Banking Industry In Mauritius Accounting Essay

Customers are more and more aware of the service quality being provided by an administration and they expect that their wants are fulfilled. In an progressively competitory environment, service quality as a critical step of organizational public presentation attracts banking establishments and remains at the head of services marketing literature and pattern ( Lasser et al. , 2000 ; Yavas and Yasin, 2001 ; Dhandabani, 2010 ) . This survey assesses what clients are anticipating in footings of service quality from the commercial Bankss runing in Mauritius and what they are in fact receiving.

This chapter consists of the thought behind the survey, job statement, purpose and aims of the research, research inquiries and the research hypothesis. Banking industry is besides scrutinized. The chapter eventually outlines the construction of the thesis.


Mauritius which is among the taking economic systems in Africa, aims to rank among the top 10 most investment- and business-friendly locations in the universe ( Michigan State University ) . To be able to carry through this purpose, the banking sector plays a major function and the service quality being offered by the banking sector is of extreme importance to pull private persons, concerns, authoritiess.

Huseyin et al. , ( 2005 ) argued that good cognition of the features and advantages of service quality by Bankss do lend for their success and their continuity in the international banking competitory environment ( Ragavan and Mageh, 2013 ) . Saravanan and Rao ( 2007 ) pointed out that service quality remains critical in the service industries, as concerns strive to continue a competitory advantage in the market topographic point and accomplishing client satisfaction. Bheenick ( 2012 ) , Governor of Central Bank of Mauritius ( BOM ) , drew the attending that there is still scope for more competition and there is room for the banking sector to turn in size and edification to diversify consumer pick ( Appendix 1 ) . Banks compete with by and large undifferentiated services and merchandises in the market topographic point, thereby service quality becomes a cardinal competitory arm ( Stafford, 1996 ) . This should dismay the bing commercial Bankss and do them gain how service quality is critical to vie for market portions and to avoid the inclination of bing clients exchanging to another bank. Customers are progressively cognizant of the options on offer sing the lifting criterions of service ( Krishnaveni et al. , 2004 ; Mishra et al. , 2010 ) . Customers hence compare services being provided by different Bankss and so choose the one offering superior quality.

The Mauritanian banking sector contributes a great trade to the economic system and the fiscal intermediation sector which is driven chiefly by the Bankss posted a higher growing of 5.5 per cent. At 30 September 2011, the Bankss realised net income after revenue enhancement of Rs15.9 billion while the GDP in 2011 was at 3.9 per cent.

Hence, the above information shows the importance of the banking sector for the Mauritanian economic system and how service quality may be a critical tool to derive competitory border.

1.2 Banking industry in Mauritius

Today, the Mauritanian banking sector has 21 commercial Bankss with 216 subdivisions, 8 non-bank sedimentation pickings establishments, 10 money-changers and 6 foreign exchange traders. For the intent of the survey, service quality merely in the banking industry more specifically that of commercial Bankss covering largely with retailed banking will be scrutinised. The service quality by offshore and Islamic banking will non be assessed.

The Table 1.1 illustrates the 216 subdivisions that the 21 commercial Bankss operate ; the figure of ATMs which were around 436 in September 2012 and the approximative figure of employees employed by each bank. Compared to the other commercial Bankss runing in Mauritius, the Century Banking Corporation Ltd is an Islamic bank and its operations depend on the Shari’a. Banyan Tree Bank Limited has been licensed in September 2012 and its operations are non yet to the full established. Investec Bank ( Mauritius ) Limited, P.T Bank Internasional Indonesia, Standard Chartered Bank ( Mauritius ) Limited, Deutsche Bank ( Mauritius ) Limited are more offshore oriented.

Table 1.1: Commercial Bankss in Mauritius


No. of subdivisions

No. of ATMs

No. of employees

ABC Banking Corporation Ltd




AfrAsia Bank Limited




Bank of Baroda




Bank One Limited




Banque des Mascareignes Ltee




BanyanTree Bank Limited


Barclays Bank PLC




Bramer Banking Corporation Ltd




Century Banking Corporation Ltd




Deutsche Bank ( Mauritius ) Limited




Habib Bank Ltd




HSBC Bank ( Mauritius ) Limited




Investec Bank ( Mauritius ) Limited




Mauritius Post and Cooperative Bank Ltd




P.T Bank Internasional Indonesia




SBI ( Mauritius ) Ltd




Standard Bank ( Mauritius ) Limited




Standard Chartered Bank ( Mauritius ) Limited




State Bank of Mauritius Ltd ( SBM )




The Hongkong and Shanghai Banking Corporation Limited




The Mauritius Commercial Bank Ltd ( MCB )




Beginning: fieldwork

The Bankss in Mauritius are supplying different banking and fiscal services to private, corporate and institutional clients. They offer personal banking, concern and specialised services. Added to the bing merchandises and services, the Bankss besides put extremely qualified and experienced professionals to the client ‘s temperament to give them advice and to steer them.

1.3 Problem Statement

Repute of an administration is really delicate and any service quality jobs are non favourable for its name. Ha and Jang ( 2009 ) argues that service failure occurs when client perceptual experiences do non run into client outlooks. The job with service failure is that it may take to a destroyed relationship between the client and the administration.

Commercial Bankss runing in Mauritius are being awarded and are deriving international acknowledgment. This can be epitomised by the MCB which has been rewarded “ Best SEM-7 Company, Online Reporting and Corporate Governance Disclosures Awards ” by PricewaterhouseCoopers for 2012, the “ Best Local Bank in Mauritius ” at EMEA Finance Award for 2012, “ Best Emerging Market Bank 2012 ” in the Global Finance Magazine ( MCB Annual Report 2012 ) . Similarly, AfrAsia Bank has been selected as the “ Best Local Private Bank in Mauritius ” in 2011 and 2012 and as the “ Best Private Bank for the Super Affluent in Mauritius ” by Euromoney Private Banking Survey in 2012 ( Afrasia Bank Annual Report 2012 ) .

Many clients depend on the commercial Bankss to present high quality services daily. The inquiry does originate how Bankss that though awarded, have defects in their service quality. At the MCB which ranked 18th in Africa and 662nd among the top 1000 Bankss and the SBM clients have been victims of phishing ( L’express, 2nd March 2012 ) ( Appendix 2 ) . Following these instances, the Mauritius Bankers Association ( MBA ) , on behalf of its members, in a imperativeness release, alerted bank clients to assorted deceitful electronic mails ( Appendix 3 ) .

Furthermore, harmonizing to Bheenick ( 2012 ) , fee income is now a non-negligible portion of Bankss ‘ entire income and there have been ailments from assorted quarters that bank charges are on the high side. A Working Group on fees, charges and committees has been set up to analyze the rationality of bank charges matching to the services offered. But so, till now no action has been undertaken to rectify the job.

The jobs mentioned above call for the appraisal of service quality.

1.4 Aim

The purpose of the survey is to measure clients ‘ service quality outlooks and perceptual experiences of commercial Bankss.

1.5 Aims

The chief end of the survey is to place the clients ‘ outlooks and perceptual experiences on service quality factors in Bankss as per Servqual theoretical account utilizing a modified version of Servqual questionnaire. An penetration on the different facets of service quality by the Bankss is provided. The order of importance of the points under each dimension of Servqual theoretical account quality will be ranked. The Servqual attack and the mated sample trials will be used to measure the difference between client ‘s outlooks and perceptual experiences. Similarly, the end is to cut down the figure of variables into a few meaningful aims, to find the new dimensions of service quality and to place the most of import factors utilizing Factor Analysis ( FA ) .

Finally, recommendations following the findings of the survey will be made based on statistical techniques used.

1.6 Research Questions

The survey seeks to reply the undermentioned inquiries:

Are the services being offered by the commercial Bankss in Mauritius meeting clients ‘ outlooks?

What are the perceptual experiences of the clients about the services that they are having?

Is there a spread between the outlooks and the perceptual experiences of the clients?

1.7 Hypothesis

The undermentioned hypothesis may be formulated for this survey:

H1. There is no difference between clients ‘ outlooks and perceptual experiences.

1.8 Format of the survey

The followers is an lineation of the thesis:

Chapter 1: Introduction

In this chapter a general lineation of the survey is given. It introduces the motive behind the survey and the job statement. Aims, hypothesis, research inquiry and aims have been formulated and the banking industry is evaluated.

Chapter 2: Literature Reappraisal

In chapter two, the theoretical model will be presented. Different constructs such as service quality, client outlooks and perceptual experiences, and perceived service quality are described. Finally, the SERVQUAL theoretical account is outlined and empirical surveies are reviewed.

Chapter 3: Methodology

This chapter will depict the methods that will be used for doing the study and for analysis. The questionnaire construction every bit good as the method for taking the sample of population is besides described. Last, the informations analysis techniques are studied.

Chapter 4: Analysis of Findingss

In chapter four, the informations, the findings and the analysis of the consequence will be dealt with. Gaps between outlooks and perceptual experiences are analysed utilizing Servqual attack and mated sample t-tests. Factor Analysis is used to cut down the figure variables of the SERVQUAL points. Datas collected from the respondents will be analysed utilizing Statistical Package for Social Scientists ( SPSS ) package and Excel 2007.

Chapter 5: Recommendations and Decision

In chapter five, the recommendations within the context of the survey and decisions of the thesis will be highlighted. Furthermore, proposal for farther research will be made.

1.9 Decision

Chapter one gives a brief and general description of the research and presents the statement of the job, aims of the survey, research inquiries, motive of the survey, an overview of banking industry and eventually the construction of the research. Chapter two will show service quality construct adopted in this survey and reviews the literature and explain in inside informations the concepts of the survey.


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