THE FACTORS IMPACTING ON SAVINGS DECISION OF INDIVIDUAL CUSTOMERS - A CASE STUDY OF ASIA COMMERCIAL JOINT STOCK BANK AT THAI NGUYEN BRANCH

Abstract

Savings deposit is an important component of banking service, which is a typical commercial bank sector and one of the bank's key growth pillars. Capital mobilization is a key input in a bank's operation, and it also acts as the basis for generating output for credit and other banking activities. The purpose of this study is to examine the relationship between the factors impacting on savings decision of individual customers and propose some recommendations to improve the service quality at Asia Commercial Bank in Thai Nguyen provincce. Survey data collected from 200 individual customers were analyzed to provide evidence. The research used exploratory factor analysis methods to discover the validity of measurement of variables. The results identify five variables including bank brand, interest rate policy, influencers’ beliefs (friends, family, relatives), promotion, employee knowledge and attitude which have a significant impact on the saving decision of individual customers at Asia Commercial Bank. The key results of this article serve as a recommendation for how to strengthen these variables in order to maintain and attract individual customers' savings deposit decisions.