Customers’ perceptions of service quality of traditional banks versus fintech companies in Malta

Abstract

Purpose – This dissertation focuses on customers’ perceptions regarding the service quality of traditional banks and FinTech companies in Malta. It aims to observe areas of customer satisfaction with the aim of proposing recommendations on improving services. Additionally, the trust factor within the banking industry is investigated. Methodology– The research takes on a descriptive and quantitative approach through a questionnaire that adopts a hybrid model of the various Service Quality models analysed in the Literature Review. The sample size amounted to 276 respondents. The study uses convenience and snowball sampling techniques. Findings – This research reveals that participants prefer traditional banking over FinTech services. This is further evidenced by the fact that participants indicate more trust in traditional banks. Results also illustrate the bank’s strong points: assurance, efficiency, and privacy, and their weaknesses; contact, system availability and responsiveness. FinTech’s weak point is Fulfilment of Promises and Transaction, while its strong point is Aesthetics. Research limitations – As the questionnaire was circulated online, the younger generation was more widely represented than older participants. Moreover, non-probability sampling techniques prevent random selection. Additionally, close-ended questions refrain participants from expressing their opinions in detail. However, questions using Likert scales enhance internal survey reliability by including both positive and negative indicators. Practical Implications & Originality – This quantitative study compares prior literature on service quality and explores customers’ perceptions on the topic within the Maltese banking sector. The importance of this topic is seen as technology advances and bank customers become more financially literate. Banks and FinTech companies can utilise this study when planning and developing new services to increase customer satisfaction. Recommendations on improving traditional banking and FinTech services are given based on the perceptions collected in this study