Banking sector is maturing with every passing year in Pakistan. Quality is considered to be the key factor in the growth of banking sector. By offering quality service banks can keep up customer’s loyalty. Customer service and quality are driving forces in the business community. The quality of product is its ability to satisfy the needs and expectations of the customer. Quality can be defined as it is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs of customers. Service quality is an assessment how well delivered services conforms to the customer expectations. Service quality is a focused evaluation that reflects the customer’s perception of specific dimensions of services: reliability, responsiveness, assurance, Empathy, tangible. Satisfaction on another hand is more inclusive: it is influenced by perception of service quality, product quality, and price as well as situational factors and personal factors. Service quality is a general opinion the clients form regarding its delivery which is a series of successful and unsuccessful experiences. Service quality affects customer satisfaction by providing the real benefits.
The banking industry in Pakistan has been witness for last few years with several regulatory changes that resulted in high competition among all banks. In Pakistan there are seven categories of banks Public sector banks, Islamic banks, Private Banks, foreign banks, Development financial institutions, specialised banks and Micro-finance banks under these seven categories there are 54 banks in Pakistan. For satisfying customer needs it’s important to give best services to them. And banks in Pakistan they are trying to give their best which satisfy the customers and help in building loyal relationship with them which also help in attracting potential customers from markets.