AMINATA KOROMA FINAL YEAR BAF

DISSERTATION TOPIC

THE IMPACT OF CUSTOMER SATISFACTION WITHIN THE BANKING SECTOR IN

SIERRA LEONE

Case study; Sierra Leone Commercial Bank Limited Makeni Branch Makeni City.

INTRODUCTION

The relevant skills an organization should keep in mind are how to position the needs that will
meet customer’s satisfaction. Many firms all over the globe thought of this issue of satisfying
customers every day and then. In the past centuries many firms in the world engaged in business
for the motive of making urged profit without even considering the status of the customers. But
in this present world we are living now many firms mainly concentrating on customer’s
satisfaction as a prime direction and also the firm’s objectives. Many people in the world
especially researchers in the decades strongly believed that most firms can certainly
continuing its life spam and also achieving success is when they entrench service quality in
customers' minds. Service quality has more directly influence on customer’s loyalty. It is one of
the most important elements which may influence customer’s satisfaction or behavior. Service
quality decides whether the customers are loyalty or not (deng 2015). Since, customers are
closely linked to quality. Customer’s satisfaction is the number of customers or the percentage of
the total customers whose reported experience with a firm, its products or services exceeds the
specified satisfaction goals (http://smallbusinesschron.com/customerssatisfaction access in May
2017). That is, customers satisfaction is not something we can wake up overnight started using
big jargons on how firms satisfying customers but it is something we should look at properly
because customer satisfaction is a psychological situation, in which firms have to look at it
carefulness so that correct measures should be taken in addressing it. In many competitive
environments today, customer’s satisfaction is of an important element in the corporate business
world. When firms rendering High quality service will automatically connected to increased
profits of the firm, also builds up good reputation on the firm’s image and preserved costs. Hence
management should pay special focus on the satisfaction of a customer and for it service quality
is plays a vital role. (Akbar and Parvez et al.2009). In that light, customer’s satisfaction is a
corner stone in creating urge amount of demand in organizations/ firms. It is also seem to be a
major business strategy every business used in achieving their goals. Customer satisfaction can
be defined in terms of meeting the expectations of the customers in terms of parameters
associated with satisfaction. (Malik & Ghaffor, 2012). In some cases, customer’s satisfaction is
not only something that is required for a successful and competitive banks but it is also a
benchmark against which most banks used to set their standard goals. In the context of
relationship marketing, customer satisfaction is the way that leads to long term customer
retention because un-satisfied customers have very high switching rate. (Lin & Wu, 2011). In the
marketing context, customer’s satisfaction is crucial because the business provides the marketers
and owners metric that can be used to administer and improve the business.

Bank is a business that sells their services to earn money and they market and manage that
service in a competitive field. Banking system occupies an important place in country’s
economy. It plays a fundamental role in the economic development of a country and forms the
core of the money market in an advanced country. Banks have to deal with many customers
everyday and also various types of services it render to customers. Also business cannot exist
without customers. So in that light, banks also started to think that “if business exist because of
customers then those customers must be satisfied”, when they well satisfied the business will
experience the good return in that. For the increase in market share customers involvement is an
important factor. Bank managers should work on all lines which will make their customers
happy and satisfied in long run (Jumaev et al, 2012). Bank has to give a special treatment to
customers based on their behaviors as they vary in different ways. Banks should give priority to
areas which fulfill their expectations involving in responsive areas.

Meanwhile, customer’s perceptions are comparatively higher than of their expectation of the
bank operation and if the fact of these quality service render is below expectation. Here comes
the researcher to conduct an investigation that will show the effect of service quality that makes
customers dissatisfy. But this research is looking out the possible activities that banks will focus
which will bring customers to satisfaction. When banks provide high service value and
improving the satisfaction power of customers, customers will easily become loyal and that will
increase the profitability of the bank. Tu et al, (2012) suggested that, firms specially focus on
these factors to make profitable long term relationship with customer and to improve the brand
image in market. Also Bank can make their customers loyal depend the relationship they made
with them at the first time. buzgey. K(2005;1) customers relationship management is a customer-
based relationship management philosophy that enables the co-ordination and cooperation
between all the departments customers and business associates as a front office practice
(marketing, selling and customers service) and back office practices (accounting, production and
logistics). The basic objectives of the customer relationship management are to create customer
loyalty. In that light, according to (Ergunda, 2003; 2) the objectives of customer relations
management can be listed as fellow; to make the customer relationship profitable, to firm and
preserve long term and profitable relationship with customers; to increase the productivity of
the firm; to create differentiation, to meet the customer demands , to enable cost minimization
and harmonious activities. Aldlaigan and Buttle have development and validated a new 21 items
scale that describes customer’s services quality perceptions comprising four dimensions: services
system quality, behavioral service quality, service transactional accuracy and machine service
quality (Petridou et al 2007). When analyzing dimensions of banks service Lévesque and
McDougall (1996) adopted the serqual model and obtained three [3] dimensions of services
quality which supported nation that there may be two over riding dimension to services quality.
Namely, the core dimension represent the outcome of the services while the relational
dimensions represented the process (customers employees relationship ) of the service the third
dimension represented the bank opposed to its employees behavior or the bank’s fulfillment of
its core performance obligation.

Institutional fraud is a significant problem in the Sierra Leone banking sector, with several cases
reported in recent years. For instance, in 2019, the Bank of Sierra Leone revoked the license of
two banks due to financial irregularities and fraudulent activities. These cases of institutional
fraud have significant implications for the banking sector, as they erode public trust and
confidence in the sector, leading to a decrease in customer satisfaction and profitability.

GTBank Makeni is one of the banks operating in the Sierra Leone banking sector. The bank has
a strong presence in the northern region of Sierra Leone, with several branches and ATMs.
However, the bank is not immune to the challenges facing the sector, including institutional
fraud and its impact on customer satisfaction and profitability.
THE BACKGROUND OF THE CASE STUDY

During the time of President Dr. Siaka Probyn Stevens’ vision of an Indigenous Commercial
Bank became to reality on February 15, 1973, as the country’s first indigenous commercial bank
now well known as Sierra Leone Commercial Bank (SLCB) opened its doors to customers that
day. The Sierra Leone Commercial Bank (SLCB) was established under the company’s act of
1948 with it first office at Walpole Street in Freetown and which was the first commercial bank
to be wholly owned and managed by Sierra Leoneans, (sierraexpressmedia.com access April,
2017).

Due to the effective collaboration between the Chairman, Board and Management and
understanding of where the bank is going are the key ingredients, Sierra Leone Commercial
Bank’s (SLCB) recently having an edge over competitors in the banking arena, SLCB under its
current Chairman, Board and Management has proved that indigenous commercial banking can
be a viable investment. Has a major income earners for the government, with quality customer
care its priority consideration. In the past two years after undergoing series of managerial and
operational changes, SLCB has ranked in record revenues. Customer investments are facilitated
by it in areas like treasury bearer bonds which could enable customers to make gains on their
investments. Automated Teller Machines (ATM) are also used by the bank to ensure safe and
speedy withdrawal by customers from their savings and many more. Current accounts, savings
accounts, fixed deposits, foreign currency accounts, loans & advances, and investment
management are included in SLCB portfolio of products and services. The use of Internet
Banking service of Sierra Leone Commercial Bank to access your SLCB accounts is available.
There are many benefits banking with SLCB. They also include: Check balances; view
transaction information; view statements up to two months old; transfer money between your
own accounts; download forms; change password; purchase Bearer Bonds and Treasury Bills;
order cheque book for collection at counter; order extended statement of account for collection at
counter; effect standing orders; stop Payment of cheques. With technological changes part of any
bank’s changing landscape, SLCB continues to make changes that are geared towards better
management and improved customer service. At the same time, management has ensured that the
bank’s working environment is conducive both for staff and customers. Sierra Leone
Commercial Bank Limited in terms of geographical area is well reach, and it is the largest bank
in the country that boost of having sixteen self owned branches operating in different regions in
the country such as; with bank branches in Freetown, Bo, Kenema, Makeni, Koidu, Cline Town,
Mobimbi, Njala, Moyamba, and Waterloo, and the likes, www.awarenesstime.com access in
august, 2017).

SLCB Limited Makeni Branch located at the independent square in the heart of Makeni city. The
bank is in-between several streets of which major trading activities are carrying out and also
shares venue with Rokel Commercial Bank, Guarantee Trust Bank, First International Bank,
Access Bank, as well with the N. P. Fuel Station and the ever most beautiful clock tower in
Sierra Leone. SLCB Limited is the bank of choice to almost a vast number of the population in
Makeni city, both local residents and foreigners in their business dealings transacting with the
SLCB Limited and these interactions with a larger people makes the SLCB Limited to gain
competitive advantages over other banks in the City of Makeni.

Makeni city is a major commercial center with a numerous economic activities among traders
and buyers. Major business activities are carried out along some streets of the city include;
Rogbeneh Road, Station Road, Mabanta Road, Field Road, Magburaka Road, Cambell Street,
Church Street, Flower Corner, etc. Bombali Shebora Chiefdom Makeni City is the head quarter
town of The Bombali District And The Whole Northern Province. Makeni is the fifth largest city
in Sierra Leone by population. The city of Makeni had a population of 126,059 in the 2015
population and housing census. The city is the host of the University of Makeni, one of the
largest private university and also a home of Saint France Secondary School one of the most
prominent school in Sierra Leon
STATEMENT OF THE PROBLEM

The study is to investigate the impact of customer’s satisfaction within the banking sector in
Sierra Leone at the Sierra Leone Commercial Bank Limited Makeni Branch, Makeni City as a
cases study. One of the most burning problems that are seriously affecting the organization today
is how to manage customer’s satisfaction which is course due to the failure on the part of
management to meet the expectations of customers. Even though a lot of studied had conducted
to settle the problems of customers satisfaction in the banking sectors which as seem as an issue
to be easily found a solution but it has become unclear /unseen to the mind of the researchers and
which intently prompted I the researcher to investigate at the impact of customer’s satisfaction
within the banking sector in Sierra Leone.

JUSTIFICATION OR SIGNIFICANT OF THE STUDY

The banks network especially the Sierra Leone Commercial Bank Limited have played and is
still playing a very significant role in improving the socio economic development of both its staff
and customers, but little effort is made to ascertain the role of Sierra Leone commercial bank to
the socio economic development and the mutual relationship among employees ranging from top
to bottom.

Although the Sierra Leone commercial bank is positively helping on the improvement of the
community, but this bank is not without problems faced by its overall customers satisfaction, the
relationship between overall and quality dimension and perception of people about the banking
services which need to be properly investigated with a view of finding solutions to such
problems for its effective operations, and to make the bank responsive to the needs of the
customers in terms of relationship that builds a suitable and conducive atmosphere for
competitive advantage. It is therefore justifiably based on the above reason that a study of this
nature is undertaken to investigate the impact of Customer’s Satisfaction within the Banking
Sector in Sierra Leone.

This research will provide vital information to community development stakeholders, customers,
students and staff of university of Makeni and other external institution who will want to
undertake similar research in the future will find this work as reference materials. However,
below is a summary of the justification and significant of this study,

 The finding of this research will be used to all other organizations to evaluate
customer’s satisfaction in the banking sectors.
 This study also will aid managers and organizations to form a contingency and ensure
effective planned on customer’s satisfaction.
 This research will help the researcher to acquire and gain more knowledge about the
entire concept of customer’s satisfaction.
 This Research will help other researchers who may want to carry similar nature of
study on customer’s satisfaction in the future.
 This research helps organizations to know the rationale, benefits and drawback of the
relationship between overall and quality dimension of the banking service.
 The study will help multi-national organizations to assess and know the perception of
people in terms of sex, age, education and occupation in their banking services.
 This research will help to show the methods and procedures management should use
to handle short problems.
 This research will also help to show the methods and procedures management used to
mediate and arbitrate customer’s satisfaction issues.

AIMS OF THE STUDY

 The primary aim of the study is to investigate the impact of customer’s satisfaction within
the banking sector in Sierra Leone a case study at the Sierra Leone commercial bank limited
Makeni Branch Makeni city

OBJECTIVE OF THE STUDY

1. To look at the overall satisfaction of bank customers at Sierra Leone commercial

bank
2. To find out the relationship between overall and quality dimension of the banking
service at the Sierra Leone
3. To compare the perception of people in terms of their sex, age, education and
occupation about the main dimensions of bank services at sierra Leone commercial
bank
4. To find out the main dimension of the construct customers quality in relation to bank
service at the Sierra Leone commercial bank limited

RESEARCH QUESTION

1. Does an overall satisfaction of bank customers at the Sierra Leone Commercial Bank?
2. Are there quality dimension of bank services related to the overall dimension?
3. How does the perception of people in terms sex, age, education and occupation mind the
service rendered with Sierra Leone Commercial Bank?
 4. Does the dimension of construct customers quality related to the bank services at the
Sierra Leone Commercial Bank Limited?

SCOPE AND LIMITATION

The study is investigating on the impact of customers satisfaction within the banking sector in
the Sierra Leone at the Sierra Leone Commercial Bank Limited Makeni Branch Makeni City.
The study covers a three years period ranging from (2014 – 2017). All data for the purpose of
this research where obtained from this period from respondent as amongst all shareholders,
managers, employees, and customers are referred to as key contractors.

The general scope of the work shall be under the direction and eternal supervision of the
institution, but the actual conduct and manner of the performance of the workers shall be under
the managers direction and internal supervision matters of general conducts relating to or
concerned with the overall operation of the work will be considered jointly. The work shall be
undertaken completely and in accordance with recognized best standards of the institution.

Some of the problems encountered during the research process of the study are as follows:

 The information made available to the researcher by Sierra Leone Commercial Bank
Limited was very limited.
 Most top executive members have busy schedule and thus not available to provide much
needed information;
 The time proposed for this research is really limited ;
 The topic of this nature needs extensive time to carry out a case study method that can
intensify the study of its content research, so as to ensure proper treatment which are not
available due to limited period given carry out the investigation
 There was also a problem of transportation to move from one place to the other.
 Financially, the researcher is unable to get enough funds to collect and analyze the data.
DELIMITATIONS

The delimitation of the study was to investigate the impact of Customer’s Satisfaction within the
Banking Sectors in Sierra Leone. This research was conducted at the Sierra Leone Commercial

Limited Makeni branch Makeni City to be specific. However, the research was guided by top
managers, national staffs and female employees.