Customer perceptions of private banking products and services in a South African bank

Abstract: The study is about customer perceptions of private banking products and services at BankX in Johannesburg. Private banking clients are people who have attained a certain level of wealth, are therefore affluent and have high expectations of customer service quality. Private banking clients are expected to have definitive perceptions of service quality that are uncompromising. The decline in retail banking customers at BankX prompted the need to determine the perceptions of private banking customers of service quality. Customer attrition in any retail bank suggests that customers may hold certain perceptions of service quality of the institution. The quantitative research method was used in this study of customers’ perceptions. Quantitative data was collected, which provides valid and reliable statistical analysis to prove or disapprove the set propositions. Data was collected through face-to-face interviews with private banking clients of BankX at different Johannesburg private banking suites. The adapted SERVQUAL instrument was used to conduct the interviews to gather insights into customers’ perceptions. The study found that BankX’s Private Bank (BPB) clients hold very positive perceptions of the quality of private banking services. The customers provided positive feedback on the number of dimensions of the SERVQUAL instrument except responsiveness. The mobile banking application, internet banking and automated teller machines as digital channels are rated higher in terms of service quality compared to other private banking suites. There is a need for BankX to improve the responsiveness of the organisation through its private banking suites to advance the quality of services provided and mend the customer perceptions of these services. The positive feedback on digital channels suggests that BPB needs to focus on the migrating of customers to this channel and diversify the service offering to improve further overall service quality...M.Com. (Business Management