Article’s

Two decades of financial liberalization, rapid technological innovation, and changing customer expectations have transformed the Indian banking sector beyond recognition. A uniquely heterogeneous banking ecosystem has evolved where legacy small banks coexist with technology-driven new generation banks, and customer experience has become a critical determinant of competitiveness and sustainability. The present study reports a primary data–based empirical examination of customer experience and service quality in small banks and new generation banks. The main purpose of this study is to compare customer perceptions in both the banking segments regarding service efficiency, responsiveness of the staff, digital accessibility, trust, speed of transaction, and grievance redressal mechanisms. Primary data were collected through a structured questionnaire administered on 50 bank customers comprising users of small banks and new generation banks. A descriptive and comparative research design was adopted for the study, wherein the data were analysed using percentage analysis, comparative tabulation, and interpretative techniques. These findings undoubtedly create a distinction between the two banking models in terms of customer expectation and satisfaction. Small banks have still retained the loyalty of customers through their personalized services, emotional trust, and close banker–customer relationships, especially among rural and elderly consumers. New generation banks, with their digital convenience, real-time transaction capability, efficiency of mobile and internet banking, and structured grievance handling mechanisms, are more appealing to the young and urban consumer segment. However, new generation bank customers also showed apprehensions over hidden charges, less human interaction, and dependency on technology. The findings of the study indicate that, in the contemporary banking ecosystem, customer experience is increasingly shaped by the dual demand for relational trust and digital efficiency. The paper contributes to the existing literature by providing a primary data–driven comparative perspective and provides practical recommendations for banks on how to combine technological advancement with human-centered service delivery to enhance customer satisfaction and long-term loyalty. Keywords: Customer Experience, Small Banks, New Generation Banks, Service Quality, Digital Banking, Customer Satisfaction, Primary Data