AN ANALYSIS OF T.Q.M PRACTICES IN THE BANKING SECTOR

Abstract

The banking sector has faced intense competition and a shift in customer expectations over the last several years, particularly after the recession. The significance and growing focus on service quality in financial institutions is entirely justified by the socio-political changes that have occurred. Among these changes, economic globalization can be identified as a key factor, leading to a change in consumer habits regarding banking services. In recent years, banking institutions have also encountered significant competition. Quality Management is the approach that banks can implement to achieve competitive advantages. Banks can only strengthen and enhance their effectiveness by providing superior customer service, quality, costs, and innovation. In today's market, customers have a vast selection of service providers and will choose only those that offer the highest quality, reliability, and profitability, in line with international standards. Therefore, service quality is a critical element and serves as a primary factor in ensuring the survival of service providers in the global market. The current emphasis is on delivering services that exceed customer expectations. This principle is applicable across all service industries and has led to the development of Total Quality Management (TQM) in the service sector. TQM begins with leadership that is dedicated to quality. Consequently, this study focuses on the Total Quality Management (TQM) practices within the banking sectors.