Factors Influencing Customers’ Choice of Retail Banking Services in Zambia: A Case of Lusaka

Abstract

The main aim of this research was to assess factors influencing customers’ choice of retail banking services in Zambia. The study applied descriptive quantitative research design. The population consisted of 2 million people with bank accounts in Zambia. Using Tronchim (2007) formula, a sample of 400 was calculated and further adjusted for 10% non-response rate which then brought it to 440. The data was collected through a questionnaire developed by the researcher and Statistical Package for Social Sciences (SPSS) and Microsoft Excel were used to analyse the data. The research found that personal factors, technological/accessibility, financial factors, bank image and reputation factors and speed and service quality as the main factors influencing customers’ choice of retail banking services in Zambia. Furthermore, the correlations analysis found that personal factors (r = 0.728 and p< 0.05), technological/accessibility (r = 0.771 and p< 0.05), financial factors (r = 0.678 and p< 0.05), bank image and reputation factors (r = 0.824 and p< 0.05) and speed and service quality (r = 0.715 and p< 0.05) have a significant positive correlation with customer’s choice of retail banking services. The research recommends banks to offer customers what they see as value: the same product – but with additional value, track customer interactions; make it easy to report problems and build up a positive corporate branding or image: customers in the banking industry nowadays have several options.