Abstract: As economic environment is rapidly changing and customers are becoming more demanding and sophisticated, it has become important for financial institutions to determine the feature which are pertinent to the customers’ selection process. Though, there are still no conditions allowing foreign banks to enter into the financial sector, particularly in banking, in creating substantial competition, domestic banks in Ethiopia will strive to provide services to their customers. This makes customers to prefer one bank than another. Hence, this paper aims to assess a feature that influences customers in selecting their banks with specific reference to united bank Mekelle branch. A cross sectional survey data in the form of both qualitative and quantitative data was used in this study. For the purpose of the study primary data was collected through field survey from customer’s united bank through questionnaire consisting of both open and close ended questions. The study has identified feature such as pleasant and friendly bank staff, availability of ATM services, service quality and speed of the bank, number of branches and bank proximity as important bank selection criteria as perceived by customers. Thus banks should give proper consideration to those features to be preferable and survive in competitive markets.