Introduction

Banks play a significant and active part in a country's financial and economic development. An
efficient banking system has a significant impact on a country's economic progress in numerous
industries. In today's global marketplace, banking professionals face a variety of complicated
issues. In order to compete more successfully with global corporations, banks must better
comprehend changing customer needs and should adopt advanced information technology
systems. Hong Kong has experienced remarkable economic expansion in the Asia Pacific region
and is one of the world's most important international financial centers. Indeed, the banking
system's success promotes currency stability, which is the primary objective of Hong Kong's
monetary policy. Hong Kong is one of the world's top 10 largest banking centers.

The Hong Kong and Shanghai Banking Corporation Limited (HSBC), which has been
headquartered in London since 1993, received a license from Bangladesh Bank to conduct
banking business in the country on April 17, 1996, and began formal banking operations on
December 3, 1996, when it opened a branch in Dhaka. In Asia, HSBC has a massive operating
infrastructure and offers banking and financial services all over the world. In 2010, HSBC was
the world's second-largest banking and financial services group, as well as the world's second-
largest public firm. Personal banking, cash management, remittances, corporate banking, trade
services, treasury, securities services and custody services are all services provided by HSBC in
Bangladesh to the customers. Thus, in HSBC customer satisfaction is considered an important
strategic objective to allow the bank to continue to be successful in the long term.

Because of the fierce competition, sophisticated character of customers, flexible and

unpredictable demand, and similarity of services offered by banks, improved service quality to
satisfy customers is seen as the most important concern for retaining loyal customers.
Globalization, on the other hand, has changed customer behavior in terms of financial services,
and the banking industry's working environment has become more dynamic and competitive.
The emergence of new banking services such as automated teller machines, internet banking, and
phone banking, as well as the maturing financial market and worldwide competition, has
accelerated the need for bankers to investigate the value of customer satisfaction and client
loyalty.

It is necessary that banks must concentrate their efforts on improving service quality and
delighting consumers. Numerous studies have been conducted to investigate the impact of
service quality factors on customer satisfaction. The banks must aim for continuous
improvement in service quality, and in order to do so, it is necessary to identify the predictive
elements that affect customer service quality in banking institutions, as well as how the
discovered factors affect customer satisfaction levels.
Determining the relationship between service quality dimensions and customer satisfaction levels
in the banking sector aids management in identifying areas for improvement and assisting them
in determining how, when, and where more resources should be allocated in order to improve
service quality and thus be able to provide quality customer service.

Analyze any 5 factors other than SERVQUAL that determine satisfactory

service to customers

Many banks feel that high levels of customer satisfaction lead to increased client loyalty, which
leads to increased revenue in the future. Many businesses (including banks) that prioritize quality
have been identified as market leaders in terms of revenue, client loyalty, and retention.
Hongkong & Shanghai Bank (HSBC), Standard Chartered (StanChart), and Citibank are
examples of such banks. Customer expectations are assumptions about a service that serve as
benchmarks against which service performance is measured, based on what customers believe a
service provider should offer rather than what is already available.

SERVQUAL is the most extensively used instrument in the service industry for determining
customer satisfaction. Over the years, its internal validity and reliability have been extensively
proven. SERVQUAL's applicability in the banking sector has yielded a variety of results. In the
banking industry, perceived service quality has a favorable impact on customer satisfaction.

Service quality in the SERVQUAL model consists of five dimensions:

1) Tangibles—physical facilities, equipment, staff appearance, etc.

2) Reliability—ability to perform service independently and accurately.
3) Responsiveness—willingness to help and respond to customers’ need.
4) Assurance—ability of staff to inspire confidence and trust in customers.
5) Empathy—the extent to which caring individual service is given.

These characteristics are employed in the service quality gap, which indicates that there is a
disconnection between consumer expectations and service perception. This method was used
with bank customers to identify and analyze the extent to which the bank's services fulfill quality
standards or customer expectations, as well as to identify areas where service delivery could be
improved, resulting in improved customer perception.
Apart from these five dimensions, there are numerous other factors or dimensions that influence
customer satisfaction, including "competence," "courtesy," "credibility," "security," "access,"
and "communication." Customer satisfaction in the banking sector is dependent on good and
strong partnerships, as well as building trust between customers and bank employees. As
technology balances quality service aspects, factors including "efficiency," "expertise," and
"online banking" have shown a substantial impact on customer satisfaction.

Customers consider "value-added services," "assured services," "accessibility," "bank charges,"

and "convenience" when choosing a bank to open an account with. Consumer satisfaction is
influenced by elements such as "price" and "service portfolio."

High-quality products and services ensure customer satisfaction and loyalty. They
provide customers good value for their money and are seen as critical to any organization's long-
term survival and success. The importance of the banking sector's services cannot be overstated.
To succeed in today's global and highly competitive environment, banks have realized the
importance of providing superior service quality to impact customer satisfaction levels.

In today's competitive banking world, the traditional style of banking is changing, and the client
has more options. Bank loyalty is linked to service quality both directly and indirectly through
satisfaction. The quality of the bank's services has a positive impact on customer satisfaction and
directly contributes to the banking industry's profitability. Banks have to utilize Internet
technologies to improve productivity or profitability. To be more successful, banks should
prepare for changes in technological advances. Therefore, e-business or technology should be
incorporated as a factor to measure service quality in banking sector to enhance customer
satisfaction.