Service Assurance and Customer Loyalty in selected Microfinance Banks in Ogun State, Nigeria

Abstract

The increasing wave of declined in performance of financial institutions in recent years pose serious threats to the stability and survival of financial sector and banks in particular. For stability and survival of financial sector as well as customer loyalty, they need to guarantee quality service assurance to their various customers. It is in view of this that the study investigated service assurance and customer loyalty using selected microfinance banks in Ogun State. The study adopted descriptive survey research design through the use of questionnaire. The population of the study comprised of 225 respondents which cut across seven selected microfinance banks operating in Ogun state, Nigeria. Total enumeration method was used and purposive sampling technique was used to select the staffs. The data was analyzed using a statistical tool of Regression Analysis with the aid of the Statistical Package for Social Sciences (SPSS version 25.0) at 5% level of significance. Descriptive Statistics was also used to analyze the relevant data. Findings revealed that there is a significant effect of service assurance on customer loyalty. The study concluded for financial sector to sustain customer loyalty, they must ensure quality service assurance at any given time.