Commercial banks services and profitability in the lens of bank client

Abstract

In today's world, where markets are becoming more liberal, the global financial markets have increased the volatility in the worldwide economy. A reliable and efficient commercial bank's services must do three things, which are to generate sufficient profit, provide its customers with the highest level of service, and maintain enough funds to offer to lenders. As a result, the researchers are interested in understanding how bank profitability and rate fluctuations affect each other. The purpose of this study is to determine the commercial banks' services and profitability through the lens of bank clients. There were 100 respondents in the study who were bank clients from different commercial banks in Davao City. The researchers utilized an approach known as the purposive sampling technique to select the participants who were qualified based on the criteria in the study. The following statistical tools that were used to evaluate and interpret the data collected in this study are the mean, standard deviation, and Pearson r. The results were analyzed using a descriptive and correlational research design. The study revealed that commercial banks have high deposits and loans, which results in high commercial bank services. It also showed that the banks have a high profitability. The researchers also found that commercial banks' services have a significant relationship with commercial banks' profitability. Specifically, deposits and loans have a positive and strong relationship with commercial bank profitability. This means that the higher the banks' services, the higher the profitability of the commercial banks. The researchers recommended that clients of commercial banks can contribute to the bank's profitability by maintaining a balanced approach between deposits and loans. Clients can actively support the bank's success by staying informed about interest rates, exploring investment options, and engaging in financial education. Timely loan repayment reduces the bank's risk, improving overall financial stability. On the other hand, owners and managers of commercial banks should prioritize optimizing deposit and loan management, diversifying the loan portfolio, forming strategic partnerships, and investing in technology, and have clear communication, competitive interest rates, and transparent loan processes to maintain a client-centric approach and ensure the bank's competitiveness in the market.