Banking sector is one of the fastest growing sectors in Malaysia. All the banks in Malaysia offer the same standard facilities such as, debit cards, credit cards, money transfers, personal loans, car finance, etc. Every bank should improve the service quality in order to ensure customer satisfaction because bank is one of the highly customer-oriented industries (Dsouza, R. S., Subhash, K. B., Chen, R. F., & Weiermair, 2018). To say, the key performance indicator and the business strategy of banking sector is all about customer and customer satisfaction (Sabir et al., 2014). Today, customer satisfaction can be considered as the element of success in this high competitive world of business.
Customer satisfaction has become a corporate goal for banks strive for quality in their products and services (Bitner and Hubbert, 1994). There was a study conducted by Levesque and McDougall (1996) confirmed and identified that unsatisfactory customer service could cause of fall in customer satisfaction and unwillingness to recommend the service to a friend. Due to the fall of customer satisfaction, customers might switch their brand immediately. In order to solve this issue, Service quality plays an important role to take bank for the maintenance in order to create competitive advantage and also for keeping the exit customer (Jamal, A., & Naser, 2003).
One of the problems that affect the customer satisfaction is the inflexible operating business hour. Inflexible operating hours has become one of the problems that faced by consumers because most of the banks’ operating hours are from 9.15 to 4.30p.m on weekday and closed on weekend as well as public holidays. Due to the inflexible operating hours of the banks, the long queuing up became the common issue for all the consumers. Consumers are wasting their time on standing long line to wait for the services. Also, the slow action of customer service in bank has also becoming one of the serious gaps in banking sector. Besides, consumers also faced some problems from the inadequacy of services at banking system such as the breakdowns of ATMs, long queues at ATM service points, retention of customers’ cards by ATM machine (Munusamy, Chelliah, & Mun, 2010).
By understanding the problem, the purpose of this study is to find out the factors affecting customer satisfaction in banking sector of Malaysia. This study will create contribution for the banks because banks can seek guidance in order to improve their service quality. Moreover, banks can also retain their customers and generate competitive advantage by gaining more loyal customers (Sabir et al., 2014).