ENHANCED CUSTOMER SATISFACTION IN THE WAKE OF BANKING LIBERALIZATION: THE SINGAPOREAN CASE

Ramin Cooper Maysami

Jackson State University

Valerie Priscilla Goby

Zayed University

Edwin Clifford Mensah

University of North Carolina at Pembroke

ABSTRACT

The aim of this study is to assess the impact of financial liberalization in Singapore on

retail bank consumer satisfaction. Working on the hypothesis that financial liberalization in

Singapore has led to heightened competition among financial institutions, the authors wished to

investigate how local banks are now faring in relation to the foreign newcomers in terms of

product range and service quality. The availability and quality of both core value services and

banking services identified by consumers as most important were assessed by administering a

questionnaire to a population sample of 450 local consumers with a 92% response rate. Results

indicate that while liberalization has improved banking in Singapore through the availability of a

wider range of products and enhanced banking services, foreign banks display a competitive edge

in both product availability and the provision of banking services compared to local banks.