The process of banking-sector has been enhancing into globalization over the years. Banking sector is one of a subset of the financial sector and it plays an important role in the growth process of an economy (Aluko & Ajayi, 2018). Hence, banks with higher monopoly power will have a greater effort to establish lending relationships with their clients’ firms, and to facilitate their access to credit lines. Bank concentration promotes the growth of industries which are highly dependent on external finance (Diallo ; Zhang, 2017). There are various changes emerging nowadays, concept of universal banking and virtual banking has emerged, and these changes have changed the way banking were competing in the market (Shukla, 2014).
Product and service features are no longer an effective means for bank sectors and their competitors; the most important differentiator nowadays is the service quality (Makanyeza ; Chikazhe, 2017). Service quality which means excellence of service performance and enable to achieve the competitiveness within service industry. Service quality is important for all the banks because good service quality can be considered as a way to retain existing customers and acquire new customers. Also, having good service quality can enhance the reputation and generate positive recommendation of bank so bank can improve their profitability (Lau, Cheung, Lam, ; Chu, 2013). One of the factors that will affect customer satisfaction will be service quality.
Customer satisfaction can be defined as the fulfilment of needs of consumer. Customer satisfaction can be generated after consumers have experienced the products or services. Customer will have high satisfaction if the quality of product or service exceed the expectation of their point of view. On the other hand, customer will have low satisfaction if the product or service fall below their expectation (Jamal ; Naser, 2002). Handling and observing customer satisfaction is very important for marketers because customers who are highly satisfied will repeat purchase and also introduce to others.
A successful company will aim for high customer satisfaction and try to keep their current customers rather than spending additional resources in order to attract new customers. Hence, the producers and marketers nowadays keep tried to keep their customer satisfied so they might become band loyal and this is the way where companies can get maximum share in the market (Sabir, Ghafoor, Akhtar, Hafeez, ; Rehman, 2014). Customer is competitively lesser intention to over impress on the products’ features when all banks are offering the same or similar financial products. Therefore, customer trust toward the banking products and services is very crucial in banking industry.