Global Journal of Commerce & Management Perspective
Open Access

The Assessment on Customer Service Quality of Banks in accounting

Feldhaus Isabelle^{* *}Correspondence: Feldhaus Isabelle, Department of Economics and Statistics, Sorbonne University, Paris, France, Email:

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Description

A vital part of a country's economic development is performed by the bank. The banking sector in India is dealing with issues like poor service quality, dissatisfied customers, low client retention, and low consumer loyalty. In the banking industry, providing high-quality service is crucial in generating customer happiness and brand loyalty. Numerous companies are being forced to reevaluate their customer service strategies due to increased competition, more educated clients, and rising living standards. Due to the higher expense of obtaining new consumers than the lower cost of maintaining existing ones, many businesses are focusing more of their efforts on keeping their current clientele. Hence, the likelihood that customers will be satisfied rises as service quality improves. After gaining its independence, India's government had a number of priorities, the development of the nation's economy being one among them. In this regard, the Industrial Policy Resolution of 1948 placed a strong emphasis on the mixed economy, which was essential in the growth of a variety of industries, including banking and finance. In this direction, the 1948 nationalization of banks was a significant step. The Reserve Bank of India (RBI) has the authority to oversee, govern, and inspect Indian banks which was implemented by Banking Regulation Act. In order to have stronger control over this industry, the Indian government nationalized banks in 1969 and again in 1980. Around 91% of Indian banking activity is under the government's supervision.

The banking sector is dealing with quick changes in the market, including New Technology, unstable economic conditions, severe rivalry, and more difficult to both maintain and attract new consumers. Yet, the banks' innovative initiatives, such as improved customer service and adequate fulfilment of client expectations, determine their success rate. Customer happiness is therefore a very complicated topic, and there is much discussion and misunderstanding over what is necessary and how to go about achieving it. A phrase used in business administration to indicate success in service is "service quality." Both the objective and subjective facets of service are included. Use of well predefined criteria is necessary for the reliable measurement of an objective aspect of customer service. The congruence of the expected benefit with the experienced result determines how subjective components of customer service are measured.

The ability of the service provider to deliver the customer's imagined service and the customer's idea of the service they might receive are both factors in this. The concept of "quality" calls for consideration of both products and services. It is described by experts as being "fit for use," "conforming to specifications," "free from variance," etc. Quality is essential for marketing and selling products. Quality is actually thought to have the greatest impact on a customer's decision to purchase. The durability and amount of flaws, as well as the product's use, packing, handling, and other factors, can all be used to assess a product's quality in tangible items. The measurement of intangible quality is different. Services are exceedingly challenging to quantify because they are intangible. Services include economic activities including education, amusement, food and lodging, transportation, insurance, trade, government, finance, real estate, medical, repair and maintenance, etc. that often result in an intangible output. Several service and retail organizations are searching for viable ways to differentiate them as a result of increased competition and deregulation. The provision of great service quality has been linked to success in these businesses as one strategy. As a result, due to rising revenues, increased cross-sell ratios, higher customer retention, purchasing patterns, and extended market share during the past 10 years, service quality has become an important research topic.