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Simulation of the effect of COVID-19 outbreak on the development of branchless banking in Iran: case study of Resalat Qard–al-Hasan Bank

Vahid Shahabi (Department of Management and Economics, Islamic Azad University Science and Research Branch, Tehran, Iran)
Adel Azar (Department of Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran)
Farshad Faezy Razi (Department of Industrial Management, Semnan Branch, Islamic Azad University, Semnan, Iran)
Mir Feyz Fallah Shams (Faculty of Management, Islamic Azad University Central Tehran Branch, Tehran, Iran)

Review of Behavioral Finance

ISSN: 1940-5979

Article publication date: 28 July 2020

Issue publication date: 20 March 2021

4064

Abstract

Purpose

COVID-19 has become a global challenge with a significant rate of prevalence, and it has exerted devastating consequences in epidemic, economic and social terms. Therefore, a number of studies have already been, or are now being, conducted on the detrimental effects of the virus. In this respect, a question may arise: Is there any possibility to turn the threat of the virus outbreak into an opportunity in some sectors such as the banking industry? In this research, the effects of COVID-19 outbreak as an intervening element on the acceptance of branchless banking were studied.

Design/methodology/approach

In this research, the factors affecting the acceptance and development of branchless banking in Iran at the time of COVID-19 outbreak were identified by systematically studying the theoretical framework, conducting further research and interviewing the experts; then, a causal loop diagram of the problem in the proposed case study and the flow rate model were presented.

Findings

The simulation results showed that banking transactions and a bank's financial resources would increase by implementing the package policy of reducing the number of branches, promoting incentive policies and increasing the budget rate of the bank in Information Technology (IT). Further, by promoting customers' acceptance of new technologies, the spread of COVID-19 can be viewed as a positive factor, or even a catalyst, in the acceptance and development of branchless banking in Iran.

Originality/value

Based on the proposed model, the difficulties faced by individuals during the spread of COVID-19 could act as justifiable incentives to boost appropriate organizational preparations for making changes to the classic working processes. Processes such as telecommuting, job rotation and so on are among these changes.

Keywords

Citation

Shahabi, V., Azar, A., Faezy Razi, F. and Fallah Shams, M.F. (2021), "Simulation of the effect of COVID-19 outbreak on the development of branchless banking in Iran: case study of Resalat Qard–al-Hasan Bank", Review of Behavioral Finance, Vol. 13 No. 1, pp. 85-108. https://doi.org/10.1108/RBF-06-2020-0123

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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