Bank Selection Criteria: Special Reference to Bank Customers in Ampara District

Abstract

The most important financial institution having maximum contribution towards the economy of a country is bank. The economic stability of a country is directly related with the performance of banks. Banks survives by offering a large number of financial services to its customers. So, it is crucial for the banks to pay much attention towards its customers and also due to the presence of several alternatives in each and every aspects it is necessary for the customers to analyse the when they accessbanks. The study focuses on the criteria used by banking customers in selection of banks in Ampara district.Data were collected using self-administered questionnaires to a sample of 281 Banks customers in Ampara district. Their responses on the importance of eight different selection criteria were rated and analysed. Mean analysis is applied to rank the most important determinants of bank selection. The main results concluded that Quality of the service is the most important determinant that has influenced the customer's selection decision. Other factors perceived to be important include technology adoption, Privacy and confidentiality, convenient location, bank reputation and bank ownership. Friendly employees and recommendation by peers have less impact on the selection criteria.