Abstract:
Domestic Systematically Important Banks (DSIBs) are the pillars of the
banking sector and customer acquisition and retention are the essential
aspects of their success. Customer retention is critical for a bank to remain
competitive and robust since financial liberalization and technical innovation
have created a highly competitive environment for the Sri Lankan banking
industry. Banking firms search how customers choose their bank and how
they evaluate bank performance in such a competitive environment. The
purpose of the study is to examine the determinants of selecting the banking
services in DSIBs as highlighted by the currently salaried cadre and provide
recommendations to improve on these factors. Authors used positivism as
the research philosophy with a deductive research approach using mono
method quantitative research approach. The researcher has chosen a sample
of 395 banking customers from a group of salaried employees in Colombo,
Sri Lanka. Descriptive and inferential analyses were used to analyze field
results. The data revealed that service quality and convenience were the two
most important aspects to consider while choosing a DSIB. Security, people’s
influence, and the price of the services are also regarded as necessary,
respectively. Among the actors, friendly/ pleasing manners of staff,
knowledgeable staff, quick/prompt service, protection given for privacy, and
confidentiality and availability of mobile and online banking solutions were
the most important attributes that the respondents have selected in pursuing
the DSIB service selection. The study concluded that the selected five criteria
have significant associations in agreement with the studies considered in
literature review.
