Authors : Dr. Sneha Chaurasiya; Shiva Raj Ghimire; Ashok Basnet

Volume/Issue : Volume 10 - 2025, Issue 2 - February

Google Scholar : https://tinyurl.com/bdhv2fnx

Scribd : https://tinyurl.com/4a8kp4hs

DOI : https://doi.org/10.5281/zenodo.14964328

Abstract : This study examines the impact of service quality on customer satisfaction in Nepalese banks and financial institutions. The research employs the SERVQUAL model, which includes five key dimensions: reliability, assurance, security and privacy, image, and quality of service. Using an empirical approach, primary data was distributed to 1450 respondents through a structured survey of banking and financial institutions customers in Nepal and total of 1245 data was received. The results indicate that service quality significantly influences customer satisfaction, with reliability and assurance emerging as the most critical factors. The findings suggest that banks and financial institutions need to prioritize service improvements, such as reducing waiting times, enhancing digital banking infrastructure, and improving customer interaction, to increase satisfaction levels. Regression analysis demonstrates a positive correlation between high service quality and customer retention, reinforcing the competitive advantage of banks and financial institutions that focus on superior service delivery. The study contributes to existing literature by providing insights into service quality dimensions specific to the Nepalese banking and financial institutions sector. Furthermore, it offers practical recommendations for policymakers and bank management to enhance customer experience and loyalty. Given the increasing competition in Nepal’s banking industry, strategic improvements in service quality can help financial institutions sustain long-term customer relationships and market growth.

Keywords : Security and Privacy, Reliability, Image, Assurance, Quality of Service.

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