Customer Perception of Banking Services Offered by Private and Public Sector Banks

Abstract

The banking industry faces unprecedented challenges in today's rapidly evolving market, characterized by new technologies, economic uncertainties, intense competition, and increasingly discerning customers. While banks offer similar services, the quality of these services is crucial in the current competitive landscape. Service quality is positively correlated with customer satisfaction, which in turn plays a vital role in the sustainability and profitability of banks. To thrive in the globalized environment and remain competitive, banks must identify and meet customer needs and expectations while continually improving service quality. This paper aims to assess customer perceptions of banking services using a sample of 500 customers from selected commercial bank branches in Nagaland. The study evaluates overall service quality and customer satisfaction by comparing mean scores across dimensions such as consideration and experience. Results indicate that both genders and all age groups of customers perceive banking services differently. Overall, customers report experiencing service quality lower than their expectations. Hence, it is recommended that commercial banks take proactive steps to enhance all dimensions of service quality and elevate customer satisfaction levels by meeting customer expectations regardless of gender, age, etc