The bank loyalty of graduates in Singapore

• Main Authors: Bey, Siew Leng, Ho, Kelly Hui Ling, Ng, Puay Hoon
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/58571
• Institution: Nanyang Technological University

It has been established that bank loyalty has been the subject of only two published studies, both of these being conducted in countries where single banking is the norm. The purpose of the present study is to establish the meaning and extent of bank loyalty in Singapore where multiple banking is very widely practised. The data for the study was obtained from responses to one hundred and twenty questionnaires that were passed out to former graduates ofNanyang Technological University. The study has established that, according to a loyalty index that was developed, loyal and disloyal bank customers do not exhibit significant differences in, amongst other things, their attitude towards banks and their degree of familiarity with bank services. This finding · was inconsistent with the only other research study that has used the same approach. An alternative method was used to analyse the data, this being a probability analysis. This showed that overall, only 4.7% of the graduate sample was totally loyal to a bank. The remainder was disloyal to a greater or lesser degree. The results showed that there was higher loyalty to a person's main banker during the time spent at university compared with the period after graduation. The bank that lost the most patronage as main banker over the period of the study was the Post Office Savings Bank, while the bank that gained the most was the Development Bank of Singapore. The results have implications for all banks that operate in Singapore's retail market and should each bank wish to either maintain its share of the graduate market or make it greater, appropriate marketing techniques need to be carried out.