Continuous mobile banking usage and relationship commitment – A multi-country assessment

Although conducting banking transactions via mobile phones, smart phones and tablets has become popular in many countries, major gaps exist in our understanding of those who use this technology, particularly how experienced users perceive mobile banking. Drawing from the literature on mobile banking adoption, continuous usage behavior and post-adoption of technology behavior, the authors shed light on the nature of experienced mobile banking users’ relationship commitment (RC) with their bank and personal finances. The study reveals changes in commitment and shows that mobile banking offers substantial added value to users. Overall, this research will help managers better understand the importance of mobile banking services in the light of customer RC.     

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.

     

Exploring usage of mobile banking apps in the UAE: a categorical regression analysis

The banking sector has seen major changes with advances in technology. Electronic financial transactions are gradually taking over traditional banking services in terms of transferring funds, utility payments, insurance premium, mortgages and even stock trading. Despite the widespread popularity of smartphones and the advantages of mobile banking, the adoption rates of the mobile apps have been very low all over the world. Our study explored the consumer acceptance of mobile apps in the United Arab Emirates (UAE) by using a structured online questionnaire that was designed using standard variables from the Technology Acceptance Model. Principal component analysis was used to identify and score these factors for the subsequent categorical regression analysis. Consumers were assigned numerical categories depending on their level of usage of the app, and the CATREG nonlinear technique was used to determine the significance of technology acceptance factors. The results show that almost two-thirds of the sample were currently using Mobile Banking apps, and they predominantly belonged to the 30–40 age-group. Perceived usefulness and available information were identified as the main factors influencing acceptance and level of usage of mobile banking apps. This study makes a significant contribution to the existing literature by identifying consumers according to their level of usage and adopting the categorical regression model, which has not been attempted earlier. The results provide important insights for banking professionals in the UAE, in terms of marketing initiatives, information technology and customer service.

     

The impact of mobile banking services on saving behavior in West Africa

This study analyzes the impact of the use of mobile banking services on saving behavior in West Africa. Using the Global Findex Database, 2017 and jointly estimating a multinomial logit model and a probit model, we find that the use of mobile banking services increases the likelihood of formal and informal saving by 2.4% and 0.83% respectively. Women are likelier to have informal savings, but their likelihood of having formal savings increases if they use mobile banking services. Greater education, employment (especially in the public sector), and income increase the likelihood of adopting mobile banking services. These results suggest that the partnership between mobile phone structures and financial institutions should be strengthened.     

Exploring customer’s mobile banking experiences and expectations among generations X,Y and Z

Customer’s adoption of mobile banking portrays tremendous growth in developing countries. However, it seems that there is a lack of studies about customer’s experiences and expectations on mobile banking services, and more research is needed considering generational differences between mobile banking customers in Iran. The purpose of this study is to explore the customer’s mobile banking experiences and expectations among generations X, Y, and Z in a developing country context, Iran. Twenty-seven in-depth interviews were conducted from active users of mobile banking services with a generational split in Iran. A qualitative content analysis was employed to understand customer’s mobile banking experiences and expectations. This study identified specific features of different generations regarding their experiences and expectations of mobile banking services. Each generation displayed distinct characteristics of mobile banking. Generation X customers perceive mobile banking as complicated; generation Y customers prefer to use mobile banking for quick payments, while generation Z customers want to have more customized services and ranked mobile banking as a spontaneous solution. Every generation expects different features to focus on: generation X expects to have more user-friendly functions; generation Y prefers to have an online transaction tracker while generation Z appeals to have enhanced the user interface. This study offers a detailed strategic starting point for management to tailor dynamic customer expectations among different generations.     

Mobile banking and consumer behaviour: New insights into the diffusion pattern

Technological advancement has challenged the providers of financial services; the very nature of selling and buying financial services has changed. Mobile devices are among the newest channels to conduct banking electronically. This paper focuses on studying diffusion and adopters of mobile banking services. Previous research has identified the typical characteristics of a potential adopter in the electronic services era; this paper explores some contradictory empirical findings drawn from a mobile banking survey. The results provide an indication of the characteristics of potential subsequent adopters of mobile banking, and of differences between user segments. Consequently, the authors are able to comment on the influence of certain demographic characteristics and the preferred communication mode of customers on the adoption and future usage of mobile banking services. The quantitative survey that sheds more light on this researched issue employed a traditional method of postal questionnaire. The data were collected in Finland during May–July 2002 and include 1,253 survey responses.     

Customer readiness to co-production of mobile banking services: a customer-only co-production perspective

This paper aimed to identify the antecedents and corollary of customer readiness for co-production in customer-only co-production services using mobile banking services as a context. Using a structured questionnaire, data were gathered from a sample of mobile banking customers in Ghana and the UK and the data analysis was facilitated by structural equation modelling. From the findings, the antecedents were customer socialisation, customer self-efficacy and customer motivation and the corollary was service productivity. The findings provide managers of customer-only co-production or technology-based services particularly mobile banking services with the specific factors that can be managed strategically and tactically to enhance customer readiness for co-production and service productivity. This study is one of a kind to conceptualise and empirically identify the antecedents and corollary of customer readiness for co-production within the customer-only co-production context. However, as the study was limited to mobile banking services, future studies might test the research model in other customer-only technology-based services.

     

Effect of inherent innovativeness and consumer readiness on attitudes to mobile banking

Despite the strong evidence that many consumers relish their experience with mobile banking, others indicate that some segments may not be comfortable with these emerging digitized platforms due to certain inherent personal traits. Drawing insights from the socio-psychology and innovation/SSTs adoption literature, this paper tested a structural model with inherent innovativeness as an antecedent variable, and consumers’ attitude to M-banking, as a mediator to their future usage intention. The moderating effect of consumer readiness on the hypothesized relationship between consumers’ attitudes and intention to use mobile banking was also examined. The model was tested on survey data from 720 respondents from the United Kingdom (UK). Findings show that inherent innovativeness significantly explains attitudes to mobile banking. There were, however, mixed outcomes concerning the effects of three dimensions of consumer readiness on the link between attitudes and intention to use mobile banking. The results show that only ability exerts a positive and a significant effect on the examined relationship. The effects of motivation and role clarity seemed insignificant. The findings from this paper can help retail bank managers improve their channel and promotional decisions in order to enhance the service experience of relevant segments.     

Mobile banking innovators and early adopters: How they differ from other online users?

The rapid pace of technological development has created opportunities for financial service providers to offer their services via multiple electronic channels. The mobile phone is one of the most promising but so far marginally adopted channel for using financial services by consumers. Earlier literature on innovation adoption argued that those among the first to adopt new innovations possess unique characteristics compared to the majority of consumers. This paper aims to study how mobile banking innovators and early adopters differ from other users of online banking services. An internet survey was conducted among customers of a large Scandinavian bank in Finland yielding 2,675 responses. Logistic regression was used to identify variables differentiating between users of mobile banking and other online banking services. Somewhat contradictory to earlier findings the results indicate that only age (p<0.0005) and gender (p=0.010) differentiate these two groups of customers, while education (p=0.957), income (p=0.624), occupation (p=0.596) and size of the household (p=0.151) were found to be insignificant in differentiating the groups. The results offer service providers better knowledge of the typical mobile banking user thus adding value to their marketing actions in the field of electronic banking.     

Through bubbles and crises: An analysis of the <Emphasis Type="Italic">Journal of Financial Services Marketing</Emphasis> from 2000 to 2012

This article presents an analysis of all publications of the Journal of Financial Services Marketing (JFSM), from 2000 until the end of 2012. The objectives of this study were: (i) to compare the subjects covered by the journal with industry trends, and identify opportunities for future research, and (ii) to assess the journal’s development over time and its influence in the field of financial services marketing. Data for this content analysis was collected manually from the publisher’s Website and from each paper, and a grounded theory approach was used to group the papers into clusters based on emerging themes. The study indicates that JFSM has been successful in covering the industry’s most important trends, including mobile banking, relationship management, Customer Relationship Management (CRM) and service quality. A number of gaps were identified, in particular regarding mobile banking services and the impact of new online business models (for example, PayPal, crowdfunding, Bitcoin). These findings should assist JFSM’s editorial board to determine its future direction, and offer readers insight into industry trends and the journal’s role in covering them.     

Generation Y: How cultural values can be used to predict their choice of electronic financial services

Young consumers’ decision-making influencers in regards to financial services are well documented in the financial services literature. Research on the role of influencers of choice behaviour is also prominent in the literature. An important lacuna in financial services is an understanding of the young consumers’ underlying motives for their choices and the relative importance of these motives as predictors of choice. This paper presents findings from a quantitative study, whose main objective is to determine the most reliable influencer variables for predicting the personal banking services preferred by a sample of generation Y consumers. Using several quantitative techniques, the study generates empirical evidence which suggests that cultural variables at the individual level are as reliable as, and in cases more reliable than other proven predictors when predicting generation Y's electronic banking product preferences. As such the study highlights the probability that an understanding of the more enduring motives for generation Ys’ personal banking choices may present a useful alternative for targeting this demographic.     

Money on the move: Opportunities for financial service providers in the ‘third space’

Delivering financial services to customers on the move is an emerging imperative for the industry, as at present the services available do not meet the needs of customers. Such services could empower customers to control their own finances, at the same time as reducing costs for companies. Those in most need of such services require top line account updates at present, but also welcome the possibility of more advanced account management services. These services have the capacity greatly to improve relationships with customers; ‘guardian-services’ which monitor financial performance and respond accordingly will foster ‘good will’ and increase loyalty. While complex services requiring expert advice should remain branch based, new data-enabled mobile phones will establish new opportunities for service provision in the future.     

Do customers patronize Islamic banks for Shari’a compliance?

The purpose of this article is to investigate whether Islamic bank customers view Shari’a compliance and conventional banking services as two distinct and different sets of bank patronage factors and, if so, to find the relative importance of each. The article is based on the primary data collected from 357 Islamic bank customers in Pakistan. The analytical tools used in this piece of research are factor analysis and mean ranking. A total of six variables were fed into the factor analysis, which resulted in the identification of two factors accounting for about 76 per cent of the total variance in the variables. The resulting factors were then analysed through mean ranking to investigate them for the relative importance of each factor. The findings reveal that customers consider Shari’a compliance and conventional banking services as two distinct and different packages of bank patronization factors. It is further revealed that conventional banking services are rather more important than Shari’a compliance. The article has important implications for Islamic financial institutions (IFIs) in Pakistan. On the one hand, it signifies the importance of Shari’a compliance as an additional discrete factor for customers’ bank-selection decision, and on the other, it highlights the importance of customers’ traditional banking needs. In order to be sustainable, IFIs must be competitive with the conventional banking industry in the first place and stay Shari’a compliant in the second place for obtaining marginal competitive edge.     

Adoption of electronic banking services in India: an extension of UTAUT2 model

Indian banks have paid sufficient attention to recent innovations in banking services delivery such as e-banking, mobile banking, mobile payment, e-wallet, and e-money services, still the acceptance of these services among consumers is sluggish. Therefore, the present study aims to identify the intention of consumers to adopt various e-banking services. The study adopted the UTAUT2 model (Unified Theory of Acceptance and Use of Technology) and extended it with constructs such as consumer innovativeness, perceived risk, and security information availability. The extended research model was tested using a questionnaire-based response collected from 721 consumers. CB-SEM (Covariance-based structural equation modeling) was used to examine the hypotheses. An empirical examination of the model helped explain the impact of the UTAUT2 model's constructs in predicting adoption intention toward e-banking services. The study also revealed the importance and impact of newly incorporated variables in explaining consumers' adoption intention toward e-banking services. The study has provided some useful insight into the factors influencing consumers' intention to adopt e-banking services to shed new light.

     

Banking the poor: The role of mobiles

It is estimated that about 90 per cent of the people living in developing countries do not have access to financial services. Also, in some developing countries including Ghana, some people live below the international poverty line of US $1 a day. Some of the issues related to this phenomenon include; difficulty in accessing banking services owing to geographic distance, bureaucratic nature of banking services and misconception regarding the inability of the poor to repay their loans. This article argues that if the traditional financial setting does not allow the poor to access to the financial services like banking, the poor could be offered banking services through mobile technologies. This article therefore proposes a Mobile Banking Model that conceptualizes key ways by which mobile phone technology can be used to increase pathways to banking access for poor people. Future research will focus on empirically testing this model.     

私人银行：现代商业银行的战略核心业务

私人银行是指以财富管理为核心,面向高净资产客户所提供的顶级专业化的一揽子金融服务,其已成为当今国际知名商业银行的战略核心业务。以家庭办公室为主要组织形式,向富裕人士提供高品质金融服务,是私人银行的重要特征。随着市场经济的快速发展,中国已经形成了一支在社会经济中越来越具有影响力的高收入群体,但由于缺失真正的私人银行服务,该群体日益增长的财富管理需求难以得到有效满足。金融全面开放后,私人银行在国内具有广阔的发展空间。     

国际手机银行发展、风险分析与安全策略

手机银行是商业银行借助于现代信息技术,向客户提供信息和金融交易服务的新型金融服务方式,也是当代金融业发展的新趋势。手机银行作为一种实体银行的虚拟工作环境,其潜在的风险远远高于传统银行。本文对手机银行存在的风险进行分析,并在此基础上提出相应的安全策略。     

The Impact of Internet-Banking on Brick and Mortar Branches: The Case of Turkey

The increased adoption and infiltration of the Internet has recently redefined the playground for retail banks. Retail banks are now offering their services primarily through their Internet banking branches. The repercussions of this change to “brick and mortar” banks have been studied in the context of developed market economies. In this paper, we contribute to the literature by studying the impact of Internet banking adoption on banks’ deposit collection, lending activities, and performance in an emerging market setting. By using a panel of 18 retail banks that operate in Turkey from 1990–2008, we demonstrate that Internet banking adoption has a positive impact on the level of profits, deposits and loans per branch. As operational activities are now provided via Internet branches, Internet banking facilitates banking activities in branches that require more human input. We also find that Internet banking adoption has a negative impact on bank profitability after 2 years of adoption as Internet banking increases competition and results in lower interest income. Accordingly, Internet banking complements brick and mortar branches.