Upper Nile University Credit Control, Service Quality and Client Satisfaction: A Case Study of Eden Commercial Bank Juba South Sudan

Abstract

This study investigated the role of Credit   management and Service quality on Client satisfaction in banking sector of South Sudan. The objectives of the study were to examine the relationship between Credit risk management and on Customer satisfaction in banking sector, assess the relationship between Service quality on Client satisfaction in banking sector and to analyse the factor structure of Credit   management and Service quality on Client satisfaction in banking sector.

The study employed a case study and descriptive design while using qualitative and quantitative approaches. The study population was 170, selected using purposive and simple random sampling technique. The sample size determination was made using Krejcie and Morgan Table (1970) formula. The sample size was 139 with a response rate of 75.5%. The data analysis was made using Statistical package for social scientists (SPSS 20).

The major findings of the study were that there was a positive relationship between; between Credit risk management and Client satisfaction (r = 0.658, P-value < 0.01); between Service quality and Client satisfaction (r = 0.521, P-value < 0.01) anda linear relationship between Credit risk management and Service quality and Client satisfaction (R= 0.451)in the commercial sector of South Sudan. These variables explained 45.5% of the variance of Client satisfaction (R Square =.45.5). The most influential predictor of Client satisfaction was Credit   management (β = .612, Sig. 073). Service quality is less likely to v since it portrays low significance (β = .498, Sig. 130) in the model.

The study recommends that all banks should have established Credit Policies (Lending Guidelines) that clearly outline the senior management's view of business development priorities and the terms and conditions that should be adhered to in order for loans to be approved, a thorough credit and risk assessment should be conducted prior to the granting of loans, and at least annually thereafter for all facilities, a need drive the customer to buy whereas word of mouth has the power to change customer perception and expectations regarding the service and that all banks should adopt a credit risk grading system.