Abstract

This paper analyzes the outcomes of service quality in private banking. Hypotheses are derived from the service
quality literature and adapted to the private banking context so that a chain of effects can be uncovered which
leads from service quality to financial results of private banking providers. The analysis is based on a unique
dataset consisting of customer relationship managers in 124 private banking services providing companies in
Germany, Switzerland, Austria, Luxembourg, and Liechtenstein. Based on the sample, differences between
private banking services providers inside and outside Germany are detected as well as differences between
higher and lower minimum deposit requirements. As a result, it can be shown that an increase in service quality
contributes to both, the amount of assets under management and to an improvement of the profit for private
banking services providers.

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