ANALYSIS OF EXPLANATORY FACTORS FOR UNFAVORABLE VARIANCES BETWEEN FORECASTS AND ACTUAL CUSTOMER RESOURCES IN PRIMARY BANKS IN BENIN

Abstract

Customer deposits are the backbone of the banking business and play a key role in the operation and prosperity of the financial sector, as the main source of funding for banks. The aim of this study is to analyze the factors that explain the unfavorable discrepancies between forecasts and actual customer deposits in Benin's primary banks. Data are collected by means of a questionnaire from a sample of one hundred and nine (109) banking professionals. The methodology used is based on frequentist analysis, correlation analysis and textual analysis. These analyses were carried out using three software packages: Excel for frequency analysis, R for correlation analysis and Python for textual analysis. The results obtained from the textual analyses show that the unsatisfactory customer experience, insufficient awareness of the bank's products, increased competition in the banking sector, the occurrence of unforeseen events and the precariousness of customers' resources, are explanatory factors for the above-mentioned discrepancies. Better communication on the bank's offerings, continuous innovation and capitalizing on the customer experience are some of the actions banks need to take to reduce the aforementioned gaps. However, this study has certain limitations, notably its specific sample of primary banks and the limited number of explanatory factors presented by this study.