" Impact of Branchless Banking on Customer satisfaction "

The main objective ofthis research is toestablish howBranchless banking hasimpacted on customersatisfaction inPakistan. A rapidevolution in technologyover the past decade

“Impact of Branchless Banking on Customer satisfaction”

Rashid Ali Soomro

DECLARATION

I hereby declare that the project work entitled“Impact of Branchless Banking on Customer Satisfaction”

Submitted to the KASB Institute of technology, is arecord of an original work done by me under the

guidance of Assistant Professor Umer Farooq,and thisproject work is submitted in the partial

fulfillment of the requirements for the award ofthe degree of bachelors of Business Administration. Theresults embodied in this Research report have not beensubmitted to any other University or Institute for the

award of any degree or diploma.

Author:

Rashid Ali Soomro

Checked and Approved by

__________________ ____________Assistant Professor Umer Farooq

Course SupervisorFaculty of Management Sciences (FMS)

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KASBITBBA VIII

Acknowledgements

In the Name of Allah, who is the Most Gracious and theMost Merciful, I give thanks to my creator, the ableand powerful Almighty Allah for his help in seeing methrough my Bachelor program. It would not have been aneasy achievement if not for His love and mercy on me.Firstly and foremost, I am grateful to Allah theAlmighty for everything He has granted me, the MostMerciful who has granted me the ability and willing tostart and complete this study. I do pray to His

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Greatness to inspire and enable me to finish thisdissertation on the required time. Without hispermission, for sure I cannot make it possible. My mostprofound thankfulness goes to my supervisor, Sir Umarfor all his patience, creativity encouraging guidance,and many discussions that made this study to what itis. Without his understanding, consideration andadvice, this dissertation would not have been completedsuccessfully my thanks and gratitude goes to all mydearest family members especially my Brother for beingby my side since I left home. Lastly, I am thankful tomy dignified institute KASBIT for giving me theopportunity to carry out this research in a veryconducive environment

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AbstractThe purpose of this study is to find the Branchlessbanking service dimensions through Internet that willhave the impact on customer satisfaction. Many Banksare working in the Pakistan but I have worked on SilkBank Pakistan. Questionnaires were used to collect datafrom 50 respondents by using convenience sampling. Andregression analysis that helps to obtain the importantof branchless banking service dimensions that have theimpact on customer satisfaction. Results showed thatproviding 24hours-7days services to the customer,completing each task accurately, contacting staff tocheck immediately, and providing accurate information &up to date, transaction process is fast, and providingonline registration times were the important factorsthat have the impact on customer satisfaction.

.

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(i) TABLE OF CONTENTS Approval&Declaration------------------------------------------------------------------------------------------------ (2)Acknowledgements---------------------------------------------------------------------------------------------------- (3)Abstract------------------------------------------------------------------------------------------------------------------ (4)Table ofContents------------------------------------------------------------------------------------------------------- (5)Chapter No. 1 --- Introduction to Research-------------------------------------------------------------------------------------- (6)Introduction&Background-------------------------------------------------------------------------------------------- (6)ResearchProblem------------------------------------------------------------------------------------------------------- (7)Research Objectives--------------------------------------------------------------------------------------------------- (8)Research Question &Key--------------------------------------------------------------------------------------------- (8)Limitations--------------------------------------------------------------------------------------------------------------- (8)Scope ofstudy----------------------------------------------------------------------------------------------------------- (8)Chapter No. 2 --- LiteratureReview---------------------------------------------------------------------------------- (8)Overview of BranchlessBanking------------------------------------------------------------------------------------- (8)

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InternationalBackground---------------------------------------------------------------------------------------------- (9)Customer Satisfaction with BranchlessBanking------------------------------------------------------------------- (9)National Background-------------------------------------------------------------------------------------------------- (9)Reliability--------------------------------------------------------------------------------------------------------------- (10)Fees andCharges------------------------------------------------------------------------------------------------------ (10)Response---------------------------------------------------------------------------------------------------------------- (10)CustomerSupport----------------------------------------------------------------------------------------------------- (11) Privacysecurity-------------------------------------------------------------------------------------------------------- (11)Websitelayout--------------------------------------------------------------------------------------------------------- (12)Chapter No. 3ResearchDesign-------------------------------------------------------------------------------------- (12)HypothesesDevelopment-------------------------------------------------------------------------------------------- (13)Chapter No. 4 --- ResearchMethodology-------------------------------------------------------------------------- (14)Sampling Method and Sample Size--------------------------------------------------------------------------------- (14)Target population-------------------------------------------------------

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----------------------------------------------- (14)Data Collection and analysis----------------------------------------------------------------------------------------- (14)Data Collection Technique------------------------------------------------------------------------------------------- (14)Chapter No. 5 --- ResearchResults--------------------------------------------------------------------------------- (15)Reliability--------------------------------------------------------------------------------------------------------------- (15) Responsiveness-------------------------------------------------------------------------------------------------------- (15) FeesAndCharge------------------------------------------------------------------------------------------------------ (16)PrivacySecurity------------------------------------------------------------------------------------------------------- (16) CustomerSupport----------------------------------------------------------------------------------------------------- (16)Chapter No. 6 ---Conclusion---------------------------------------------------------------------------------------- (17)Conclusion-------------------------------------------------------------------------------------------------------------- (17) Recommendations for FutureResearch---------------------------------------------------------------------------- (17)References-------------------------------------------------------------------------------------------------------------- (18)Questionnaire---------------------------------------------------------------------------------------------------------- (20)

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Chapter No. 1 --- Introduction

IntroductionThe focus of this chapteris to provide a selectivereview of the pastresearch works related tothe Branchless bankingstudy. A lot of researchwill have done but (as asample) very few arerelated with this uniqueone.

In fast moving world ofcompetition the keyadvantage for all theorganization is todelivered a maximum kindof new services to thecustomers and divertingcustomers mind into thesatisfaction to becomethis advantage for theprofit of organization(Ismail, Madi andFrancis,2009; Shemwell,Yavas and Bilgin, 1998).

A new change oftechnology in thiscountry broughtunprecedented changes inthe banking sectors.Information technologyplaying a main role inall activities ofbranchless banking withthe help of advance modeof technology eachindividual can do alltheir banking activitiesthrough the internet(Young, 2001) Branchlessbanking is the selfservice delivery ofchannels that allowsbanking sector to providefinancial services totheir customers in a easyway that a customer caneasily understand theBranchless banking.Basically this world ismoving with theadvantages of advance

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technology which isspecifically related tothe internet. And theInternet is a powerfultool that can makebusinesses moreproductive and profitableand has lead tofundamental changes inhow banking sector savetheir customers. Now aday’s many bankingsectors are the customerfocused with lesscustomer contact use ofbranchless bankingthrough internet banking.The financialinstitutions are one ofthe most importantservice providers for anation’s economy. Use ofInternet banking isexpected to lead toreduced costs andimproved institutionsculture andcompetitiveness. Throughinternet the service

delivery channel is seenas powerful because itcan retain younggeneration, businessman,who knows aboutBranchless banking, andwho continue usingbanking services from alllocations throughinternet and advancetechnology. Moreover,Internet banking providesopportunities for a bankto develop its market bycreating a new customerbase from existingInternet users who canaccess branchlessactivities from any where

The main objective ofthis research is toestablish how Branchlessbanking has impacted oncustomer satisfaction inPakistan. A rapidevolution in technologyover the past decade hasbrought unprecedentedchanges in the Pakistan

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banking industry (ReserveBank of Pakistan, 2010).According to SBP’spolicy environment forbranchless banking theseservices are beingoffered throughalternative deliverychannels in the form ofagent network,TelecommunicationNetworks, alternateteller machines (ATMs),and point of sale (PoS),etc through onlinebanking all type oftransaction can be donein a easy way with a helpof advance mood oftechnology this is a keybenefit for those whoused the branchlessbanking it save thecustomers to go to a bankphysically and completethe transaction and standin the lines throughbranchless banking peopleaccess banking and

complete theirtransaction.

1.1Background of theStudy

Branchless banking isVirtual banking (Carmeland Scott, 2009).According to Carmel andScott (2009), branchlessbanking is the deliveryof financial servicesoutside conventional bankbranches usinginformation andcommunicationtechnologies. InPakistan, banking startedwith free banking asearly as 2002. Throughoutthe 1980s the financialsector was tightlycontrolled and highlyoligopolistic, withmultinational banks(Barclays and StandardChartered Bank)dominating the sectorglobally. Presently, the

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financial sectorcomprises the ReserveBank of Pakistan.Commercial banks,merchant banks, buildingsocieties, the People'sOwn Savings Bank (POSB),insurance companies,asset managementcompanies, developmentalfinancial institutions,the Karachi stockexchange, microfinanceinstitutions and moneytransfer agencies. Mostinstitutions have themajority of theirbranches in major cities,Branchless Bankingindustry has operated ina relatively stableenvironment from someperiods. However, withthe advent of Internetbanking, the industry ischaracterized bydramatically aggressivecompetition. The shiftfrom traditional branch

banking to Internetbanking has meant thatnew strategies to attractnew customers and retainexisting ones have becomecritical called asBranchless Banking (Wong,2005). Branchless Bankingallows customers toaccess banking services24 hours a day, 7 days aweek. Like ATMs, Point ofsale POS devices, EFTPOSdevices and mobile phonesBranchless or internetbanking empowerscustomers to choose whenand where they conducttheir bankingtransactions. The longqueues and huge crowdsare highly devastatingand discouraging mosttimes, especially whenthe weekend is near. Mosttimes, these long queuesare as a result of thebreakdown of thecomputers used by the

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Bank tellers, sometimesit occurs as a result ofthe Bank tellersabsolving them from dutyand passing the bulk tosomeone else.

1.2 Problem statement

Branchless banking is afastest andeconomically feasible route to distributefinancialservices withoutdepending on bankbranches. It is a typeof banking wherethe banking customer doesnot need to visita branch or central siteof the bank. . Due toeconomic ups and downsthe banking sector ofPakistan faces UNstability although it isbackbone of our economy.To flourish this newsystem were lunched asfar as technology is

concern. Time is veryimportant element in thelife of business men. Thenew concept of branchlessbanking helps them tosave their time. For thiswe have to examine impactof branchless banking oncustomer satisfaction

1.3 Research Objective

Customer satisfaction isultimate objective of anybusiness. In this study I amgoing to examine the methodsof delivering branchlessbanking services to customereffectively which ultimatelyleads to customersatisfaction and retention

1.3.1 Research Question

What are the majorfactors affectingcustomers’ satisfactionwith Branchless Bankingor internet banking

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1.3.2 Key ResearchQuestion

What are the proceduresof developing anefficient branchlessbanking system (identifyweakness)?

What will be the futureof branchless banking inPakistan (technologicaldevelopments)?

How is the branchlessbanking organize all overthe Pakistan (rural andurban both areas)?

1.4 Limitations

Customer knowledge, truston technology, properreply from banks andcustomers, technologicalknowhow these all are thelimitations other thanthat time, finance, citylaw and order situationsalso impact on theworking. This study isnot covering all the

cities of Pakistan. I canonly work in Karachi andstudy the impact oncustomer satisfaction.The reason is that thiscity is business hub.

1.5 Scope of study

This study focuses on thecustomer satisfaction dueto branchless banking.The study provides properevidence to those concernpeople who can getbenefit. This study alsoprovide them the way thatcustomer can save nottheir time but also saveopportunity cost. Alsofor banking sector itleads to growth andprofitability.

Chapter No 2--- Literature Review:

Overview of Branchless Banking:

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Branchless banking is atype of banking thattakes place where thebanking customer does notneed to visit a branch orcentral location of thebank physically.Financial institutionbusiness may be completedthrough technologicalservices, such as onlineBanking transactions,over the Mobile phone, orthrough an ATM (AutomatedTeller Machine) Now aday’s Branchless bankingis very common activity,and many people are ableto complete all theirbanking online withoutever having to visit thebank. There are manybenefits to branchlessbanking to the customers.There is no need for thehuman to take time out ofthe day to physicallyvisit the bank in orderto withdraw or deposit

money these activitiescustomer can do throughbranchless banking easily

Examples of branchlessbanking technologies arethe Technology, Internet,automated teller machines(ATMs), Point of sale POSdevices, and mobilephones etc. Each of thesetechnologies serves todeliver a set ofbranchless bankingservices to the customers

International Backgroundof the BranchlessBanking:

The concept of branchlessbanking first introducedby United Kingdom afterthat a Midland bank hasstarted this concept inwith more futures. Atthat time Midland Bankwas one of the Big Fourbanking groups in theUnited Kingdom for mostof the 20th century. It

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is now part of HSBC. HSBCis a Britishmultinational banking andfinancial servicescompany and theheadquartered in LondonUnited Kingdom. It is theworld's second largestbank providing financialservices to thecustomers. It was foundedin London in 1991 by theHongkong and ShanghaiBanking Corporation toact as a new groupholding company

National Background ofthe Branchless Banking:

Pakistan has beendeclared as a groundinnovation in branchlessbanking and has beensuccessful in developinga variety of businessmodels involving a widerange of players manybanks has played a rolein activities of

branchless banking,including mobile networkoperators (MNOs),technology companies andeven courier businessesetc. According to historyBranchless bankingconcept was firstintroduced in Pakistan inApril 2008 under theregulation of State Bankof Pakistan Governmenthas provided clearguidance to the financialinstitutions. (Weijterset al., 2005, p. 9)

Customer Satisfactionwith Branchless Banking:

In this world all knowsthat customers placegreat importance on thevalue and Convenienceoffered by financialinstitutions (Lewis andSoureli, 2006) and thatcustomer satisfaction(which is affecting onthe service qualityperceptions) ManyResearch create confusion

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and gaps in understandingthe nature of onlineservice quality process,and how it operateswithin the financialinstitution it dependsupon customer lack ofspecific knowledge as tohow the quality ofBranchless Banking websites impacts oncustomers mentality itall depends upon customersatisfaction with theirbank (Carmel and Scott,2009).Automated transaction ofservices has thepotential to makecustomers enthusiasticabout their financialinstitution. and to tellother potential customersabout its advantages.After that, automatedservice users would bemore likely to commentpositively about theirbank to other potentialcustomers, recommendingthe bank encouraging andmotivating others to dobusiness with it (Joseph

and Stone, 2003) Vol. 1 |No. 2 | August 2012

Reliability

Reliability involvesconsistency ofperformance anddependability of silkbank branchless bankingactivities. It means thatthe silk bank performsthe service right thefirst time to theircustomers. It also meansthat the silk bank honorsits promises with inPakistan. Specificallysilk bank involvesaccuracy in billing inall departments, keepingrecords correctly andperforming the service atproper time. (ISSN 2319–6912 (March 2013, issue 2volume 3) Reliabilityalso “refers to thecorrect technicalfunctioning of a silkbank technology and the

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accuracy of servicedelivery to theircustomer at a time withproper management”customers should bespecifically influencedby the reliability ofadvance technologybecause they might beassociated with riskssuch as the technologymalfunctioning(Shamdasani 2008)

Fees and Charges:

Fees and charges of everyonline transactionimpacts on Servicequality in branchlessbanking financialinstitution are importantwhen human internetinteraction is the mainservice delivery andcommunication strategywith their potentialcustomers. Afterintroducing branchlessbanking Silk bank

offering high qualityservices to satisfypotential consumers butit needs, that at lowercosts, because it iscompetitive advantage ofsilk bank. Online bankinghas successfully reducedoperating administrativecosts and other costs Inthis world every personwant to save money when asilk bank provides alower cost services ascompared to otherfinancial institution inPakistan result customersprefer a lower cost bankeasily it shows that Costsavings have helpedonline based banksoffering lower or noservice fees it’s aadvantage for thefinancial institution fordiverting customersexpectation to the onlinebanks, it means it ishypothesized that fees

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and charges have positiveimpact on customersatisfaction

Response

Response means Customersare particularlyinterested in the speedwith which a service isoffered or delivered totheir potential customers(The Wall Street Journal,1990). Most researcheshave indicated that fewcustomers overrate theprocessing time of aservices especially inPakistan According toemployees of silk bank oncertain occasioncustomers has a strongliking to carry out theservice by them. Thisactivity is particularlyjustified by thewillingness of thecustomers to up the speedof delivery it ismandatory for the silk

bank to upgrade systemand manage delivery timeand follow advance moodof technology. Becauseslow service delivery hasa negative effect on fewcustomers if customersare expecting a fastservice delivery it isclear that customersusing the service morepositively. That time wasan important factor foreach individual in usinga new service or advancetechnology in banks. Inthis fast moving worldtime savings wereessential for eachindividual who use onlinebanking and onlineshopping (Hornik, 1984)

Customer Support Customer supportincluding before sellsupport or before doingany transaction and aftersell supports or afterdoing any transaction.Before doing any activity

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customer make decisions,at that time thefinancial institutionshould give some supportto attract potentialcustomer, because thecustomers want to fulfillthe communication gap forexample let customersfeel that they are at ownplace. The relationshipbetween customers is likea good friend not like abusiness person. Aftercustomers buy theservices or products frombank, Bank should solvethe problem thatcustomers have in theirmind and few questionsaccording to the problemsbank needs to communicatewith customer and providebetter solution andeasily attract customerthrough communicationstyle, in the branchlessbanking support is alsoimportant for everyone.Because Not everyone goodat the computer and noteveryone now aboutbranchless banking usageso they need guide how to

use branchless banking.And maybe someone good atcomputer but still haveproblems and then theyalso need support it’s aopportunity for the bankto communicate withcustomer and easilyattract them after buyingsome services through theinternet customers mighthave questions in theirmind and waiting toanswer so he or she alsoneeds support fromfinancial institution. Sosupport is very importantfor satisfying thecustomers

Privacy securityThis is the guaranteefrom the state bank ofPakistan that the recordshowing bankingactivities and securityof account information isnot shared to everyone(Yang and Fang 2004; Sahaand Zhao, 2005). Securityand privacy is importantin the decision ofconsumers to use onlineor Internet banking. When

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the security is improvedin financial institutionsthen more customers wouldbe willing to conducttheir transactions overthe Internet (branchlessbanking). When thesecurity is not properlyprovided to the customersit shown to slow growthof Internet banking inthe country mostindividuals had unclearknowledge andunderstanding of onlinebanking after usingonline banking he knowsabout the risk and theyavail online baking. Sometime individuals areaware that their bankwill protect theirprivacy and security andalso have strongconfidence in their bankbut have a weakconfidence in technologyuse for online bankingservices. Security andprivacy issues are themajor factor preventingcustomers from using theInternet for financialtransactions finally one

of the most importantfuture challenges facingeach customers of a silkbank is the fear ofhigher risks from eachonline transactionassociated with using theWeb branchless bankingand financial transactionover the bank.

Website layoutIt is necessary for thefinancial institution todesign a web sitevisually more attractiveand enjoyable. Discussedwebsite must content itsfour aspects about us,Vision/Mission,information organization,and structure of allactivities. Silk bank istesting accessibility oftheir customer websiteswith automated toolsadvance technology anduser accessibility trialsto their website. It isclearly hypothesized thatwebsite layout has apositive effect on

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Customer Satisfaction

quality of banks tocustomer satisfaction.Content on the web siteof the bank is one of thefactors influencing onbranchless bankingacceptance. On the otherhand, quality of portal,designs, graphics,Writing or colors thesethings identify the goodimage of the bank andenhance efficient use ofpotential customers.Discuss that such websitefeatures as websitespeed, Browsing, web sitecontent and design,navigation, interactivityprivacy and security allinfluence on customerssatisfaction the leveland nature of customerparticipation had themore impact on thequality of the serviceexperience provided bysilk bank to theircustomers and issues suchas customers' zone oftolerance, and the degreeof understanding thecustomer’s needs andemotional response to

their customers, theseimpact on service qualityand customer satisfactionin this variable it isIdentified five qualitydimensions that have animpact on “customers”satisfaction in an usingbranchless banking:content of website,accuracy, format, ease ofuse, timeliness. It ishypothesized that websitelayout has positiveeffect on customersatisfaction

Chapter No. 3 --- Research design

The research design was acombination ofquantitative andqualitative researchdesign so as to obtaindetailed information thathelped me to establishthe relationship betweenBranchless banking andcustomer satisfaction.

Page 22 of 35Reliability

Hypothesis Development:

Reliability

H1

Reliability hasrelationship with servicequality in BranchlessBanking & impact onCustomer Satisfaction.

Ho

Reliability has norelationship with servicequality in BranchlessBanking & impact onCustomer Satisfaction.

Fees and charges

H1

Fees and charges haverelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

Ho

Fees and charges have norelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

Response

H1

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Fees andcharges

Response

CustomerSupport

Privacy Security

Website Layout

Service Quality

Response has relationshipwith service quality inbranchless banking &impact on customersatisfaction.

Ho

Response has norelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

H1

Customer Support hasrelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

Ho

Customer Support has Norelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

Privacy/Security

H1

Privacy/Security hasrelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

Ho

Privacy/Security has Norelationship with servicequality in branchlessbanking & impact oncustomer satisfaction

Website layout

H1

Website layout hasrelationship with servicequality in branchlessbanking & impact oncustomer satisfaction.

Ho

Website layout has Norelationship with servicequality in branchlessbanking & impact oncustomer satisfaction

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Chapter No 4---Research Methodology:

OverviewResearch Methodologychapter presents themethodological concernsused in conducting thisresearch and provides ajustification for stepstaken. It covers thegeneral researchperspectives, datacollection summary,statistical measurementmethods, accessstrategies andcredibility of theresearch in this article

Sampling Method and Sample Size:

The study is about impactof branchless bankingservice quality on

customer satisfaction ofbanks online servicesprovided to thecustomers, in this study50 respondents of onlyBank AL Habib ltd havebeen selected by usingconvenience samplingmethod. BasicallyConvenience sampling is anon-probability samplingtechnique whererespondents are selectedbecause of theirconvenient accessibilityand proximity to theresearcher.

Target population

The study is depending upon Bank Al Habib LTD Headoffice. The targetpopulation for the studyis to be 50 AccountHolders of the Bank ALHabib LTD, from them 12employees of Bank ALHabib.

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Data Collection and analysis

This survey is conductedon Bank AL Habib LTD inPakistan city to collectprimary data by usingstructured questionnaire;Qualitative approach withconvenience samplingprocess has been used tocollect data for thisresearch. And this studycalled as Case study. Allquestions are closed-ended because allpossible answers weregiven to the respondents.In the Likert scale(where 1= stronglydisagree to 5 = stronglyagree) has been used forthe main researchquestions. After datacollection, by using PHstate (17.0 versions),analyzing interpretationhave been conducted totest the strength ofassociations between thestudy and variables

Data Collection Technique

Data collection techniqueI have used structuredtype of questionnaire.Questionnaire is easy andunderstandable foreveryone. None oftechnical terms used inquestionnaire, basicallythe Questionnaire isbased on some specificquestions related to thedependent variable andindependent variableswhich can easilyidentified a result.

Chapter No. 5 ---Research Results

HP1 ReliabilityData

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Null Hypothesis = 3Level of Significance 0.05Population Standard Deviation 1.019Sample Size 50Sample Mean 3.95

Intermediate CalculationsStandard Error of the Mean

0.144108362

Z Test Statistic6.5922614

54

Two-Tailed Test

Lower Critical Value

-1.9599639

85

Upper Critical Value1.9599639

85

p-Value4.33178E-

11Reject the null

hypothesis

Interpretation:

In this analysis we haveput 5 options Likertscale. We have value of=3 which is mid-value ofthe scale. Because systemonly find out the middlevalue.

We put 0.05 as the levelof significance due tomanagement sciencesstudies. Following are

the interpretation of thehypothesis.

We use 50 questionnairesof data sample size is 50

Interpretation hp 1:

The p- value4.33178E-11 is lessthan 0.05. It meansthat null hypothesisis rejected.

The value of standarddeviation comes out tobe 1.019 which candeviate from its actualvalue of mean 3.95

Sample mean is 3.95which is nearest to 4.It means that morerespondents are agreedwith this statementthat’s why nullhypothesis isrejecting. Reliabilityimpacts on CustomerSatisfaction.

HP2 Responsiveness

DataNull Hypothesis 3

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=Level of Significance 0.05Population Standard Deviation 1.062401Sample Size 50Sample Mean 3.78


0.15024619


88

Two-Tailed Test


-1.9599639

85


85

p-Value2.0863E-

07Reject the null

hypothesis


The p- value 2.0863E-07 is less than 0.05.It means that nullhypothesis isrejected.

The value of standarddeviation comes outto be 1.062401 whichcan deviate from itsactual value of mean3.78.

Sample mean is 3.78which is nearest to

4. It means that morerespondents areagreed with thisstatement that’s whynull hypothesis isrejecting.Responsiveness isimpact on CustomerSatisfaction.

HP3 Fees and Charge

DataNull Hypothesis = 3Level of Significance 0.05Population Standard Deviation 1.0953Sample Size 50Sample Mean 3.715


0.154898811


31

Two-Tailed Test


-1.9599639

85


85

p-Value3.91364E-

06Reject the null

hypothesis

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The p- value3.91364E-06 is lessthan 0.05. It meansthat null hypothesisis rejected.

The value of standarddeviation comes outto be 1.0953 whichcan deviate from itsactual value of mean3.715

Sample mean is 3.715which is nearest to4. It means that morerespondents areagreed with thisstatement that’s whynull hypothesis isrejecting. Fees andCharge is impact onCustomer Satisfaction

HP4 Customer Support



0.152367369


17

Two-Tailed Test


-1.9599639

85


85

p-Value0.0002375

44Reject the null

hypothesis


The p- value 0.000237544 is less than 0.05. It means that null hypothesis is rejected

The value of standarddeviation comes out to be 1.0774 which can deviate from its actual value of mean 3.56.

Sample mean is 3.56which is nearest to4. It means that morerespondents areagreed with this

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statement that’s whynull hypothesis isrejecting. Customersupport is impact onCustomer Satisfaction

HP5 Privacy Security



0.170684405


9

Two-Tailed Test


-1.9599639

85


85

p-Value0.0020990

19Reject the null

hypothesis


The p- value 0.002099019 is less

than 0.05. It means that null hypothesis is rejected

The value of standarddeviation comes out to be 0.170684405 which can deviate from its actual valueof mean 3.525

Sample mean is 3.525which is nearest to4. It means that morerespondents areagreed with thisstatement that’s whynull hypothesis isrejecting. PrivacySecurity is impact onCustomer Satisfaction

Chapter No. 6 --- Conclusion

Conclusions

Customer satisfaction isa critical businessrequirement in thebanking sector. Givingvalue to the customer isan asset to the

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organization. Whilecustomer satisfaction isessential in today’scompetitive market. Theobjective of this studyis to find out customersatisfaction on servicequality variables fromthe findings, theresearch objectives wereachieved by identifyingthe determinants ofservice quality asreliability, fees andcharge, responsivenesscustomer support privacysecurity website layout.By analyzing the impactof service quality onCustomer satisfaction ofprivate sector banks inPakistan, it is observedthat out of sixVariables, Fees andcharge is having a highMean score and the bankshould concentrate onResponsiveness as it hasthe least mean score. TheResearch also establishedthat the combination ofreliability, fees andcharge, responsivenesscustomer support privacy

security website layouttogether have significanteffect on customersatisfaction. Therefore,service quality haspositive effect oncustomer satisfaction.The study accomplishedthat quality service isan important factor tosatisfied customersatisfaction. In theworld of global economy,According to the allresult, hence thisResearch can be concludedthat the responses ofrespondents on Branchlessbanking variables ispositive majority respondare agree and stronglyagree to the effects ofbranchless bankingmethods in Bank al Habibwe can find out that theservices of Bank isservice is quick, easy touse, easy to transfermoney from one account toanother. The insufficientnumber of ATM booths andthe customerrepresentatives for on-line services fairly

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respond to clientsqueries on a timely.

6.2 Recommendations for future Research

In this section, a listof recommendations hasbeen presented based onthe findings of thesurvey conducted oncustomer’s satisfactionof private sector bank ofPakistan. In relation tothe findings, theResearch. came up withfollowingrecommendations:

Since Bank Al Habibis a service orientedFinancial Institutionhence providingcontinuous trainingto the employees onissues like courtesy,Behavior andcommunication skillswhile dealing withcustomers is moreimportance.

And also Bank AlHabib is a customer

oriented organizationhiring potentialhuman resource is amust. And for thisreason, the bankshould hire self-motivated,enthusiasticemployees who willlike to deal withcustomer and will tryto solve customercomplaints and otherissues in aneffective manner.Only then the bankcan render superiorcustomer services andenjoy the benefit inthe long run.

In order to retainthe existingcustomers and toimprove servicequality, the Bank AlHabib shouldcontinuously maintainerror-freetransactions, since

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bank accounts andfigures are verysensitive for eachand every customer.

The Bank Al Habibmanagement needs toimprove qualityservices so as tosatisfy customer’sneeds. The bankneeds to pay muchattention on thecustomer complaintsin order satisfy thecustomer’sexpectation.Individual attentionshould be given tocustomers in order tobetter understandtheir needs andbetter satisfy themfor solving all theissues of Banks.

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