Analysis of banks chosen by TUNIC students and why they chose them
Abstract
This study was focused on the identification of the banks that were preferred by TUNIC students. This study was also aimed at establishing the various reasons why TUNIC students chose these banks. It was also aimed at identifying what the preferred banks had which made them popular among these students.
- Introduction
The choices of individuals when it comes to banks are affected by different factors. These factors may be related to various services that are provided by the banks. Being that banks fall under the service industry, most elements may originate from the services offered by these banks, though it’s not a guarantee. This study, therefore, will be bringing into light these factors.
- Literature Review
Quite some studies have been done on the various criteria used by customers to choose the banks of their choice. Different factors were identified by these studies as influencers of the customers’ decisions in the selection of their preferred banks. An example is a study by (Rao, 2010) which pointed out the reliability of the banks as the main factor that was considered by the customers.
2.1 Bank Location
Other studies by other researchers placed a lot of emphasis on the importance of where the bank is located in the choice of the customers. Other factors that were identified by these studies were the fact that some employers often pay their workers through some specific banks thus contributing to these employees choosing such banks by default.
2.2 Banking Services
Studies have also identified bank services as factors with greater weight in influencing customers to select a bank. Customers preferred banks which could protect their information and keep them confidential. Banks that had many branches in different parts of the country were also favored.
2.3 Conclusion
Despite studies being keen on the identification of the factors that tend to bring influence in the selection of banks, some essential elements were left out.
- Methodology
Quantitative analysis was applied in this study and questionnaires were used to collect data. A sample of 20 students was also used. For the selected students, gender was balanced making both genders to contribute equally.
3.1 Questionnaire
The ease of structuring of questionnaires made it be selected as a data collection tool for this study. The questionnaire had both closed, and open-ended questions. The open-ended questions were used to get more profound insights into respondents. A pilot test was also conducted, and it had a total of 5 students, and random selection of respondents was even made.
3.2 Focus Group
A thirty minutes discussion was conducted in a classroom, and there were six students involved. The use of focus group gave the participants a chance to express their thoughts on the factors that influenced them in bank selection.
3.3 Limitations
Almost every study has its limitations. Lack of openness of the respondents and lack of cooperation by the respondents were the limitations for this study.
3.4 Ethical Issues
Ethics should be observed by the researcher during the study. Ethical issues in this study included; confidentiality of the information provided by the respondents, withdrawal of respondents from the study in cases of uncomfortableness, the anonymity of the respondents and the respondents’ understanding of the study.
- Findings
Banks that had a good location, i.e., within and outside the school were preferred by a good percentage of students. The main reason for this preference was time management as students did not have to spend time looking for other banks outside the school.
4.1 Questionnaire
4.1.1 Factors in bank selection
The availability of ATMs within the school was a factor that was pointed out as necessary by a more significant percentage of the respondents. Some respondents preferred. Banks that provided special accounts were also favored, only that this was done by a lesser percentage of respondents. Availability of online banking services was also noted to be a significant factor since the majority of the respondents identified this as a vital factor for their bank selection.
4.2 Focus group
Even though this study had included both open and closed-ended questions in the questionnaire, a more significant number of these questions were closed-ended thus no more profound thoughts could be got.
4.3 Conclusion
The use of both focus groups and questionnaires was effective in this study as the researcher was able to use these in the adequate collection of data.
- Discussion
There was the popularity of the banks found within or around the school among the TUNIC students. The students stated that they could access banking services from these banks easily. There was a higher rate of the popularity of the banks which had installed their ATMs within and around the school. The students preferred such banks due to the reliability whenever they needed to withdraw cash and also the security of their money since they used debit cards. Even though banks that provided special accounts were not that popular, they still managed to attract some students. Banks that offered online banking were also noticed to be very popular among the TUNIC students. The main reason was that these services could be accessed by the TUNIC students from any location. The commonalities that existed between the big banks were the factors that received a more significant number of votes from the respondents.
5.1 Limitations
The difference in the levels of degree programs done by the respondents brought an imbalance of the collected data since they had different experiences in life.
5.2 Conclusions
None of the factors were found to be of no importance in affecting TUNIC students’ bank selection process. There were different levels of contribution by these factors to the students’ decisions in the selection of banks thus it was important to consider all of these factors.
- Conclusion and Recommendations
Advancement in technology affected the operations of the banks as those banks that did not provide online banking did not receive much popularity among TUNIC students as compared to banks which provided these services. Banks need to introduce online services to their customers, and this can help in attracting more customers. Banks should be updated on their customers’ preferences and adjust accordingly to meet these preferences.
There has been an advancement in the education sector, and therefore banks should try and install their ATMs in different learning institutions to capture more customers.