Assessment Of Customer Satisfaction In Banking Services: A Comparison Between State Owned And Private Banks In Axum Town, Ethiopia

Over the past decade, Ethiopia has achieved impressive economic growth averaging close to 11 percent annually. The development of a vibrant and active private banking system that complements existing public sector is important to Ethiopia’s economic progress. Customer satisfaction in the banking industry has become an important factor in determining bank's competitiveness. A systematic continuous measurement of customers’ satisfaction level is necessary. Hence, this study focuses on assessing customer satisfaction in state owned commercial bank (Commercial Bank of Ethiopia) and private commercial banks (Wegagen Bank, Dashen Bank, Anbesa Bank). Extending on the assessment we also conducted a comparative analysis of customer satisfaction among state owned and private banks. In order to acquire sufficient information on both quality and quantity, the researcher employed stratified sampling techniques followed by convenience sampling. Each strata contains representative banks from private and state owned banks. To this end, we collected primary data from 300 respondents. Primary Data is collected using the questionnaire and personal contact approach. The researcher used comparative method of data analysis to interpret the results. The overall comparison among private and state owned banks in Axum town have shown that private bank customers have shown to be more satisfied than their counter part customers. On the other hand, both, private and state owned, banks are too behind in creating a responsive bank to their customers and hence need to work on improving their employees responsiveness towards their customers.