Factors Affecting Young Customers’ Saving Intention: An Integrative Review in Sri Lankan Context

Abstract

Savings in banks or any other financial institution will be a key factor in raising the capital of any economy in the world. It will boost the economic growth when there is a higher savings portfolio in an economy. As a developing country, Sri Lanka looks forward to expanding the economy through the financial system to invest in development programs to mitigate financial shortages. The Central Bank of Sri Lanka is the principal financial institution that controls and oversees the entire financial system of the country through a variety of banking and financial institutions. The Sri Lankan financial system can be categorized as the banking sector, the non-bank finance and leasing sector, key traders, the micro-credit sector and the money brokerage industry. The banking industry in the financial system plays a major role in attracting client’s savings into the economy. Savings can be regarded as income for one person as well as an investment for future benefits. In this paper concentrating mainly on the savings intention of young people or clients in the Licensed Specialized Banks and affecting the factors concerning their intention to save. This study will pay attention on the impact of factors on savings intention of young customers in the given population to identify which factors have more or less effects on each factor. Identifying the impact of each is important to generalize the results of research virtually into the actual working environment. This will be useful for policy-makers, decision-makers or banking strategists to implement new plans and even alter their vision statements.