A Study on Customer Satisfaction in Indian Retail Banking

The banking industry like many other financial services industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition, and more demanding customers; and the changing climate has presented an unprecedented set of challenges. In the current circumstances a question arises whether the customers are satisfied or not and what are the elements of retail banking which lead to the satisfaction or dissatisfaction of customers. The knowledge of current levels of satisfaction and, in particular, the primary factors of satisfaction are beneficial to those in the industry, thereby allowing them to focus and further strengthen the key areas that lead to highly satisfied customers. This research postulates on the present levels of satisfaction, and also tries to explore the factors that lead to customer satisfaction in retail banking in India. Data from 100 survey respondents were collected from one branch of one of the prominent retail banks in the city of Hyderabad. The findings revealed that customer satisfaction, a transaction-specific attribute is dependent on seven factors, which concur with extensive academic literature.