Factors affecting of bank selection decisions to saving deposits by individual customers in Ben Tre province

Abstract

The purpose of this article is to determine and measure factors affecting the decision of choosing a bank for saving deposits of individual customers in Ben Tre province. With a convenient sampling of 279 customers aged between 20 and 65, the obtained data is analyzed by the Reliability Analysis, Exploratory Factor Analysis, and Binary Logistic regression analysis. The result suggests that contrary to assertions in previous studies, Bank Reputation does not impact individual customers' decisions when choosing the bank to deposit. Besides that, (1) Convenience, (2) Service quality, (3) Bank technology, (4) Financial benefits, (5) Reference groups have positive impacts on the decision of choosing a bank for saving deposits. The practical implications drawn from this study suggest that the Bank should develop business strategies appropriate to the market by providing services with more utilities based on modern systems and technology platforms. This study also separates the scale of the Bank Technology factor from the Convenience factor or Service quality factor. This reliable scale will be the standard for future studies in banking selection in Vietnam.