Research and Writings

N. A. M. Sarware Akhtar (2019) Regulation and its Impact on the Service Quality of Commercial Banks: The Case of Know Your Customer (KYC), Ma. Diss., Pathum Thani: Asian Institute of Technology.

October 3, 2019

Abstract: Banking being a service industry, customer satisfaction (regarding service quality) is very important for survival of the industry players (i.e. banks). However, KYC is an unavoidable regulatory tool to ensure financial discipline. It helps banking Industry to choose, retain and serve their customers in conformity with regulations.

The present study has tried to understand the impact of KYC regulations on perceived service quality of bank customers. Findings show, KYC regulations have mixed impact on service quality of banks. KYC regulations and compliances may produce different impact over customers if they are not made aware of the regulations. However, service quality perception is influenced by the nature of service provider bank too.

The study recommends that regulatory literacy regarding KYC among common people should be increased. Users of KYC regulations should be flexible and cooperative towards service receivers. Digitalization and simplification of the KYC processes might be thought of by policy makers.