FACTORS AFFECTING THE CHOICE OF BANKS IN BANGLADESH

With the entrance of more than 10 new banks in the last decade, the number of scheduled banks in Bangladesh now stands at 60, generating a lot of competition. Keeping in mind the importance of attracting customers in this highly competitive industry, this paper investigates the specific factors that affect the choice of banks amongst the customers in the banking industry of Bangladesh. The data was gathered through questionnaire from a sample of 254 respondents. One-Sample T-test and Independent Sample T-test were conducted for data analysis. The results of the study showed that Service Features, Security System and availability of ATM services were the top 3 factors considered by the customers in choosing a bank, while whether the bank is following any religious principle does not play any role in the choice of banks. It was also found that compared to male customers, female customers give more importance to Product Variety, Rates and Charges of the banking products and services, and Recommendation while choosing a bank. The study recommends that the banks of Bangladesh give due attention to these factors to improve their competitiveness and profitability.