Assessment of Customer Service Quality and Customer Satisfaction in the Banking Sector: The Case Study of National Microfinance Bank Ltd Arusha

The objective of this study was to assess customer service quality and customer satisfaction in banking sector. The evaluation was based on the five SERVQUAL dimensions namely; reliability, responsiveness, assurance, empathy and tangibles. The sampling approach in this study was purposive and the populations were NMB customers who use the banking services as receiver of services, and NMB staff who were selected purposely as service providers. Data were collected using questionnaires which were designed specifically for NMB employees and NMB customers. The study results revealed that, there are challenges that face management of the bank as revealed by the time spent by customers in long queues while waiting for services. It also revealed that, there is shortage of teller staff even in the peak period. Further, the study revealed that, ATMs go offline for very long time without prior notice to customers, and worse enough, when one ATM machine goes off, other ATMs go offline too. This study recommends that, Bank Management should improve employee’s incentives policies regarding training programs, particularly on customer care training from time to time and not only at the time when the employees join the organization. Bank Management should conduct regular research on customers’ needs and wants and how to effectively satisfy them. It is also recommended that, the Bank Management should formulate strategies that will serve and give priority to disabled group, pregnant women and senior elders and create a conducive environment that will be favorable for them