An Analysis of Key Determinants Influencing Bank Selection in Kandahar City: Insights Post-Establishment of the Islamic Emirate of Afghanistan

This study aims to identify and rank the key factors influencing bank selection by customers in Kandahar City following the establishment of the Islamic Emirate of Afghanistan in 2021. Using convenience sampling, 400 surveys distributed to customers in schools, public institutions, and banks, yielding 368 usable responses (92% response rate). A five-point Likert-type questionnaire comprising 30 bank selection items used to collect data. Descriptive statistics, consists on respondents’ characteristics (age, gender, education level, and occupation), mean, and standard deviation to analyze and summarize the dataset. Regression analysis, employed to evaluate the data and identify relationships between variables. The findings revealed that five principal factors significantly influence bank selection: bank reliability (mean = 4.1, SD = 0.8), operational environment (mean = 3.9, SD = 0.7), adherence to Islamic banking principles (mean = 3.8, SD = 0.9), reputation (mean = 3.7, SD = 0.8), and mobile banking services (mean = 3.6, SD = 0.9). These findings provide practical implications for banks, including designing customer-focused strategies, enhancing Sharia-compliant services, and leveraging technology like mobile banking to remain competitive in a transitioning market. Researchers may use this study as a foundation to explore consumer behavior and banking which may affect the generalizability of the findings. Future research could expand to other regions, conduct longitudinal studies to examine evolving preferences and explore the influence of emerging technologies such as blockchain and AI on bank selection.