The Determinants of Bank Service Quality in the Banking Sector of Botswana

The study explored the determinants of bank service quality in the banking sector of Botswana. 800 respondents from commercial banks of Botswana were randomly served with the survey questionnaires. The study was based on quantitative research involving testing of the hypothesis. The data collected from the survey was subjected to confirmatory factor analysis and reliability analysis prior to running Structural Equation Modelling. The results of testing the hypothesis revealed that banking service quality is significantly and positively correlated with service characteristics of tangibles, responsiveness, assurance and empathy. Inconclusive evidence was obtained concerning the relationship between bank service quality and service characteristics of reliability. The study inverted a new Structural Equation Model A that balances theory and data collected in this study. The study hereby recommends bank managers to take proactive action towards significant improvement of appealing tangible bank processes and systems, providing inevitable assurance, responsiveness and empathy as well as consistently applying reliability to all its services characteristics. In addition, policy makers should strive to enact legislation that ensure that banking institutions provide services that strongly encourage sustainable economic development. The limitation of the study is that the results can not be replicated to other areas as the research focused entirely on the banking sector of Botswana.