An Empirical Investigation into The Determinants of Savings Intentions Amongst Young Customers in Licensed Specialized Banks within Central Province in Sri Lanka

Savings, whether held in banks or other financial institutions, represents a pivotal component in bolstering the capital of any global economy. The presence of a substantial savings portfolio within an economy can significantly contribute to economic growth. As a developing nation, Sri Lanka aspires to expand its economy by leveraging the financial system to invest in developmental initiatives, thereby addressing financial shortfalls. At the helm of this financial system is the Central Bank of Sri Lanka, which exercises regulatory oversight over the entire spectrum of financial institutions, encompassing banks and non-bank entities alike. The Sri Lankan financial landscape can be categorized into several sectors: the banking sector, the non-bank finance and leasing sector, key traders, the micro-credit sector, and the money brokerage industry. Notably, the banking sector plays a pivotal role in mobilizing client savings into the economy, with savings serving both as a form of income for individuals and an investment for future benefits. The primary focus of this paper is to delve into the savings intentions of young clients in Licensed Specialized Banks, aiming to pinpoint the factors that influence their inclination to save. This study meticulously examines the impact of various factors on the savings intentions of young customers within this specific demographic, shedding light on which factors wield greater or lesser influence. The findings underscore that financial benefits stand out as the most influential factor, while personal income registers the lowest coefficient value, signifying its minimal impact. Uncovering the specific influence of each factor holds paramount importance, as it enables the translation of research findings into practical applications within the working environment. This insight will prove invaluable for policymakers, decision-makers, and banking strategists as they devise new plans and potentially recalibrate their vision statements to align with these revelations.