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Quality Determination of the Saudi Retail Banking System and the Challenges of Vision 2030

Author

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  • Mohammad Ishfaq

    (Finance Department, College of Business, King Abdulaziz University, P.O. Box 344, Rabigh 21911, Saudi Arabia)

  • Heitham Al Hajieh

    (Finance Department, College of Business, King Abdulaziz University, P.O. Box 344, Rabigh 21911, Saudi Arabia)

  • Majed Alharthi

    (Finance Department, College of Business, King Abdulaziz University, P.O. Box 344, Rabigh 21911, Saudi Arabia)

Abstract

Vision 2030 of the Kingdom of Saudi Arabia (KSA) requires numerous national and multinational organizations to re-engineer themselves to achieve the required targets for the upturn of the Saudi economy. In this respect, the quality of indigenous goods and services has been the biggest challenge to satisfy consumers of Saudi businesses. The banking and finance sector, specifically, has a great deal of responsibility to put in place a strong financial system that is capable of attracting capital from both local and foreign investors. SERVQUAL, with the five conventional dimensions—tangibility, reliability, responsiveness, assurance and empathy—offers a great deal of flexibility in modifying the model to the specific requirements of a service in carrying out gap analysis. In this context, we have applied SERVQUAL by adding two new dimensions—functional and technical—to the conventional five dimensions. We applied SERVQUAL using a “performance-only approach” to identify quality gaps present in the services of national and multinational banks. Our analysis shows that gaps exist in the service quality—both in national and multinational banking systems. We therefore present weighted gap scores to assist service managers in setting up priorities to improve the quality of their services. This study suggests that there is much to be done to improve retail banking quality and gain customers’ confidence, both from within and outside the KSA.

Suggested Citation

  • Mohammad Ishfaq & Heitham Al Hajieh & Majed Alharthi, 2020. "Quality Determination of the Saudi Retail Banking System and the Challenges of Vision 2030," IJFS, MDPI, vol. 8(3), pages 1-19, July.
    • Handle: RePEc:gam:jijfss:v:8:y:2020:i:3:p:40-:d:381128
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    References listed on IDEAS

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    1. Pakdil, Fatma & Aydın, Özlem, 2007. "Expectations and perceptions in airline services: An analysis using weighted SERVQUAL scores," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 229-237.
    2. Babakus, Emin & Boller, Gregory W., 1992. "An empirical assessment of the SERVQUAL scale," Journal of Business Research, Elsevier, vol. 24(3), pages 253-268, May.
    3. Siddique, Md. Nur-E-Alam & Akhter, Mst. Momena & Masum, Abdullah Al, 2013. "Service Quality of Five Star Hotels in Bangladesh: An Empirical Assessment," Asian Business Review, Asian Business Consortium, vol. 2(2), pages 125-130.
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    Cited by:

    1. Mohammad Ishfaq & Heitham Al-Hajieh & Majed Alharthi, 2022. "Quality of Work Life (QWL) and Its Impact on the Performance of the Banking Industry in Saudi Arabia," IJFS, MDPI, vol. 10(3), pages 1-20, July.

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