Bank Selection Criteria Employed by Customers in Labuan: A Study

Banks, which aim to attract a vibrant segment of competitive market, must identify the criteria based on which potential customers determine their bank selection decision. The study focuses on examining the bank selection criteria preferred by Labuanese. Seven parameters, viz., image, services offered, influences, incentives, security, conveniences, and the advancement of technology, were chosen to investigate the customers’ attitude towards selecting banks. A total of 200 questionnaires were distributed; however, only 185 questionnaires were returned (54% male and 46% female) which served as the sample for the study. Respondents were selected randomly; however, care was taken to choose only those who were working or had their own income, as they were believed to possess the purchasing power to be in need of bank transaction. The study shows that Labuanese preferred banks that could offer and promise efficiency, and a wide range of services, including Automated Teller Machines (ATMs). They also gave preference to banks that were strictly regulated by the central bank and financially stable with a strong brand name.