Customer satisfaction measurement for state owned banks in least developed countries- a case of Bangladesh
Customer Satisfaction has become an important dimension for performance measurement particularly for banking and finance industry. As most banks and finance organizations offer similar products and services, improving customer satisfaction and loyalty is the most important factor in maintaining as well as increasing market share for these organizations. Customer satisfaction is grossly neglected area for performance measurement in most Least Developed Countries (LDCs) including Bangladesh. Like most LDCs, Bangladesh is also facing external pressures from IMF, World Bank, ADB etc for reforming incompetent financial sector. The purpose of the paper is to identify the factors that affect and explain customer satisfactions in state-owned commercial banks (SCBs) in comparison with private banks of Bangladesh. This study has focused on how customer satisfaction indicators can direct the policy measures in shaping and reforming the currently loss staggering, bureaucratic, poor quality and corrupted state-owned banks which still controls the financial market through 3383 branches (50% of total branches of banking sector). The findings of the study are expected to guide state-owned commercial banks as well as private, foreign and Islamic banks in Bangladesh to improve their customer satisfaction.