An Insight into Factors Influencing Bank Selection Decisions of Indian Customers

Abstract

Indian banking industry is undergoing metamorphosis in terms on adoption on technology and automation. New generation private sector banks which came into existence in the last ten years have gained a substantial market share and government owned banks are losing market share to these new banks. It is very important for the banks to understand the preferences of the customers to offer the services required both to attract new clients and protect existing client-base from migrating to other banks. A survey was conducted and results obtained from 292 clients were analysed to understand the factors that influence the bank selection decisions. The top 10 parameters based on importance are found as Safety of Funds, secured ATMs, ATMs availability, reputation, personal attention, pleasing manners, confidentiality, closeness to work, timely service and friendly staff willing to work.