The impact of service Quality on Customer Satisfaction and Loyalty in the banking industry of Ghana

In Ghana, there is growing concerns about the quality of service provided by banks to their customers. The major issues concerning Service Quality related to customer relations, access to saved monies, limited loans with high-interest rates, and delays in service delivery. This study investigated the impact of service quality on customer satisfaction and loyalty in the banking sector of Ghana. A survey was conducted in three regions of Ghana with the highest banking activities in which a set of questionnaires were administered to 157 respondents. Data collected was analyzed using the Structural Equation Modelling-Partial Least Squares (SEM-PLS). It was revealed that customer satisfaction is highly influenced by the quality of services offered to them. The satisfaction derived by customers makes them loyal, which is an advantage to service providers in realizing their profit motive. The results of this study suggest that service quality is the precursor of customer satisfaction and instill confidence and loyalty in customers