Factors influencing bank selection for personal loans : a case study of customer behavior among working population in male' Maldives / Badhurudheen Hassan

Abstract

Purpose - This study aims to identify the factors influencing bank selection for borrowing a personal loan among the working population in Male', Maldives, Design/methodology/approach - Data were collected from 423 respondents in Male', Maldives and were analyzed using mean analysis and exploratory factor analysis to identify the most influential factors. The study also looked if there are any differences in these factors when customer demographics are compared. Findings - The study concluded that financial factors such as interest rate and fees influence most borrowers' decisions in selecting a bank. Furthermore, convenience factors such as ease of obtaining loan and faster processing adds up to these factors. The study also found that there is not much differences in these factors when demographics are compared. Originality/value - The study adds to the existing literature on consumer preferences for banks selection around the world.

Keywords Bank selection, Maldives, Consumer Behavior