Understanding the intention to use mobile banking by existing online banking customers: an empirical study

The Indian banking sector can take advantage of the proliferation of smartphones as well as the government’s encouragement of cashless transactions to accelerate the use of mobile and online banking. The purpose of this study is to understand the initial acceptance of mobile banking by existing online banking users. Few studies have focused on online banking users’ behavioural intention to use similar services (such as mobile banking) in India. To this end, a theoretical model was developed using the technology acceptance model, which was extended to cover the adoption factors that influence users of online banking to use mobile banking. These adoption factors comprise perceived ease of use, perceived security, mobile self-efficacy, social influence and customer support. The dependent variable is customers’ behavioural intention to use mobile banking. A partial least squares structural equation modelling analysis was used to test the theoretical model with sample data from 420 online banking customers of various public, private, foreign and co-operative banks in India. The study found that the adoption factors had a significant impact on customers’ behavioural intention to use mobile banking. The findings of this study provide insight into digital banking channels, contribute to existing research on digital banking adoption and will educate banks and financial institutions on the adoption of mobile banking in India.

     

A comparison of conventional versus Islamic banking customers attitudes and judgment

This investigates the impact of customer attitude and judgment regarding conventional and Islamic banking system in Pakistan. This study attempts to find out, how the customers of Islamic banks perceive about Islamic banking practices in terms of Shariah compliance and conventional banking system regarding earning more profits. This study consists on primary data through a well design questionnaire. Four hundred and thirty (430) questionnaires were distributed among different customers of all three types of banking, such as Islamic, conventional and stand-alone branches in order to investigate customer’s attitude and judgment toward banking system. The findings indicate that overall 28% of Islamic banking customers don’t know the essential concept of Islamic financial institution’s in Pakistan. Furthermore, 54% customers of conventional banking show their interest to convert their accounts toward Islamic banks.

     

Factors affecting customers’ continued intentions to use Islamic banks

No study has concurrently verified the religious motives and attitudes that affected the customers’ continued intentions to use Islamic banks along with the importance of other factors and attributes associated with conventional banking services. This study examines factors affecting customers’ attitudes toward Islamic banks based on data obtained from interview surveys conducted in Jordan. The findings show that customers’ religious motives, their evaluations of a bank's compliance with Islamic law as an indication of the customers’ religious attitudes toward Islamic banks, and the ease of access to credit had a positive effect on the customers’ intentions to continue using Islamic banks. More specifically, the findings suggest that customers who continuously transact with Islamic banks more strongly emphasize religious attitudes, rather than credit constraints (such as the degree of access to credit) and religious motives. This study further reveals that religious attitudes, rather than mere religious motives, were the primary criterion for the customers’ continued intent to use Islamic banks, especially when considering the strong effect of their religious attitudes toward Islamic banks.

     

Branching,scale economies,and banking costs

In this paper, we develop and estimate a model of bank costs based on a theory of the branch cost function. First, we show that convenient branch location is important to banking customers and implies that banks do not necessarily operate branches at minimum average cost. This theoretical result provides a rationale for including branch variables in the bank cost function. Second, we estimate a statistical cost equation derived explicitly from assumptions about the branch cost function and including branch output variables. Our empirical results suggest substantial economies of scale at the branch level, but no economies from expansion by branching. Finally, we show that the resulting cost structure of the banking industry does not imply that a highly concentrated banking structure is necessary for efficiency. Thus, economies of scale would not be expected to force small banks out of the market, even if current restrictions on interstate banking are liberalized.     

银行网点服务中存在的问题与设立会员制网点的可行性分析

高端客户是商业银行经营竞争争夺的重点,在以提高银行网点营销能力和服务能力为目的的网点转型过程中,如何通过网点建设吸引并服务好高端客户,是各大商业银行都在积极思考的问题。目前,银行网点功能大同小异,不能对高端客户与大众客户进行有效隔离,较大程度上影响了银行向高端客户提供差别化服务的效果。本文通过列举当前银行网点对高端客户服务的不足,分析其形成原因与银行选址偏好之间的关系,提出避开闹市,集中专业人员,建立面向高端客户的会员制银行网点的设想,为银行网点转型提供新的思路。     

Supermarket branch banks and traditional banks: An evaluation of differences in employees' attitudes regarding product offerings,job satisfaction and turnover

Traditionally, banking was an activity conducted primarily in an environment in which employees were housed in a central location. In this environment, the bank culture was relatively stable and well-known to customers and employees alike. Further, both the public and the market knew the bank's financial service offerings. The advent of the supermarket branch bank has created challenges for both employees and managers. Many employees are no longer under the direct supervision of bank management. The culture of the branch bank may be vague, and with this change in culture and in supervision, problems with consistency and quality of banking services may exist. Additionally, banks may experience challenges in terms of job satisfaction, turnover and perceptions of product offerings at the supermarket branch bank and at the traditional brick-and-mortar bank. This research evaluates these environmental changes in terms of their impact on the employees' perceptions of customer attitudes regarding branch and brick-and-mortar bank offerings. This research also assesses the employees' perceptions of job satisfaction and turnover at branch versus traditional banks.     

Effect of Internationalization on the Cost Efficiency of Taiwan’s Banks

Abstract:

We focus on the effect of internationalization on the cost efficiency of banks by studying Taiwan as a sample for developing countries. We find that (1) increasing overseas businesses and foreign exchange deposits increases cost efficiency; (2) expanding offshore banking units increases bank efficiency; and (3) the profitability of a bank’s overseas branch is not a critical factor behind the differences in cost efficiency across both financial holding company (FHC) banks and non-financial holding company (non-FHC) banks. Finally, our metafrontier empirical results illustrate that FHC banks in Taiwan show better technical performance in cost control than non-FHC banks.     

Are the determinants of bank loyalty brand specific?

One of the primary concerns of companies is to develop loyal customers, and banks are no exception. Past research attempted to examine the role of satisfaction, perceived quality and image, as drivers of bank brand loyalty. However the characteristics of specific bank brands were not taken into consideration. Using data collected from a sample of 216 retail bank customers, banking with five different banks in Athens Greece, this paper investigates whether similar antecedents could be used to predict brand loyalty in various institutions. The results imply that, depending on the bank, different drivers could influence in a dissimilar manner the formation of loyalty and therefore further research is needed to generalise the suggested models.     

Online banking in India: An approach to establish CRM

Technology is fast altering the business servicescape. Its role in improving customer service levels is being used strategically and increasingly by service organizations. The service attributes and quality can be enhanced by deployment of technology. The Internet has facilitated convenience in customer interactions and transactions with the banks. Online banking is currently emerging as a new approach in India for providing improved accessibility and expediency to customers. Most banks have their own websites for improving the customer interface and offering online services. The article studies the applicability of online banking in India and its role in fostering relationships with customers and giving them more value. The research was conducted on customers familiar with online banking in India, and their perceptions about online banking were studied. The findings reveal that customers are using the services but are skeptical about the financial transactions and service quality dimensions.     

Why Do Banks Provide Leasing?

Banks are engaging in leasing activities at an increasing rate, which is demonstrated by aggregated data for both European and U.S. banking companies. However, little is known about leasing activities at the bank level. The contribution of this paper is the introduction of the nexus of leasing in banking. Beginning from an institutional basis, this paper describes the key features of banks’ leasing activities using the example of German regional banks. The banks in this sample can choose from different types of leasing contracts, providing the banks with a degree of leeway in conducting business with their clients. We find a robust and significant positive impact of banks’ leasing activities on their profitability. Specifically, the beneficial effect of leasing stems from commission business in which the bank acts as a middleman and is not affected by the potential defaults of customers.     

Antecedents of brand loyalty in South African retail banking

With new banks entering the South African market and consumers generally not satisfied with their current bank, brand loyalty in the banking sector is receiving greater attention. A gap in the literature exists regarding the issues of bank loyalty and their antecedents in South African retail banking because of the few studies available in the South African context, the new competitive environment in the banking sector, the multi-cultural nature of the market, and the likely switching behaviour by customers. The South African context is a multi-cultural environment and therefore offers a unique background as most previous brand loyalty studies have been in mono-cultural contexts. The purpose of this study was to investigate the antecedents of brand loyalty, including satisfaction, brand relationship quality, customer advocacy, and brand trust in retail banking. We report on a survey of 351 banking customers through SEM using AMOS. While the findings are generally supportive of previous studies, some surprising results are discussed and implications for both theory and practice are highlighted.

     

The Banking Relationship's Role in the Choice of the Target's Advisor in Mergers and Acquisitions

We analyse the factors influencing the target company's choice of bank advisor in mergers and acquisitions (M&As). We first examine the choice of hiring an advisor, which is nontrivial, since in one‐third of transactions our sample target companies did not hire one. We also analyse the choice to hire as advisor a bank with a strong prior relationship with the company (i.e., the main bank). Using data on 473 European M&A transactions completed in the period 1994–2003, we find evidence that the decision to hire an advisor depends on three main factors: (i) the intensity of the previous banking relationship, (ii) the reputation of the bidder company's advisor, and (iii) the complexity of the deal. We also investigate the impact of the bank advisor on shareholder wealth. We find that the abnormal returns of target company shareholders increase with the intensity of the previous banking relationship, thus indicating a ‘certification role’ on the part of investment banks.     

Beyond state-owned banks: Evidence from Shanghai bank customers

In light of a reformed and liberalized banking sector in China, this article sets out to examine the role of socio-demographic factors and customers’ banking experiences and priorities in customers’ selection of banks. As state-owned banks have long dominated the banking industry, the article also investigates the receptiveness of the Shanghai Chinese towards newer commercial banks, such as the joint-stock banks, and the penetration of foreign banks into China's banking industry. Comparing customers who use state-owned banks only and those who patronize joint-stock banks, it is found that education, income, age, occupation sector and location of hometown affects customers of state-owned banks only. Further, it is also found that state-owned banks remain dominant despite the opening up of the banking sector, and perception towards state-owned banks remains favourable.     

Do local banking market structures matter for SME financing and performance? New evidence from an emerging economy

This paper investigates the relationship between local banking structures and SMEs’ access to debt and performance. Using a unique dataset on bank branch locations in Poland and firm-, county-, and bank-level data, we conclude that a strong position for local cooperative banks facilitates access to bank financing, lowers financial costs, boosts investments, and favours growth for SMEs. Moreover, counties in which cooperative banks hold a strong position are characterized by a more rapid pace of new firm creation. The opposite effects appear in the majority of cases for local banking markets dominated by foreign-owned banks. Consequently, our findings are important from a policy perspective because they show that foreign bank entry and industry consolidation may raise valid concerns for SME prospects in emerging economies.     

Customers’ dissatisfaction with banking channels and their intention to leave banks: The moderating effect of trust and trusting beliefs

Banks have the challenging task of managing customer experience across many traditional and technological channels in today’s financial services world. Recent studies and anecdotal evidence suggest that many customers are dissatisfied with their experiences across channels that are supposed to provide a seamless experience. This customer dissatisfaction potentially diminishes a financial service organization’s customer base, and requires the firm to rely on a more fickle customer mix and erodes its reputation. This paper investigates the relationship between individuals’ dissatisfaction with their primary bank channel and their intention to leave their bank in the future. The first study examines individuals’ overall trust in their bank as a potential moderator in the relationship that reduces customers’ likelihood to leave the bank even though they are dissatisfied with a particular banking channel. The second study goes one step further and examines the effect of three trusting beliefs about the bank potentially held by the customer: competence, integrity, and benevolence beliefs. Findings indicate that when customers have a high level of trust in their banks, they are less likely to leave their banks even though they are dissatisfied with their primary banking channel. Furthermore, while competence and benevolence beliefs about the bank have a similar moderating effect, integrity beliefs do not.     

Customers' perceived value for private and state-controlled Hellenic banks

Under conditions of increasing competition banks try to improve their customers' level of satisfaction in order to create strong preferences and hence increase their customers' loyalty. This paper is based on data drawn from 1,470 questionnaires completed by customers of both private and state-controlled banks in various areas of Attica. It looks at the bank customers' satisfaction but focuses mainly on their perceived value from the banking services received. A first analysis of the data collected shows that state-controlled bank customers are older, with lower education and lower income. Additionally, state-controlled banks show lower proportions of very pleased customers and high proportions of displeased customers. A principal component analysis performed on the data related to perceived value has defined three main factors: professional service, marketing efficiency and effective communication, which have then been used as the basis for comparing the customers' perceived value between the two types of bank. The main findings of this analysis show that state-controlled bank customers enjoy a higher perceived value in the case of marketing efficiency (mainly due to the wider network and the favourable pricing policy) whereas private bank customers enjoy a higher perceived value in the case of professional service and effective communication.     

Establishing bank–corporate relationships and building competitive advantages

This article investigates how banks build competitive advantage through relationship banking. Using a grounded theory approach, 29 interviews were conducted with relationship managers and corporate banking directors in 21 case banks from 2004 to 2008. Grounded theory models were developed to illustrate the value creation process in relationship banking. It was found that long-term bank–corporate relationships were established through trust-based personal communications. In the case, banks customer information and knowledge advantages were created. Risk-adjusted returns on assets were used to measure customer relationship performance, and relationship managers were rewarded accordingly. The interviewees thought that bank performance could be improved by managing customer credit risk and identifying cross-selling opportunities. This study starts to open up the ‘black box’ of how banks create shareholder value through relationship banking, provides a picture of relationship banking as a social phenomenon, and supplies some theoretical and managerial implications. The article also links the literature relevant to relationship banking from different disciplines. This is a new way of looking at the relationship banking phenomenon and relevant literature in an integrated manner.     

Developing cross-selling capability in key corporate bank relationships: the case of a Nordic Bank

This research focuses on the challenges in developing the cross-selling capability of a multinational European corporate bank operating in both the business and consumer markets. An extensive qualitative research design was carried out involving 50 interviews with chief financial officers (CFOs) and bank representatives from four European countries, eight workshops, and participant observation. The barriers to cross-selling experienced by the Bank are specifically: a lack of cooperation within organisational levels and units, non-existent information sharing among employees, underdeveloped internal services for cross-selling, resistance to change, and outdated CRM systems are identified as the five major internal challenges that banks have to cope with. Corporate customers however perceive that the five major challenges that inhibit the corporate banks’ ability to provide better services and to properly exploit cross-selling capability are: the lack of cross-asset management, inability to sell cross-asset services, fragmented organisational structure, the lack of sufficient internal marketing and communication, and lack of knowledge sharing. This study identifies ten major challenges—five that deal with the Bank’s internal personnel, and five identified by key corporate customers—that are essential to overcome to better address cross-selling efforts.

     

Bank image in the UAE: Comparing Islamic and conventional banks

This study investigates how bank customers in the UAE view Islamic banks versus conventional banks and whether this image affects customer loyalties or selection of a bank. We distributed a questionnaire to a convenient sample of UAE bank customers that focused on five areas: bank image, bank products, service quality, cultural aspects and religious factors, in addition to demographic attributes of the sample. The main findings of this study are: first, most UAE bank customers prefer banking with Islamic banks, although they are not satisfied with the quality of products and services; second, customers generally have a positive image of whatever bank they dealt with; third, the regression analysis results indicate that the most important factor in choosing a bank was bank products followed by service quality and then religious factors; fourth, there is a significant difference between how customers perceive UAE Islamic banks versus conventional banks; fifth, there is a significant difference in how customers perceive UAE Islamic banks based on their gender, education and duration of the relationship; and finally, there is a significant difference in how customers perceive UAE conventional banks based on their gender.