Accessing the Role of Service Quality Dimensions for Banking and Insurance Sector in India

The level of quality in service plays a major role in maintaining and developing brand loyalty in financial sector. As the financial sector is rapidly growing and is fiercely competitive in developing countries, it has become significantly important for the organizations to measure and evaluate their levels in service quality. The paper examines the level of service quality in the Banking and Insurance Sectors. Thus, this study focuses on accessing whether the Banks and Insurance Companies in India have employed the same variables to achieve service quality. Furthermore, the study measures and compares perception of customers on the customer service practices amongst the two sectors. In order to access the service levels of the two sectors primary data was collected by using self-designed questionnaire. Various factors of Service Quality such as Empathy, Responsiveness, Tangibles and Assurance were selected and respondents score was measured for these factors. For Insurance Sector, all factors, Empathy, Tangibles, Assurance and Responsiveness emerged as most significant constructs and create a significant difference with Banking Sector. As the difference lies in these factors, they tend to affect the Customer Satisfaction, thus with the increase in Service Quality levels, Customer Satisfaction can be increased for both the sectors.