Customer service quality and financial performance among Australian retail financial institutions

Elizabeth Duncan, Greg Elliott

Research output: Contribution to journalArticlepeer-review


This paper seeks to explore empirically the relationship between customer service quality and financial performance among a representative cross-section of Australian banks and credit unions by correlating customer service quality scores from a sample of retail customers with financial performance measures over a five-year period. Results show that all financial performance measures (interest margin, expense/income, return on assets and capital adequacy) are positively correlated with customer service quality scores. They also show that the credit unions strongly out-perform the banks in customer service quality and also for some measures of financial performance (interest margin and return on assets). The positive link between financial performance and customer service is thus supported in this study. Implications for the three groups of institutions are also discussed.
Original languageEnglish
Pages (from-to)25-41
Number of pages17
JournalJournal of Financial Services Marketing
Issue number1
Publication statusPublished - 2002


  • customer service quality
  • financial performance


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