The researcher will review existing literatures on customer service in the banking industry of Ghana. This chapter takes a look at the various variables that may influence important customer service amid fierce competition from the perspective of some writers and researchers. It starts with profile of the banking industry under study through to the importance and nature of the customer practices, Customer Satisfaction, Retention and Customer Loyalty, Customer Relationship Building and its practical implications for the study.
THE BANKING INDUSTRY
During the past decade, the financial sector in Ghana has undergone major changes mainly through the financial sector ...view middle of the document...
In the early 1950s, however, Electro-mechanical machines were introduced into the banking industry in Ghana. This enabled customers to have their bank statements on time and within the banks tedious jobs like interest rate calculation were taken over by machines, making their jobs more enjoyable and boosting staff morale. Prior to technological development, banks used the manual system for their operations and customers had to travel to banking hall where they opened their account to transact business with that particular bank. Rose (1999) defines banks as “those financial institutions that offer the widest range of financial services, especially credit, savings and payment services and performs the widest range of financial functions of any business economy”.
The banking industry in Ghana has come under intense competition in the past ten years. This is due partly to new entrants into the industry both local and foreign and enforcement of Bank of Ghana regulations. High service quality is therefore required to differentiate offerings in the market place. Good customer service will only be defined by the experience of the bank customers. The question is what is required to attract, maintain and excite customers in the banking sector in Ghana (Amoako 2012)
Over the years the banking industry has experience several losses. Banks that had been performing well suddenly announced large losses due to credit exposure that turned sour, interest rate position taken, or derivatives exposures that may or may not have been assume to hedge balance sheet risk. In response to this, banks have almost universally embarked upon an upgrading of their risk management and control systems (Santomero and Mellon, 1996).
The Ghanaian economy has experienced high influx rate of foreign banks in recent times. Banking operations are characterized with complexity and competition. To remain competitive, there is the need for a scientific approach in operations. One such an approach is information systems strategy. There are twenty six banks in Ghana. From bank of Ghana website, there are three categories of banks, namely commercial bank, development bank and merchant banks (ankra 2012)
Some of the changes in consumer banking that have taken place in developing economies in the past decades including, inter alia, the economic crisis in the 1990s; credit crunch that started in late 2000s; cross border bank mergers; the change in banks operating hours; the introduction of telephone banking; rapid growth of internet banking; and the growth of spending power of the customers. (Munusamy et. al (2010) and banking (Ross 1999) branch networks being enabled by Automated Teller Machines (ATMs). In the decade following the www.ccsenet.org/ijms International Journal of Marketing Studies Vol. 5, No. 2; 2013 82 post-liberalization reforms, the banking system in many developing countries responded favourably by absorbing the impact of these reforms (Saviani, 2000). Sureshchander et...