Corporate Preference Criteria for Transactional Banking Services in South Africa
Date
2012-12-04
Authors
Murdoch, Jefferson
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Abstract
Understanding the preference criteria of potential corporate clients when choosing
transactional banking services is essential for corporate banks. In knowing what is
significantly important to clients and equally knowing what is unimportant, allows
corporate banks to market themselves more strategically to potential clients.
This research determines the relative importance of preference criteria for
transactional banking services by corporate organisations in South Africa.
Furthermore, it establishes whether any significant differences exist in preference
criteria between two levels of management within corporate organisations, being
strategic and operational-level financial managers. Finally this research
determines whether there are significant differences in preference criteria for bank
selection across various industry sectors in South Africa.
A questionnaire based survey of 208 corporate respondents at two levels of
management and across various industry sectors in South Africa was used.
Thirteen preference criteria for selecting a corporate transactional bank were
individually rated by respondents using a ten-point Likert scale of importance.
The findings indicate that the bank’s technological capability in providing secure
electronic banking with all the required functionality is the most important and
significant preference criterion for corporates when choosing a transactional bank
in South Africa. The second most important and significant criterion is the
financial health of the bank in terms of assets and/or external credit ratings. The
third most important and significant criterion for bank selection is the experience
that the bank has in providing transactional banking services. This research
further confirms that no differences exist in the ratings of preference criteria for
transactional banking services between strategic and operational-level financial
managers of corporates or across industry sectors in South Africa.
These findings differ from other research findings, demonstrating the need for
more frequent corporate surveys considering that bank selection preferences may
change over time and may differ depending on the specific services being sought.
Description
MBA thesis - WBS
Keywords
Transactional banking, Banks and banking, Corporate banking