Quality Services In The Banking Industry Essay Sample
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- Category: banking
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Quality Services In The Banking Industry Essay Sample
The quality service in the banking industry can be defined as the overall impression that the banks have on the customer in terms of excellent or low standards quality. The qualities of the services in the banking industry greatly determine the growth of the banks and also their position in the existing markets.
The quality services in the banking industry
It is very important that the banking industry provide quality services to its customers so as to achieve a competitive excellence. A bank that provides good quality services to its customers is also capable of improving its productivity and also its performance. Similarly there are very many competitive demands and also operational realities that face the banking industry participants as they pursue quality services in the competitive excellence.
The banking industry should offer quality services to its customers since this will further increase their profitability in various dimensions. Most of the key players in the banking industry are seeking the dynamic ways through which they can add a lot of value to the services which they offer their target and also existing consumers. The quality service of the banking industry is highly determined by the banks organizational structure, marketing and operations as well as the human resource management departments. (Joseph, McClure and Joseph 1999)
The banking markets are however becoming more concentrated and regardless of the market size there still needs to be maintenance of the existing excellent banking services. The banks in the industry should maintain a competitive investments quality and this will make the banks increases their market size and make them, dominant in the banking industry. In the banking industry the service quality is a major factor in the satisfaction of the customers who visit the banks or even uses the banks services and products.
The banks should however be committed in the establishment of quality services despite the rapid growth in the banking industry. The first initiative that a bank should take in the provision of quality services to the consumers is the improvement of the personal counter services. When the personal services at the personal counter are excellent then the many customers will be attracted to the bank and this will lead to the expansion and the growth of the bank.
The banking industry has undergone very many changes especially in the aspects of the competition and higher customer expectations. The banks provide new quality services and also introduces low interest strategies in conducting their promotional campaigns but the however must ensure that the quality of the services which are offered in their various banks are of excellent qualities.
The banks should also have long-term as well as short term strategies that will enable them to improve the quality of the services that they offer to the customers. Most of the customers in the banking sector will remain loyal to a particular bank if the bank offers services of greater value in comparison to their competitors. The banks would extensively grow if at all they position themselves better than their competitors by offering quality services to the customers. (Joseph, McClure and Joseph 1999)
All the banks in the banking industry should put their main focus on providing services that are of high standards and this should be their competitive strategy. Irrespective of the distinct features of the customers in the banking sector the banks should maintain a personal touch in their services so that they can further be able to meet the customers’ needs in the best way possible.
The banks in should all together improve the quality of their services as they compete with other financial institutions which offer the same services as they do. In order for the banks to provide quality services to their consumers they have to make major adjustments in the development of the modern technology. The banks should establish the most recent and efficient technology even though this will require a very large investment.
When banks provide quality services to its customers then it lifts the confidence of the public and this enhances the growth and expansion of the banking industry. In providing quality services the banks should improve on their personal contact and interaction with the customers. (Joseph, McClure and Joseph 1999)
This is very important since most of the customers make comparisons and also forms judgments on the quality of services which hey receive from the different banks. They then opt for the banks that have better quality services and ignore those that have very poor or low quality banking services.
The quality of the banking services appears in five dimensions and they include;
- The tangibles- this includes the appearance of the physical banking facilities, the written materials, the banking equipments and also the appearance of the personnel.
- The reliability- this is inclusive of the ability of the banks to perform its promised services accurately and also dependably to its potential and existing customers.
- The responsiveness- this encompasses the ability of the banks in the banking industry to be willing to help the customers dutifully as they satisfy their needs. It also involves the banks providing very prompt services to their consumers.
- The assurance factor- this involves the ability of the bank to know its products very well courtesy of their employees and the banks should also have the ability to inspire confidence and trust in the customers
- Empathy- this entails the banks ability to care and give individual attention to its customers.
In the provision of quality services in the banking industry reliability is the most effective factor since the other factors will only matter to the customers if they receive reliable services from the banks. The survival of many banks in the banking industry demands that the banks pursue and concentrate on the achievement of greater quality service standards for the customers (Joseph, McClure and Joseph 1999)
The dissatisfaction of the customers in the banking industry leads to the decrease of the profits to the banks since the customers will opt for alternative financial institutions which offer the same services offered at the banks. If the banks establish electronic services that match the improvement of the banks survives then this will be a very important strategy in the improvement of the banks quality of the services.
The level of the quality of the banks services is greatly affected by the increase of the market size since the most dominant banks are known for their provision of their high quality services. The higher the quality of the banking services the higher the consumers turn out and the higher the growth of the banks and the vice versa is also true.
Joseph, M., McClure, C. and Joseph, B. (1999): Service quality in the banking sector, the impact of technology on service delivery. International Journal of Bank Marketing, Vol. 17 No. 4,