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39503

Factors affecting customer satisfaction in banks and its relation to profitability A case study on a conventional bank and an Islamic bank

Article

Last updated: 22 Jan 2023

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Abstract

 Customer satisfaction is an important dimension for performance measurement for any organization. Customer satisfaction plays a key role in the banking sector as it is important for the development of a good relationship with customers which eventually affects the financial performance of banks. There has always been a challenge in identifying the criteria that should be used for customer satisfaction measurement, service quality in banks depends a lot on the employee professionalism especially for employees of customer service departments of banks. Moreover, excellent service quality is vital for business profitability and survival in banking sector. This research recommends measures that can be used to measure client satisfaction and evaluates its impact on the financial performance of banks in two types of private banks in Egypt, conventional banks and Islamic banks through studying a sample of bank clients in one of each type. This study shows customer satisfaction as a predictor of bank profitability. The purpose of this paper is to identify the main financial and non-financial aspects or factors that lead to customer satisfaction in banking services and then to determine to what extent customer satisfaction affects the banks' profitability. Moreover, the research also investigates whether there is a difference in customer satisfaction factors in conventional banking from Islamic banking.

DOI

10.21608/jsec.2018.39503

Keywords

Customer satisfaction, Financial Performance, SERVQUAL, Service Profit Chain, Islamic Banking, Conventional Banking, profitability, profit margin, Return on Equity, Return on Investment

Authors

First Name

Yasser

Last Name

T. Halim

MiddleName

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Affiliation

October University for Modern Sciences and Arts

Email

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City

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Orcid

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First Name

Samia

Last Name

A. Hanna El Sheikh

MiddleName

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Affiliation

October University for Modern Sciences and Arts

Email

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City

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Orcid

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Volume

48

Article Issue

4

Related Issue

6321

Issue Date

2018-12-01

Receive Date

2018-09-15

Publish Date

2018-12-01

Page Start

693

Page End

730

Print ISSN

2636-2562

Link

https://jsec.journals.ekb.eg/article_39503.html

Detail API

https://jsec.journals.ekb.eg/service?article_code=39503

Order

11

Type

المقالة الأصلية

Type Code

914

Publication Type

Journal

Publication Title

المجلة العلمية للإقتصاد و التجارة

Publication Link

https://jsec.journals.ekb.eg/

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Article

Created At

22 Jan 2023