Factors affecting bank selection in export financing: The case of Turkey

Exporters frequently rely on trade finance to facilitate international trade transactions, and the choice of a bank can profoundly impact the success of these transactions significantly. The current research aims to identify essential factors that exporters consider when selecting a bank in Turkey. We developed a conceptual framework to achieve this goal, drawing from consistent factors highlighted in various studies as critical criteria for bank selection. Employing a five-point Likert scale questionnaire as the primary research instrument, participants' agreement or disagreement levels were measured across 32 variables. Statistical analyses were conducted using Statistical Package for the Social Sciences (SPSS) and Microsoft Excel. The research sample for this study encompassed a total of 130 participants. Data analysis involved an exploratory factor analysis, aimed to insert interconnected variables into more comprehensive underlying factors. Principal Component Analysis, employing the varimax rotation method, was utilized to analyze the responses. Internal consistency was assessed through Cronbach's alpha test to ensure reliability across different factor groups. The analysis results indicate that the top three influential factors guiding bank selection among exporters are security and anti-fraud measures, twenty-four-seven customer support, and speed and efficiency of transactions. Utilizing the Principal Component Analysis extraction technique, the rotated component matrix effectively grouped the thirty-two variables into five major correlated factors: Diverse Product Offerings and Services, Informational Excellence and High-Quality Services, Bank Classification, Marketing Strategies and Customer Loyalty, and Bank Reputation. Overall, this study contributes valuable insights into the decision-making process of bank selection among exporters, shedding light on the factors influencing their choices within the Turkish context.