International Journal of Bank Marketing

Shaikh, Aijaz A.; Alamoudi, Hawazen; Alharthi, Majed; Glavee-Geo, Richard

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-06-2021-0230

Using the theory, construct, method, moderator (TCMM) format, this framework-based review critically analyses the mobile financial services (MFSs) field through a detailed synthesis and analysis of a sample of mainstream empirical research published in various scientific journals within the period 2009–2020.Design/methodology/approachThe authors followed a three-step structured approach suggested by Webster and Watson (2002) to search for the literature to synthesise the global perspectives on MFSs and their associated applications and systems. The literature research resulted in the identification of 115 most relevant articles.FindingsThe authors identified three major categories or domains within the MFSs comprising the entire spectrum of digital financial services. To facilitate the literature analysis, TCMM is developed and proposed as an organising framework. Moreover, the authors also developed and presented the comprehensive framework of MFS domains and explicitly identified 14 different research themes for future research in MFSs.Originality/valuePrior attempts to synthesise and analyse mainstream academic research in MFSs have been scant and limited to a specific MFS domain: mobile banking or mobile payment. The authors synthesised a more extensive body of knowledge and provided a global perspective on the MFS field. Unlike the past literature reviews which followed traditional frameworks such as antecedents, decisions and outcome (ADO); TCCM; and 6 W Framework (who, when, where, how, what and why), the authors developed and proposed TCMM as organising framework.

Yao, Rui; Xiao, Jing Jian

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-05-2022-0207

The purpose of this study is to examine the association between financial capability and informal bankruptcy, especially among families in which the respondent and/or spouse borrowed student loans to fund their own education and families that did not have such loans.Design/methodology/approachUS nationally representative data were employed. Three family types were used, families with student loans borrowed to fund respondent and/or spouse's education and education was completed (type 1 holders) or not completed (type 2 holders), and families that did not borrow student loans for respondent and/or spouse's education (non-holders). Informal bankruptcy was measured by being insolvent and late in debt payment for 60 or more days. Financial capability was measured by both an index and its various components. Multivariate logistic regressions were conducted to examine associations between financial capability and informal bankruptcy.FindingsGenerally, financial capability was negatively associated with informal bankruptcy, and student loan holders were more likely to be informally bankrupt than non-holders. However, such negative associations were statistically significant for type 1 holders and non-holders but insignificant for type 2 holders. Two desirable financial behaviors (information search and online banking) reduced the chance of informal bankruptcy for type 2 holders.Research limitations/implicationsFirst, cross-sectional data cannot establish a causal relationship. Second, findings using data from a single country may not be generalized to other countries.Practical implicationsFinancial service professionals should help loan applicants evaluate the necessity of borrowing. Banking professionals can use the findings to develop products to meet different consumer needs. Financial educators should target different groups with different strategies in financial capability education. Policymakers should develop policies helping student loan holders complete education funded by student loans.Originality/valueThis study examines factors related to informal bankruptcy, providing insights to warning signs of bankruptcy. This study explores the potential effect of a new factor, financial capability, on informal bankruptcy, filling in a gap in the bankruptcy literature. This study recognizes differences in informal bankruptcy among various types of families and examines the different effects of financial capabilities on informal bankruptcy for different types of families.

Nam, Youngwon; Lee, Sunwoo Tessa; Kim, Kyoung Tae

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-11-2021-0516

The purpose of this study is to investigate the racial/ethnic differences in mobile payment use and to explore the contributing factors to the differences.Design/methodology/approachThis study used the 2018 National Financial Capability Study (NFCS) dataset to examine racial/ethnic disparities in mobile payment use. Logistic regression analyses were conducted to confirm racial/ethnic differences, and Blinder–Oaxaca decomposition analyses were performed to identify which factors explain the differences among the groups.FindingsThe authors discovered that Whites use mobile payment less than Blacks, Hispanics and Asians/others. The results revealed that prior experiences with mobile financial services, including transfer, banking and budgeting applications, all play considerable roles in explaining the disparities between Whites and other racial/ethnic groups.Originality/valueThis is one of the few studies to examine racial/ethnic disparities in mobile payment use with a particular focus on the influence of users' past experience with technology. The results provide insights for researchers, professionals, educators and policymakers into ways to promote future use of mobile payment.

Chatterjee, Swarn; Fan, Lu

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-01-2022-0022

This study introduces the concept of financial advice deserts (FADs), including financial advice received from personal financial advisors (PFAs) and Certified Financial Planners™ (CFP professionals) and investigates the association between living in these FAD states and the retirement planning activities of individuals.Design/methodology/approachThis study uses merged data gathered from multiple sources including (1) available state-level information on CFP professionals from the CFP board website, (2) state-level information on PFAs from the US Bureau of Labor Statistics and (3) individual levels of retirement planning behavior and other personal characteristics from the 2018 FINRA National Financial Capability Study. Using web data extraction tools and logistic regression analyses, this study examines the association between a series of individual retirement planning activities and living in the FAD states.FindingsThe study found that living in the FAD states was negatively associated with both having retirement accounts and contributing regularly to retirement accounts. Overall, the findings of this study underscore the need for providing greater access to financial advice and improving financial literacy among financially marginalized populations who are residing in FAD states in the United States of America.Originality/valueThis study makes unique contributions to the literature by raising the issue of geographic inequality in terms of access to financial advice and introducing the innovative notion of FADs. The findings provide fresh insights into the understanding of retirement planning and preparedness from the perspective of state-level inequality of financial advice through PFAs and CFP professionals, thereby expanding the previous knowledge that emphasizes only individual- and household-level differences. Significant implications for public policies and practitioners are also discussed.

Pulk, Kristjan; Uusberg, Andero; Riitsalu, Leonore

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-06-2022-0267

This study aims to investigate which messaging strategies employed in personalised newsletters could be used for improving the propensity of individuals to save or invest and secure their financial well-being.Design/methodology/approachThe authors conducted a field experiment with 4,782 clients at an Estonian retail bank. For three months (after measuring baseline levels for a month), the participants received personalised monthly newsletters with either a praising or a scolding message based on comparing their recent investment decisions to their past decisions.FindingsTheir results suggest that newsletters could serve as an encouragement for those who already invest significant amounts each month and a reminder for those who have stopped regular investing for a month. The newsletters robustly increased investments in securities accounts for these groups.Research limitations/implicationsThe authors contribute to the marketing literature by examining praise and scolding messaging strategies within the same channel and company, focussing on the individual's past behaviour. They raise several hypotheses to be tested in future randomised controlled trials (RCTs).Practical implicationsThe authors’ results show the importance of investor behaviour analysis as the effectiveness of the newsletter intervention largely depended on the type of customer it was served to. This highlights the importance of personalisation.Originality/valueThe results show that a given message tends to influence only specific groups of investors. Identifying these groups is valuable information for messaging strategies.

Sankaran, Raja; Chakraborty, Shibashish

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-03-2022-0113

The objective of this study was to investigate the relationship between various drivers of consumer-based brand equity (CBBE) for m-payments and to demonstrate practical relevance. The study examined the indirect relationship between m-payment drivers and satisfaction and their subsequent association with brand equity drivers in the context of m-payments.Design/methodology/approachA survey was administered to a total of 725 respondents. Structural equation modeling, SPSS AMOS and a multi-mediation model using process macros were used to analyze the primary data.FindingsThe results of this study corroborate the post-use driver (satisfaction) and trust mediates drivers of m-payments (perceived usefulness and perceived ease of use) with overall brand equity. Satisfaction and trust exert a positive influence on overall brand equity, and this research will help organizations devise strategies to retain consumers, offer loyalty schemes and brand effectively to bundle services.Originality/valueNovelty was achieved in this study by extending the technology acceptance model to determine the association between m-payment drivers and satisfaction and their subsequent association with overall brand equity, thus providing practical implications.

She, Long; Ma, Lan; Voon, Mung Ling; Lim, Agnes Siang Siew

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-04-2022-0172

This study aimed to investigate the mediating role of financial attitude and perceived behavioral control with financial behavior in the association between excessive use of social networking sites (SNSs) and financial well-being among working millennials.Design/methodology/approachA crossed-sectional survey was used to obtain data through a self-administered questionnaire. A total of 485 working millennials (M age = 32.28, years, SD age = 4.75) in Malaysia participated in the study based on a purposive sampling technique. Covariance-based structural equation modeling (CB-SEM) was used to evaluate the measurement model and the proposed serial mediation model.FindingsThe findings of this study revealed that excessive use of SNS is negatively associated with financial well-being. Also, the findings suggested that financial attitude and perceived behavioral with financial behavior serially mediated the negative relationship between excessive use of SNS and financial well-being, respectively.Practical implicationsSeveral implications were suggested and discussed to prevent the negative impact of excessive SNS use on financial well-being among young working adults. Policymakers and financial service providers (e.g. banks) can draw from the findings by constantly framing and delivering their messages to increase the young working adults' awareness of pitfalls of excessive use of innovative technologies on their financial attitudes and self-control over their behaviors and financial well-being.Originality/valueThis study entails some new insights on examining the impact of excessive use of SNS on working millennials' financial well-being as well as the underlying mechanisms behind this phenomenon.

Vieira, Kelmara Mendes; Matheis, Taiane Keila; Bressan, Aureliano Angel; Potrich, Ani Caroline Grigion; Klein, Leander Luiz; Rosenblum, Tamara Otilia Amaral

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-04-2022-0148

The aim of the study is to build and validate a perceived financial well-being scale (PFWBS).Design/methodology/approachA total of 34 items were developed on a five-point Likert scale. Validation involved two phases and four steps. In the qualitative phase, interviews, validation by specialists and the pre-test were carried out. In the quantitative phase, a sample of 1,020 cases was used in the exploratory stage and another sample of 2,293 individuals in the confirmatory validation stage.FindingsThe PFWBS is composed of 23 items distributed in four dimensions (financial security, financial tranquility, financial freedom and satisfaction with financial management) that identify the perception of financial well-being of the consumers of financial products.Practical implicationsThe authors propose a methodological framework that allows researchers, managers and policy makers to use the indicator to assess citizens' perception of financial well-being.Social implicationsThe PFWBS can be useful in evaluating the results of different public policies, such as income transfer programs and financial education policies. It can also serve as a parameter for the financial system to assess the perception of its customers, helping to evaluate products and services.Originality/valueFinancial well-being lacks valid measurement scales in the literature. This study advances by creating a scale for the assessment of the perception of financial well-being, which can be applied in different contexts.

Joshi, Himanshu; Chawla, Deepak

2023 International Journal of Bank Marketing

doi: 10.1108/ijbm-03-2022-0132

The purpose of this study is to segment mobile wallet users using a finite mixture partial least squares (FIMIX-PLS) approach and evaluate the unobserved heterogeneity across segments.Design/methodology/approachPartial least square structural equation modeling (PLS-SEM) using a convenience sample of 744 responses was used to analyze the measurement, structural model and hypotheses testing. To examine unobserved heterogeneity and identify user segments, FIMIX-PLS technique was employed. To generate more precise recommendations, importance-performance map analysis (IPMA) was performed with attitude as the target variable.FindingsA structural equation model revealed that except perceived ease of use (PEOU) all other dimensions, namely perceived usefulness (PU), lifestyle compatibility (LC), facilitating conditions (FC), trust and security significantly influences attitude which, in turn, determines intention. The FIMIX-PLS technique resulted in four segments – The Rationalist, Early Adopters, Late Adopters and The Innovators.Practical implicationsThe paper provides segment specific and between segment differences to derive implications. Identification of relevant predictors and segments will help academicians, marketing researchers and practitioners in gaining further understanding of the mobile wallet adoption. The findings of the paper can guide mobile wallet providers to frame appropriate strategies and offerings pertaining to the obtained segments.Originality/valueThe paper builds upon Technology Acceptance Model (TAM) to propose an integrated model to explain adoption behaviors associated with mobile wallet. To the best of the authors' knowledge, this is one of the first empirical attempts using FIMIX-PLS technique to assess precursors of adoption and substantiates the perceived value-attitude-intention linkage to identify heterogeneity among mobile wallet users.