The Impact of Various Factors on Bank Selection Decisions: Evidence from Mogadishu, Somalia

Abstract

The purpose of this study is to examine the impact of various factors on bank selection decisions in Mogadishu, Somalia. This study aims to address several existing gaps by offering comprehensive insights into the factors influencing bank selection decisions in Mogadishu. Furthermore, it seeks to provide valuable guidance to bank executives and regulatory authorities regarding the types of banking services most preferred by consumers in meeting their financial needs. The methodology of this study is based on primary data collected from a sample of 120 consumers, selected from the broader customer base of banks operating in Mogadishu. Due to the time and cost constraints associated with determining the exact number of total bank clients, a purposive sampling technique was employed to obtain a representative subset for analysis. The findings of the study reveal that a variety of factors positively influence customers’ decisions when selecting a bank in Mogadishu. The study explored several key elements influencing bank selection, including the range and quality of banking services provided, the convenience and accessibility of the bank, its reputation and institutional image, perceived financial benefits, social influence, and the availability of relevant banking information. The data indicate that the primary motivation for clients in selecting a bank is the security and protection of their assets. These findings offer valuable guidance for bank executives and policymakers in formulating strategies and policies that align with customer preferences and expectations.