFT, RTGS, and IMPS
for fund transfers.
12. Investment Services: Services like mutual funds, stocks, and bonds.
13. Insurance Services: Life, health, and general insurance products.
14. Demat Services: Services for holding and trading securities in electronic
form.
15. NRI Services: Specialized services for Non-Resident Indians (NRIs).
16. Agricultural Banking: Services for farmers and agricultural businesses.
17. Microfinance: Small-value loans and financial services for low-income
individuals.
18. Pension and Retirement Services: Services for pension and retirement
planning.

19. Foreign Exchange Services: Services for foreign currency exchange and
remittances.
20. Trade Finance: Services for importers and exporters, including letters of
credit and factoring.
These services are offered by various banks in India, including public sector
banks, private sector banks, foreign banks, and regional rural banks.
 CUSTOMER SATISFACTION
The dictionary meaning of „customer‟ is a person who buys goods and services.
So, customer services involve three entities i.e., seller, buyer and
goods/services. Customer service is, therefore, encapsulation of all these entities
for the mutual benefits so as to increase the value of all the participants in the
process of buying and selling.
As per Reserve Bank of India‟s (RBI) definition, the customer of a bank may
include: A person or entity that maintains an account and/or has a business
relationship with a bank
One on whose behalf the account is maintained (i.e. the beneficial owner)
Beneficiaries of transactions conducted by professional intermediaries, such as,
stock brokers, Chartered Accountants, solicitors, etc., and
Any person or entity concerned with a financial transaction, which can pose
significant reputational or other risk to the bank, e.g., issue of a high value
demand draft as a single transaction.
The Talwar Committee (1977) deserved that the main purpose of banking is “to
create and deliver customer – needed services in a customer satisfying manner”.
This implies that there are two elements that are required for the banking

services, viz., creating and delivering services. 6 While creation indicates the
creation/introduction of new technology in services, carrying out these services
effectively constitutes the delivering of services. These two elements greatly
determine the level of satisfaction of the customers.
According to Kotler and Keller (2009), “customer satisfaction is a person‟s

feeling of pleasure or disappointment resulting from comparing a products
perceived performance in relation to his or her expectation.” Rao (2008) draws
the basic formula of customer satisfaction, Customer satisfaction = Customer
perception of the service received - Customer expectation of service. In this way
it is easy to generalize that if the perception of the service received exceeds the
expectation of the service, customer‟s satisfaction will be positive. On the other
hand if the perception of the service received is less than the level of
expectation of the service, it would lead to customer dissatisfaction. But
customer satisfaction is highly effected by the other factors like experience,
purchase decision, service provider, price, etc. There is a substantial body of
empirical literature that establishes the benefits of customer satisfaction for
firms. It is well established that satisfied customers are key to long-term
business success. Companies that have a more satisfied customer base also
experience higher economic returns. Consequently, higher customer satisfaction
leads to greater customer loyalty; which in turn leads to higher future revenue.
Indian banking industries is facing various kind of ups and downs in the current
scenario. There are some specific reasons like lowering of entry barriers,
increasing product line of banks and non-banks, etc. Since the financial reforms,
bank are also facing huge competitive pressure therefore it is inevitable for the
banks to maintain loyal customers based, besides banks are trying to make
strategies towards customers satisfaction and loyalty through improved service
quality to achieve and improve their marker and profit position

A significant level of customer satisfaction is among the most critical indicators

of the business’s future. Customers who are satisfied are also loyal and this
ensures a consistent cash-flow for the business in the future. In addition,
satisfied customers are often characterized as less-price sensitive and they are
more partial to spend more on the products they have tried and tested before.
Moreover, stability in business relations is also beneficial where the positive
quality image minimizes the cost for a current customer (Matzler, Hinterhuber,
Bailom & Sauerwien, 1996). According to Hom (2000), satisfaction refers to a
feeling or a short term attitude that can change owing to various circumstances.
It exists in the user’s mind and is unlike 17 observable behaviors like product
choice, complaint or repurchase. In a related study, John and Linda (1976),
investigated the relationship between expectations, performance and
satisfaction. The findings revealed that when a customer judges the performance
of a product, he usually compares a set of performance outcomes that are
expectations. The product is then likely to be considered as dissatisfactory or
satisfactory.
Customer satisfaction in the banking sector is a crucial aspect of measuring how

well banks meet their customers' needs and expectations. Here are some key
aspects of customer satisfaction in banking
Relation between Customer Satisfaction and Service Quality

Customer satisfaction and service quality are inter-related. The higher the
service quality, the higher is the customer satisfaction. Many agree that in the
banking sector, there are no recognized standard scales to measure the perceived
quality of a bank service. Thus, competitive advantage through high quality
service is an increasingly important weapon to survive. As a process in time,
service quality takes place before, and leads to overall customer satisfaction.
Service quality has been found to be an important input to customer satisfaction.

Service quality is one of the important areas of business especially for service
industries like bank to retain their customer and to attract new one. Poor
customer service could cause a banking business loss of millions of dollars and
also „its credibility‟. Good customer service and service quality is what attracts
people to a business. When customers are pleased they become long-term assets
of the bank. Building strong customer relations can tie a customer and a
business together. When customers are satisfied they feel well treated and are
willing to treat the business well. Perfect and smiley customer service definitely
improves customer satisfaction. From the customer‟s perspective service
quality significantly influence customer satisfaction and customer satisfaction
has direct influences on purchase intentions. Some researchers have found
empirical supports for the view of the point mentioned above; where customer
satisfaction came as a result of service quality. As said by Wilson et al. (2008),
service quality is a focused evaluation that reflects the customer‟s perception of
reliability, assurance, responsiveness, empathy and tangibility while satisfaction
is more inclusive and it is influenced by perceptions of service quality, product
price and quality, also situational factors and personal factors. The relationship
between service quality and customer satisfaction is becoming crucial with the
increased level of awareness among bank customers.
 Factors Influencing Customer Satisfaction:
1. Service Quality: Timely and efficient service, friendly staff, and convenient
branch locations.
2. Product Offerings: Range of products and services, including digital banking
options.
3. Pricing: Competitive interest rates, fees, and charges.
4. Convenience: Easy access to branches, ATMs, and digital channels.

5. Reliability: Consistent and secure banking services.

6. Communication: Clear and transparent communication about products and
services.
7. Employee Helpfulness: Friendly, knowledgeable, and responsive staff.
 Measuring Customer Satisfaction:
1. Surveys: Online, phone, or in-person surveys to gather feedback.

2. Net Promoter Score (NPS): Measures customer loyalty and satisfaction.
3. Customer Effort Score (CES): Assesses ease of use and convenience.
4. Complaint Resolution: Timely and effective resolution of customer
complaints.
 Benefits of High Customer Satisfaction:
1. Customer Retention: Satisfied customers are more likely to stay with the
bank.
2. Positive Word-of-Mouth: Happy customers recommend the bank to others.
3. Increased Loyalty: Satisfied customers use multiple banking services.
4. Competitive Advantage: Banks with high customer satisfaction stand out in a
crowded market.
5. Business Growth: Satisfied customers contribute to increased revenue and
growth.

 Challenges in Improving Customer Satisfaction:
1. Legacy Systems: Outdated technology hinders digital transformation.

2. Regulatory Requirements: Compliance with regulations can limit innovation.
3. Changing Customer Expectations: Keeping up with evolving customer needs
and preferences.
4. Competition: Intense competition from fintechs and other banks.
5. Employee Training: Ensuring staff are knowledgeable and friendly.
 Reasons underscore the importance of customer satisfaction in the

banking sector:
1. Customer Retention: Satisfied customers are more likely to remain loyal,

reducing churn and associated costs.
2. Positive Word-of-Mouth: Happy customers become brand ambassadors,

promoting banks through positive reviews and recommendations.
3. Increased Loyalty: Satisfied customers use multiple banking services,

increasing revenue and deepening relationships.
4. Competitive Advantage: Banks prioritizing customer satisfaction differentiate

themselves and establish a competitive edge.
5. Business Growth: Satisfied customers contribute to increased revenue,

market share, and business expansion.
6. Regulatory Compliance: Satisfied customers reduce complaints, helping

banks meet regulatory requirements.

7. Employee Morale and Productivity: Positive customer feedback boosts

employee morale and motivation.
8. Market Research and Insights: Customer satisfaction feedback provides
valuable insights for market research and product development.
9. Risk Management: Satisfied customers are less likely to switch banks during
times of crisis, reducing reputational risk.
10. Long-term Success: Customer satisfaction is a key driver of long-term

success, profitability, and sustainability in the banking sector.
By prioritizing customer satisfaction, banks can reap these benefits, driving

business growth, loyalty, and success.

 Factors that typically influence customer satisfaction in banking:

Customer satisfaction in the banking sector is crucial because it directly impacts
customer retention, loyalty, and overall business performance. Here are some
key factors that typically influence customer satisfaction in banking:
1. Service Quality: This includes the efficiency and effectiveness of
services provided, such as account management, loan processing, and
financial advice. High-quality, reliable, and accurate services tend to lead
to higher satisfaction.
2. Customer Service: Friendly, knowledgeable, and responsive customer
service representatives can significantly enhance the customer
experience. The availability of support through various channels (e.g.,
phone, email, chat, in-person) is also important.
3. Digital Experience: With the rise of online and mobile banking,
customers expect seamless, user-friendly digital platforms. Features like
easy navigation, robust security, and functional mobile apps are crucial.
4. Product Offerings: A diverse range of financial products and services
that meet the needs of different customer segments can improve
satisfaction. This includes competitive interest rates, flexible loan terms,
and various investment options.
5. Transparency: Clear communication about fees, terms, and conditions
helps build trust. Customers appreciate straightforward information and
the absence of hidden charges.
6. Personalization: Tailoring services and product recommendations based
on individual customer profiles and preferences can enhance the overall
experience.
7. Problem Resolution: Effective handling of complaints and issues is
critical. Prompt, fair, and empathetic resolution of problems can turn a
negative experience into a positive one.

8. Convenience: Factors like the number and accessibility of branch

locations, availability of ATMs, and ease of online transactions contribute
to overall convenience and satisfaction.
9. Security: Ensuring the safety and confidentiality of customer data is
paramount. Robust security measures and proactive communication about
security practices can reassure customers.
10.Innovation: Banks that invest in new technologies and innovative
solutions (such as AI for personalized recommendations or block chain
for secure transactions) can offer enhanced experiences and stay ahead of
customer expectations.
Measuring customer satisfaction typically involves surveys, feedback forms,

and monitoring online reviews and social media. Continuous improvement
based on this feedback helps banks maintain and increase satisfaction levels.

1. How satisfied are you with the overall service provided by the bank?
No. of
Options Percentage
Respondents
Very Satisfied 21 35
Satisfied 15 25
Neutral 19 32
Dissatisfied 3 5
Very Dissatisfied 2 3
Total 60 100
35
35 32
30 25
25
20
15
10 5
3
5
0
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied
.
Interpretation:
The above table shows that satisfaction of services provided by the bank. The
above 35% respondents are very satisfied, 25% of respondents are satisfied,
32% of respondents are neutral,5% of respondents are dissatisfied and 3% of
respondents are vary dissatisfied.

2. Which of the following services have you used at the bank?
No. of Percentag
Options
Respondents e
Checking account 12 20
Mortgage 3 5
Credit card 16 27
Personal loan 16 27
Investment services 13 22
Total 60 100
30
27 27
25
22
20
20
15
10
5
5
0
Checking Mortgage Credit card Personal loan Investment
account services
Interpretation:
The above table shows that services used at the bank. The above 20%
respondents are checking account, 5% of respondents are mortgage, 27% of
respondents are credit card and personal loan, and 22% of respondents are used
investment services.

3. How would you rate the friendliness of the bank staff?
Options No. of Respondents Percentage

Very friendly 25 42
Friendly 19 32
Neutral 12 20
Unfriendly 2 3
Very unfriendly 2 3
Total 60 100
3 3
20
Very friendly
42
Friendly
Neutral
Unfriendly
Very unfriendly
32
Interpretation:
The above table interprets that 42% respondents are very friendly, 32% are
friendly, 20% of respondents are neutral, 3% of respondents are unfriendly and
Very unfriendly.

4. Which of the following banking channels do you frequently use?
No. of Percentag
Options
Respondents e
Online banking 12 20
Mobile banking 34 57
ATM 12 20
Branch visits 2 3
Total 60 100
60 57
50
40
30
20 20
20
10
3
0
Online banking Mobile banking ATM Branch visits
Interpretation:
The above table reveals that the banking channels do you frequently use. 20%
of respondents are online banking, 57% is respondents are mobile banking, 20%
of respondents are ATM and 3 percentage of respondents are branch visits.

5. How satisfied are you with the interest rates offered by the bank?
No. of
Options Percentage
Respondents
Satisfied 15 25
Neutral 16 27
Dissatisfied 9 15
Total 60 100
30
27
25
25
20
17 17
15
15
10
0
Interpretation:
The about table interprets that interest rate offered by the bank. The 17% of
respondents are very satisfied, 25% of respondents are satisfied, 27% of
respondents are neutral, 15% of respondents are dissatisfied and 17% of
respondents are very dissatisfied.

6. Which of the following additional services would you like the bank to
introduce?
Personal financial planning 12 20
Rewards program 0 0
Chat support 0 0
Virtual assistant 18 30
Investment advisory 26 43
Branch appointments 4 7
Total 60 100
7
20
Personal financial planning

Rewards program
Chat support
Virtual assistant
43 Investment advisory
Branch appointments
30
Interpretation:
The about table shows that services would you like to the bank to introduce.
The 20% of respondents are personal financial planning, 30% of respondents
are virtual assistant, 43% of respondents are investment advisory and 7% of
respondents are branch appointments.
7. How satisfied are you with the bank's complaint resolution process?

No. of
Options Percentage
Respondents
Satisfied 20 33
Neutral 18 30
Dissatisfied 5 8
Total 60 100
35 33
30
30
25
20
20
15
10 8 8
0
Interpretation:
The about able reveals that the bank complaints resolution process. The 20% of
respondents are very satisfied, 33% of respondents are satisfied, 30% of
respondents are neutral, 8%percentage of respondents are dissatisfied and very
dissatisfied.
8. Which of the following factors influenced your decision to choose this

bank?
Options No. of Percentage

Respondents
Reputation 6 10
Convenient location 16 27
Bank fees and charges 3 5
Customer reviews 6 10
Recommendation from friends/family 5 8
Interest rates 3 5
Online/mobile banking features 21 35
Total 60 100
10
Reputation
35 Convenient location
Bank fees and charges
27 Customer reviews
Recommendation from
friends/family
Interest rates
Online/mobile banking
5 features
5
8 10
Interpretation:
The above table interprets the factors influence your decision to choose this Bank. The
10% of respondents are reputation, 27% is of respondents are convenient location, 5
percentage are r respondents are bank fees and charges, 10% of respondents are
customer reviews and 8 percentage of respondents are recommendations from friends
or family and 5% of respondents are interest rates and 35% is of respondents are
online or mobile banking features.
9. How likely are you to recommend this bank to others?
No. of
Options Percentage
Respondents

Very likely 20 33
Likely 22 37
Neutral 12 20
Unlikely 3 5
Very unlikely 3 5
Total 60 100
37
40
33
35
30
25 20
20
15
10 5 5
0
Very likely Likely Neutral Unlikely Very unlikely
Interpretation:
The about table revels that recommend this bank to others. The 33% of
respondents are very likely 37% of respondents are likely 20% of respondents
neutral and 5% respondents are unlikely and very unlikely.
10.Which of the following digital banking features do you find most

useful?


Mobile check deposit 12 20
Bill payment 23 38
Person-to-person payments 10 17
Account alerts 5 8
Card less ATM withdrawals 10 17
Total 60 100
17 20
Mobile check deposit

8 Bill payment
Person-to-person
payments
Account alerts
Cardless ATM withdrawals
17
38
Interpretation:
The above table shows that digital banking features do you find the most useful.
The 20% of respondents are mobile check deposit 38% of respondents are bill
payment 17% of respondents are person to person payments 8% of respondents
are account alerts and 17% of respondents are card less ATM with travels
11.How satisfied are you with the bank's online banking platform?


Satisfied 18 30
Neutral 10 17
Dissatisfied 2 3
Total 60 100
3 2
17
Very Satisfied
Satisfied
48 Neutral
Dissatisfied
Very Dissatisfied
30
Interpretation:
The about table shows that online banking platform. The 48% of respondents
are very satisfied 30% is 30 percentage respondents are satisfied 17% is of
respondents are neutral and the 3% of respondents are dissatisfied and 2% of
respondents are very dissatisfied.
12.How responsive do you find the bank's customer support?


Very responsive 12 20
Responsive 25 42
Neutral 20 33
Not very responsive 3 5
Not responsive at all 0 0
Total 60 100
5
20
Very responsive
33
Responsive
Neutral
Not very responsive
Not responsive at all
42
Interpretation:
The above table shows that the banks customer support. The 20% of
respondents are very responsive, 42% of respondents are responsive, 33% of
respondents are neutral and very 5% is of respondents are not very responsive.
 Findings

1. Majority that is 35% of respondents agreed that performance are very
satisfied with the overall services provided by the bank.
2. 27% of respondents used the services the credit card and personal loan.
3. 32 % of respondents are agreed that the bank staffs are very friendly with
customers.
4. 57% of respondents are agreed that frequently using mobile banking
channel.
5. 27% of respondents are satisfied with the interest rates offered by the
bank.
6. 43 % of respondents are agreed investment advisory additional services
7. 33 % of respondents are satisfied with the Bank complaint resolution
process.
8. 35% of respondents are agreed that online or mobile banking features
influenced to choose the bank.
9. 37 % of respondents are likely recommended this bank to others.
10.38% of the respondents are agreed that bill payment is useful for digital
banking.
11.48% of respondents are very satisfied with a banks online banking
platform.
12.42% of respondents are responsive find the banks customer support.

 Suggestions
With regard to banking products and services, consumers respond at different
rates, depending on the consumer’s characteristics.
1. The banks are tried to bring their new product and services to the
attention of potential early adopters.
2. Due to the intense competition in the financial market, the banks are
should adopt to attract more customers.
3. The banks should adopt effective promotional strategies to increase the
awareness among the consumers.
4. The Banks should ask for their consumer feedback to know whether the
consumers really satisfied or dissatisfied with the service and product of
the bank. If they are dissatisfied, then the reasons for dissatisfaction
should be found out and should be corrected in future.
5. The banks should try to increase the Brand image through performance
and then, only the customers will be satisfied.
6. Majority of the people find that banking is important in their life, so the
banks should make the strategies to convert the want to need which will
enrich their business.
7. Now a day‟s technology is modernizing day by day therefore SBI Bank
have to up to date there technology as per modern era, and banks have to
install sufficient number of cash counting machine in every branches. The

bank should ensure availability of bank slip, challan and pamphlets to
serve customers in a better way.
8. The bank should increase its staff to give personal attention to the
customers and serve quickly.
9. The bank should ensure that the employees are behaving politely and
friendly with the customers.

 Conclusion
The study found that in today’s competitive environment, service quality plays
an important role for the long term sustainability of the banks. As a result, to
cope up this changing market condition banks have to retain old customers and
have to attract new customers by providing better quality of services. It has been
evident from the study that there is a strong relationship between the customer
satisfaction and service quality. To ensure customer satisfaction the banks have
to improve their service quality as per the customer’s expectation.
After going through the various literatures related to customer satisfaction in

banking industry it has been reviewed that there are so many factors which
leads to customer satisfaction in banking industry. Customer satisfaction is very
crucial aspect for banking industry also a very wide area to be studied. The
rapid changes in technology, perception of consumer, services, etc it is
mandatory for the banking industry to cope up with the change.

Bibliography
Journals Agarwal, J. (2009). Customer satisfaction in Indian Banking Services-
A Study in Aligarh District. International Journal of Computing and Business
Research, Vol.3 Issue 1, 4-5. Chinwuba, M.
S. and Egene, S. (2013). Evaluating customer – Perceived Service Quality And

Customer Satisfaction in The Nigerian Banking Industry, Far East Journal of
Psychology and Business, Far East Research Center, Vol-11(3), 34- 46.
Mary S. S. (2014). A Comparative Study on the Customer Satisfaction in

Private Sector and Public Sector Banks with Reference to Chennai City,
International Journal of Business Quantitative Economics and Applied
Management Research, Vol 2, 42-43.
Muyeed M. A. (2012). Customer perception of service quality in retail banking

in developing countries – A case study, International Journal of Marketing
Studies, Vol.4, No.1, pp. 116-122.
Oppewal, H. and Vriens, M. (2000). Measuring Perceived Service Quality

Using Integrated Conjoint Experiment, International Journal of Bank
Marketing, Vol.18 Issue: 4, pp.154-169.
Marketing Management- Philip Kotler
Advanced accounting – S.N.Maheshwari
Advanced Accounting – Jain and Narang

Questionnaires
1. How satisfied are you with the overall service provided by the bank?
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied
2. Which of the following services have you used at the bank? (Select all
that apply)
Savings account
Checking account
Mortgage
Credit card
Personal loan
Investment services
3. How would you rate the friendliness of the bank staff?

Very friendly
Friendly
Neutral
Unfriendly
Very unfriendly

4. Which of the following banking channels do you frequently use?

(Select all that apply)
Online banking
Mobile banking
ATM
Branch visits
Phone banking
5. How satisfied are you with the interest rates offered by the bank?
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied
6. Which of the following additional services would you like the bank to
introduce?
Personal financial planning
Rewards program
Chat support
Virtual assistant
Investment advisory
Branch appointments
7. How satisfied are you with the bank's complaint resolution process?
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied

8. Which of the following factors influenced your decision to choose this

bank?
Reputation
Convenient location
Bank fees and charges
Customer reviews
Recommendation from friends/family
Interest rates
Online/mobile banking features
9. How likely are you to recommend this bank to others?

Very likely
Likely
Neutral
Unlikely
Very unlikely
10.Which of the following digital banking features do you find most

useful?
Mobile check deposit

Bill payment
Person-to-person payments
Account alerts
Loan application
Cardless ATM withdrawals
11.How satisfied are you with the bank's online banking platform?
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied

12. How responsive do you find the bank's customer support?

Very responsive
Responsive
Neutral
Not very responsive
Not responsive at all

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A study on Customer Satisfaction towards banking Services

 Introduction of the Project

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nation’s economic progress and is critical for the financial wellbeing of

 Objectives of the Study

 Need for the Study

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 Scope of the Study

 Limitations of the Study

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In the current banking scenario it is obvious that banks gain competitive

In this ICT (Information, Communication and Technology) era, the mode of

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 History of Banking in India

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 Liberalization and Reforms

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Banking refers to the business activity of accepting and safeguarding money

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 Banking Services in India

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4. Deposits must be withdrawable

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The bank uses our money to lend it to others or by investing it in

Overall, India's banking sector has undergone significant transformations over

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 The Following Are The Scheduled Banks In India (Public Sector):

 The Following Are The Scheduled Banks In India (Private Sector):

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 Here are some important banking services in India:

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According to Kotler and Keller (2009), “customer satisfaction is a person‟s

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A significant level of customer satisfaction is among the most critical indicators

Customer satisfaction in the banking sector is a crucial aspect of measuring how

Relation between Customer Satisfaction and Service Quality

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 Factors Influencing Customer Satisfaction:

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5. Reliability: Consistent and secure banking services.

 Measuring Customer Satisfaction:

1. Surveys: Online, phone, or in-person surveys to gather feedback.

 Benefits of High Customer Satisfaction:

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 Challenges in Improving Customer Satisfaction:

1. Legacy Systems: Outdated technology hinders digital transformation.

 Reasons underscore the importance of customer satisfaction in the

1. Customer Retention: Satisfied customers are more likely to remain loyal,

2. Positive Word-of-Mouth: Happy customers become brand ambassadors,

3. Increased Loyalty: Satisfied customers use multiple banking services,

4. Competitive Advantage: Banks prioritizing customer satisfaction differentiate

5. Business Growth: Satisfied customers contribute to increased revenue,

6. Regulatory Compliance: Satisfied customers reduce complaints, helping

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7. Employee Morale and Productivity: Positive customer feedback boosts

10. Long-term Success: Customer satisfaction is a key driver of long-term

By prioritizing customer satisfaction, banks can reap these benefits, driving

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 Factors that typically influence customer satisfaction in banking: