Factors That Impacted Customer Retention of Banks. A Study of Recently Acquired Banks in the UPSA Area of Madina, Accra (Specifically Access Bank).

Winston Asiedu Inkumsah


The Ghanaian Banking industry is highly competitive, with 25 universal banks and over 120 other financial institutions (PWC, 2012). Majority of these universal banks and other financial institutions’ products and service offerings are easy to replicate and when they provide nearly identical services, they can only differentiate themselves on the basis of price, better customer management and quality (Effah, 2012). Therefore, customer retention has become potentially an effective tool that banks can use to gain an invaluable edge and survive in Ghana’s increasingly competitive banking environment.

Essential elements influencing customers’ selection of a bank include the range of services, rates, fees and prices charged (Abratt & Russell, 1999). It is obvious that superior service, alone, is not sufficient to satisfy customers. Prices are essential, if not more important than service and relationship quality. Furthermore, service excellence, meeting client needs, and providing innovative products are essential to succeed in the banking industry. Most of the banks claim that creating and maintaining customer relationships are important to them and they are aware of the positive values that relationships provide (Colgate et al., 1996).

Although, several studies have emphasized the significance of customer retention in the banking industry, majority have failed to provide empirical justification that explains the customer’s repeat purchase from a behavioural perspective. Hence, this study examined the constructs that impacted consumers’ decision to exhibit repeat purchase from a behavioural perspective with their current banks in the UPSA area of Madina, Accra (specifically Access bank).

The research design used for the study is descriptive research. An intercept approach which is a convenience sampling method or a non-probability sampling method was used to distribute and gather data using structured questionnaire.

Results suggest that the most important constructs were customer satisfaction, followed by corporate image. There was also evidence that customers’ age groups and level of education contributed to explaining respondents' propensity to stay with their current banks.

Keywords: customer retention, customer satisfaction, Ghanaian banking industry.

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