Borrower perceptions of additional lender services: An Oklahoma AgCredit example

Abstract

Customer retention and attraction are common concerns in the financial service industry but are acute concerns for farm credit associations, given competition from commercial banks. Not only do agricultural lenders face restricted territories, but they also have a considerably smaller borrowing population when compared to commercial banks. Oklahoma AgCredit is considering creating additional services to increase the number of business interactions they have with their member-borrowers. They hope adding additional services, such as crop and livestock insurance, will retain current customers and attract new clients. The goal is here to evaluate borrowers’ expected responses to the added service.