Development of Service Quality Model as Determinants toward Banking Performance

Abstract

Banking services are required by companies to support operation and finance activities. Likewise, the general public is also assisted by banks for various financial transactions. Descriptive research was used to obtain depiction of the quality of banking services, both private and government banks in Indonesia. This study also analyzes banking performance and its determinants. Hypothesis testing is done to verify the effect of the service quality dimensions on banking performance, Hypothesis testing is done to verify the effect of the service quality dimensions on banking performance, and the results show that Reliability, Responsiveness, Assurance and Tangibles are determinants of Banking Performance. The results of the study can be utilized by private banks to maintain or improve the service quality in order to provide better services for the community, which in turn can also improve performance.