The Effects of Banking Service Quality on Customer Satisfaction

Abstract

Abstract This thesis assessing how banking service quality dimensions, reliability, competence, and responsiveness influence customer satisfaction at NMB Kaliua Branch. The study is guided by Expectancy Disconfirmation Theory (EDT) and Service Quality Theory. The study employed descriptive research design and total sample size of 400 respondents were participated in the survey. The regression analysis revealed that service efficiency, including reliability (Beta = 0.379), competence (Beta = 0.410), and responsiveness (Beta = 0.278), significantly impacts customer satisfaction. While most customers expressed trust in the security of their information, there were notable concerns regarding communication, transparency, and the availability of banking channels, particularly in rural areas. The study also found that while customers were generally satisfied with the cleanliness and comfort of the bank’s environment, there were mixed opinions on staff empathy, service flexibility, and digital platform usability. The study concludes that service efficiency, customer assurance, and the service environment significantly influence customer satisfaction at NMB Kaliua Branch, with reliability and staff competence emerging as key determinants. However, challenges such as limited access to banking services in rural areas, insufficient staff empathy, and inadequate transparency highlight areas requiring targeted interventions to enhance overall customer experience. Based on these results, it is recommended that NMB Kaliua Branch prioritize training programs aimed at improving staff competence and responsiveness, as these factors have the strongest influence on customer satisfaction. Key words: Banking Service Quality, Customer Satisfaction.