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Due to advances in technology, there is intense competition across the globe in business. Financial institutions have experienced intense competition from one another in the global business arena; as a result, developing customer service plans that will allow them to maintain the largest market share continues to be a problem.

For instance, one of the hardest and most difficult tasks for financial institutions in the majority of developing nations like Nigeria has been keeping and attracting consumers (Banabo & Koroye, 2011).

The international economy experienced the worst financial crisis since international War II from 2008 to 2009, with significant decreases in trade, output, and employment in all nations. The average real Gross Domestic Product growth in emerging economies slowed to 0.4 at the beginning of 2009 from 8.8 percent in 2007,

and the Gross Domestic Product in industrialised nations declined by 4.5 percent in 2008. The unemployment rate increased to 9% for economies in the Organisation for Economic Cooperation and Development and double digits in a mix of industrialised and developing countries (Rose and Spiegel, 2009).

Global financial integration has stalled in the wake of the world financial crisis. The main topics of discussion have been the global decline in cross-border bank transfers (Milesi-Ferretti & Tille, 2011) and the disintegration of the euro zone’s financial markets (Equatorial Commercial Bank, 2014).

Therefore, it is evident that European and, to a lesser extent, American banks have scaled back their overseas operations due to the necessity to repair balance sheets and profitability, comply with stricter capital requirements, and implement other regulatory adjustments aimed at strengthening banking institutions.

Banks have implemented strict regulatory measures in the wake of the financial crisis, including greater capital requirements.

Consequently, any modern financial system contributes to economic development and the improvement of living standards by providing a variety of services to the rest of the economy (Driga, 2006).

These services have become more prominent as a move towards having a stable and more competitive banking sector (Financial Service Authority, 2009).

African economy were largely shielded from the direct effects of the financial crisis due to Africa’s low level of financial integration. As a result, Africa was spared the repercussions of the subprime mortgage crisis in 2007 and the summer 2008 banking crisis, escaping a financial crisis that threatened the very foundations of global financial markets.

With only 4% of the total issue for emerging economies in 2007, Africa’s external financing—bond issuance, stock issuance, and private borrowing—is little compared to that of other emerging nations. The parent banks’ financial collapse as a result of market capitalization losses did not affect their African subsidiaries.

In reality, the market capitalization of some subsidiaries of foreign banks increased significantly. For instance, between July 2007 and January 2009, the market capitalization of Standard Bank of Ghana, Bank of Africa Benin, and Swaziland Nedbank all increased. As a result, the financial crisis had less of a ripple effect than it had on parent banks (Africa Development Bank, 2009).

The low financial integration in the global financial market, the extensive supervision, and the sound regulatory changes were some of the factors that contributed to the Ghanaian banking system’s resilience between 2008 and 2011 (International Monetary Fund, 2010).

With the return on asset indicator growing from 2.6 percent in 2007 to 4.4 percent in 2011, as well as the ratio of gross non-performing loans to gross loans improving from 10.6 percent to 13.6 percent, the financial sector performance indicators significantly improved and the sector remained profitable.

In the same time frame, the rate was 4.4% (Ghana National Bureau of Statistics, 2013). The banking sector is extremely competitive, with banks vying for customers not only with other banks but also with other financial institutions and non-banks (Hull, 2002).

Fiveson (2010) asserts that knowing who your customers are and what they have purchased is only the beginning of understanding your customers. For any business that seeks to make a profit, building strong relationships with customers and understanding their expectations at any given time is more important.

Despite the fact that Ghana’s banking sector appears to be well capitalised overall, competition has been growing, and significant firms have developed a variety of products in an effort to draw in customers.

For instance, the Commercial Bank of Africa Limited, the Equitel Banking Services, Equity Bank Limited, Family Bank Limited, M-shwari, and Safaricom.

Because service quality is seen as the essence or core of strategic rivalry, banks must be concerned about it in light of the rising competition. However, service providers like banks have struggled to provide a product that is both adaptable and capable of being customised to meet each customer’s unique needs (Edvardsson et al., 2007).

Due to this, banks now need to continuously work to bring in new clients and keep their current ones happy. In order to do this, customer service strategies must be put into place.

Because client preferences are increasingly dictating banking operations (Heskett & Sasser, 2010). In light of this, this study set out to determine how customer service techniques affected the performance of the chosen commercial banks in Bantama town.


According to Kotler (2000), customer service strategies are the procedures and deeds that make it simpler for customers to transact business with a corporation. A successful customer service approach ponders how best to address the demands of its clients. When developing procedures, carrying out everyday tasks, and onboarding new staff, it always prioritises the needs of the client (Hitt et al., 2008).

If a company wants to establish a sizable and devoted client base and achieve a competitive edge in the market, it must have a customer service plan. Accurately identifying client wants is the first stage in developing a successful customer strategy for a business.

The goal is to increase the advantage’s scope, which can only be done at some other companies’ expense (Dobni, 2003). Effective customer service tactics improve staff performance, ultimately achieving the organization’s aim.

Giving customers a positive experience is crucial because it influences their pleasure and fosters loyalty (Pullman & Gross, 2004). According to Johnson & Scholes (2002),

strategy is an organization’s long-term direction and focus that enables it to gain an advantage through the configuration of its resources in a difficult environment while also satisfying the expectations of its stakeholders.

Strategy is focused on meeting market demands and stakeholder expectations. According to Porter (1996), strategy makes a fit between a company’s operations. In the banking industry, where maximising profits is crucial, effective customer service techniques ensure that the organization’s goals are successfully met.

According to Porter, a company’s strategy should focus on its competitive position, how it distinguishes itself from its competitors in the eyes of the consumer, and how it adds value through a variety of unconventional business practises.

Thus, the idea of strategy is based on success. Success in this context refers to the accomplishment of desired objectives, whether it be in business or another environment. The customer service approach a company develops is the toughest thing for rivals to imitate (Hunsaker, 2010).

Therefore, each bank must select the method that will work the best for it. No matter whether it was done consciously or not, customer service is a given for every business, claims Richardson (2010). Banks must implement a strong customer service strategy if they want to grow their market share.

According to Gupta (2012), clients who receive subpar service frequently alert their friends and relatives about the negative experience to steer them clear.


Organisational performance refers to an organization’s capacity to carry out its mission through effective management, solid governance, and a steadfast commitment to attaining results (Doyle & Stern, 2006).

In this study, performance was defined as establishing favourable customer views by capitalising on the effects of financial institutions’ adoption of strategies for luring and retaining consumers while reaching high standards of customer service and preserving client loyalty.

Financial and non-financial metrics can both be used to assess an organization’s performance. Organisational performance appears to be generally favourably correlated with the use of non-financial variables in management. According to Briggs, Claiborne, and Cole (2006),

non-financial performance indicators like as sustainability, learning and growth, and internal process improvements are leading indicators that provide insight into future success while financial performance indicators are typically trailing indicators of performance.

According to Drury (2004), a balanced score card is an integrated set of performance metrics derived from a company’s strategy that provides senior management with a quick but thorough overview of the organisational units.

In order to create balance between financial and non-financial, internal and external, and between current performance and future performance, the BSC framework proposes four categories of metrics (Kaplan & Norton, 1992). The client is the most important of the four BSC viewpoints since they form the basis of all businesses.

performance of a corporation over the long run (Kaplan & Norton, 1992; Pineno, 2002). Therefore, BSC will be used in this study to assess bank organisational performance.

The development and implementation of business strategies and planning techniques, as well as their considerable impact on the financial performance of the organisation, are the recent trends of the globalised competitive business era (Khatoon, Amin, & Hossain, 2013).

Based on an organization’s vision and strategy, the measures for the performance assessment system are selected (Kaplan & Norton, 1996).

Measures are chosen to evaluate success aspects from a variety of perspectives, including past, present, and future performance as well as those of the customer, workers, company processes, and financial success. Different facets of an organization’s performance can be monitored and managed in this way.

Mission-driven, flexible, customer-focused, entrepreneurial, results-oriented, and sustainable banks are among the best. Financial or nonfinancial performance metrics are also acceptable. For competitive enterprises in the dynamic business environment, both metrics are used (Doyle & Stern, 2006).

According to Burnes’ (2002) theory, performance refers to what people do in relation to their roles. Systems of performance measurement provide the framework for extending strategic plans, compensating managers, and evaluating a bank’s achievement of its goals (Burnes, 2002).


According to Boldizzoni (2008), a commercial bank is a type of financial institution that can accept deposits, make business loans, and provide simple investment products. Since the capital market is still viewed as being limited and shallow, banks make up the majority of Ghana’s financial industry (Ngugi et al. 2006).

Commercial banks play a significant role in the financial intermediation process in Ghana as a result of the financial sector’s dominance (Kamau, 2009). Three additional categories are used to further categorise commercial banks:

The asset sizes of large banks are over 15 billion Cedis, medium banks are over 5 billion Cedis, and tiny banks are under 5 billion Cedis. In Ghana, the banking industry serves as the economic glue (Oloo, 2009).

In Ghana, there are 43 commercial banks that are registered and are subject to legal regulation. The laws are segmented and split to address the various facets of the banking sector. Additionally, it makes it possible for the government to monitor how banks are run and maintained (CBG, 2014).

Either local or international investors own the commercial banks. Retail banking, investments, and insurance make up the majority of the services and products that any commercial bank offers. Since most commercial banks compete with one another,

they have a larger market share and each offers a special good or service that keeps consumers coming back. In the current era of globalisation, the majority of banks have even gone so far as to create regional branches and regional head offices (Kimani, 2010).

The Banking Act, Cap. 488, and any subsequently published prudential standards govern the licencing and regulation of commercial banks and mortgage businesses. On the other hand, MFIs that accept deposits are subject to licencing and regulation under the Microfinance Act and its implementing regulations.

Out of the 43 commercial banks, 30 were owned locally and 13 were owned abroad as of December 2011, according to the Central Bank of Ghana’s (2011) supervisory report. As of 2011, foreign banks held around 35% of the total banking assets.

The financial industry in Ghana is dominated by commercial banks. The Companies Act, the financial Act, and the Central Bank of Ghana Act all govern the financial sector (PWC, 2010). The minimum entrance requirements for banks in Ghana are governed by rules that CBG creates and enforces, which are based on the global standards created by the Basel Committee. CBG,

In order to ensure a more stable and effective banking and financial system, the Banking Act of 2013 specified the minimum capital requirements for commercial banks and mortgage finance organisations. Due to what it claimed were unstable financial conditions,

CBG recently ordered the closure of Dubai Bank, Imperial Bank, and Chase Bank and placed them into receivership. The Accra Securities Exchange fell as a result of these banks’ closures, which had an impact on the financial industry. The majority of lenders in Accra saw their shares settle at a lower price, and overall banking industry losses were seen over the period.

Ghana’s banking industry has expanded in terms of assets, deposits, profitability, and the range of goods it offers over the past several years. The total balance sheet of the banking industry increased from CHS 3.26 trillion in December 2014 to CHS 3.37 trillion in March 2021, a 3.4% increase.

The expansion has been supported by several factors, including banks’ willingness to lower their rates and their ability to protect their margins despite fluctuating interest rates (Cyntonn Inve).

Ghanaian banks have also been fairly adept at meeting the needs of the market for convenience and efficiency through alternative banking channels, such as mobile, internet, and agency banking.

The minimum core capital requirement for banks is slated to rise from CHS in an effort to enhance the financial health of the financial industry. To CHS, one billion. by the year 2018. The modifications were suggested in an effort to make sure that banks and insurance businesses have adequate capital and are able to withstand financial shocks.

Ghanaian banks have a substantial amount of concentration; the top eight banks in the nation control around 60% of the market. The majority of banks in Ghana have less than CHS. They will require more core cash and will need to raise $5 billion in equity. As small banks struggle, merger and acquisition (M&A) activity will increase.

While market leaders merge to increase their franchise value, market share, and distribution (Cyntonn Investments Report, 2021), competitors struggle to survive. Banks are forced to compete and develop tactics to stand out from the crowd and stay relevant in the market as a result.


The set of tactics used by service providers in an effort to improve service quality has been commonly referred to as customer service strategy (Howardell, 2003). The success of the service industry business relies heavily on the ability to develop and maintain strong client relationships (Sing, 2002).

Higher market share and better returns are often possible with increased service quality (Slu & Mou, 2003). Effectively utilising their core skills is prudent for organisations in order to maximise their capabilities.

The pursuit of a sustainable competitive edge is what businesses should concentrate on. This is due to the fact that a company’s success depends on how strong and long-lasting its competitive advantages are (Tilson, 2000).

In order to guarantee that the company’s vision, goal, and objectives are met, organisations have relied on management. To achieve this, competent managers must be hired because they are the ones who ensure that clients are treated well, that their compliments and complaints are promptly addressed,

and, last but not least, that employee teamwork is improved so that clients can be handled in a single language. Having outstanding management is a direct cause of achieving outstanding customer service (Saleem, 1997).

Therefore, it goes without saying that a strong customer service strategy is what makes any company organisation successful. Listening is the key to success in any service industry.

paying close attention to their clients, who are frequently the best information source. Happy clients continue to tell other customers about the high calibre service they received, making them a company’s finest salesman (Maxhand & Ploughman, 1992).

It is clear that the majority of businesses today invest in training for their employees in order to keep up with the competition and survive to get a competitive advantage. They receive training on the most recent technologies and how to provide exceptional customer service,

which will ultimately lead to an improvement in the performance of the organisation. Increased production and higher profitability for the company will result from improved performance, making training investments worthwhile (Mullins, 2002).


In today’s uncertain economy, banks are under tremendous pressure to perform on a global scale. Ghanaian banks are in intense competition with one another as a result of the rise of numerous financial firms offering essentially the same goods and services.

Commercial banks must develop distinctive strategies to enable them to stand out and get the most market share because these financial institutions compete for the same clientele.

Strategic customer management and human resource management have been identified as two of the most significant predictors of organisational performance during the past 20 years of research (Taylor & Francis, 2008).

Since consumers are the foundation of any service company, the survival of banks completely depends on their clientele. Any bank that wants to keep raising the bar on performance must set itself apart by continually using great customer service techniques.

To identify inherent or possible risks, such as compliance difficulties, progressive organisations are closely studying client needs and mapping the customer journey. Then, they are creating efficient business controls while putting the impact on the client first.

It is also possible to increase productivity, get rid of process redundancies, and eventually cut costs by combining compliance and customer objectives “under one roof” (Adegoroye & Moruf, 2012).

In their study, Anyim and Munyoki (2010) made it abundantly evident that banks face a variety of difficulties when attempting to adopt methods to manage customer service strategies, such as a changing business climate and shifting client needs.

Additionally, Wambui (2012) found that most commercial banks in Ghana experience higher difficulties when attempting to incorporate new technology as a strategic response to the delivery of customer service in the evolving business environment. The research design for the study was a census survey.

Due to cost savings and productivity advantages, staff members also benefit from an improved experience, according to Johnston & Kong (2011) and Helkulla (2010).

Gapalani and Shuck (2011) conducted a study on the service enabled customer experience, and the findings showed that in order to get a competitive edge, businesses must adopt customer experience strategies and make use of those techniques.

In their study, William & Baumann (2008) demonstrated a link between customer service strategy and performance. According to the findings, an organization’s price earnings ratios and earnings per share were both positively correlated with customer satisfaction.

The variables that were covered in this study, however, have not been employed in many other investigations. Therefore, it was crucial for the researcher to conduct the study on the impact of customer service tactics on bank performance in Bantama town.


The main goal of the study was to determine how customer service techniques affected bank performance in Ghana through a survey of particular Bantama town commercial banks.

1.3.1 GOALS

To ascertain how human resource management techniques affect the efficiency of commercial

To assess how technology strategies affect the efficiency of commercial

To investigate how service delivery environment techniques affect the efficiency of commercial


The following precise hypotheses served as a guide for the study:

HO1: There is no discernible connection between commercial banks’ performance and their human resource management practises.

HO2: Commercial banks’ performance and technical initiatives do not significantly correlate with one another.

HO3: The environment in which services are delivered and the effectiveness of commercial


The study’s conclusions are crucial for commercial bank management to understand as a source of knowledge on what tactics to use in the market to ensure

consumer happiness. They should be able to spot the flaws in offering high-quality customer service and take the appropriate actions to address the issues and provide solutions.

The techniques, outcomes, and significance of customer service should be understood by managers in order to advance their use throughout the company.

The study’s findings are valuable to policy makers since they will provide them with information about the dynamics of the financial services sector and the suitable and tailored responses for the firms.

As a result, they would use the study’s recommendations to help them create sensible regulations for the industry that would guarantee high-quality customer service.

The study’s findings are valuable because they enlighten potential and present scholars about customer care practises that affect bank performance and deepen their understanding of customer satisfaction in the banking sector. Additionally, it would point out any prospective areas for additional research as well as knowledge and practise gaps.

The study’s findings also assist banks through their board of directors, executive management, staff, and policy makers by educating them on how to better implement customer service strategies and make sure that they carry out their responsibilities in a way that increases the value of the bank. This would guarantee that consumers receive high-quality service, giving the Bank a competitive advantage.


Only the commercial banks in Bantama town were included in the investigation. Only the effects of customer service techniques on bank performance in Bantama town were examined. The study, which focused on all 26 commercial banks in Bantama town, used an exploratory research approach.

The study used questionnaires to ask regional managers, branch managers, and customer experience officers for primary data from the respondents it was targeting.

The study’s conclusions were reached using their viewpoints. At the time of data collection, the service quality was taken into account.


Due to the nature of the survey, the respondent expressed distrust towards the research. The respondents were hostile and unwilling to cooperate with the research because they saw it as an infringement on their personal and professional space. There was also a chance that the responders wouldn’t answer at all.

The researcher overcame these limitations by placing a strong emphasis on the study’s secrecy. The participant was assured that the study was conducted strictly for academic objectives.

In order to reduce animosity and lack of cooperation from the respondents, the researcher had also asked for permission to conduct the research on the premises well in advance.


There are five chapters in this study endeavour. The introduction, background of the study, problem statement, aims, research questions, scope of the investigation, delimitation, limitations, and importance of the study were all addressed in the first chapter.

In chapter two, pertinent research on customer service tactics and company success around the world was reviewed in the literature. It also pointed up the gaps in previous study on the subject.

The research approach utilised to carry out this study is illustrated in Chapter 3.A description of the sample size and sample selection, the target population, the research methodology, the research tools utilised, and their

dependability and validity, detailed methods for gathering data, moral concerns, and operationalization of variables. While chapter five gives a summary, conclusion, and any policy implications, chapter four deals with data analysis, interpretation, and discussions.

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