Empirical Analysis of Factors Affecting Switching Behaviour of Banking Customers
DOI:
https://doi.org/10.7492/e0djn123Keywords:
Factors, Bank, Switching, Intentions, Customer, Behaviour, Financial, Technology, ServiceAbstract
The banking industry is witnessing a transformative era with respect to the advancement in technology as well as development of an interconnected world, playing a crucial role in changing the very existing banking perspective. As financial institutions incorporate diverse innovative methods of technology and policies in engaging with the customers, switching banks has become a crucial factor of concern for the financial institutions affecting their financial health. There exist multifaceted factors that influence in shaping the customer’s intention towards switching from one bank to another. These factors that range from technological adoption, pricing, quality of services to user convenience, perceived ease of use and customer satisfaction play pivotal role in enhancing customer loyalty which further takes part in decision-making of customers regarding staying or leaving their banks. As the banking landscape continues to evolve, understanding these factors have become crucial for developing strategic measures that help in building a transparent, empathetic, responsive, and efficient banking system facilitating towards high quality customer experience and satisfaction. By analyzing multitude of factors that play major role in determining customer’s switching intention, the study contribute towards strengthening a better financial ecosystem that work towards improving commitment and customer loyalty through a trustworthy financial ecosystem. The study had considered a sample of 263 bank customers to determine the factors that affect the switching behavior of banking customers and impact of different factors on switching behavior of banking customers. Exploratory Factor Analysis (EFA) and Multiple Regression were used to analyze the data. It was found that Service Quality, Fees and Costs, Convenience, Trust and Reputation and Product Offerings shown positively impact on switching behavior of banking customers.
The banking industry is witnessing a transformative era with respect to the advancement in technology as well as development of an interconnected world, playing a crucial role in changing the very existing banking perspective. As financial institutions incorporate diverse innovative methods of technology and policies in engaging with the customers, switching banks has become a crucial factor of concern for the financial institutions affecting their financial health. There exist multifaceted factors that influence in shaping the customer’s intention towards switching from one bank to another. These factors that range from technological adoption, pricing, quality of services to user convenience, perceived ease of use and customer satisfaction play pivotal role in enhancing customer loyalty which further takes part in decision-making of customers regarding staying or leaving their banks. As the banking landscape continues to evolve, understanding these factors have become crucial for developing strategic measures that help in building a transparent, empathetic, responsive, and efficient banking system facilitating towards high quality customer experience and satisfaction. By analyzing multitude of factors that play major role in determining customer’s switching intention, the study contribute towards strengthening a better financial ecosystem that work towards improving commitment and customer loyalty through a trustworthy financial ecosystem. The study had considered a sample of 263 bank customers to determine the factors that affect the switching behavior of banking customers and impact of different factors on switching behavior of banking customers. Exploratory Factor Analysis (EFA) and Multiple Regression were used to analyze the data. It was found that Service Quality, Fees and Costs, Convenience, Trust and Reputation and Product Offerings shown positively impact on switching behavior of banking customers.
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