An analytical study of customers’ preferences and satisfaction on consumer finance with respect to private sector banks in Chennai

The financial landscape in India, particularly Chennai, has witnessed a significant shift with the rise of private sector banks. These banks cater to a diverse clientele seeking consumer finance products. In the evolving landscape of consumer finance, understanding customer preferences and satisfaction is paramount for private sector banks aiming to enhance their service quality and competitiveness. This study, focused on the Chennai district, explores the customer preferences and satisfaction with respect to consumer finance offered by private sector banks. This study employs an exploratory and descriptive approach, using a mixed-methods research design that combines both qualitative and quantitative methodologies. The research focuses on consumers who utilize consumer finance services from these banks, selected through convenience sampling, with a sample size of 150 participants. Data collection is conducted via a structured questionnaire. For data analysis, the study utilizes both descriptive and inferential statistical techniques. The analysis revealed that male customers exhibited higher preferences and satisfaction compared to female customers, indicating a statistically significant gender difference. A high positive correlation was found between customers’ preferences and satisfaction, suggesting that increased preferences lead to greater satisfaction. “Procedures and Formalities” emerged as the major significant predictor of consumer satisfaction, while “Cost of Finance” was the least influential factor. Loan Processing and Service Quality also predicted satisfaction but to a lesser extent than Procedures and Formalities. The study’s contribution lies in its detailed analysis of consumer preferences within private sector banks, offering a clear understanding of the factors influencing customer satisfaction. These insights can guide private sector banks in refining their consumer finance offerings, ultimately enhancing customer satisfaction.