Dimensions of Banking Service Quality as an Approach to Achieving Competitive Advantage at the National Commercial Bank, Sabratha: A Case Study

Abstract

The study addressed the dimensions of the quality of banking services as an approach to achieving competitive capability. (This is a case study of the National Commercial Bank – Sabratah Branch.)

The problem of the study lies in the competitive challenges and difficulties resulting from the standardization of banking services. Service quality is highlighted as a crucial competitive tool for differentiating banks. This study aims to provide an answer to the main research question:

To what extent do the dimensions of banking service quality contribute to achieving competitive capability at the National Commercial Bank in Sabratah?

To achieve the study’s objectives, the study adopted the analytical descriptive approach to arrive at the research findings, using a purposive sample consisting of clients who benefit from the Point of Sale (POS) service, totaling 47 clients.

The study also seeks to achieve a set of objectives, including: evaluating the reality of the quality of banking services provided by the National Commercial Bank in Sabratah; identifying the extent of attention to banking service quality as a means for the bank to retain its current customers; and determining ways to enhance the bank’s competitive capability under study.

The study found a high level in the dimensions of banking service quality in the bank, with an overall mean of (2.7633), which is higher than the mean of the adopted scale (2). The dimension of Trust and Security ranked first with a mean of (2.8183). This was followed by Variety and Customization, then Quick Responsiveness with a mean of (2.75), and finally Technology.

The results also showed that service quality contributes to achieving competitive capability, as indicated by the test statistic value of (21.242) and an overall mean of (2.734).
In terms of competitiveness, the dimension Trust and Security led the list with a mean of (2.8298), followed by Quick Responsiveness, then Variety and Customization, and lastly Technology.

The study recommended that the bank should continue to manage and maintain the level of Trust and Security, along with the continuous strengthening of this dimension, as it represents the bank’s first competitive advantage. It also recommends developing and leveraging competitive advantages and maintaining the bank’s current advantages, supported by additional services. This is because most POS customers opened their accounts to benefit from these advantages, to improve banking marketing, and to take customers’ suggestions into consideration when developing current services or launching new and future services.