Search results

1 – 10 of over 47000
Article
Publication date: 1 July 2022

Athanasios Patsiotis, Ioannis Krasonikolakis and Jing Lyu

Capital controls restrict cash withdrawals and international transfers, among other restrictions. The purpose of the study is to explore how capital controls have…

Abstract

Purpose

Capital controls restrict cash withdrawals and international transfers, among other restrictions. The purpose of the study is to explore how capital controls have influenced m-banking usage and disclose the underlying factors that explain m-banking usage intentions.

Design/methodology/approach

Grounded on the Technology Acceptance Model (TAM), this study assumes that usage behavior may be different from intentions to adopt. In-depth interviews (study 1) were employed with both consumers and bank employees to explore the factors of m-banking adoption under capital controls, followed by an online survey (study 2) pertaining to examine the relationships between underlying factors.

Findings

Study 1 reveals that the growth of m-banking usage is strongly associated with capital controls that perceived ease of use, usefulness, risk, technology anxiety and decision comfort are significant attributes in influencing usage intention. Study 2 verifies that most underlying factors are important predictors of m-banking usage intention, except technology anxiety does not impact m-banking usage.

Research limitations/implications

The respective effects on usage intentions may be different in the absence of capital controls. A similar study could examine the importance of the respective constructs in conditions of no forced use. The case of forcing consumers to adopt a technological innovation could be further explored.

Practical implications

Retail banking consumers have changed their banking and financing behaviors because of capital controls. Forced usage may cause customers to cultivate positive attitudes towards the technology and consider it for continuous usage.

Originality/value

Capital controls were found to impact positively customer behavior towards m-banking. It is revealed that capital controls have forced bank customers to adopt and use m-banking for their financial needs.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

Book part
Publication date: 26 August 2019

Noor Mahinar Abu Bakar, Norhashimah Mohd Yasin, Siti Salwani Razali and Ng See Teong

This chapter aims to examine Bank Negara Malaysia’s (BNM) approach in fulfilling its financial consumer protection mandate from unfair contract terms and the statutory…

Abstract

This chapter aims to examine Bank Negara Malaysia’s (BNM) approach in fulfilling its financial consumer protection mandate from unfair contract terms and the statutory framework relevant for consumer protection in the domestic market. This is a qualitative-based research. Using content analysis, this study analyses BNM’s Financial Stability and Payment Systems Report from 2012 to 2016, specifically on the ‘market conduct and consumer empowerment’ to explore BNM’s prudential regulatory, supervisory and consumer protection roles in protecting bank consumers from unfair contract terms. It is found that even if a number of standards and guidelines have been issued by BNM in improving ‘fairness and transparency’, the potential risk facing bank consumers from unfair terms in standard consumer contracts of Islamic banks especially where terms may be unfair or unclear remains unchanged. This study recommends that BNM as the Central Bank and financial regulator of Malaysia promotes self-regulation of the Islamic banks by adopting value-based banking of a consumer-focussed culture in delivering an effective protection for consumers from unfair contract terms and empowering them in their dealings with Islamic banks in Malaysia. This study will be helpful in bringing a policy formulation by BNM in identifying their weak areas and suggesting improvements in pursuing a strong consumer protection agenda from unfair contract terms.

Details

Emerging Issues in Islamic Finance Law and Practice in Malaysia
Type: Book
ISBN: 978-1-78973-546-8

Keywords

Article
Publication date: 5 April 2022

Rebecca Chan, Indrit Troshani, Sally Rao Hill and Arvid Hoffmann

This study aims to identify key factors driving consumers' adoption of Open Banking. It extends the Unified Theory of Acceptance and Use of Technology (UTAUT) by…

1345

Abstract

Purpose

This study aims to identify key factors driving consumers' adoption of Open Banking. It extends the Unified Theory of Acceptance and Use of Technology (UTAUT) by integrating perceived risk, initial trust and financial literacy into an overarching conceptual model.

Design/methodology/approach

Measurement items of the theoretical constructs included in the conceptual model were adapted from related literature and a set of hypotheses was developed. The hypotheses of the conceptual model were subsequently assessed with partial least squares structural equation modeling using a dataset of 456 Australian survey respondents.

Findings

The model has strong explanatory power with an R2 of 69.5%. Performance expectancy, effort expectancy, social influence and perceived risk are direct antecedents of consumers' usage intention of Open Banking. Social influence has a strong mediating effect on usage intention through performance expectancy. The effect of perceived risk is alleviated by effort expectancy and initial trust, while initial trust positively affects the effects of performance expectancy and effort expectancy on consumers' usage intention of Open Banking. Finally, financial literacy lowers initial trust towards Open Banking, possibly inducing consumer skepticism.

Practical implications

The results suggest that practitioners should focus on performance expectancy as a primary driver of Open Banking adoption, while understanding the role of other drivers, such as social influence and perceived risk in developing marketing strategies. Policy makers are recommended to adopt a governance approach to build initial trust amongst consumers.

Originality/value

This research contributes by providing an integrated and comprehensive model for explaining consumers' FinTech adoptions by extending the existing technology adoption model UTAUT to the Open Banking domain and integrating perceived risk, initial trust and financial literacy, thereby advancing and enriching the conceptual horizon of the extant literature.

Details

International Journal of Bank Marketing, vol. 40 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 4 September 2017

Souheila Kaabachi, Selima Ben Mrad and Maria Petrescu

The purpose of this paper is to investigate internet-only banks’ (IOBs) adoption by French consumers and attempt to understand the factors that influence consumers

1777

Abstract

Purpose

The purpose of this paper is to investigate internet-only banks’ (IOBs) adoption by French consumers and attempt to understand the factors that influence consumers’ initial trust in this type of service.

Design/methodology/approach

A non-probability convenience sample of potential IOBs adopters from France was used to test a structural equation model that analyzed the antecedents of initial trust and usage intentions of IOBs.

Findings

The study shows that trust is a major influencer in IOBs’ adoption in France. It has also been found that consumer familiarity with internet banking, high perceived structural assurance, perceived website quality, bank reputation and relative advantage are critical factors influencing IOBs’ initial trust formation.

Research limitations/implications

This study shows the applicability of the initial trust-building model in the context of IOBs and underlines the importance of factors such as familiarity, reputation and perceived quality in the context of online banking services in France.

Practical implications

This paper provides e-banking companies with the most important factors that contribute to build the initial trust of customers. E-banks need to focus on making themselves known and promoting their brand more effectively through advertising and advocacy.

Originality/value

This study contributes significantly to the marketing research related to consumer trust and brand reputation, as well as to the electronic banking literature. The results show the importance of initial trust in the context of services and the main factors that influence it, including a key branding variable such as reputation. The paper also focuses on the IOBs’ adoption in France, a market understudied compared to the USA, and seeks to understand the mechanisms associated with the initial formation of French consumers’ trust toward it.

Details

International Journal of Bank Marketing, vol. 35 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 6 March 2019

Souheila Kaabachi, Selima Ben Mrad and Bay O’Leary

The purpose of this paper is to explore how variables like propensity to trust, website usability, social influence, customer awareness about internet-only banks (IOBs…

Abstract

Purpose

The purpose of this paper is to explore how variables like propensity to trust, website usability, social influence, customer awareness about internet-only banks (IOBs) and perceived compatibility influence customers’ initial trust formation toward IOBs’ acceptance. The model is based on the technology acceptance model, diffusion of innovation theory and theory of reasoned action.

Design/methodology/approach

A non-probability convenience sample of 239 IOBs’ potential adopters from France was used to test the structural equation model between initial trust antecedents and IOB’s usage intention.

Findings

Findings confirm the important role of trust in initiating customers’ relationship with IOBs and show that social influence, compatibility and website usability contribute the most to IOB’s initial trust formation. Indeed, it has been found that the level of consumer information about IOBs and propensity to trust have a moderate impact on consumer’s initial trust. Results revealed that there is a general lack of consumer’s awareness about IOB’s services features.

Practical implications

To promote the trustworthiness of their sites and services to potential consumers, IOBs should enhance WOM by using social network applications. IOBs need to develop marketing communication campaigns in which they can educate potential customers about IOB’s features. In addition, IOBs should demonstrate to their customers that IOBs’ banking system is consistent with their current lifestyle. IOBs are encouraged to develop a favorable impression by investing heavily on their website usability and information design.

Originality/value

This study contributes significantly to the marketing research literature related to consumer trust and electronic banking literature. Indeed, only a few marketing studies have been conducted about IOBs. The results show the role played by initial trust formation in the case of IOBs. In addition, it points out the importance of five trust cues: individual cues, knowledge cues, institutional cues, cognitive cues and social cues (social influence).

Details

International Journal of Bank Marketing, vol. 37 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 October 2006

Christopher Gan, Mike Clemes, Visit Limsombunchai and Amy Weng

In this paper the competitive landscape of financial institutions is shifting and internet banking is no longer a competitive advantage but a competitive necessity for…

6241

Abstract

Purpose

In this paper the competitive landscape of financial institutions is shifting and internet banking is no longer a competitive advantage but a competitive necessity for banks. However, a limited number of empirical studies have been published in the marketing literature about electronic banking. This paper seeks to examine consumers' choices between electronic banking and non‐electronic banking in New Zealand.

Design/methodology/approach

The paper shows that the data for this analysis were obtained through a mail survey sent to 1,960 households in New Zealand. The decision to use electronic banking is hypothesised to be a function of service quality dimensions, perceived risk factors, user input factors, price factors, service product characteristics, individual factors and demographic variables such as age, gender, marital status, income, etc. Logistic regression is used to analyse the data. The discrete dependent variable measures whether an individual is an electronic banking or non‐electronic banking user.

Findings

The findings in the paper show that the output from the logistic regression indicates that the service quality, perceived risk factors, user input factors, employment, and education are the dominant variables that influence consumers' choice of electronic banking and non‐electronic banking channels.

Practical implications

This paper provides an improved understanding of consumers' choice between electronic and non‐electronic banking. This paper also identifies new relationships, and provides findings that further support, confirm, or contradict previous studies. In addition, it provides insights into the links between electronic banking and consumer decision making, to help provide strategies, recommendations and guidelines for the banking industry.

Originality/value

The paper shows how banks are developing, and utilizing new alternative distribution channels to reach their customers.

Details

International Journal of Bank Marketing, vol. 24 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 May 1990

Kenneth Andrew

This monograph covers a number of key articlesand presentations by the author over the lastdecade. The points contained in them reflect aclear belief based on experience…

Abstract

This monograph covers a number of key articles and presentations by the author over the last decade. The points contained in them reflect a clear belief based on experience of creating significant cultural change so that banks become more market‐driven and customer‐orientated. Many of the forecasts made in the articles have become a reality in the marketplace. This monograph begins with a description of changes over the last decade: the introduction of the marketing function into banks, consumer responses, new competitors, technological developments, and the impact of Government. Marketing has faced many difficulties in the banking industry and competitive breakthroughs have not been easy to achieve. Many leaders in the industry believe in business/marketing strategy evolving in close association with IT planning – this is the second topic, IT support may be crucial. The importance of advertising and management of agency relationships is the subject of Chapter 3 – how can it be effectively used? Chapter 4 looks at the ways in which the consumer is presently getting a better deal; Chapter 5 describes the marketing success of the NatWest Piggy Bank within the context of a changing marketing culture. A wider repertoire of marketing techniques are used in the USA (Chapter 6) but if they are to be used in the same way here then the situation will need to approximate more closely to that of the USA – credit and credit cards are the particular focus and the US market is more aggressive. Chapters 7‐9 look at the future of financial services marketing from the retailer′s perspective – the retailer′s detailed approach to a possible new business has distinctive strengths, but their actual opportunities in this market may be restricted to an extent by, for example, inexperience and so lower credibility as vendors of some specialised services like investment management. Chapter 10 appraises the value and strategic nature of market research. Chapter 11 considers the movement of building societies into the wider personal financial services marketplace, the product′s role in the marketing mix, and the impact of the Single Market in Europe. Chapter 12 singles out the cost‐effective technique of automated vetting of customers′ creditworthiness from the special viewpoint of the building society. The monograph concludes with a discussion of the changing market and future prospects: the world of finance is no longer simple; money is no longer the common denominator; the consumer is now the focus; competition to provide services is fierce; the future is exciting!

Details

International Journal of Bank Marketing, vol. 8 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 March 2005

Walfried M. Lassar, Chris Manolis and Sharon S. Lassar

This paper explores the relationships between consumer innovativeness, self‐efficacy on the internet, internet attitudes and online banking adoption, while controlling for…

19080

Abstract

Purpose

This paper explores the relationships between consumer innovativeness, self‐efficacy on the internet, internet attitudes and online banking adoption, while controlling for personal characteristics.

Design/methodology/approach

The study integrates the technology acceptance model (TAM) and adoption of innovation framework to develop predictions of online banking acceptance. It distinguishes between innate consumer innovativeness, a generalized personality trait, and internet‐domain‐specific or actualized innovativeness in order to explore consumer characteristics' impact on adoption. Data are analyzed using logistic regression.

Findings

While results confirm the positive relationship between internet related innovativeness and online banking they also surprisingly show that general innovativeness is negatively related to online banking.

Research limitations/implications

Results may or may not differ according to whether consumers are using online, telephone banking, electronic funds transfer (EFT) or direct bill payment. Our results may generalize to telephone banking and EFT as these products, like online banking, require an active consumer role in using the product. With direct bill payment, consumers need only set up the process initially and then monitor it on a semi‐regular basis.

Practical implications

Findings suggest that the type of consumer innovation matters in understanding the adoption of e‐banking processes. This supports the notion that online shoppers are distinct from traditional non‐online shoppers or highlight the unique nature of purchasing financial versus non‐financial products. Banks offering e‐banking need to recognize the importance of internet‐specific consumer innovation characteristics.

Originality/value

This paper closes a research gap as the model tested provides insights toward understanding the consumer‐based phenomenon of e‐banking, and serves to evaluate the TAM in this context. In contrast to previous research the study utilized an actual measure of e‐banking adoption versus a measure of intention to use the technology.

Details

International Journal of Bank Marketing, vol. 23 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 5 September 2018

Maya F. Farah, Muhammad Junaid Shahid Hasni and Abbas Khan Abbas

The purpose of this paper is to study the important factors which help explain consumer intention and use behavior in mobile banking (m-banking) adoption. All constructs…

4207

Abstract

Purpose

The purpose of this paper is to study the important factors which help explain consumer intention and use behavior in mobile banking (m-banking) adoption. All constructs of the unified theory of acceptance and use of technology 2 are studied. Non-monetary value is studied through perceived value. Trust and perceived risk are also included to predict intention.

Design/methodology/approach

A questionnaire was utilized to evaluate customer responses on a five-point Likert scale. A convenience sampling technique was used to collect data from a sample of 490 respondents in Pakistan. The data were analyzed using AMOS and SPSS for Cronbach’s α, CR, CMV, AVE, Harmon’s single factor test, correlation and structural equation modeling.

Findings

The results of the study show that most of the predictors of intention, including perceived value, performance expectancy, habit, social influence, effort expectancy, hedonic motivation (except for facilitating condition), perceived risk and trust, are significant. All predictors of usage behavior are significant.

Research limitations/implications

A cross-sectional study was conducted due to time constraints.

Practical implications

Bank managers must focus on improving customers’ intentions to use m-banking as well as on providing facilitating conditions to increase its actual use. To boost mobile banking, banks’ management must consider the customers’ habits while designing their m-banking products.

Originality/value

The findings of this paper are not only interesting in terms of boosting m-banking diffusion rate, but also in terms of financial inclusion of the vast majority of mobile users. Further the impact of intention, facilitating condition and habit were checked on actual use behavior since people tend not always to act upon their intentions.

Details

International Journal of Bank Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 7 September 2015

Rusnah Muhamad and Sharifah Alwi

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and…

1257

Abstract

Purpose

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical insight into the retail Islamic banking market segmentation to harness and enhance understanding, as well as provide a guideline for a better segmentation to bank marketers.

Design/methodology/approach

This study is conceptual in nature. Based on Qur’anic verses and previous literature, the authors aim to propose an applicable model of market segmentation for the retail Islamic banking market in Malaysia. Consumer segmentation in the conventional financial service industry is analysed, and prior studies on the selection criteria of Islamic banks are evaluated.

Findings

In moving forward, taking cue from the classification of people in classical doctrinal and historical literature and the initial exploratory study conducted from the managerial perspective, the authors propose five cluster groups of consumers for the retail Islamic banking market in Malaysia, namely, religious conviction, religious and economic rationality, economic rationality, ethical observant and economic rationality and ethical observant. A discussion linking consumer segmentation to the branding in the retail Islamic banking market is discussed.

Research limitations/implications

The five cluster groups of consumers for the retail Islamic banking market in Malaysia proposed in this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for Islamic banking market in Malaysia. Future research should focus on verifying the five proposed segments by conducting empirical studies on a larger scale among the retail banking consumers in Malaysia and globally.

Practical implications

The study provides an initial bases or dimensions of consumers of the retail Islamic banking market in Malaysia. The proposed consumers segments are useful in guiding the management of Islamic bank in Malaysia in making decisions relating to the promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the Islamic banking industry, this study provides useful knowledge in strategically using market segmentation to position Islamic banking products and services in Malaysia and the global market.

Details

Asia-Pacific Journal of Business Administration, vol. 7 no. 3
Type: Research Article
ISSN: 1757-4323

Keywords

1 – 10 of over 47000