Chapter One — 1.1 Background to the Study

Deposit Mobilization has increasingly attracted the attention of researchers, regulators, and practitioners concerned with customer retention. This growing interest reflects the recognition that deposit mobilization does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Kano State.

Within the context of Kano State, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of deposit mobilization on customer retention, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While deposit mobilization is widely discussed in policy and industry circles, empirical evidence on its actual effect on customer retention within Kano State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to deposit mobilization are helping or hindering customer retention — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Deposit Mobilization on customer retention in Kano State.
2. To assess the extent to which deposit mobilization influences customer retention within the study area.
3. To identify the challenges associated with deposit mobilization in relation to customer retention.
4. To recommend strategies for optimizing deposit mobilization in order to improve customer retention.

1.4 Research Questions

1. What is the effect of deposit mobilization on customer retention in Kano State?
2. To what extent does deposit mobilization influence customer retention within the study area?
3. What challenges are associated with deposit mobilization in relation to customer retention?
4. What strategies can be adopted to optimize deposit mobilization in order to improve customer retention?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around customer retention. For managers and practitioners within Kano State, the study provides practical insight into how deposit mobilization can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Deposit Mobilization and its relationship with customer retention within the context of Kano State. It reflects a MSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.