Determinants of Bank Selection by Depositors Based on Consumer Behavioural Factors

Abstract

Understanding how consumer behaviour influences bank selection is crucial for banks to attract and retain depositors. By examining consumer behavioural factors, banks can customise their strategies to align more effectively with the needs and preferences of their target customers, thereby enhancing both profitability and liquidity. Hence, this research explores the specific factors that Malaysian depositors consider when choosing a bank for their banking activity. This study employs the theory of planned behaviour to determine the links between customer behavioural factors, such as attitude, subjective norms, perceived behavioural control, and bank selection intention among Malaysian depositors. The researchers disseminated 384 questionnaires to Malaysian bank customers to acquire data on depositors' bank-selection intentions. Structural equation modelling results for Malaysian depositors reveal that attitudes, subjective norms, and perceived behavioural control are significantly related to their intentions of bank choice. According to the findings of the research, it seems that customers choose their banks based on their expectations of how their savings and investments would perform. This choice is often influenced by recommendations from those closest to them, as well as the perception of convenient access to banking services and manageable account maintenance expenses. However, future research would benefit from incorporating additional factors, such as financial literacy, risk tolerance, and technological adoption, into the investigation. Analysing the impact of these factors could enrich our understanding of how they interact to shape and mediate the influence of attitude, subjective norms, and perceived behavioural control on bank selection intention.