The distance marketing of consumer financial services directive

The EU directive on the distance marketing of consumer financial services (the DMD) was adopted in September 2002 bringing financial services in line with other retail sectors. This paper begins with an analysis of the principal substantive provisions of the DMD before considering the obligations it places on member states to ensure its substantive provisions are enforceable in national law and that an adequate system of redress is available to consumers. The paper then summarises the path taken by the DMD through the European legislative machine and analyses how the DMD will facilitate the integration of a European single market in financial services while striking an essential balance between the rights of the consumer and the rights of financial services providers. In the final part, consideration is given to how the DMD will be implemented by member states. In particular, attention is directed to the overall impact the DMD is likely to have on the marketing of financial services in the UK and how HM Treasury and the Financial Services Authority aim to harmonise domestic law with the DMD.     

The emerging importance of brand energy in the financial services sector

The long-term shift in the developed world from economies based on the trading of tangible goods to the trading of intangible services has precipitated two major shifts in business thinking that have become particularly apparent over the past 20 years. These have been a shift from a focus on generating profit to a focus on creating value and a shift in the notion of the brand from something that exists in the minds of consumers to something that exists in the experiences of different stakeholders. This is no less true of financial services than any other service sector. In the UK, the Operating and Financial Review proposes that all quoted companies introduce a new section in their annual report and accounts from 2005 (now delayed to 2006) to place a greater emphasis on the importance of ‘intangible, largely human assets’. This should not be interpreted by businesses as another imposition by government but as an opportunity to develop a much better understanding of the nature of the intangible assets of the business and how these work to create value. Accountancy is rooted in a tangible way of thinking but is ill-equipped to understand the nature of intangible equity which is where the real drivers of value creation lie. The author posits a new notion of brand energy as a starting point for rethinking how businesses really work to create value in the unceasingly intangible business world. The illustrations given are all from the UK, but the trends in thinking are essentially global and the points made could apply to any country.     

The make-buy decision in marketing financial services for poverty alleviation

In this article, we suggest how poverty reduction can be achieved through alleviation measures that enable the poor to satisfy their needs by focusing on the needs of others. Instead of a direct focus on the consumption needs of the poor, we suggest an indirect approach to satisfying these needs, by providing the poor with credit and consulting services for entrepreneurial businesses that focus on the needs of buyers. Loans to the poor who lack collateral are increasingly based on group lending techniques that rely on joint liability to secure repayment, which have come to be known as microfinance. We suggest that in addition to credit, financial services for the poor must include strategic advice and assistance to select markets, and make the products (goods and services) for sale in their output markets with the financial services bought in their input markets. Financial services for the poor must include not only money to invest in a business but also consulting services to help the business succeed. The provision of consulting services will also facilitate monitoring and enforcement, increasing loan repayment. Depending on poverty levels, the extent of bundling credit and consulting services will vary with one or more organizations emerging to meet the needs of different segments. We suggest that poverty alleviation is achieved by the poor focusing on the needs of others in their output market, and outsourcing financial services to one or more suppliers in their input markets.     

Consent to direct marketing in the financial services sector

The development of communications technology in recent years has led to an expansion in ‘cold calling’, particularly as a means of selling financial services. While encouraging new entrants into the market and thereby increasing consumer choice and competitive prices, this is often viewed as an infringement of personal privacy. This paper attempts to reconcile the complex legal framework that has been put in place to restrict the use of unsolicited direct marketing and to show how, through the use of a carefully drafted data protection notice, the direct marketing of financial services may be conducted lawfully.     

无线通信技术在金融业的应用

无线通信技术的飞速发展,使用户能够以更低的价格获得更大的带宽。无线通信技术正在快速进入实用阶段,深入各个社会领域乃至百姓生活,给整个社会带来巨大的变革,影响社会经济生活的运作模式和发展模式。如果金融企业能将新兴的移动通信技术运用到传统金融业务中来,进而实现“移动金融”,那将会是怎样的一派景象?一、移动通信技术概况目前进入商业化实用阶段的移动通信技术主要有GSM、GPRS、CDMA和无线局域网(WLAN)等。其中GSM、GPRS和CDMA技术源自传统电信移动通信领域,而无线局域网技术来自计算机局域网技术,由802.3局域网技术…     

Earnout financing in the financial services industry

This paper explores the effects of earnout contracts used in US financial services M&A. We use propensity score matching (PSM) to address selection bias issues with regard to the endogeneity of the decision of financial institutions to use such contracts. We find that the use of earnout contracts leads to significantly higher acquirer abnormal returns (short- and long-run) compared to counterpart acquisitions (control deals) which do not use such contracts. The larger the size of the deferred (earnout) payment, as a fraction of the total transaction value, the higher the acquirers' gains in the short- and long-run. Both acquirer short- and long-run gains increase when the management team of the target institution is retained in the post-acquisition period.     

The relationship marketing orientation of Hong Kong financial services industry managers and its links to business performance

The importance of a relationship marketing orientation (RMO) in the Hong Kong financial services industry is examined and a RMO construct tested for its impact on business performance. Following an earlier study of RMO that found a significant positive association with business performance in a sample dominated by a Hong Kong wholesaling, retailing, and associated activities, our study of RMO in the financial services sector found a similar association but of greater strength. RMO factors, however, vary in their effect on particular business performance indicators, complicating the picture of how RMO works to improve business performance. For example, communication is the only factor with a significant association with customer retention but is unimportant for market share. Although the elements of RMO are interdependent, differences in contribution to achieving particular business performance outcomes suggest the need for a fine-grained approach to building a RMO strategy, one crafted to the service context and particular business performance goals.     

The distance marketing of financial services — A UK overview

This paper begins with an analysis of how the Distance Marketing of Consumer Financial Services Directive has been implemented in the UK under English law and its key provisions. The paper then progresses into the fields of the E-Commerce Regulations, the Privacy and Electronic Communications (EC Directive) Regulations 2003 and data protection issues. Overall, the paper provides an overview of the legislative framework that must be complied with in order, successfully and legally, to market financial services to consumers at a distance.     

Relationship marketing in the financial services industry: The importance of customer education,participation and problem management for customer loyalty

The effectiveness of relationship marketing efforts in services selling is to a large extent dependent on customers' commitment to increase the depth and breadth of their relationship with the organisation. In this study, we seek to extend current thinking by presenting a model that examines the relative importance of customer education, participation and problem management in driving customer loyalty. To test the relationships between these variables, we use data collected from 1,268 clients of a global financial services firm. Overall, the results support the hypothesised model and show customer education to be the strongest determinant of client loyalty. Current findings provide implications for multi-product financial institutions that are of theoretical and practical interest alike.     

无线光通信在金融行业的应用分析与研究

无线光通信作为一种近年复兴的宽带通信技术,在金融行业的数据通信中有着广阔的应用前景。本文结合理论研究和市场调查,分析了无线光通信技术在金融通信网中应用的优越性,研究了它的关键技术、组网方案以及典型应用场合,并从购进成品和自主开发两个角度,给出其在金融行业的工程实现方法。一、无线光通信及其原理无线光通信又称自由空间光通信、大气激光通信,是一种不使用光纤等传输介质而利用光的直线传播原理将携带有信息的激光束在空气中进行语音、数据、多媒体图像的双向传送的宽带通信技术。上世纪中叶对无线光通信曾有过研究热潮,但到…     

金融危机时期的信用卡行销方略

美国金融海啸席卷全球.虽然中国投入巨额资金及时救市,但从经济规律预计,国内市场信心恢复尚需时日.对于正从圈地时代步入耕地时代的信用卡行业来说,因经济波动引起的风险加大、收益减少将不可避免,但以危机中危与机并存的哲学,只要深刻把握消费者需求,即便在金融危机时期亦可积累客户忠诚及品牌美誉,待景气好转便可迅速获益.     

金融业软件外包的管理策略

IT外包是信息技术资源管理发展的一种新的思维方式。一般情况下,IT外包有利于企业降低成本、提高信息技术质量和应用水平、提升运营业绩。但如果没有完善的IT外包资源管理机制,IT外包可能使企业失去信息技术应用的控制权或控制能力,进而丧失对市场变化的适应能力。     

Geographic diversification and firm value in the financial services industry

This paper investigates whether geographic diversification is value-enhancing or value-destroying in the financial services sector, broadly defined. Our dataset comprises approximately 3579 observations over the period from 1985 to 2004 and covers the entire range of U.S. financial intermediaries — commercial banks, investment banks, insurance companies, asset managers, and financial infrastructure services firms. We use two alternative measures of geographic diversification: (1) a dummy variable whether the firm reports more than one geographic segment and (2) the percentage of sales from non-domestic operations. Our results indicate that geographic diversification is not associated with a significant valuation discount in financial intermediaries. However, when accounting for the firms' main activity-areas, we find evidence of a significant discount associated with geographic diversification in securities firms and a premium in credit intermediaries and insurance companies. All these results are robust after taking into account functional diversification of the firms, a potential endogeneity of both functional and geographic diversification, and a potential value transfer from equity to debt holders by using estimates of the market value of debt.     

A cross-category examination of consumer price awareness in financial and non-financial services

Consumer awareness of prices is a fundamental requirement for sound purchase decisions. However, while in recent years the volume of research on consumer price awareness for manufactured goods has grown significantly, studies of price awareness in services, and in particular in financial services are almost nonexistent. As a result, the overall understanding of the level price awareness for financial services and its potential determinants has been limited. This paper profiles the level price awareness for a series of financial services as well as non-financial services. Systematic differences between financial and non-financial services are empirically examined, and the related drivers are contrasted between the two types of service. The paper concludes with a discussion of the implications of the findings on the pricing and marketing of financial services.     

The influence of strategy map communications and individual differences on multidimensional performance evaluations

Multidimensional performance evaluation systems such as the Balanced Scorecard (BSC) were developed to overcome the documented tendency of managers to focus almost exclusively on short-term financial performance measures while disregarding or de-emphasising other short-term and/or long-term non-financial performance measures. Evidence suggests, however, that implementation of many of these systems has not achieved desired outcomes. Cogent communication of a corporation's goals and management's strategy to achieve those goals can be expected to influence employee ‘buy-in’ and the subsequent use or resistance to multidimensional performance measures. In this study we examine the role of strategy maps in communicating goals and strategy. We also examine individual differences (tolerance of ambiguity and functional background) that we believe also influence individuals to be more (or less) receptive to the guidance of strategy maps. An experiment was conducted with 165 experienced professionals enrolled in MBA programmes in Spain and the US. Our experimental results indicate that a strategy map reflecting integrated dependencies can de-bias evaluations of certain groups of individuals, who have high tolerance for ambiguity and have a financial work background. Implications and suggestions for future research are also provided.     

A model for implementing service excellence in the financial services industry

This paper presents a model and provides considerations for implementing a service excellence initiative in the highly competitive financial services industry. This model identifies and defines service culture, desired employee service behaviours, operational standards and service outcomes necessary to enhance and sustain service excellence. When managed collectively, these components provide the organisational environment necessary to harness employee service-related activities for the purpose of creating value and enhancing performance. Implementation of this model resulted in a 20 per cent increase in service quality scores across select areas in the sample organisation over a two-year period.     

Risk preferences and the marketing of financial services: Segmentation by birth order

Traditional investment questionnaires may yield an incomplete measure of clients’ risk tolerance. Birth order has the potential to provide additional insight into the true nature of customers’ risk aversion, thereby assisting financial advisors to formulate the optimal investment portfolio for each client. We summarize research findings on birth order-related personality traits that have potential impact on the financial services industry. Marketing implications for investment firms are discussed in a framework that considers customers’ birth order differences in risk tolerance, patience, financial goals and conformity.