Abstract
Purpose: This study aims to know the service quality of the different private commercial banks operating in Bangladesh with the rapid advancement in information technology and provide some guidelines to improve their service qualities. Methodology: The study used both primary and secondary data to support the objective. Primary data were collected from 240 customers, of whom 120 customers are from traditional private commercial banks and the rest from private Islamic commercial banks operating in Bangladesh using a structured interview schedule, naming SERVQUAL. The study used a convenience sampling method to select respondents. Secondary data were collected from different journals, newspaper articles, books, and various published sources. An independent samples t-test was conducted in the test of the hypothesis. Findings: This study found a significant difference between the traditional and Islamic commercial banks’ service quality and added that the study area’s customers/clients are not fully satisfied with either traditional private commercial banks or Islamic banks. However, Islamic commercial banks are showing a relatively better picture. Research Limitations: The Study is limited to Bangladesh’s small marginal market and a small sample size of only 240 respondents, which cannot sufficiently reflect the large population’s actual scenario. Practical Implications: The Study will help manage the traditional and Islamic commercial banks and policymakers to improve their service quality and improve monitoring efficiency. Originality/value: The Study extensively identified some factors to improve the traditional and Islamic commercial banks’ service quality for both the banks’ and policymakers’ management. In this regard, the critical factors can be the number of employees and the number of counters, increasing ATM services, ensuring faster services, flexible loan disbursement policy, sufficient floor space, suitable sitting arrangements, and improved online services.
Highlights
To ensure the mobilization of available funds and make the funds accessible and guide them to be allocated inefficient economic activities, any market economy requires a banking system
The banking system plays a vital role in channeling funds from those who have a surplus after consumption to those who have more productive uses
Many renowned traditional banks are opening Islamic banking wings to provide interest-free services widely to respond to the increased demand for Islamic banking services (Hasan & Ahmed, 2001)
Summary
To ensure the mobilization of available funds and make the funds accessible and guide them to be allocated inefficient economic activities, any market economy requires a banking system. It may seem that Islamic banks' functioning is like other traditional banks as they receive deposits from their customers and lend money from the deposits collected like traditional banks, but are different in their procedures and methods of collecting deposits and sanctioning loans. They follow the Islamic Shari’ah and avoid any form of interest strictly prohibited in Shari’ah (Othman and Owen, 2001). Marketers conduct extensive research to get ideas about customers' perception of their service quality. The tangible dimension creates the first-hand impression that the customers get and may relate to the bank
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