Determinants of bank selection by university undergrads in south east Nigeria: empirical evidence

Purpose – The purpose of this paper is to identify and ranks factors that influence bank selection by undergrads in South East Nigeria. Design/methodology/approach – Totally, 300 undergrads were sampled from two universities. Five-point Likert-type question containing 49 bank selection items was designed to collect primary data. Cronbach's α was used to test the reliability of the instrument while factor analysis with principal component extraction was used to identify the underlying factors. Findings – Six principal factors were identified and ranked in order of importance. These factors are: bank's financial stability, available and functional ATMs, professional bank staff, family and friends influence, proximity of bank branch to university campus, and internal and external aesthetics of bank. Practical implications – This study provides insight on the factors that influence the selection of a bank in the emerging and growing undergrads segment of bank market in Nigeria, which has obvious management and theory implications. Originality/value – Reports bank selection criteria from apparently under-researched and under-reported undergrad segment in a typical sub-Saharan African context.