Chapter 2 Literature Review

2.0 Introduction

University students consider the type of banks they preferred to apply their bank cards is a worthy concerned issue of current commercial banks. Young generation will be the fresh mainstay of society, banks get the advanced opportunity from young generation could be expected to occupy increased market share in future economic market. Therefore, it is crucial to identify the determinants effect university students when choosing banks’ provided products and services. Besides that, the criterion of banking selection is available provided as reference to present university students, as the standards of scoring the favorability of banks’ products and services. In this chapter, previous authoritative literatures’ finding will support this research to investigate the factors influence university students’ choice on bank’s debit cards selection as well as provide strong evidence in the following study.

2.1 Bank Selection Criteria

Increasing competition among commercial banks, Islamic banks and other financial institution, the attractive elements of banks which makes customers are willing to select for their financial transactions has always been the hotspot of social public and banking industry concerned. Investigation conducted in 206 individual customers’ banks selection preference in Bangladesh (Afroza Parvin and Rumana Perveen, 2012) reveals that, among the influencing factors of convenience, special service of deposit and loan transaction, online-banking, responsiveness, reliability, safety and assurance, responsiveness won the highest votes in questionnaires, from the Bangladesh customers perspective, friendly responds from employees is considered the mainly considerable factors that affect their choice of bank selection. A good service quality not only makes customers physical and mental pleasure, but also attracts customers’ understanding and interest in their banking business.

According to Saleh, Rosman and Nani’s(2013) observation of Kelantan in Malaysia, they had selected 6 independents factors in the survey, which are assurance, reliability, responsiveness, convenience, accessibility and value added services, and invited 100 respondents to choose which elements of bank’s characteristic was possible to attract customers to open accounts with happiness financial services in their banks. However, the survey results from representation of Kelantan customers consideration showed that convenience of the bank’s location and services could touch their choices compared with other 5 independent variables, besides that, in their data analysis, they also found that, the convenience of ATM distribution became the most crucial elements which can reduce the time of customers to solve their basic transactions via ATM equipment. Unfortunately, great number of merchants deemed that extra presents could add impressive points in financial services, but such action may not deeply won the customer’s loyalty.