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An Empirical Investigation of Bank Selection Criteria in Maldives

Posted by admin
January 24th, 2015

By  Sheila Nu Nu Htay, Ibrahim Shaugee &  Hanudin Amin

Abstract

Studies on bank selection criteria have been done by numerous researchers in various countries. However, review of prior literature has turned up no evidence of such a study having been done in Maldives. Therefore, this study attempts to identify and rank the bank selection criteria perceived as significant by Maldivian banking customers. The study involved a self administered survey, with a sample of 398 respondents. Using factor analysis, we identify corporate social responsibility is viewed important followed by e-banking facility, social influence, perceived cost and service quality. Furthermore, we reveal one has different level of preference with respect to banking selection according to his gender, education, employment and age. All hypothesized relationships are rejected at the 1 percent significant level whilst a relationship between “gender and service quality” is rejected at the 5 percent significant level. Our findings will provide direction for future research and for better organization of bankers to capture new customers.

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