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What Determines Customers' Choice of a Bank? Evidence from Sokoto-

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Journal of Banking and Finance Management
Volume 1, Issue 1, 2018, PP 61-69

What Determines Customers’ Choice of a Bank? Evidence from

Sokoto-Nigeria
Haruna Mohammed Aliero, Ibrahim Hussaini Aliero, Sulaiman Zakariyya’u
Department of Economics, Usmanu Danfodiyo Unoiversity Sokoto-Nigeria
*Corresponding Author: Haruna Mohammed Aliero, Department of Economics,Usmanu Danfodiyo
Unoiversity Sokoto-Nigeriae-mail: harliero66@yahoo.com

ABSTRACT
This study is conducted to examine the factors that determine the choice of a bank by its customers. In
achieving this objective the study collected primary data through the use of structured questionnaire from the
Usmanu Danfodiyo Uiniversity Sokoto, using a sample of 350 respondents. The respondents were drawn from
staff, students and business operators within the community. The data collected was analyzed using logistic
regression model. The results of the study indicated that low interest rate, speed of service, easy way of
obtaining loan, higher interest on deposit were found to have positive and significant influence in choosing a
bank by the customer. Consequently the study suggested that banks wishing to establish branches in the
community or even those already existing should take into cognizance these factors in marketing their
services.

INTRODUCTION providers of financial services. The relevant

literature indicates that a great deal of research
Managing and monitoring the quality of effort has been expended to investigate bank
customers’ experiences with a bank continue to selection criteria for broad categories of
grow in importance. With every passing day, as
customers suggest that in a global climate
the financial knowledge of customers increase, characterized by financial apprehension after the
their choices for banking products and services
shock of the global financial melt-down, banks
also proliferate, and their tolerance for inferior would have to pay the most critical attention to
experiences diminishes. Customers are
their varied customer audiences in order to
presumed to be one of the most important rebuild trust and foster new customer loyalty
stakeholders in any business organization bonds.
because without them, business organizations
are not likely to succeed. Hence, marketers A number of studies have been carried out to
emphasize on research in the area of consumer analyze the factors that affect customers’
behavior and particularly behavioral intention. preference in banking services. Among these
Knowledge of consumer behavior will go a long studies include Mokhlis et al. (2008) who
way in ensuring effective marketing policies examined the determinants of bank selection
towards the interest of customers which will criterion in Malaysia considering undergraduate
eventually facilitates positive customer attitude students; while Mokhlis (2009) attempted to
towards the organizations. More especially, analyze gender-based choice decisions.
since customer behavioral intention is a strong Correspondingly, in Bahrain Almossawi (2001),
indication of his actual behavior, therefore, undertook a similar study of college students
exploring such information will assist banks to while in Greek Mylonakis (2009), carried out a
recognize the appropriate marketing strategies research of customer preferences in the home
needed to attract new customers and retain loans market. In Europe also similar studies
existing ones (Kaynak and Kucukemiroglu, were conducted such as Cici et al (2004) in
Odabasi, 1991). With growing competitiveness Bosnia & Herzegovina, Mylonakis (2009) in
in the banking industry, and similarity of Greek. In Africa on the other hand, Blankson et
services offered by banks (Holstius and Kaynak, al (2009) conducted similar study in Ghana,
1995), it has become increasingly important that while Omar (2007) and Maiyaki (2011) both
banks identify the factors that determine the conducted their studies in Nigeria. However, in
basis upon which customers choose between Nigeria, most of the studies conducted were

Journal of Banking and Finance Management V1●I1●2018 61

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
carried out in the major cities/commercial seventh, eighth and ninth, respectively, did not
centers of the country. For example, Omar play significant roles in influencing their
(2007) used Abuja as the study area where most decision in selecting the bank. Similarly
of the banks have their head offices while Phuong and Har (2000) also studied
Aregbeyen, (2011) studied major commercial undergraduates’ bank selection preferences, who
centers in each geo-political zone of the country. used nine criteria for bank selection decision
However, it is not known whether customers in and five banks were identified, and the decision
Sokoto choose bank based on same or different problem is structured into a three-level
criteria. It is on this background that this study hierarchy using the Analytic Hierarchy Process
is intended to investigate the determinants of (AHP). The findings of this study indicate that
customers’ bank selection in the Usmanu undergraduates place high emphasis on the
Danfodiyo University Sokoto Nigeria. In pricing and product dimensions of bank
achieving this objective the paper is divided into services.
five sections beginning with this introduction.
In their article about American university
Section two is the review of related literature,
students, Khazeh and Decker (1992-93)
section three is the methodology, section four is
investigated the consumers decision-making
the result and discussion while section five
criteria in the United States of America (USA),
concludes the paper.
considering the degree of differences among
LITERATURE REVIEW banks with respect to these criteria and found
that service-charge policy, reputation,
Various empirical researches using different
competitiveness of loan rates, time required for
methodologies and approaches have been loan approval and friendliness of tellers, are the
conducted in various parts of the world to most important factors in explaining how
investigate the bank selection criteria of the customers choose banks. In contrast, availability
customers. Most of these studies examined the
of financial advice was among the lowest
question of why people prefer a specific bank ranking determinant attributes. Edris and
among other banks. For example, Kamakodi and
Almahmeed (1997) examine various tools of
Khan (2008) investigate the banking habits and segmentation analysis for bank marketing
preferences of the Indian customers in the strategies. This was aimed to identify the
context of India. The top ten factors of
relative importance of banking services to
importance influencing respondents bank business customers’ needs, and to find out the
selection were safety of funds, secured ATMS true determinants of bank selection decisions.
and their availability, reputation of bank, Profile analysis results revealed that Kuwaiti,
personal attention, pleasing manners of the staff,
non‐Kuwaiti, and joint business firms are
confidentiality, closeness to work, timely
significantly different in their perceptions of the
service and friendly staff willing to work.
relative importance of many services offered by
However, availability of technology based
Kuwaiti banks. Edris and Almahmeed (1997)
services is found to be a major reason for clients
posits that the true determinants of bank
switching behavior of bank clients.
selection decisions made by business customers
Mokhlis et al (2008) analyzed the factors are more likely to be a function of both the
considered important by undergraduates in perceived importance of bank attributes and the
Malaysia in selecting a bank and examined differences among banks in a given region with
whether undergraduates constitute a regard to each of these attributes. They
homogeneous group in relation to the way they therefore, demonstrates by multiple discriminant
select a bank. Results of the factor analysis for analysis that “group membership” of business
the total sample indicate that the bank selection customer segments with different nationalities
decision is based primarily on nine selection can be predicted on the basis of the determinants
criteria. Secured feeling was the most important of bank selection decisions
factor in influencing the students in selecting a
Yiu et al. (2007) studied the adoption of Internet
bank. ATM service was the second prioritized
Banking by retail customers in Hong Kong. The
factor followed by financial benefits. The next
paper attempts to make sense of Internet
three criteria, ranked fourth, fifth and sixth,
Banking in Hong Kong from three angles: (i)
respectively, were service provision, proximity
the current adoption rate of Internet Banking;
and branch location that can be grouped as
(ii) the influences of perceived usefulness,
moderate factors. By contrast, the students
perceived ease of use, perceived risk and
considered non-people influential, attractiveness
personal innovativeness in information
and people influences which were ranked

62 Journal of Banking and Finance Management V1●I1●2018

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
technology and (iii) the potential impacts on the decision among undergraduate students and seek
strategic activity of banking organisations to determine how homogeneous undergraduates
operating in the Hong Kong market. The are in relation to their selection decision. Seven
research constructs were developed based on the bank selection dimensions were identified, the
Technology Acceptance Model and most important being undergraduates should
incorporated two additional elements of feel secure, while the least important dimension
personal innovativeness and perceived risk. was third party influences. Responses between
Hypotheses were constructed and then tested those attending engineering courses and non-
using t-test and Pearson's correlation. It was engineering courses were compared, as were
found that certain factors did have a positive those between males and females and single and
relationship with the adoption of Internet multiple bank users. More significant
Banking and as such strategy in the banking differences were found when engineering
services sector can be refined to better meet the undergraduates were compared with non-
demands and profile of the Hong Kong market. engineering undergraduates.
In the same vein, Devlin (2002) conducted a Almossawi (2001) conducted a study in Bahrain
study on customer choice criteria in the retail to examine the bank selection criteria employed
banking market in the UK. Specifically, he by college students. He found that the key
investigated potential variations in the factors determining college students’ bank
importance of various choice criteria, which selection were: bank’s reputation, availability of
were classified as either intrinsic or extrinsic in parking space near the bank, friendliness of
order to aid analysis with respect to customer bank personnel and availability and location of
financial knowledge. A database of 6700 automated teller machines (ATM) in that order.
respondents collected by a commercial Jantan et al. (1998) carried out a study to
organization was used in the analysis. The determine the bank image dimension which
results suggest that all customers rely primarily retail customers perceived as pertinent to their
upon extrinsic choice criteria when choosing a selection decision, giving emphasis to the choice
retail banking service. In addition, low financial between foreign and local bank and the
knowledge is associated with a propensity to demographic variations in patronage situation.
choose a bank purely on location or by Their findings revealed some insights on the
recommendation and, whilst such factors are criteria that are important to patronage decision
also important to higher financial knowledge of banks. Out of the five criteria, efficiency and
groups, higher knowledge groups are more range of service emerged as significant factors
likely to take account of intrinsic attributes such in determining the banking choice. Inefficiency
as service features, rate of return and low fees in and low quality of service, which generally
their choice. depict the lack of credibility in bank, are by and
large the main causes of customer
In South Africa, Chigamba and Fatoki (2011)
dissatisfaction which may affect the customer’s
investigate the determinants of the choice of
choice of banks. They may even jeopardize the
commercial banks by University students. The
chances of consumers perpetuating their
results showed that six factors are important
patronage with bank showing such weaknesses.
determinants of the choice of commercial banks.
Vasanthakumari and Rani (2011) investigate the Also, Mokhlis et al (2009) study the selection
banking behavior of retail banking customers in criteria employed by single and multiple bank
Chennai. The authors conducted a users and to see if certain personal
comprehensive profile analysis using ANOVA, t characteristics can be used to differentiate these
test and factor analysis to analyze the banking two segments. The study chose to sample a
behaviors of retail banking customers. First, specific consumer segment in Malaysia, namely
most of the customers fall in the age group of the young-adults, which have not been given
18-30 years and they are highly educated and enough attention in the literature. Selection
have durable relationship with the banks. Age factors of which both single and multiple bank
and income of the respondents were found to users had variation were attractiveness, branch
have a significant influence in the customer location, ATM service, financial benefits and
selection preference of a bank while gender does secure feeling. Multiple-bankers appear to place
not have any influence. significantly more importance to all these
factors. Female customers engage in multiple
In the same vein, Gerrard and Cunningham
banking significantly more than their male
(2001) investigate the ranking of various
counterparts.
dimensions which influence bank selection

Journal of Banking and Finance Management V1●I1●2018 63

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
In Iran Hedayatnia and Kamran (2011) examine selection required by its customer and also
the bank selection criteria being employed by meeting up the level of service quality
bank customers. A total of 798 customers (55.7 demanded by its customer, the more satisfied
percent male and 44.3 percent female) served as the customer will be. Similarly, Rashid et al
a sample for the study. Findings show that the (2009) examined the quality of perception of
important factors determining customers' customers’ towards domestic Islamic banks in
selection are: quality of services and new Bangladesh. The study revealed alongside
banking methods, innovation and religion, factors like depositors' desire to
responsiveness of bank, friendliness of staff and achieve highest return, convenient financial
confidence in manager, price and cost, staff transactions system, consistency in service with
attitudes and convenience of bank location and uniformity, and higher cost-benefit implications
services. Similarly, a study by Javalgi et al were substantial to clients for choosing their
(1989) found that monetary factors are the main intended service. In another study Safakli (2007)
criteria in customers' bank selection decisions. also found that that the chief factors determining
Results of this study show that financial factors customers’ bank selection are: Service Quality
such as interest on savings accounts, safety of and Efficiency, Bank Image, Convenient
fund, and availability of loans have high scores. Location and Parking facilities. In Nigeria, a
Other important factors were found to be study conducted by Adeoye and Olukemi (2012)
convenient location and bank's reputation. shows that customers enjoying electronic
banking services are still not satisfied with the
According to Boyd et al. (1994), the main
quality and efficiency of the services. This is
factors that determine young (under 21 years)
expressed in the number of times customers
customer bank selection were; bank’s
physically visit banks and length of time spent
reputation, location, hours of operation, interest
before such services are received.
on saving accounts and provision of convenient.
Less important factors were the friendliness of Blankson et al. (2009) studied retail bank
bank employees and the modern nature of their selection in developed and underdeveloped
facilities. Haron et al (1994) conduct a study in countries (United States and Ghana). It is a
Malaysia, to determine the bank selection comparative cross-national study aimed at
criteria and found that fast and efficient service, revealing the factors determining retail bank
speedy transactions, friendliness of bank selection among students in different
personnel and confidentiality of bank were the environmental settings. A similar data-collection
four most important factors by Muslim method was employed in both the United States
customers. On the contrary, non-Muslim and Ghana to facilitate constructive comparison.
customers’ foremost important factors were The results identified four key factors such as
friendliness of bank personnel, fast and efficient convenience, competence, recommendation by
service, reputation and image of bank and speed parents, and free banking and/or no bank
of transactions. Also in Malaysia Saleh et al charges to be consistent across the two
(2013) studied the most important factors economies.
influencing customers in selecting a bank. The
Also in Nigeria, Aregbeyen (2011) investigated
finding shows that the accessibility is a
the determinants of banks selection criteria by
significant choice criterion, which includes
banking and business customers in Nigeria. The
ATM facility, convenient ATM locations, 24
findings of the study reveal that the safety of
hours availability of ATM services and speedy
funds and the availability of technology based
service. Other factors, which have also
service(s) are the major reasons for customers’
increased in importance, are the Reliability,
choice of banks. In specific terms, the identified
Responsiveness, Value added service,
safety of funds, quick/prompt service, minimum
Convenience and Assurance.
waiting time, good complaint handling,
Hin et al (2011) examines the relationship reputation or dependability, many branch
between bank selection criteria and service banking, innovative products and services,
quality with regards to the level of student’s low/reasonable service-charge, and friendly
satisfaction. The findings reveal that both bank manners of staff as the major factors in a bank
selection criteria and service quality are vital selection by the sampled respondents. The
factors that determine the level of student’s number of branches, closeness to home/work
satisfaction towards a banking institution. place etc., transactions alert and regular
Specifically, this study illustrate that the more communication with customers, availability of
the bank are able to achieve the criteria of bank functional and secured ATMs all times, and

64 Journal of Banking and Finance Management V1●I1●2018

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
connectivity to other bank's ATMs are also selection” it was discovered that customers
considered to be one of the important choice highly regard with low service charge and
determinants. While all the other factors availability of ATM services to be the most
received less rating, however, this does not in important criteria in patronizing banks. The
any way imply that they are not important at all. findings of this study are different from all other
studies surveyed so far, in which, low service
In South Africa Coetzee et al. (2012) revealed
charge is the most important factor for bank
that the most important bank selection criteria
selection decision. His findings also revealed
were found to relate to the perceived image,
that safety of funds, speed of transaction and
reputation, and service quality of the bank. In
convenient location are also treated as the most
particular, service quality was found to be
important factors in patronizing banking
important for all the market segments identified.
services in Gambia.
Relatively speaking, pricing factors were
deemed unimportant for the respondents, which Aish et al. (2003) compared the bank selection
are explained by the majority of respondents decisions of the small business market across
being elderly. Similarly, Rehman and Ahmed UK and Egypt. The results reported show
(2008) analyzed the major determinants of a various similarities and provide evidence to
bank selection by a customer in the banking suggest that brand plays major role in the bank
industry of Pakistan. It is based on a survey of selection decisions of the small businesses at
358 customers of private, privatized and both UK and Egypt .The study reinforces the
nationalized banks located in the city of Lahore opinion that technical quality (quality of service
(Pakistan). The findings of the study reveal that itself) is more important than functional quality
the most important variables influencing (quality of the service provider) in bank
customer choice are customer services, selection decisions. More specifically both
convenience, online banking facilities and Egyptian and UK small business customers
overall bank environment. consider financial items (fees, interest rates and
credit availability) as the most important factors
Mokhlis et al (2010) empirically investigates
in bank selection decisions.
variation in bank choice criteria between three
distinct cultural groups in Malaysia, namely Beckett et al. (2000) draw tentative conclusions
Malays, Chinese and Indians. The authors as to why consumers appear to remain loyal to
predicted that, due to differences in values and the same financial provider, even though, in
lifestyles of the three ethnic groups, cultural many instances, they hold less favorable views
differences would be observed in the level of toward their service providers. For example,
important members of each group attached to consumers appear to perceive little
specific bank choice criteria. A quantitative differentiation between financial providers.
methodology, using responses given by 482 They may be motivated by convenience or
Malaysia's undergraduates, is employed in the inertia. Finally, many consumers associate high
analysis. The results of this comparative switching costs in terms of the potential
analysis indicate that there is a difference in sacrifice and effort involved with changing
bank choice criteria based on ethnic banks.
backgrounds.
Aamir and Mubeen (2012) conduct a study to
Torres and Pere (2006) investigate the factors identify the factors that influence the bank
that determine the choice of banking selection decision of the undergraduate students.
organization in Spain. The results indicate that Ten factors were studied in this research to find
the dimension of the network of branches is the out what are the most important factors that
reason more valued. In spite of the increasing influence the student bank selection decision.
symmetry of the Spanish banking market, the Binary logistic regression, t-test and Man-
preferences of the clients of the savings banks Whitney test were used to analyze the data. The
and those of the banks are not absolutely study shows that the factors that have significant
coincident, being the proximity - the main effect on the bank selection decision of
reason for selection- much more valued by the undergraduate students are; Marketing, People
former than by the latter. The existence of influence, Bank personnel and Attractiveness of
divergences in the preferences has also been the bank’s building.Maiyaki (2011) in his
detected according to the region and the survey in Nigeria obtained information about
typology of city of residence. In a study the factors determining the selection and
conducted by Sanyang (2009) in Gambia on preference of banks by retail customers. He used
“bank strategic positioning and factors for bank 417 sample bank customers using multi-stage

Journal of Banking and Finance Management V1●I1●2018 65

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
sampling procedure and found that size of bank number of branch offices around the country are
total asset, has the greatest influence on all the most important factors that Romanian
customer choice of banks, followed by people give attention to. Finally, the results of
availability of large branch network across the this study have also shown that Romanian
country, then reputation of the bank, personal people give little attention to mass media
security of customer, and then convenient access advertisement, gifts provided by banks, fast and
to bank location. On the other hand, efficient service and recommendation by other
recommendations of friends/relatives, people in their environment.
attractiveness of bank’s physical structure,
opportunity of telephone banking, availability of METHODOLOGY
assorted retail bank services and reasonable The study is a survey study which uses primary
terms of credit/loans repayment were the factors data collected from the Usmanu Danfodiyo
that have the least influence on customer choice University Sokoto-Nigeria using a structured
of banks. questionnaire. A sample of 350 respondents was
Katircioglu et al. (2011) investigate the bank randomly selected which cut across three
selection criteria in Romania, and reported that different groups, i.e University staff, students
the number of ATM (automatic teller machines) and business operators within the University.
booths” has been found to be the most important However, after the administering the
selection criteria for bank customers. The study questionnaires only 292 were returned. The
internal consistency and reliability of the survey
has also shown that providing extensive ATM
instrument was assessed, using Cronbach’s
services, availability of telephone and internet
banking, giving personal attention to customers, alpha. The data collected was sorted and coded
reputation and image of the banks, before being analyzed. In analyzing the data
confidentiality of the bank for customer records, collected the Logistic Regression Model was
used as specified below:
appearance of staff to be presentable and the
𝑆𝐵𝑆 = 𝛽0 + 𝛽1 𝑊𝐻𝐵 + 𝛽2 𝑆𝑆𝐷 + 𝛽3 𝐶𝐵𝐿 + 𝛽4 𝐸𝑂𝐿 + 𝛽5 𝐼𝐵𝐹 + 𝛽6 𝐿𝐼𝐿 + … . 𝛽24 𝑅𝐵𝑅 + 𝜇.....eq. (1)

Where: EAB = External Appearance of the

Bank
SBS = Selection of Banking Services
SOF = Safety of Fund
WHB = Working Hours of the Bank
RBF = Recommendation by Friends
SSD = Speed of Service and Decision
Making APS = Availability of Parking Space
CBL = Convenient Branch Location IVP = Innovative Product
EOL = Ease of Obtaining Loan MBF = Mobile Banking Facility
IBF = Internet/online Banking Facility RLT = Reliability
LIL = Low Interest Rate on Loan RBR = Recommendation by Relatives
BRT = Bank Reputation 𝛽𝑜 = Constant parameter
LSC = Low Service Charges 𝛽𝑠 = Coefficient of the independent
CAL = Convenient ATM Location variables

LOC = Language of Communication = Error term, which takes care of

other factors that might influence selection of
FBP = Friendliness of Bank Personnel banking services but not captured in the model.
WRP = Wide Range of Product
RESULT AND DISCUSSION
SCY = Secrecy
Influence of Banking Services on Customer
GCH = Good Complaint Handling Choice of a Bank
PIS = Paying Higher Interest Rate on This section tests the hypothesis which states:
Savings Account
H01: Bank selection factors have no significant
LPC = Low Penalty Charges influence on customers’ choice of a bank.

66 Journal of Banking and Finance Management V1●I1●2018

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
Table1. Regression Results Relating Bank Selection and Banking Services
Working hours of the bank 0.051(0.093)
Speed of the service and decision making 0.372(4.491)*
Convenient branch location 0.068(0.143)
Ease of obtaining loan 0.254(2.822)*
Internet/online banking facility -0.032(0.043)
Low interest rate on loan 0.597(14.234)***
Bank reputation 0.210(0.183)
Low service charges 0.216(2.135)
Convenient ATM location 0.102(0.364)
Language of communication -0.035(0.029)
Friendliness of bank personnel 0.237(1.772)
Wide range of products -0.010(0.003)
Secrecy -0.161(0.880)
Good complaint handling 0.204(1.419)
Paying higher interest rates on saving s account 0.297(3.737)*
Low penalty charges 0.175(1.164)
External appearance of the bank 0.134(0.573)
Safety of fund -0.287(2.050)
Recommendation by friends -0.227(1.246)
Availability of parking space 0.132(0.725)
Innovative products -0.056(0.086)
Mobile banking facility 0.002(0.000)
Reliability -0.105(0.302)
Recommendation by relative 0.106(0.298)
NagelkerkeR2 0.521
Chi2 value 145.890***
***Significant at 1%, **significant at 5%, * significant at 10%
Source: Computed by the Author from Field Survey June, 2014.
From table 1 above, the result of logistic that make the list of the least important factors
regression shows the respondents’ ranking of that negatively influence customers’ choice of a
the determinants of customers’ bank selection. bank include Internet/online banking facility -
According to the result, low interest rate on loan 0.032(0.043), Language of communication -
0.597(14.234) is the most important factor 0.035(0.029), Wide range of products -
which is highly significant at 1%. The other 0.010(0.003), Secrecy -0.161(0.880), Safety of
factors making the list of the most important fund -0.287(2.050), Recommendation by friends
factors of bank choice include Speed of services -0.227(1.246) and Innovative product -
and decision making 0.372(4.491), Ease of 0.056(0.086).
obtaining loan 0.254(2.822) and Paying higher
The coefficient of low interest rate
interest rate on savings account 0.297(3.737),
0.597(14.234) is accorded with high importance
which are all positive and significant at 10%
with regards to choice criteria of a bank, the
level of significance respectively. The second
coefficient is positive and significant at 1%
ranking of the choice criteria also include the
level. The result therefore suggests that, a unit
following: Working hours of the bank
decrease in interest rate will bring about
0.051(0.093), Convenient branch location
increase in bank selection by 0.597. Speed of
0.068(0.143), Bank reputation 0.216(2.135),
service and decision making 0.372(4.491) also
Convenient ATM location 0.102(0.364),
indicates a positive and significant influence in
Friendliness of bank personnel 0.237(1.772),
bank selection, the result shows that customers’
Good complaint handling 0.204(1.419), Low
choose the banks that are very fast in terms of
penalty charges 0.175(1.164), External
service delivery. In other words, a unit increase
appearance of the bank 0.134(0.573),
in speed of service will increase the chances of
Availability of parking space 0.132(0.725) and
bank selection. Furthermore, ease of obtaining
Mobile banking facility 0.002(0.000). These
loan also shows a positive and significant
factors influence customer choice of a bank
influence on customer choice of a bank. The
positively but they are not statistically
result suggested that easy access to loan tend to
significant they could therefore be regarded as
influence customer’s decision in choosing a
moderate variables in the ranking. The factors

Journal of Banking and Finance Management V1●I1●2018 67

What Determines Customers’ Choice of a Bank? Evidence from Sokoto-Nigeria
particular bank, therefore, the more banks make [2] Adeoye, B. and Olukemi (Mrs), L. (2012)
their loan easy and accessible the more they Customer Satisfaction and its Implications for
tend to attract new customers as well as Bank Performance in Nigeria. British Journal
maintaining the existing ones. Paying higher of Arts and Social Science, Vol.5, No.1
interest rate on savings account is another [3] Aish, E.M.A, Ennew C.T, McKechnie S.A,
variable that positively and significantly (2003) "A cross-cultural perspective on the role
influence customers’ decision to select a bank. of branding in financial services: The Small
Business Market." Journal of Marketing
Most bank customers choose to bank with the Management; Vol. 19, Pp. 1021-1042.
banks that pay higher interest rate on savings
[4] Almossawi, M. (2001) “Bank Selection Criteria
account, therefore a unit increase in interest rate
Employed by College Students in Bahrain: An
will bring about increase in bank selection. The Empirical Analysis”. International Journal of
remaining variables are those that are positive Marketing, 19(3), 115-25.
but not significant and those that are neither
[5] Aregbeyen, O. (2011) “The Determinants of
positive nor significant, that is those that Bank Selection Choice by customers. Recent
negatively influence customer’s decision to and Extensive Evidence from Nigeria”,
select bank. International Journal of Business and Social
Science Vol. 2 No. 22.
CONCLUSION AND RECOMMENDATION
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