Do job competencies influence the satisfaction of customers? An investigation in the cooperative banking sector

Purpose: A cooperative bank customer in India has varied needs and is a unique segment of Indian banking. The purpose of the study is to provide the sector with an understanding of the needs of the cooperative bank customers in the context of improving core competencies required for the delivery of service. Design/methodology/approach: The study adopted multiple methods that included the Delphi method as well for competency identification. Appropriate factor analyses are conducted to confirm the construct validity and to determine the underlying structure of the variables chosen for the study. Stepwise multiple regression analysis is employed for data analysis. Findings: Surprisingly, emotional competency showed an insignificant relationship with customer satisfaction. The social and technical competencies are found significant. The findings suggest the incorporation of technological advancements in cooperative banks. Research limitations/implications: The generalization of the results is limited as the work was confined only to cooperative banks and also because of the limited sample size. The self-reported nature of competency measures also limits the accuracy of results. Practical implications: This work suggests that a bank has to concentrate on improving the technical competencies of the employees. The findings could also aid the bank managements in policy decisions in recruitment, selection, performance appraisal among others. Social implications: Competent employees could help meet the customers to satisfy their financial needs and thereby the social and economic development of the weaker section of the society could be achieved. Originality/value: Conducting primary research and identification of technical competency as the major contributor to customer satisfaction are the major contributions.