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The banking industry is a critical factor of economic development and manage the financial flow between people and business. In recent years, Mongolian banks are strong competing with each other to attract new customer and keep a loyal customer. Consequently, Banks are facing an issue related to customer shift among banks and research study focused on investigating Service quality effect on Customer satisfaction and loyalty. The research will help high-level managers in the bank to produce an effective service strategy for increasing customer satisfaction. A conceptual framework based on the SERVQUAL model and Primary data will be collected from one hundred customers whoget service from Khaan Bank in Mongolia. To output analyzing the result, SPSS 21 software will be used for doing a reliability test, correlation, and regression analysis, and it will make a conclusion and suggestion for the bank. Keyword: Service Quality, Customer Satisfaction, the Banking industry. 1.INTRODUCTION In the 21 century, Consumers gathered more service experience ever before, and for this reason, Companies are actively competing by service quality with competitors to survive in the market. The success of the Service industry such as Banking, Telecommunication, Restaurant directly relates to service quality, and the quality defines business can be a success or not?. Bank offers financial service, including savings and loan for people and business companies andmanages financial demand between individuals. In 1990, Mongolian polity changed from socialist to the democratic polity, and the situation became the main reason to start private banks. Since the time, Mongolian banks have strongly developed, and twenty banks such as Khaan Bank, Golomt Bank, Trade Development Bank, Arig bank, Khas Bank are successfully operating in the financial market. The number of Banks in Mongolia is higher compared to other countries, and it meansthat business competition is strong in the financial market. Thus, The private banks are facing huge problem related to consumer movement among the banks, and they are competing by Marketing, Financial Service quality, the Interest rate to attract future potential customers and save the loyal customers. Additionally, Mongolian consumers get services from more than two banks, and it is one of the main reasons which is increasing competition. Thus, Research study focused to investigate impact of Service Quality dimensions on customer International Journal of Business Management and Economic Review Vol. 2, No. 03; 2019

IMPACT OF SERVICE QUALITY ON CONSUMER SATISFACTION: THE CASE OF KHAAN BANK IN MONGOLIA