IMPROVING SERVICE EFFICIENCY IN COMMERCIAL BANKS (THE EXAMPLE OF KAPITALBANK)

ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 108 IMPROVING SERVICE EFFICIENCY IN COMMERCIAL BANKS (THE EXAMPLE OF KAPITALBANK) Sherdonayeva Gulnoz Isroil qizi Termez University of Economics and Service, Economics major, 2nd year, group 124, master's student Mamadjanova Tuygʻunoy Ahmadjanovna Doctor of Philosophy in Economics, Associate Professor Аннотация В данной статье рассматриваются вопросы повышения эффективности предоставления услуг в коммерческих банках. Основное внимание уделяется возможностям оптимизации системы обслуживания на примере Капиталбанка. Проанализированы основные пути внедрения технологических инноваций в банковские услуги, создания удобства для клиентов и повышения конкурентоспособности. Ключевые слова: Коммерческие банки, эффективность обслуживания, Капиталбанк, технологические инновации, конкурентоспособность. Abstract This article examines the issues of improving the efficiency of service provision in commercial banks. The main focus is on the possibilities of optimizing the service system using the example of Kapitalbank. The main ways of introducing technological innovations in banking services, creating convenience for customers, and increasing competitiveness are analyzed. Keywords. Commercial banks, service efficiency, Kapitalbank, technological innovations, competitiveness. INTRODUCTION In the context of rapid technological advancements and increasing customer expectations, commercial banks are facing significant challenges in improving the efficiency of their service delivery. Service efficiency in the banking sector refers to the ability of banks to provide timely, accurate, and personalized services to customers while minimizing costs and maximizing resources. In recent years, banks worldwide have focused on enhancing their service delivery systems to maintain customer loyalty and remain competitive in an increasingly digital financial environment. This paper focuses on Kapitalbank, one of the prominent commercial banks in Uzbekistan. The bank’s service delivery system, despite considerable progress in recent years, still faces challenges in aligning with international service efficiency standards. As the banking industry evolves, it is essential to assess the effectiveness of the existing service mechanisms and propose methods to optimize them for better performance. The research aims to address these challenges and provide practical solutions that can help Kapitalbank enhance its service efficiency, improve customer satisfaction, and maintain its competitive edge. LITERATURE REVIEW AND METHODOLOGY A significant body of research has examined the impact of service efficiency on customer satisfaction in the banking sector. According to Liao et al. (2009), the integration of technology in service delivery improves efficiency and customer satisfaction. Similarly, Parasuraman et al. (1985) emphasized that banks must focus on reliability, responsiveness, assurance, empathy, and tangibles to enhance service ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 109 quality. The application of technology, such as online banking platforms, mobile applications, and automated systems, is increasingly being recognized as a vital tool in improving the speed and accuracy of banking services (Zeithaml et al., 2002). Additionally, a study by Al-Abdallah and Hamdan (2018) shows that training and development of bank employees are fundamental to improving service quality and operational efficiency. Well-trained employees are more likely to engage with customers effectively, leading to higher levels of customer satisfaction. Moreover, Ariffin et al. (2018) highlight that customer-centric banking approaches, which prioritize the specific needs and preferences of clients, have proven effective in increasing service efficiency. The review of existing literature underlines the importance of a multifaceted approach to improving service delivery, which includes technological advancements, employee training, and a focus on customer satisfaction. The study employs a mixed-methods approach, combining both qualitative and quantitative research techniques. The primary data was collected through surveys administered to 200 Kapitalbank customers, as well as interviews with key personnel involved in service delivery at the bank. The survey aimed to measure customer satisfaction, the perceived efficiency of banking services, and the impact of recent technological upgrades. Additionally, a set of structured interviews was conducted with managers and operational staff to understand the internal processes that contribute to the bank's service delivery system. Secondary data was obtained from the bank’s annual reports, internal documents on service policies, and previous customer feedback reports. This comprehensive data collection allows for a holistic analysis of the bank's service delivery mechanisms. RESULTS The findings of this study reveal that Kapitalbank has made substantial efforts to improve service efficiency through technological integration and process optimization. Customers reported a high level of satisfaction with the bank’s mobile banking services, citing ease of use and the ability to access banking services remotely as key advantages. However, there were mixed reactions to inbranch services, with many customers indicating long wait times and limited staff availability as areas of concern. In terms of internal processes, interviews with bank employees revealed that while there have been notable improvements in automated systems, employee training on customer service practices remains an area that requires further attention. The analysis of customer feedback suggested that there is a need for more personalized service and quicker resolution of issues, which could be achieved by enhancing staff-customer interactions and further developing the bank's digital platforms. Table 1: Customer Satisfaction Survey Results Service Aspect Satisfaction Level (%) Mobile Banking Services 85% In-Branch Service Wait Times 65% Staff Availability 70% Personalized Services 60% Problem Resolution Time 55% ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 110 DISCUSSION The results suggest that Kapitalbank has made notable strides in improving its service delivery, particularly through the integration of digital platforms. However, the study also highlights several areas that need attention. First, the bank should focus on reducing wait times and improving the efficiency of in-branch services. This can be achieved by introducing more self-service kiosks and increasing the number of staff during peak hours. Second, enhancing employee training on customer service is crucial. As demonstrated by Al-Abdallah and Hamdan (2018), well-trained employees can significantly contribute to better service delivery. Regular training programs should be implemented to ensure that staff are equipped with the necessary skills to handle customer inquiries efficiently and effectively. Third, customer feedback suggests that while the mobile banking services are well-received, there is potential for further development in mobile apps to include more personalized features, such as tailored financial advice and budgeting tools. Additionally, integrating Artificial Intelligence (AI) and Machine Learning (ML) into the bank's services could enhance the efficiency of transactions and improve decision-making processes. CONCLUSION In conclusion, Kapitalbank has made significant progress in enhancing its service delivery through technology and internal process improvements. However, there are still areas that require further optimization to meet the growing demands of customers and align with global banking standards. By focusing on reducing wait times, improving in-branch services, enhancing employee training, and further developing mobile banking capabilities, Kapitalbank can improve its overall service efficiency and strengthen its position in the competitive banking landscape. The study contributes to the broader understanding of service delivery in commercial banks and provides practical recommendations for enhancing service efficiency in the banking sector of Uzbekistan. REFERENCES 1. 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