Service Quality of Traditional and Islamic Commercial Banks in Bangladesh

Shohel Rana

Associate Professor
Dept. of Finance and Banking, Jatiya Kabi Kazi Nazrul Islam University, BD

Imran Ahmed Shakeer

Department of Business Administration, Ishakha International University, BD

Khulna University Business Review – A Journal of Business Administration Discipline, Khulna University, BD
Volume 14, Number 1, January to December 2019, Pages 07-16
DOI: 10.35649/KUBR.2019.14.1.1
Published: May 2021
Published Online:
May 2021

Purpose: This study aims to know the service quality of the different private commercial banks operating in Bangladesh with the rapid advancement in information technology and provide some guidelines to improve their service qualities.
Methodology: The study used both primary and secondary data to support the objective. Primary data were collected from 240 customers, of whom 120 customers are from traditional private commercial banks and the rest from private Islamic commercial banks operating in Bangladesh using a structured interview schedule, naming SERVQUAL. The study used a convenience sampling method to select respondents. Secondary data were collected from different journals, newspaper articles, books, and various published sources. An independent samples t-test was conducted in the test of the hypothesis.
Findings: This study found a significant difference between the traditional and Islamic commercial banks’ service quality and added that the study area’s customers/clients are not fully satisfied with either traditional private commercial banks or Islamic banks. However, Islamic commercial banks are showing a relatively better picture.
Research Limitations: The Study is limited to Bangladesh’s small marginal market and a small sample size of only 240 respondents, which cannot sufficiently reflect the large population’s actual scenario.
Practical Implications: The Study will help manage the traditional and Islamic commercial banks and policymakers to improve their service quality and improve monitoring efficiency.
Originality/value: The Study extensively identified some factors to improve the traditional and Islamic commercial banks’ service quality for both the banks’ and policymakers’ management. In this regard, the critical factors can be the number of employees and the number of counters, increasing ATM services, ensuring faster services, flexible loan disbursement policy, sufficient floor space, suitable sitting arrangements, and improved online services.