Abstract
Employee competency and financial literacy are critical in the banking industry to delivering high-quality banking services and ensuring customer satisfaction. However, whether financial literacy mediates the relationship between employee competency and employees’ perception of customer satisfaction remains under-researched. To address this gap, a descriptive-correlational survey was conducted among 100 customer-facing employees of universal and commercial banks in Manila. Partial least squares structural equation modeling (PLS-SEM) was used to test the direct and mediating relationships, and all measurement scales exhibited acceptable reliability and validity.
The findings showed that bank employees had generally low financial literacy, with especially weak knowledge of taxation, but moderate overall competency, with communication skills rated highest and technical skills lowest due to shortcomings in compliance-related tasks. Employees’ perceptions of customer satisfaction were somewhat satisfied, but notably lower for complex financial transactions requiring extensive advisory support. PLS-SEM analysis indicated that employee competency strongly predicts employees’ perceived customer satisfaction (β=0.745, p < 0.001) and significantly influences financial literacy (β=0.981, p < 0.001). Financial literacy, in turn, had a significant yet modest positive effect on perceived customer satisfaction (β=0.233, p < 0.10), indicating that financial literacy partially mediates the impact of employee competency on satisfaction.
While employee competency is the primary driver of employees’ perceived customer satisfaction, enhancing financial literacy provides an additional pathway to improve service outcomes. These findings underscore the importance of integrating financial literacy into employee training and development, an approach that aligns with Sustainable Development Goals (SDG) 8, Decent Work and Economic Growth and SDG 4, Quality Education. Accordingly, the study proposes an Employee Financial Intelligence Integration Framework (EFIIF) as a practical guide for banks to strengthen workforce competencies and enhance customer satisfaction.
Keywords: Financial Literacy; Employee Competency; Customer Satisfaction; SERVQUAL; Banking Services
https://doi.org/10.65494/pinagpalapublishing.156
