International Journal of Bank Marketing

Dang, Tri-Quan; Tan, Garry Wei-Han; Aw, Eugene Cheng-Xi; Ooi, Keng-Boon; Metri, Bhimaraya; Dwivedi, Yogesh K.

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-05-2022-0202

The surging entrance of new mobile payment merchants into the growing market has prompted the need for an in-depth understanding of loyalty formation to retain customers. This study examines customers' loyalty generation process in mobile payment services by exploring the serial effect of cognitive drivers (i.e. brand awareness, perceived quality, brand image, perceived value and layout) on affective response, satisfaction and loyalty.Design/methodology/approachA survey using self-administered questionnaires was conducted. The data was collected from 370 consumers who have experience using mobile payment services in Vietnam. The data were submitted to partial least square structural equation modeling (PLS-SEM) and artificial neural networks (ANN) analysis.FindingsThe results indicated that all the proposed cognitive drivers show significant impacts on affective response, which, in turn, translates into satisfaction and loyalty. The post-hoc analysis revealed enjoyment as the vital affective response in determining satisfaction. Moreover, the multigroup analysis indicated that the relationship between affective response and satisfaction is stronger for the female group. In addition, the ANN's nonlinear result revealed complementary insight into the importance of cognitive drivers.OriginalityThe current study revealed both linear and nonlinear mechanisms that explicate the roles of cognitive drivers and affective responses in fostering loyalty toward mobile payment merchants. The findings add to the existing literature that emphasizes consumers' initial mobile payment adoption.

Kumar, Poonam; Chauhan, Sumedha; Gupta, Prashant; Jaiswal, Mahadeo Prasad

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-02-2022-0075

In mobile banking (m-banking), knowing and understanding trust-related factors can enable bank managers to design suitable strategies for enhancing its overall uptake. Based on this premise, the present study assesses the relationship of trust in m-banking with technology acceptance and use factors, quality factors, risk factors and a personal factor as well as behavioral outcomes. The study further investigates the moderating influence of Hofstede’s cultural dimensions on these relationships.Design/methodology/approachThe present study synthesizes the outcomes of 63 quantitative studies on trust in m-banking by using the meta-analysis technique.FindingsThe study finds a significant relationship of trust in m-banking with technology acceptance and use factors, quality factors, risk factors, a personal factor and behavioral outcomes. Additionally, Hofstede’s cultural dimensions, namely power distance, individualism/collectivism, masculinity/femininity and uncertainty avoidance, significantly moderate the majority of the hypothesized relationships.Research limitations/implicationsBy reviewing the extant literature, this study provides a comprehensive framework that explains the antecedents and behavioral outcomes of trust in m-banking and determines how these relationships effectively vary across cultures.Practical implicationsThe study helps m-banking service providers to understand how trust in m-banking can be enhanced. The study also shows which factors are more impactful in a particular culture.Originality/valueThis is an original study that contributes to the m-banking marketing literature.

Mulu Zelie, Enyew

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-08-2022-0380

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.Design/methodology/approachThe study used a structured questionnaire to collect data from 300 MSEs selected through a convenience sampling technique. Descriptive statistics, exploratory factor analysis and linear regression analysis methods are used to identify the most important factors determining bank selection by MSEs.FindingsThe results of exploratory factor analysis revealed that the availability of credit at a reasonable interest rate, lower service charges and the availability of better automated teller machine (ATM) services are the priorities of MSEs in their bank selection decisions. In addition, the results of regression analysis indicated that price competitiveness is the most important factor determining bank selection decisions of MSEs.Research limitations/implicationsThis study has two major limitations: first, due to resource constraints, the samples included in this study were taken only from the capital city of the country, Addis Ababa. As customer preferences are likely to vary from region to region, future studies could be carried out by including samples from other cities and rural areas of the country. Second, the study relied on a single data collection instrument. The use of additional data collection instruments, such as interviews and focus group discussions, could provide additional insights into the topic.Practical implicationsCommercial banks need to devise a flexible lending policy and set affordable interest rates and collateral requirements to meet the credit needs of MSEs. MSEs, on the other hand, need to improve their bankability by improving their operating and financial reporting practices. Further research can be conducted by covering other cities and the rural parts of the country.Originality/valueThe topic of bank selection has not been explored with a specific reference to MSEs in Ethiopia. The present study addressed this gap by investigating the factors influencing bank selection decisions of MSEs.

Fan, Lu; Lei, Shan

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-05-2022-0214

This study aims to examine the relationship between objective and subjective aspects of financial well-being, the role of family financial support and depression symptoms of Chinese older adults.Design/methodology/approachThis study used two waves (2015 and 2018) of the Harmonized China Health and Retirement Longitudinal Study. Two financial ratios: the expenditure-to-income ratio and the financial assets ratio, were used to measure the objective aspect of financial well-being. Perceived money management difficulty was employed to measure the subjective aspect of financial well-being. Depression symptoms were measured using the Center for Epidemiologic Studies Depression Scale (CES-D) score. Three analytical models, including an ordinary least squares (OLS) model, an OLS model controlling for lagged depression and a random effects model using panel data, were used to examine the relationships between the objective and subject aspects of financial well-being and depression.FindingsThe results from the three models showed consistent relationships: the expenditure-to-income ratio was a positive contributor, while the financial assets ratio was a negative contributor to depression of older adults in China. The robustness check using binary-coded financial ratio thresholds showed that reaching the suggested thresholds was negatively associated with depression. Perceived money management difficulty contributed positively to depression. The robustness check using the fixed effects model showed no significance of the two ratios, while perceived money management difficulty was positively associated with depression. The insignificance might be due to data limitation (limited waves or rare changes across waves).Originality/valueThe findings indicate that both objective and subjective financial well-being matters in relation to depression symptoms and, therefore, to the overall mental health of the Chinese elderly. Developments in public policies are needed to promote accessible financial services, assistance programs, mental health services and facilities for the older population in China.

Gonçalves, Ana Rita; Breda Meira, Amanda; Shuqair, Saleh; Costa Pinto, Diego

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-07-2022-0295

The digital revolution has changed consumer–service provider interaction, spawning a new generation of FinTech. This paper analyzes consumers' reactions to artificial intelligence (AI) (vs human) decisions.Design/methodology/approachThe authors tested their predictions by conducting two experimental studies with FinTech consumers (n = 503).FindingsThe results reveal that consumers' responses to AI (vs human) credit decisions depend on the type of credit product. For personal loans, the rejection by an AI provider triggers higher levels of satisfaction compared to a credit analyst. This effect is explained via the perceived role congruity. In addition, the findings reveal that consumers’ rejection sensitivity determines how they perceive financial services role congruity.Originality/valueTo the best of the authors' knowledge, this research is the first to jointly examine AI (vs human) credit decisions in FinTech and role congruity, extending prior research in the field.

Ngau, Christine Mening; Zins, Andreas H.; Rengasamy, Dhanuskodi

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-10-2021-0475

The digital transformation in the banking industry has brought about complexity and competitiveness which has made differentiation challenging for banks. Complemented by consumer empowerment through high accessibility of information on the internet, this has led to a phenomenon known as switching behavior. The purpose of this review is to examine the determinants governing switching behavior among bank customers. This review highlights the importance of research which looks beyond pre-adoption behavior by examining post-adoption behavior; what happens after initial technology acceptance.Design/methodology/approachThis review examines 44 journal articles researching switching behavior published between 1995 and 2022 in top journals. From a synthesis of literature, a conceptual framework for analysis and understanding switching behavior is presented.FindingsAlthough various scholars have investigated switching behavior among bank customers, there are few studies which provide a comprehensive review and research classifications in this area. This review classifies key determinants of switching behavior into socio-demographic factors, situational triggers, influential triggers and reactional triggers. Structural equation modelling is the most common research methodology utilized in reviewed articles. The literature review reveals that mediators and moderators are less commonly deployed compared to determinants. Findings also indicate switching behavior studies still lack theory-driven conceptual frameworks.Originality/valueThis paper is the first systematic literature review on switching behavior research among bank customers spanning across 28 years in top academic journals. It integrates insights from 44 relevant research papers through publication trends. This review identifies key research gaps and provides future research directions.

Kumari, Neha; Biswas, Abhijeet

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-11-2022-0500

Demonetization and pandemic-related restrictions in India propelled the usage of mobile payments (M-payments). The culture of online smartphone transactions is expected to rise over the coming years, even after things return to normal. This study aims to unveil the factors that escalate the satisfaction levels of M-payment users and eventually stimulate them to continue using M-payments for their daily activities.Design/methodology/approachThis study evaluated the intention to continue using M-payments for 710 users utilizing structural equation modeling and augmenting the technology acceptance model (TAM) as well as the expectation confirmation model (ECM). Mediation and moderation analysis examined the proposed model's direct and indirect relationships.FindingsThe findings unveil that perceived value co-creation participation, service quality and cognitive processing magnify user satisfaction, significantly escalating M-payment continuance usage intention. Perceived value co-creation participation and user satisfaction with M-payment partially mediate the linkage among the constructs. Furthermore, perceived usefulness strengthens the link, while perceived severity of security threats weakens the linkage between user satisfaction with M-payment and continuance usage intention.Research limitations/implicationsThe study's findings could benefit M-payment service providers, users, policymakers and the telecom industry to strengthen India's digital payment framework.Originality/valueThe perceived value co-creation participation and cognitive processing domain have not garnered much attention in the M-payment literature. The study strives to comprehend these constructs by widening the purview of TAM and ECM models. It also measures the moderating role of perceived severity of security threats and perceived usefulness to unfurl potential linkages between the identified constructs.

Islam, Md Shamirul; Amin, Muslim; Feranita, Feranita; Karatepe, Osman M.

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-04-2022-0157

This study aims to propose and examine a research model where work engagement mediates the impacts of high-involvement work practices (HIWPs) on bank employees' turnover intentions. Specifically, the paper assesses: (a) the effects of empowerment, information sharing, rewards and training on work engagement and turnover intention, (b) work engagement as a mediator of the effects of these HIWPs on turnover intention (c) and functional competence as a moderator of the effects of these HIWPs on work engagement.Design/methodology/approachAn online survey was employed to gather data from 343 employees working in commercial banks in Bangladesh. The authors applied partial least squares structural equation modeling to assess the aforesaid linkages.FindingsEmpowerment and information sharing increase bank employees' work engagement, while training and rewards reduce their proclivity to leave. Work engagement partly mediates the relationships of empowerment and information sharing to turnover intention. Functional competence moderates the relationship between three HIWPs (empowerment, information sharing and rewards) on work engagement.Originality/valueThe paper examines the association between HIWPs and turnover intention, which has been subjected to little empirical inquiry among bank employees during a crisis (e.g. Covid-19 pandemic). The paper provides new insights into the underlying mechanism linking HIWPs and turnover intention and highlights the moderating effect of functional competence. Additionally, the study offers new knowledge on the impact of the pandemic on bank employees' HIWPs. Finally, this paper used data gathered from bank employees in Bangladesh, which is an underrepresented Asian country in the extant service research.

Sun, Xifang; Liu, Liyu

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-03-2022-0093

Branching is one of the crucial strategic non-price actions for banks. Previous studies on the impact of state ownership upon banks focus on bank lending behavior. This paper aims to offer a novel investigation of how state ownership affects bank branching behavior by examining state-controlled commercial banks (SCCBs) in the context of the largest developing and transitional country China.Design/methodology/approachThe two-part model (TPM) is applied to analyze the branching decision process. In the first stage, the dependent variable is the choice of bank branching dynamics and in the second stage the dependent variable is the number of new branches or the number of closed branches. For robustness check, the ordered probit selection model allowing for interdependence of the two stage decisions is also employed.FindingsUsing a unique dataset of bank branches in China, this paper finds that the branching decisions of Chinese SCCBs are driven by both profit motivated factors including population size, population density, income level, financial development and banking competition and politically motivated factors as represented with the proportion of SOEs. As a comparison, branching decisions of joint-stock banks in China are fully determined by profit motivated factors.Originality/valueFirst, this study is the first to explore the effect of state ownership on bank branching decisions, providing a new insight on the literature regarding to the impact of state ownership on bank decisions. Second, this study explores the potential effect of politically motivated factors on bank branching decisions, filling the gap in bank branching literature. Third, this study can contribute to bank branching literature by enriching the limited understanding of how SCCBs make branching decisions. Lastly, this study applies novel empirical strategies to analyze bank branching decisions, including the TPM and the ordered probit selection model.

Losada-Otálora, Mauricio; Peña-García, Nathalie; Juliao-Rossi, Jorge Luis

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-11-2022-0496

The authors seek (1) to identify the profiles of subjective financial well-being (SFWB) of bank customers before and during the coronavirus disease 2019 (COVID-19) pandemic, (2) to analyze the transition to profiles of lower SFWB during the pandemic and (3) to identify the factors driving such transitions.Design/methodology/approachThe authors surveyed five countries during 2019 and 2020 to measure SFWB. The authors applied latent class analysis (LCA) to identify profiles of bank customers according to a mix of SFWB indicators in pre-pandemic times (Study 1). The authors validated the profiles during the pandemic and identified the SFWB dimensions that deteriorated during the crisis (Study 2). Finally, the authors applied latent transition analysis (LTA) to explore transitions to profiles of lower SFWB and identify the drivers.FindingsThe authors identified three profiles of customers in pre- and post-pandemic periods for four dimensions of SFWB: control over finances, capacity to absorb financial shocks, ability to track financial goals and financial freedom. Gender, age, trust in banks and bank-supporting policies were related to transitions across profiles of SFWB during the pandemic. These relationships are contingent upon contextual country-related variables.Research limitations/implicationsBanks and policymakers should reduce customers' exposure to the pandemic's long-lasting adverse effects on SFWB and should identify and control the multiplier role that contextual variables play.Originality/valueExtant literature has not fully identified the dimensions of SFWB that changed due to the COVID-19 pandemic. The authors narrow this gap by identifying three SFWB profiles of customers, analyzing the patterns of SFWB change and connecting these changes to individual, provider and contextual factors.

Yoo, Jaewon; Chen, Jing; Frankwick, Gary L.

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-12-2021-0555

This study aims to employ conservation of resources (COR) theory to explain how customer support, customer power, customer orientation (CO) and product complexity impact frontline employees (FLEs) work engagement.Design/methodology/approachPartial least square structural equation modeling (PLS-SEM) was used to analyze data collected from 1,620 South Korean insurance salespeople using an on-line survey.FindingsResults show that customer support, customer power and CO will bring more FLEs work engagement, and product complexity negatively dilutes the work engagement gained from customer support.Practical implicationsThe results of this study suggest that firms should encourage FLEs to share their experiences and tactics in dealing with customer power and stimulate supportive customer behaviors. Since complex products, particularly financial products, require more explanation and information exchange for customers to understand them, managers might include simulations, videos and role-playing in training programs to show salespeople how to handle customers when attempting to sell these products.Originality/valueThis study investigates the effects of customer cognitive and emotional support on FLEs work engagement and also empirically demonstrates the positive effects of customer power.

Sharma, Abhishek; Hewege, Chandana; Perera, Chamila

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-09-2022-0408

This study explores the decision-making powers of Australian female consumers in the financial product market. More precisely, it examines how the integrative effects of rationality, emotions and personality traits influence the decision-making powers of Australian female consumers when making financial product purchase decisions.Design/methodology/approachThe study employs a quantitative research approach, utilising a survey strategy. The proposed conceptual model was tested using structural equation modelling (AMOS) on a valid 357 responses from Australian female consumers.FindingsThe findings revealed that rationality, self-efficacy and impulsivity have a positive impact on the decision-making powers of Australian female consumers. Besides this, self-efficacy and anxiety had significant moderating effects on the decision-making power of Australian female consumers when buying financial products, whereas anger and impulsivity were found to have no moderating effects.Research limitations/implicationsThe study offers understanding on the role of emotions and personality traits in financial decision-making, which can help financial institutions design sound products and services that can also ensure consumers' overall well-being.Originality/valueInformed by the theoretical notions of the appraisal-tendency framework (ATF) and emotion-imbued choice model (EIC), the study makes a unique contribution by investigating the impact of rationality, emotions and personality traits on the decision-making powers of female consumers in the Australian financial product market.

Grable, John; Kwak, Eun Jin; Archuleta, Kristy

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-10-2022-0441

The purpose of this study was to explore the concept of distrust of traditional banking institutions as a factor that can explain the choice to remain unbanked in a marketplace that is designed to be financially inclusive.Design/methodology/approachEarning, spending, saving and borrowing data collected between May 2021 and February 2022 from 17,819 consumers living in the United States were used to examine the factors associated with distrust of banks. Using a conceptual framework borrowed from the health services profession, the study was conducted in two stages. At the first stage, distrust among the unbanked and banked was estimated using a Boruta-random forest algorithm. At the second stage of the analysis, a logit regression model was estimated to validate the variables identified in the Boruta-random forest analysis.FindingsResults from the analyses show that distrust of banks is multi-layered where being older, believing the country is heading in the wrong direction and being less confident in one's ability to obtain a personal loan in the amount of $1 to $999 are important factors related to distrust of banks among the unbanked.Research limitations/implicationsThis study shows how an ensemble machine learning technique based on a decision-tree methodology can be used to obtain unique insights into complicated data and large datasets within the bank marketing field.Originality/valueThe paper provides a discussion about ways domains of trust and specific variables can be utilized to address the persistent problem of financial exclusion in the United States. Implications for bankers, researchers, educators and policymakers are provided.