Search results
1 – 10 of 328Tania Morris, Lamine Kamano and Stéphanie Maillet
This article describes financial professionals' perceptions of their clients' financial behaviors and the explanatory factors underlying these behaviors.
Abstract
Purpose
This article describes financial professionals' perceptions of their clients' financial behaviors and the explanatory factors underlying these behaviors.
Design/methodology/approach
In this qualitative research, the authors seek to understand financial professionals' experiences in relation to how their clients manage their own finances. The authors conduct and analyze 26 semi-structured interviews with financial professionals from several industries within the financial sector in Canada.
Findings
The professionals in this study noted that despite their clients' financial knowledge, several other factors can explain these individuals' financial behaviors. They include psychological factors (such as financial bias, the need for instant gratification, and the lack of awareness regarding the long-term effects of certain types of financial behaviors), financial habits (such as lifestyle, financial planning and lack of discipline) and the financial system's flexibility with respect to debt financing and repayment. These perceptions are categorized according to whether they are related to debt financing or repayment, savings or investments.
Originality/value
By using a qualitative methodology that relies on the perceptions of financial professionals, this study aims to better understand the financial behaviors of individuals and households, and these behaviors' underlying factors. This study's findings could be useful to various stakeholders interested, in one way or another, in financial literacy, such as organizations aiming to strengthen and promote financial literacy, educators, researchers, regulatory bodies of financial institutions and financial advisers.
Details
Keywords
Mst Farjana Rahman and Md Shamim Hossain
The influence of website quality on online compulsive buying behavior (OCBB) in the context of online shopping based on the usage of a credit card (UCC) and online impulsive…
Abstract
Purpose
The influence of website quality on online compulsive buying behavior (OCBB) in the context of online shopping based on the usage of a credit card (UCC) and online impulsive buying behavior (OIBB) was investigated in this study.
Design/methodology/approach
The authors used a research model to examine the relationships between the study components as per the prescription. For this investigation, the authors used an online survey form to obtain primary data from 350 respondents on social media. A covariance-based structural equation modeling approach was used to evaluate the structural research model and data.
Findings
The findings reveal that the quality of online shopping websites positively affects consumers' UCC and OIBB, and these in turn positively influence their OCBB.
Practical implications
The study emphasized impacting elements on consumer behavior and gave advice for future research based on the results. Using several dimensions of website quality, this study bridges the knowledge gap between UCC, OIBB and OCBB.
Originality/value
Based on UCC and OIBB, the authors developed a new model to investigate the link between website quality and OCBB. To the best of the authors' knowledge, it is the first experimental result that assesses the impact of website quality on OCBB.
Details
Keywords
Sophia Brink and Gretha Steenkamp
After the effective date of International Financial Reporting Standard (IFRS) 15, the accounting treatment of credit card rewards programmes (CCRPs) is no longer explicitly…
Abstract
Purpose
After the effective date of International Financial Reporting Standard (IFRS) 15, the accounting treatment of credit card rewards programmes (CCRPs) is no longer explicitly prescribed. Uncertainty regarding what constitutes faithful representation, and the inconsistent accounting practices observed, has created a need for guidance on the appropriate accounting treatment of CCRP transactions. Accounting theory has the potential to provide the foundation for this guidance. As a result, the objective of this study was to develop a theoretical model for the accounting treatment of CCRP transactions using accounting theory.
Design/methodology/approach
This non-empirical qualitative conceptual study utilised document analysis, focussing specifically on accounting theory, to construct an accounting treatment model.
Findings
Applying the relevant accounting theory (International Accounting Standards Board's (IASB's) Conceptual Framework), a theoretical model for the accounting treatment of CCRP transactions was developed, which emphasises the importance of understanding the economic phenomenon (the CCRP transaction) and determining how management views the transaction (in isolation as marketing or as an integral part of the credit card transaction).
Originality/value
Addressing the problem of accounting for CCRP transactions with reference to accounting theory (which is the main element of scholarly activity in accounting) distinguishes this study from previous research on the topic. The CCRP accounting treatment theoretical model could assist CCRP management in faithfully accounting for a CCRP transaction and reduce uncertainty and inconsistency in practice. Moreover, this study identified the procedures to be employed when using accounting theory to determine the appropriate accounting treatment of business transactions. These procedures could be employed by accountants when faced with other transactions not covered by specific accounting standards.
Details
Keywords
Hoang Nam Trinh, Hong Ha Tran and Duc Hoang Quan Vuong
The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived…
Abstract
Purpose
The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived risk, which is tested on the intended use of credit cards in Vietnam.
Design/methodology/approach
The data were collected from 485 bank customers through a nationwide online survey. An exploratory and confirmatory factor analyzes were performed to validate the factor structure of the measurement items while structural equation modeling was used to validate the proposed model and testing the hypotheses.
Findings
The results of structural equation modeling reveal that perceived risk, perceived usefulness, social influence and perceived ease of use were significant determinants of consumer intention to use a credit card. Of them, only perceived risk discouraged the intended use of a credit card, which was synthesized from psychological, financial, performance, privacy, time, social and security risk.
Research limitations/implications
This study measured the first-order risk dimensions based on the payment function of the credit card only; these measurements missed potential losses relevant to credit function of credit cards.
Practical implications
This study can be beneficial to banks enacting policies to attract more consumers and to help decide how to allocate resources to retain and expand their customer base.
Originality/value
The study adds value to the literature on consumer behavior by confirming the impact of second-order perceived risk on the intended use of credit cards, which most previous studies have not demonstrated. The research also provides an empirical evidence to the academic research platform on e-banking services in Vietnam, especially related to the credit card industry.
Details
Keywords
Changqin Xu, Alexander Unger, Chongzeng Bi, Julie Papastamatelou and Gerhard Raab
Buying behavior has been significantly altered by technological developments as a result of the rise of the Internet. Online buying behavior is also inextricably linked to…
Abstract
Purpose
Buying behavior has been significantly altered by technological developments as a result of the rise of the Internet. Online buying behavior is also inextricably linked to electronic payment systems, such as credit cards. This paper investigates how credit-card systems and online shopping increases compulsive buying of female and male consumers.
Design/methodology/approach
In the current study, the authors tested the influence of credit card possession and the role of Internet shopping on gender differences in compulsive buying in a representative German sample (n = 1,038). Binary logistic regression analysis and moderator analysis were applied.
Findings
As predicted, Internet shopping increased compulsive buying, but the association was the same for females and males. Further, credit card possession moderated the effect of gender on compulsive buying, with females showing a higher proneness to compulsive buying.
Originality/value
This research, which is based on a representative population study, contributes to the understanding of the role of credit cards and the one of online shopping in developing compulsive buying patterns among female and male consumers.
Details
Keywords
Thu Thi Hoai Nguyen, Hung Manh Le, Le Quoc Hoi and Hang Thu Pham
This study estimates impact of remittances from internal migration on households' use of bank services in Vietnam.
Abstract
Purpose
This study estimates impact of remittances from internal migration on households' use of bank services in Vietnam.
Design/methodology/approach
This study uses data from the Vietnam Household Living Standards Survey and the two-stage least squares method (2SLS).
Findings
The results show that receiving internal remittance increases households' probability of having bank accounts and using card services. However, these impacts are different between rural and urban areas.
Research limitations/implications
The results of this study reveal the useful role of internal remittance in increasing the probability of households using bank services, thereby enhancing financial inclusion in Vietnam.
Originality/value
Different from the previous studies, the purpose of this paper is to analyse the impact of internal remittance on the use of bank services in Vietnam at the household level. This paper targets internal migration because it is the main type of migration in Vietnam. Besides, to the best of the authors’ knowledge, this research is the first one that compares the role of internal remittance on households' use of bank services in rural and urban areas in Vietnam.
Details
Keywords
The literature review stated that financial inclusion (FI) influences economic growth through different channels. Hence, this paper aims to investigate the underlying process of…
Abstract
Purpose
The literature review stated that financial inclusion (FI) influences economic growth through different channels. Hence, this paper aims to investigate the underlying process of FI in Egypt theoretically, and to derive some policy implications for promoting the process and achieving more improvement in different financial and economic aspects, that is basically through discussing the opinions of FI's main stockholders in Egypt.
Design/methodology/approach
The analysis used secondary data from the Global Findex and FAS Database, namely, automated teller machines, outstanding deposits and loans with commercial banks, debit and credit cards ownership. The research particularly used scientific methods as method of deduction, methods of graphical and tabular representation of data, comparative analysis and synthesis of partial knowledge. The paper is also based on a descriptive approach in addition to in-depth interviews with the main stakeholders of the financial inclusion process in Egypt.
Findings
The analyzed results of interviews revealed that new FI vision should have a deep understanding of the financial lives of the poor and low-income groups, including how they acquire, manage and use their money. However, the impact is becoming more prominent for the efficiency of the banking system and hence economic growth rather a regulatory and sound institutional framework enhances it. This finding supported the fact that Egypt can design an appropriate FI strategy, but the main challenge is how to implement it with the required speed and outreach capacity, especially in underprivileged communities.
Research limitations/implications
The result of this study has interesting implications for Egypt's ability to attain effective FI initiatives that promote sound financial choices and behavior which in turn help to stimulate financial and economic growth.
Originality/value
The study contributes to the literature by assessing the FI level in Egypt, its implications and how it should be enhanced for better performance and results in the future. It addresses the deep fact of this process through inclusive surveys and interviews that help in determining the road ahead.
Details
Keywords
Komeil Ali Taghavi and Mohammadreza Mashayekh
The description of “blockchain banking”, the determination of “the sub-processes” of “blockchain banking” as a “business process”, and the assessment of “maturity level” in…
Abstract
Purpose
The description of “blockchain banking”, the determination of “the sub-processes” of “blockchain banking” as a “business process”, and the assessment of “maturity level” in Parsian Bank.
Design/methodology/approach
Theoretical sources on “blockchain banking” were initially investigated. Then the “sub-processes” of “blockchain banking” as a “business process” were extracted by Parsian Bank's experts through the “Delphi method”. Next, the “sequence” of the “sub-processes” was determined by means of the “AHP”. Eventually, Parsian Bank's maturity levels for all the sub-processes as well as the overall maturity level were specified on the basis of the “CMMI” V1.3 in order for Business Process Management (BPM).
Findings
Blockchain banking’ combines traditional banking with cryptocurrencies, which can be provided by merging “hybrid e-wallet” with “bank account” and “bank card” – all together as “crypto bank account”. Plus, “hybrid e-wallet” is a form of mobile e-wallet on blockchain that supports both cryptocurrencies and traditional currencies in the same platform by which the purchase and sale of cryptocurrencies are possible. Besides, “Blockchain banking service” can also be offered within the framework of “open banking” aligned with “open innovation” through a FinTech (or a beta bank) in collaboration with a licensed bank via “open API”, which is called “blockchain banking based on FinTech”. At last, the eight sub-processes of “blockchain banking” were determined and Parsian Bank's “maturity level” was specified.
Originality/value
This is the very first practical guide to “blockchain banking service”.
Details
Keywords
Richard Cunha Schmidt and Micheline Gaia Hoffmann
Despite the increasing availability of financing programs for innovation, micro, small and medium-sized enterprises (MSMEs) often find it difficult to access credit for their…
Abstract
Purpose
Despite the increasing availability of financing programs for innovation, micro, small and medium-sized enterprises (MSMEs) often find it difficult to access credit for their projects. Among the reasons, the lack of the types of guarantees required by financial institutions stands out. Focused on this problem, in 2013, the Regional Bank for the Development of the Extreme South (BRDE) created a policy to stimulate innovation, making the required guarantees for financing operations of innovative companies more flexible: the BRDE Inova Program. This paper aims to analyze the guarantees used in the bank operations since the beginning of the program.
Design/methodology/approach
In the first stage of the research, the authors identified the guarantees used in each of the signed contracts, through a documentary survey. Next, semi-structured interviews showed the perceptions of the players involved in the innovation ecosystem of the state of Santa Catarina, regarding aspects related to the guarantees. Specifically, the authors investigated the following elements: strengths and limitations of the programs regarding access to credit for innovation; adequacy of existing guarantee mechanisms. To strengthen the conclusions, they used triangulated data collection in different stages.
Findings
The results showed that, on the one hand, the initiative helped BRDE to consolidate itself as the main financing agent of innovation in MSMEs; on the other hand, the need for traditional guarantees still plays a significant role for innovative MSMEs to access credit.
Originality/value
In addition to practical implications for the bank and other financing agents’ policies, this paper contributes to fill a gap in the literature on guarantee systems applied to the specificities of knowledge-intensive MSMEs.
Details
Keywords
Sharifah Heryati Syed Nor, Shafinar Ismail and Bee Wah Yap
Personal bankruptcy is on the rise in Malaysia. The Insolvency Department of Malaysia reported that personal bankruptcy has increased since 2007, and the total accumulated…
Abstract
Purpose
Personal bankruptcy is on the rise in Malaysia. The Insolvency Department of Malaysia reported that personal bankruptcy has increased since 2007, and the total accumulated personal bankruptcy cases stood at 131,282 in 2014. This is indeed an alarming issue because the increasing number of personal bankruptcy cases will have a negative impact on the Malaysian economy, as well as on the society. From the aspect of individual’s personal economy, bankruptcy minimizes their chances of securing a job. Apart from that, their account will be frozen, lost control on their assets and properties and not allowed to start any business nor be a part of any company’s management. Bankrupts also will be denied from any loan application, restricted from travelling overseas and cannot act as a guarantor. This paper aims to investigate this problem by developing the personal bankruptcy prediction model using the decision tree technique.
Design/methodology/approach
In this paper, bankrupt is defined as terminated members who failed to settle their loans. The sample comprised of 24,546 cases with 17 per cent settled cases and 83 per cent terminated cases. The data included a dependent variable, i.e. bankruptcy status (Y = 1(bankrupt), Y = 0 (non-bankrupt)) and 12 predictors. SAS Enterprise Miner 14.1 software was used to develop the decision tree model.
Findings
Upon completion, this study succeeds to come out with the profiles of bankrupts, reliable personal bankruptcy scoring model and significant variables of personal bankruptcy.
Practical implications
This decision tree model is possible for patent and income generation. Financial institutions are able to use this model for potential borrowers to predict their tendency toward personal bankruptcy.
Social implications
Create awareness to society on significant variables of personal bankruptcy so that they can avoid being a bankrupt.
Originality/value
This decision tree model is able to facilitate and assist financial institutions in evaluating and assessing their potential borrower. It helps to identify potential defaulting borrowers. It also can assist financial institutions in implementing the right strategies to avoid defaulting borrowers.
Details