Service and customer satisfaction in local and foreign commercial banks: a comparative study

The overall objective of this study was to investigate the service and customer satisfaction in local and foreign commercial banks in Tanzania. Specifically, the study intended to investigate whether varieties of services offered by a bank lead to customers’ satisfaction; evaluate the time taken between local and foreign bank to respond to customers’ problems and evaluate the impact of information technology on customer’s satisfaction. The results from the analysis of both customers and bank officials’ questionnaires revealed that information technology and varieties of services offered by the banks are among of the most important influential factors that lead to customers’ satisfaction in Tanzania. However, it was revealed that the foreign banks use advanced technologies, hence providing varieties of services than local banks. Also it was pointed out that foreign banks respond quickly to customers’ queries than local banks do as it was pointed out by a large proportion of the respondents from both foreign and local banks. It was pointed out that foreign banks offer good services and provide solutions’ to customers’ customers were satisfied with services offered by the foreign banks compared to local banks’ customers. Governmental organizations and NGOs, and forums for exchange of experiences among banks were some of the suggestions given in this study that will not only lead to customers’ satisfaction, but also to the good performance and growth of the banking sector in Tanzania.