Bank Selection Criteria Research Articles

The Application of AHP on Selected 100 Islamic Economics and Finance Research

This study tries to review the application of research using the Analytic Network Process method in the theme of Islamic economics and finance. It uses descriptive statistical analysis based on selected 100 article publications. The entire sample publications have been published from 2008 to 2019. The results show that research using the AHP method is still dominated by discussing themes related to Islamic banks, the Halal industry, and Islamic social finance such as waqf, zakat, and Islamic microfinance. The countries with the most AHP case studies are Indonesia and Malaysia. Aam Slamet Rusydiana and Nurul Huda is the author who the most researched about AHP. The software most often used in the AHP method is expert choice. Islamic Bank Selection Criteria in Malaysia, An AHP Approach is the research that most often becomes a source of reference by other researchers.

Factors Influencing Customers’ Bank Selection Decision in Azerbaijan

Background: This research investigates the determinants of bank selection criteria and their linkage to the common satisfaction level of the banks in Azerbaijan. Aim: The study is motivated to investigate the current situation, find critical points and main related factors, inform bank executives and appropriate staff about real tendencies during the crisis and pandemic period. Methods: It is based on 2 surveys of 162 and 352 respondents respectively of different private and state-owned commercial banks. 13 main different factors for bank selection and 16 factors for credit cards usage were selected for better and proper analysis. Results: The findings of the study reveal that speed and quality of service, proven and strong shareholders, innovativeness and variety of services (credit cards), ATM network and accessibility, respect and friendliness staff, brand name at the market, and low interest rate on loans are the most important influencing factors for customers during the bank selection decision, while the other factors received the less rating, however, this does not mean that they are not important at all. The research found some similarities with the other research in different countries. The study could be used by banks and as the starting point for the next similar studies in the country. The findings of the second survey reveal that Risk and Security group has significant impact to the usage of credit cards while the other parameters don’t have such evidence.

Banking Selection Criteria among Millennials: Insights from Islamic and Conventional Banks

The increasing number of millennials presents an enticing market opportunity for business. Understanding their preferences is the key to attracting their sympathy and interest. Thus, this study aims to analyze banking selection criteria for Islamic and conventional banks among the young generation. A group of students represents the millennial group in this study. Data is collected through questionnaire instruments, and factor analysis is employed to capture millennials' preference for banking. The finding highlights a relatively lower level of knowledge and awareness among millennials regarding the products and services offered by Islamic banks. Interestingly, among them, an inverse relationship exists between the criteria for selecting Islamic and conventional banks. Factors associated with banking preference among millennials are managerial performance and service quality, religiosity, recommendations, and finances. This study provides valuable insights for banking industry players, enabling them to understand millennial banking preferences better and formulate suitable marketing strategies.JEL Classification: G21, G32, D81How to Cite:Rama, A., & Wiranata, S. (2023). Banking Selection among Millennials: Insights from Islamic and Conventional Banks. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 341-354. https://doi.org/10.15408/sjie.v12i2.35104.

Customer Perception on Bank Selection Criteria in Butwal Sub-Metropolitan City

Banking services are essential to a corporate institution's efficient operation because they enable the safe transfer of funds from one party to another, simplify financial transactions, reduce risk, manage cash flows, and even offer security services to fortify ties between banking institutions, customers, and partners. The unhealthy competition among them makes it challenging to select the finest, though. Using the dependent variable (Bank Selection Criteria) and the independent variables (Convenience, Technology, Bank Charge, and Employee Behavior), this study tries to pinpoint the variables impacting bank selection criteria. The basic random sampling method was used to collect data from 250 bank clients for this investigation. The cross-sectional descriptive study design was used. There have been uses of both descriptive and inferential statistical methods. The findings showed that the bank selection criteria and convenience have a substantial positive correlation. Bank selection criteria are positively marginally influenced by employee behavior and technology. The findings of this study will be helpful to curious consumers, anxious bankers, academics, government officials, and up-and-coming researchers, enabling them to demonstrate greater concern for their clientele in the future. Keywords: Bank Selection, Convenience, Technology, Bank Charge and Employee Behavior

The Curious Case of Ribā’s Muted Role in Bank Selection Criteria Among Muslims in Klang Valley, Malaysia

Purpose – Arguably, the most significant difference between conventional and Islamic banking is the prohibition of ribā (interest)—besides gharar (uncertainty) and maysir (speculation). Naturally, it is questioned whether ribā is the make-or-break selection criterion for Islamic banking customers in Malaysia. Consequently, this study examined the moderating effect of ribā knowledge on the nexus between the already widely researched bank selection criteria (i.e., service quality, corporate reputation, cost and benefits, and technology) and bank selection among Malaysian Muslims. Design/Methodology/Approach – This research is quantitative, cross-sectional and non-experimental. It uses structured questionnaires to acquire and understand bank selection criteria and the moderation effect of ribā among Malaysian Muslims. The sample comprised 244 Muslim customers with loan/financing accounts in banks in Klang Valley, Malaysia. This study uses exploratory factor analysis and structural model analysis for data analysis. Findings – The findings reveal three criteria—notably, corporate reputation, cost and benefits, and technology—that exhibit a significant correlation with bank selection. Despite the strong injunctions against ribā, it failed to moderate the relationship between bank selection criteria and bank selection. Additionally, the subsequent importance-performance test indicates that ribā knowledge holds lower significance compared to the three significant criteria. Therefore, the authors believe there is a strong possibility that Malaysian Muslims, specifically in Klang Valley, may not factor the prohibition of ribā into their banking selection decisions. Research Limitations/Implications – The items measured for knowledge of ribā have not been widely tested and are not designed to assess the level of religiosity of the respondents nor the awareness of Islamic law behind the prohibition of ribā. Nevertheless, this paper provides insight into the level of knowledge about ribā among Muslims in Klang Valley, Malaysia and its possible moderating effect on bank selection. Future research could extend this work and examine the knowledge of ribā with respect to the level of respondents’ religiosity and/or the awareness of Islamic law behind the prohibition of ribā. Practical Implications – Religious authorities, non-government organisations and Islamic banks could leverage these insights by uplifting and broadening public education, especially for the Muslim community, on the actual meaning of ribā and its implications in their lives and the hereafter. Originality/Value – The lack of studies focusing on the subject of ribā, its practice in conventional banking, and its prohibition in Islamic banking has often been overshadowed by research studies on adoptions and perceptions of Islamic banking and finance, which may have led to the negligence of its importance in choosing Islamic banking over conventional banking among Muslims in Malaysia.

Demographic factors and customers’ bank choice criteria

Abstract The main objective of the presented research is to verify the influence of demographic factors on retail customers’ bank selection criteria in Poland. We compiled descriptive and inferential statistics and did factor analysis using Principal Component Analysis. Our dataset is based on a sample of 515 questionnaires that were gathered in the first quarter of 2022. The results proved that there are significant differences among various groups of respondents and their bank selection criteria. The highest number of differences appear in the case of demographic factors of age, and then income and gender. In general, the most important factors are the cost of service and mobile and online banking. The study has direct implications for all types of banks that operate in developing markets, especially in East-Central Europe, as having this knowledge can help to appropriately target customers using bank selection criteria that are valued by different groups of customers.

Factors Determining the Bank Selection Criteria of Consumers: A Banking Customers Survey

The Indian banks are laying the groundwork for financial inclusion or opening financial services to everyone. Banks are working as a pillar for sustainable growth due to the expanding economy. The ability of banks to draw in and keep customers these days is a challenge. Due to the proliferation of financial institutions, customers now have many options. They are worried about the worth of their goods and services. It identifies those criteria that have grown to be essential in influencing the decision. The results demonstrate that accessibility, which includes ATM availability, convenient ATM locations, round-the-clock ATM service, and quick ATM transactions, is a crucial selection consideration. Additional elements, such as dependability, responsiveness, value-added service, convenience, and assurance, have also gained significance. Many aspects, including reputation, technology, branch accessibility, appearance, word-of-mouth, customer services, price, and facilities, were found using exploratory factor analysis. The customers carefully considered these considerations, putting the criteria for choosing a bank first. The sample size of the study was 187 respondents. The data analysis was performed with the help of t-test and mean.

Islamic bank selection criteria in Morocco: The innovation diffusion theory perspective

Islamic bank selection criteria in Morocco: The innovation diffusion theory perspective

Islamic bank selection criteria in Morocco: The innovation diffusion theory perspective

Islamic bank selection criteria in Morocco: The innovation diffusion theory perspective

The determinants of bank selection criteria of SMEs: a fuzzy analytic hierarchy approach

PurposeSmall and medium enterprises (SMEs) have been reported as a credit-constrained sector in the earlier literature. Amidst the available external financing options, SMEs are dependent upon banks for their financial needs, hence they offer an important profitable segment for banks. Commercial banks need to develop effective targeting strategies for this segment and ranking the priorities of SMEs in selecting commercial banks will be of great help to them. The purpose of this paper is to implement a fuzzy analytic hierarchy process (FAHP) multi-criteria decision model for commercial bank’s selection by SMEs.Design/methodology/approachThe research process was carried out in two phases. In Phase I, a self-structured scale was developed to measure bank selection criteria of SMEs after an extensive review of the literature of relevant studies on the topic. A sample of 600 SMEs was selected through non-proportionate quota sampling and only 313 valid responses were received. Phase II was conducted to prioritize the extracted factors through FAHP, a multi-criteria decision-making technique. For this purpose, another questionnaire was designed in the form of pair-wise evaluation and the response was taken on the same from those 313 SMEs again.FindingsThe results showed that SMEs bank selection criteria can be categorized under six heads, namely, bank attributes, accommodation of credit needs (AC), bank personnel, financial factors (FF), service quality (SQ) and business knowledge. The research study produced a reliable and valid instrument for studying the bank selection criteria of SMEs. The results further revealed that AC is the most important factor considered by SMEs followed by FF and SQ. Going further, global weights were also calculated through the FAHP which revealed that the most important consideration (variable) viewed upon by SMEs is willingness to accommodate credit needs followed by flexible collateral requirements and absence of hidden charges.Research limitations/implicationsThe results of the present study offer significant insights as to the factors SMEs consider while making a bank selection decision. It is of utmost importance for banks to identify true determinant factors used by SMEs while making bank choice decisions as they offer ample profit and revenue opportunities to banks. The results of the study provide a practical approach to banks that would help them in framing strategies for SMEs customers.Originality/valueThis is the first study of its kind which has not only focused on the hierarchy of factors measuring bank selection criteria of SMEs rather on the hierarchy of single variables also through the calculation of global weights. As banks cannot focus on all the dimensions of the criteria, they can focus on the spirit of that particular criteria.

Banking Services and Customers Bank Selection Criteria (Evidence from Ethiopian Commercial Banks in Addis Ababa)

To design a suitable marketing strategy to keep existing customers and for attracting new ones, commercial banks need to identify the criteria on which customers determine their bank choice decision. Hence, the purpose of this study is to examine the significance of bank selection criteria and how customers rank the factors based on their importance level to prioritize banks and banking services. It also intends to present an analysis of gender differences on the relative importance of choice criteria in respect of selecting a bank and to bring about the opinion of customers on any extra services needed to be offered by banks. Both quantitative and qualitative methodologies are used, Based on responses given by 201 customers in Addis Ababa city from different occupations (students, employees, and businessmen), is employed in the analysis. A non-probability convenience sampling was also used. The finding from this study reveals that there are two most important bank selection criteria for customers are "convenience" and "service provision" for the entire customers while it is "bank's image" is the second most important factor for male customers. On the other hand, the least two important factors of bank selection for customers are "financial benefits/ technology", "reputation" and "promotion strategy" and "attractiveness” for female customers. Finally, it is recommended that hierarchical information integration is a potentially useful method for bank managers to study complex decision-making problems such as bank choice. Keywords: Bank selection criteria, Customers, Banks, and Banking service. DOI: 10.7176/JMCR/83-03 Publication date: December 31 st 2021

Islamic Banking Products: Home Country Bias and Majority Out-Group Consumption

This study provides an overview of the incentives for Muslims and non-Muslims to adopt Islamic Banking (IB) products in non-Muslim developing country. Data is collected from a sample of 1,128 Mauritians. Religion is found to have a significant influence on the intention to adopt IB products. Our results support the prediction of the theory of reasoned action as an individual is more likely to adopt IB product if he/she understands the relevant concepts and terminologies. The adoption of IB products for Muslim customers is significantly associated with bank selection criteria. Further, we provide evidence of a home country bias related to a set of financial products, as well as tactics successful in overcoming the costs of the liability of foreignness in incentivizing cultural “out-groups” to adopt IB products. Our study contributes to the literature on the motivation of individuals to adopt IB products, which is highly relevant for Islamic banks worldwide that seek to offer similar products and attract new customers. We provide implications for bank marketing managers facing the challenge of increasing adoption of new financial services and products in markets where customers may not be aware of the associated benefits due to cultural, religious, or ethnic barriers.

Selection Criteria for Conventional and Islamic Banks: An Empirical Analysis

The current study investigates the bank selection criteria used by the customers of both the conventional and Islamic banks of Pakistan. From six different cities, a sample of 1000 customers was selected in order to find out the factors influencing their selection of a bank. The results showed that “Security of Money” was considered as the most important factor in the selection of banks, both by the customers of conventional and Islamic banks. The results also revealed that the customers of Islamic banks ranked “Competence of Staff”, “Online Banking Facility”, and “Confidentiality of Information” as the second, third and fourth most important factors in the selection of their respective banks. On the other hand, the customers of conventional banks emphasized “Availability of ATM Machines”, “Quick Service”, and “Friendly Behavior of Staff” as the second, third and fourth most important factors in bank selection. Further, the customers of Islamic banks ranked “Shari’ah Compliance” as the seventh most important factor, while the customers of conventional banks ranked it as the twentieth important factor out of the total twenty-five factors. Thus, to retain the existing customers and to attract new ones, both Islamic and conventional banks need to focus on customer preferences when offering their products.

Selection Criteria for Conventional and Islamic Banks: An Empirical Analysis

The current study investigates the bank selection criteria used by the customers of both the conventional and Islamic banks of Pakistan. From six different cities, a sample of 1000 customers was selected in order to find out the factors influencing their selection of a bank. The results showed that “Security of Money” was considered as the most important factor in the selection of banks, both by the customers of conventional and Islamic banks. The results also revealed that the customers of Islamic banks ranked “Competence of Staff”, “Online Banking Facility”, and “Confidentiality of Information” as the second, third and fourth most important factors in the selection of their respective banks. On the other hand, the customers of conventional banks emphasized “Availability of ATM Machines”, “Quick Service”, and “Friendly Behavior of Staff” as the second, third and fourth most important factors in bank selection. Further, the customers of Islamic banks ranked “Shari’ah Compliance” as the seventh most important factor, while the customers of conventional banks ranked it as the twentieth important factor out of the total twenty-five factors. Thus, to retain the existing customers and to attract new ones, both Islamic and conventional banks need to focus on customer preferences when offering their products.

AN ANALYSIS OF PUBLIC PERCEPTION OF ISLAMIC BANKING IN THE GAMBIA

Modern Islamic finance has grown from a mere complement to conventional finance into a more viable and competitive form of financial intermediation in the world. It has received remarkable patronage from many Muslim majority countries since the advent in 1963. The Gambia is a Muslim majority West African nation where Islamic banking began in the country since 1997. However, the patronage of Islamic banking in the Gambia is quite insignificant compared to many Muslim countries. Hence, this paper seeks to analyze the perception of the Gambian public towards Islamic banking. A sample size of 459 respondents collected through questionnaire survey was used to collect the research data and the methodology adopted was quantitative with descriptive-cum-exploratory research design. SPSS version 25 and Microsoft Excel 2010 were used to analyze the data. Findings indicated that the perception of the Gambian public towards Islamic banking is generally positive and awareness about the existence of Islamic banking was high. However, knowledge about Islamic banking principles and understanding of Islamic banking products and operations were quite poor. Results also suggest that the Gambian public is willing to patronize Islamic banking, however, religion although important, but it is not the main patronage factor for Islamic banking in the Gambia. Results of Multiple Regression indicated that two of the independent variables namely, awareness and understanding of Islamic banking principles and products were not statistically significant in influencing public perception of Islamic banking while independent variables such as bank selection criteria and willingness to patronize were statistically significant.

Bank Selection for SMEs: An Emirati Student Perspective

The focus of this research is to identify the factors that influence bank selection attitude amongst student entrepreneurs seeking financial support for their prospective business. The data generated from this study will not only apprise nascent Emirati entrepreneurs’ perspective but also emphasize the role of the banking industry, in particular the UAE Islamic Banks, in the development and growth of national SME sector. The target population size is set as 500 Emirati graduating students and the target sample size is set as 410. Descriptive Statistics, Test of Reliability and Factor Analysis methods are applied to the collected data to check the reliability and validity of the model. Statistical tools such as Multiple Regression and ANOVA are then applied to analyze the data. The study findings explore factors that impact the expectations of prospective Emirati entrepreneurs and their bank selection criteria. Additionally, the findings identify significant factors that UAE Islamic Banks can utilize to update their strategies towards attracting prospective customers and increasing their client base by adopting innovative small and medium enterprise (SME) financial solutions for the emerging Emirati entrepreneurs.

Bank Selection Criteria and Performance of Public and Private Banks of Sri Lanka: A Comparative Study

Financial deregulation and technological advancement have led the sri lankan banking industry to highly competitive environment. In sri lanka, the competition is not only among the local banks, but also from foreign banks. To stay competitive and strong, a bank’s customer retention is crucial. In this context banking institutions would like to know how the customers select their bank and how they perceive the performance of banks in such competitive environment. The researcher selected sample of 468 banking customers from public and private banks of sri lanka. Responses were analyzed and presented through descriptive, correlation and regression analysis. The findings showed that the security and service quality were the two most crucial factors when selecting a bank in sri lanka. Significant gender and education level factors in bank selection were observed. Study concludes that sri lankan private banks perform better on those factors than the public banks in sri lanka.

Determination of Bank Selection Criteria in Foreign Trade Transactions

Günümüzde işletmeler uluslararası pazarlara açılma noktasında güçlü bir finansal altyapı tesis etmek durumundadır. Bu çerçevede başta bankalar tarafından arz edilen kaynaklar olmak üzere çeşitli finansal desteklere ihtiyaç duyulmaktadır. Ancak finansal ihtiyaçlar sonrasında alınan yanlış bir aksiyon ve işletmelerin kendi yapısına uygun olmayan banka tercihi, işletmeleri finansal bir çıkmaza sürükleyebilmektedir. Dolayısıyla bu çalışmada Türkiye’de dış ticaret faaliyetinde bulunan işletmelerin banka tercihlerinde etkili olan kriterlerin ortaya çıkarılması amaçlanmaktadır. Uzman kişilerle yapılan derinlemesine görüşme ve literatür taraması yöntemlerinin sonucunda elde edilen kriterler Analitik Ağ Süreci (AAS) analizi ile incelenerek önem derecelerine göre sıralanmıştır. Çalışmanın sonunda işletmelerin banka seçimlerini etkileyen en önemli kriterlerin faiz oranları, vade seçenekleri, personel tutum/davranışları, güvenilirlik ve banka itibarı/imajı olduğu belirlenmiştir.

Bank selection criteria when borrowing a personal loan

In 2018 there was an increase in the number of people who borrowed personal loans, in both the European Union and Hungary. In Hungary, personal loans increased hugely by 48%. We conducted a non-representative survey. We wanted to determine those bank selection criteria that influence our decision on which particular bank we choose to borrow a personal loan. This information will help us to understand the customers better and let the banks provide a better service tailored to their needs.
 Keywords: private loan, personal loan, bank selection criteria

Islamic bank selection criteria in Nigeria: a model development

PurposeThe purpose of this study is to develop a model for the study of Islamic bank choice and to test the significant importance of the constructs that influence bank customers to choose Islamic bank in a pluralistic-secular nation.Design/methodology/approachTotal of 348 conventional and Islamic bank customers were sampled. Five-point Likert-type question containing 27 bank selection items was used in collecting primary data. Cronbach’s alpha, composite reliability and average variance extracted are used to test the reliability and validity of the instrument. Also various descriptive statistics, exploratory factor analysis and one sample T-test are equally used in analyzing the work.FindingsExploratory factor analysis identified four factors. They are Islamic ethics, convenience, Islamic bank services awareness and physical evidence. Furthermore, the factors that show significant importance in the choice of Islamic banking are Islamic ethics and Islamic bank services awareness. The result equally shows that people are aware of Islamic banking.Practical implicationsThis study provides insight on the factors that influence the selection of Islamic banking, an innovative banking concept. This study has obvious management and theory implications. Also, the study will assist the bank managers in developing effective marketing strategy to increase the market share.Originality/valueThis study reports Islamic banking selection criteria in a pluralistic-secular Nation. The study also developed a model that can be used in studying the choice of Islamic bank in special type of environment. Thus, Islamic banking is a new reality in the Nigerian financial scene.