PERCEPTION ANALYSIS OF THE NON-BANKING SERVICE INDUSTRY AS A FINANCIAL INTERMEDIARY IN KERALA: UNDERSTANDING CUSTOMER SATISFACTION AND SERVICE QUALITY

Abstract

Kerala is a state with decades of tradition of financial intermediaries either organized or unorganized. The first registered NBFC in Kerala started its business in 2007. This paper aims to examine the perception of services availed by customers of NBFCs (Non-Banking Financial Companies) in Kerala. Primary data are collected using a personal interview method, directly from customers selected using stratified random sampling and convenience sampling methods from three districts of Kerala. Correlation and multiple regression analysis are used to analyze the result. The results imply significance of NBFCs in financial needs among common people is positively correlated to their perception of NBFC as a financial intermediary. Perception as a financial intermediary and the attitude of customers towards NBFC’s lending policies are positively correlated with the overall satisfaction of common people towards NBFC services. This study provides insight into the Significance of NBFC as a financial intermediary among common people at times of financial needs in society and their perceptions towards this parallel banking system.