Lived experiences of multi-banked bank account holders with a focus on banks at Manda hill mall Lusaka, Zambia.

Abstract

Multi-banking among bank account holders is a trend that has been on the rise in the recent past. Even though most banks provide similar services, like money transfer, deposits, loans, safety vault keeping, insurance and other services, it is seen that consumers have preference to certain specific banks. Banks still face issues with customers switching from one bank to another in search of either better service, low cost, convenience of access, international transaction services and many other unexplored factors. This study assesses the lived experiences of multi-banked bank account holders at Manda Hill Mall Lusaka, Zambia.

Data was generated from seven purposively sampled multi-banked account holders using; in-depth interviews, focus group discussions, informal discussions and observations. Findings were analyzed using thematic analysis. Factors that emerged contributing to multi-banking among account holders were fraternity, proximity, customer service, security and brand loyalty. The study through interviews revealed that proximity to banks caused the customers to be multi-banked. The study further showed that some banks have poor services which do not even motivate the customers to continue serving with them hence multi-banking. It was found that online banking reduces the queues being experienced in some banks for the customers’ problems are solved through the click of a button. The study also found that when customers trust a bank brand, it makes them loyal to the bank and when they are loyal they also encourage their colleagues to join the banks to which they belong to. From the participants’ perceptions, options for reducing multi-banking were enhanced customer services, improved bank security, reduced fraternity behaviour and enhanced proximity. Research findings showed that banks should ensure that there is no unnecessary sudden closures of branches across their network as this builds the confidence levels in clients so much that customers feel their money is secure unlike when there are continuous changes and short notice closures of bank branches and ATMs services.

Thus this study concludes that most of the factors that influence multi-banking involve the attitude of the account holders, dependency on fraternity, security constraints and poor customer services. This study recommends that banks need to improve their service provision and strengthen relationships with their customers, and enhancement of security to the satisfaction of customers. On the other hand account holders should be accorded chance to be well informed and independent in making decisions based on scientific evidence as to which bank to bank with.