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Article
Publication date: 16 December 2020

Shinaj Valangattil Shamsudheen, Ziyaad Mahomed and Shamsher Mohamad

This paper aims to investigate the differences in patronage factors influencing “retail customers” and “institutional clients” to bank Islamically and to identify the…

Abstract

Purpose

This paper aims to investigate the differences in patronage factors influencing “retail customers” and “institutional clients” to bank Islamically and to identify the reasons bankers perceive that their customers’ bank with them in the United Arab Emirates (UAE).

Design/methodology/approach

A total of 237; 416; and 70 balanced responses were collected from Islamic bankers, retail customers and institutional clients of UAE, respectively. Weighted average scores were computed for ranking the selection criteria factors across the data set and paired comparison analysis was conducted to analyse the variation of selection criteria between the data sets.

Findings

Empirical results indicate that Islamic banking practitioners maintain an identical perception with retail customers in relation to the selection criteria of Islamic banking products and services, with the “Sharīʿah-compliance” factor dominating other factors under examination. With respect to the perception regarding institutional/corporate clients, Islamic bankers exhibited a divergent perception in connection with selection criteria of Islamic banking products and services and the factor “cost and affordability” and “rates and return” are prioritized above factor “Sharīʿah-compliance”.

Research limitations/implications

The scope of the study is limited to a single country. Hence, the finding of this study cannot be generalized to the other regions. Although the study covers a considerable sample from each segment, still there is an avenue for improvement by covering more respondents into the survey. Consequently, the results of this study should be read with these limitations. Further, analysis of the variation among intra divisions of each segment such as Muslim and non-Muslim with respect to retail customers; the different level of management at the banks and focusing the specific sector of the industry is beyond the scope of this study. These directions provide avenues for future research.

Practical implications

The study provides useful insights for bankers to revisit their marketing strategies to attract and retain more clients. Hence, the findings also suggest policy recommendations for nascent Islamic banking markets to move to the next stages of maturity. The findings of this study have implications for firms’ strategic directions and future investments of organizations, especially when the competition in the industry is intense. Future studies are recommended in other countries where the Islamic financial market share is significant.

Originality/value

While ample perception studies have carried out in the Islamic banking industry of the UAE, studies that focus on institutional clients, especially with reference to the factors that determine the selection criteria; studies examining banker’s perception towards Islamic banks and their clients (retail and institutional); studies that reconcile the perception of bankers and customers (retail and institutional) are all inadequately covered in existing literatures. This study attempts to fill some of these significant gaps.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 1
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 13 September 2013

Ruben Mangold

The focus of this paper is to highlight the research findings with regard to the performance of client advisors in retail banking by analyzing their revenues and the…

Abstract

Purpose

The focus of this paper is to highlight the research findings with regard to the performance of client advisors in retail banking by analyzing their revenues and the underlying determinants of those revenues. Retail banking activities are increasingly important to understand in terms of productivity and performance management due to the high degree of competitiveness. This paper takes external and internal determinants of bank advisor revenue performance comprehensively into account. The author also derives practical implications for bank managers.

Design/methodology/approach

Based on the theoretical framework, empirical models are developed, which are based on a cross‐sectional ordinary least squares analysis. In total, four regression models are employed – being the base model, and the three variants of that using differing parameters in order to ensure the robustness of the results. The database encompasses quite sensitive and specific data on 521 retail banking client advisors in Switzerland. Additionally, it is enriched by explanatory variables on a regional level considering the degree of competitiveness and the population in a region, which are expected to be important determinants in retail banking.

Findings

First, bank advisors with closer proximity to clients and less distance to the community, combined with a longer period of work experience in that field, are more successful with regard to revenue performance. Second, the size of client portfolios, measured in number of clients and assets under management, client acquisition, client retention, the upgrades and downgrades across client segments, all have significant effects on revenue performance. Third, the competition and the population in a specific region need to be included in performance measurement and management by bank managers in order to ensure useful comparability across regions.

Practical implications

The hypotheses, as well as the findings, are also discussed with bank managers in order to validate the results and to enhance their practical relevance to the banking industry. Important practical implications are: first, regional differences and competitive pressures need to be taken into account in the performance measurement systems in order to ensure comparability. Second, collaboration across client segments is crucial and needs to be fostered by appropriate organizational structures and incentives. Third, retail bank advisors, which are close to the clients and have more work experience are most successful, which is important for hiring activities.

Social implications

A better understanding of the determinants of bank advisor revenue performance is crucial as performance management systems in banking are difficult to predict due to the varying methods of implementation by bank managers in their daily business. This is especially the case for performance measurement and incentive systems, which also entail social implications with view on potentially detrimental effects, for instance for too aggressive targets without properly taking the client's credit worthiness into account. Furthermore, retail banking is a pivotal area in banking as most people are depending on retail banking infrastructure, services and products.

Originality/value

This paper contributes to the current research by improving the understanding of a bank advisor's performance, as there is very limited research in this field to date, especially when considering the quality of empirical data. The paper adds to research by improving bank managers’ understanding of the determinants of a bank advisor's revenue performance. Especially original is the detailed inclusion of external factors such as competition and population, and their effect on the revenues. In addition the analysis is comprehensive and includes a broad range of relevant factors with a high degree of data quality.

Details

International Journal of Productivity and Performance Management, vol. 62 no. 7
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 1 February 1988

Paul D. Clarke, Edward P.M. Gardener, Paul Feeney and Phil Molyneux

The British retail banking market has changed markedly since the beginning of the 1970s, and important trends and developments have increased the competitive pressures…

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634

Abstract

The British retail banking market has changed markedly since the beginning of the 1970s, and important trends and developments have increased the competitive pressures facing banks. The whole nature of competition in British retail banking has altered. New competitors and new forms of competition have appeared with increasing rapidity. These changes and the associated pressures on banks have intensified during the 1980s. At the same time, banks have increased the comparative importance of retail banking within their strategies. These pressures and their associated implications for British retail banking strategy are explored. It is emphasised that marketing will need increasingly to dominate bank strategies in retail banking. This orientation towards marketing has important strategic and managerial consequences for banks.

Details

International Journal of Bank Marketing, vol. 6 no. 2
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 1 February 1998

Wai‐sum Siu

Banks in Pacific‐rim countries have widely and aggressively used retail banking and branch networking to provide services. However, it is widely believed that…

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1240

Abstract

Banks in Pacific‐rim countries have widely and aggressively used retail banking and branch networking to provide services. However, it is widely believed that Machiavellianism is counter to conservative banking practices. This paper reports the research findings of the Machiavellian orientation of retail banking executives in Hong Kong and the relationship between Machiavellianism and job satisfaction in the banking sector. The results indicate that a relation between Machiavellianism and job satisfaction, but not career satisfaction, exists in retail banking executives.

Details

Journal of Managerial Psychology, vol. 13 no. 1/2
Type: Research Article
ISSN: 0268-3946

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Article
Publication date: 1 January 1993

Norman E. Marr and Gerard P. Prendergast

Due to deregulation, the New Zealand retail banking environment ischaracterized by change, especially in the area of self‐servicetechnologies. The success of these…

Abstract

Due to deregulation, the New Zealand retail banking environment is characterized by change, especially in the area of self‐service technologies. The success of these technology projects has been mixed, and one must question whether or not the suppliers of these technologies have a true understanding of consumer needs. Draws a comparison between what the consumers see as being important influences in the adoption or non‐adoption of retail banking self‐service technologies; and what the suppliers of these technologies (i.e. banking and technology experts) perceive as being important influences in the consumer adoption or non‐adoption of self‐service retail banking technologies. To achieve this, a review was conducted of the literature relating to consumer surveys which investigated why consumers do or do not adopt the main self‐service technology in retail banking: automated telling machines. The themes from this review were identified. A Delphi study was then conducted with New Zealand′s leading experts in the area of retail banking technologies. A comparison between the themes from the literature and the results of the Delphi study indicated that the suppliers of technology do in fact have an understanding of those variables, which affect consumer adoption of self‐service technologies in retail banking.

Details

International Journal of Bank Marketing, vol. 11 no. 1
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 18 May 2015

Sanjiv Mittal, Rajat Gera and Dharminder Kumar Batra

The purpose of this paper is to extract and validate the dimensions of service quality in retail banking services in India by adopting an integrated and hierarchical…

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1690

Abstract

Purpose

The purpose of this paper is to extract and validate the dimensions of service quality in retail banking services in India by adopting an integrated and hierarchical perspective of service quality determinants.

Design/methodology/approach

The paper empirically validates a parsimonious (multi-dimensional and multi-level) model of service quality in retail banking services in India. The analysis was conducted using structural equation modeling. A hypothesized second-order model was tested and compared with a first-order model of service quality. The dimensions were extracted through exploratory factor analysis and validated through confirmatory factor analysis.

Findings

The second-order service quality model was accepted based on parsimony as it consisted of five primary dimensions: Service delivery (describing the efficiency with which the service is provided), tangibles (the quality of physical service environment), reliability (the promise of right service being provided), core service (the attributes and features of the service product) and competence (the capability of employees and systems for providing the service). The second-order model enhances the understanding of the structure of service quality for retail banking services in India. The most important dimension was tangibles, especially the physical environment which facilitates efficient delivery of service.

Research limitations/implications

The research provides support for a multi-dimensional second-order model of service quality in retail banking service in India. The results show that customers form perceptions of overall service quality which are reflected by five primary dimensions. The primary dimension of tangibles is the most influential.

Practical implications

Organizations need to measure and manage overall service quality perceptions to build trust and reinforce loyalty intentions among their customers. Banks need to adopt a multi-level approach to managing service quality perceptions, i.e. both at the dimensional level and organizational level.

Social implications

This study would contribute to the enhancement of service quality outcomes in retail banking services in India which has a crucial role in the economic development.

Originality/value

The study proposes and validates a parsimonious and hierarchical model of service quality in the context of retail banking in Indian cultural context. Thus this research provides support to existing knowledge of service quality measurement and management and extends the understanding of its structure by validating the multi-level model in an emerging market context.

Details

International Journal of Bank Marketing, vol. 33 no. 3
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 5 June 2017

Charles Blankson, Seth Ketron and Joseph Darmoe

The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study…

Abstract

Purpose

The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study context. In addition, it explores the applicability of western-based typology of positioning strategies in the Sub-Saharan African environment.

Design/methodology/approach

Six retail banks – three national and three foreign – are studied, each through an in-depth case study method: covert and participant observation techniques; and face-to-face interviews of chief executive officers, marketing managers, and bank branch managers provided data for the study.

Findings

The results show that the “service” positioning strategy is the most popular strategy employed by retail banks. “Value for money,” “attractiveness,” “brand name,” and “country of origin” positioning strategies are also dominant. “Top of the range” and “selectivity” strategies are minimally pursued by the sample of banks studied. The results reveal that both foreign and national retail banks employ multiple positioning strategies in the face of competition. However, foreign retail banks consistently employ a; large number of strategies relative to national retail banks. This paper supports the applicability of a western-derived set of positioning strategies in the Sub-Saharan African marketplace.

Research limitations/implications

This study closes a gap in the understanding of positioning, as well as filling the empirical gap in the application of positioning. In addition, it helps resolve a contextual gap of knowledge in Sub-Saharan Africa’s retail banking sector.

Originality/value

This study responds to Porter (1996), Clancy and Trout (2002), and Knox (2004) for continued empirical research in positioning in service industries and specifically in Sub-Saharan African economies (Coffie, 2014, 2016; Coffie and Owusu-Frimpong, 2014). Moreover, this research adds value to the banking and marketing literatures through a qualitative case study method, which is an important yet overlooked research method (Yin, 2009).

Details

International Journal of Bank Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 13 November 2009

Andy Mullineux

The purpose of this paper is to consider in the light of the post August 2007 banking crises, how “fair” access to retail banking services for British households and…

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1492

Abstract

Purpose

The purpose of this paper is to consider in the light of the post August 2007 banking crises, how “fair” access to retail banking services for British households and small‐ and medium‐sized enterprises (SMEs) can be assured.

Design/methodology/approach

The current responsibility for assuring the bank customers are “treated fairly” belongs to the Financial Services Authority (FSA). The paper argues for the establishment of a banking commission to regulate retail banks as utilities, leaving the FSA to concentrate on prudential (“risk based”) supervision of bank and non‐bank financial institutions.

Findings

If access to payments services is infrastructural and access to finance is regarded as essential in a modern society, then retail banks should be regulated as utilities.

Originality/value

The banking crisis led to calls for banks to maintain lending to SMEs and households (especially mortgages). This implies that access to finance, like access to water and electricity, should be assured and that customers should be protected against the “monopoly” powers of large suppliers. Hence, retail banks are utilities and should be regulated as such.

Details

Journal of Financial Regulation and Compliance, vol. 17 no. 4
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 20 July 2012

V.K. Gupta

Retail banking is mass market banking where individual customers use local branches of large commercial banks for services such as savings and checking accounts…

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2319

Abstract

Purpose

Retail banking is mass market banking where individual customers use local branches of large commercial banks for services such as savings and checking accounts, mortgages, personal loans, car loans, debit cards, credit cards, insurance and other value added services. The purpose of this paper is to gain an understanding of the retail banking business processes from the perspective of continuity and change and identify the factors that affect these processes and overall performance of the retail banking sector. The aim was to develop a flexible framework for managing forces of continuity and change in retail banking business processes from a strategic perspective.

Design/methodology/approach

The data on which this study is based were generated through secondary research using published sources and primary research through focused discussion with industry experts and personal interviews with over 100 experts from leading banks selected using a structured questionnaire.

Findings

It was found that most of the public sector banks scored high on the continuity forces and relatively low on the change forces. Most of the private‐sector banks studied scored high on continuity and also high on change forces making them more competitive, except one bank which is low on both the forces because it is a newly established bank. The study suggests that there is a need for public sector banks to focus their strategies on factors affecting change forces for the improvement of their overall performance in the long run.

Social implications

The paper brings in the need for social responsibility for private sector banks and a need for a fine balance in forces of continuity and change for a long‐term sustainable business model.

Originality/value

This research paper represents one of the few efforts to study the business process management of retail banking in India from a strategic perspective and come out with a flexible strategic framework for managing forces of continuity and change for guiding this sector for its long‐term survival and growth. The flexible framework suggested and the C‐C Matrix can be of interest to researchers and practising managers to validate the applicability for other sectors, such as financial services, insurance, corporate finance, mortgages, risk management and other domains. The framework suggested can be adapted for application in the global context.

Details

Business Process Management Journal, vol. 18 no. 4
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 5 October 2015

Harjit Singh Sekhon, Dima Al-Eisawi, Sanjit Kumar Roy and Adrian Pritchard

The purpose of this paper is to develop and tests a service excellence model, thus providing a detailed understanding of the key antecedents of service excellence, from a…

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1773

Abstract

Purpose

The purpose of this paper is to develop and tests a service excellence model, thus providing a detailed understanding of the key antecedents of service excellence, from a customer ' s perspective. The model presented in this paper is rooted in cross-disciplinary literature and tested amongst customers of UK retail banking services.

Design/methodology/approach

Following a systematic approach to scale development, the paper draws on survey data from 260 consumers of retail banking products, with the data collected on national basis in the UK.

Findings

The theoretical framework was evaluated using a structural approach. Of the hypothesised antecedents, innovation has the greatest impact on service excellence while reputation the least, as far as customers are concerned.

Research limitations/implications

The research was limited to one research domain, i.e. UK retail banking, and thus it is reasonable to hypothesise that other aspects of service excellence will be more or less relevant for other types of financial services or in other geographic regions.

Practical implications

Given the challenges faced by the retail banking sector, there are implications for practitioners because the authors identified the key antecedents of service excellence. The antecedents can be used by practitioners to help demonstrate excellence on their part and they could differentiate what are homogenous services at a time when the retail banks are going through a period of recovery following the crisis within the sector.

Originality/value

This work complements the understanding of service excellence and provides insight for scholars and practitioners by modelling services for a specific service sector.

Details

International Journal of Bank Marketing, vol. 33 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

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