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Monferrer Tirado, Diego; Vidal-Meliá, Lidia; Cardiff, John; Quille, Keith
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-03-2023-0162
This research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and quality perception of the banking service. Consequently, this increases the quality of their relationship regarding satisfaction, trust and engagement.Design/methodology/approachData from 734 vulnerable banking customers were analyzed through structural equations modeling (EQS 6.2) to test the relationships of the proposed variables.FindingsVulnerable customers' emotional disposition exerts a strong influence on their perceived service quality. The antecedent effect is concentrated primarily on the CSR towards the client, with a residual secondary weight on the CSR towards society. These positive service emotions are determinants of the outcome quality perceived by vulnerable customers, directly in terms of higher satisfaction and trust and indirectly through engagement.Practical implicationsThis research contributes to understanding how financial service providers should adapt to the specific characteristics and needs of vulnerable clients by adopting a strategy of approach, personalization and humanization of the service that seems to move away from the actions implemented by the banking industry in recent years.Originality/valueThis study has adopted a theoretical and empirical perspective on the impact of CSR on service emotions and outcome quality of vulnerable banking customers. Moreover, banks can adopt a dual conception of CSR: a macro and external scope toward society and a micro and internal scope toward customers.
Kanyurhi, Eddy Balemba; Bugandwa Mungu Akonkwa, Deogratias; Murhula Lusheke, Bonheur; Cubaka, Patrick Murhula; Kadundu Karhamikire, Paul; Bucekuderhwa Bashige, Célestin
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-03-2023-0163
The study has two objectives: (1) expand our knowledge of the relationship between unethical behaviour and both trust and satisfaction and (2) demonstrate that unethical behaviour research should be examined multi-dimensionally.Design/methodology/approachData were collected by resorting to a mixed methods approach. First, individual interviews were performed with 31 bank consumers from six main commercial banks in Bukavu city in the Democratic Republic of the Congo. Interview notes were submitted for content analysis to identify items and components that underpin the unethical practices construct. Second, a quantitative survey was conducted with 410 consumers from the same six banks. An aggregated-disaggregated structural equations modelling approach was used to test the impact of unethical practices on relationship outcomes through two studies. Study 1 tested a model that links unethical behaviour as a one-dimensional construct to trust and satisfaction. Study 2 tested a model that directly connects the four specific unethical behaviour components to both trust and satisfaction.FindingsResults from study 1 reveal that perceived unethical behaviour negatively influences consumer trust. Results also confirm that trust positively influences customer satisfaction. Results from study 2 confirm that unresponsive, disrespect and lying behaviours negatively influence both trust and satisfaction. Banks which are involving in those specific unethical behaviours can neither satisfy their consumers, nor maintain a sustainable and profitable relationship with them. Therefore, unethical behaviours harm the relationships outcomes in the banking sector.Research limitations/implicationsThe perceived unethical behaviour scale derives from a single data set and its reliability and validity need to be improved. Relationships between constructs are tested in a more direct way and ignore moderating variables. Perceived unethical behaviour is connected to relationship outcome variables while its impact on firms’ metrics have been ignored.Practical implicationsBanks have to understand customers’ perception of unethical behaviours and find a way to overcome them. Banks should recruit, motivate and retain employees who demonstrate an ethical inclination in the service encounter and create structures and mechanisms in order to monitor and manage unethical practices.Social implicationsBanks employees' unethical behaviour and practices not only damage the trust and reputation of banks but also can lead to frustration on the part of customers and damage their relationship with the institution. Our paper is a warning of this danger and might improve the social interactions between organisations (in general) and customers.Originality/valueUnethical behaviour is measured with a four-component scale in contrast to previous studies that have used bi-dimensional or one-dimensional scales. The study tests a disaggregated model that links four components of perceived unethical behaviour to relationship outcome variables. Perceived unethical behaviours are analysed from the customers’ perspective by resorting to mixed methods strategy.
Zeka, Bomikazi; Alhassan, Abdul Latif
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-01-2023-0053
While the extant literature has explored issues related to the access, usage and availability of financial services, the ability of households to withstand financial adversities, particularly those living under economically vulnerable conditions, requires further attention. The paper presents a gendered analysis of financial resilience behaviour in South Africa.Design/methodology/approachUsing a nationally representative sample of 4,880 households, this paper constructs a financial resilience behaviour index (FRBI) covering savings, credit, insurance, and retirement planning behaviours. The gendered effect of demographic characteristics on financial resilience is examined using the ordinary least square and seemingly unrelated regression techniques.FindingsThe results show that low levels of financial resilience were present across the sample with insurance observed to be the greatest driver of financial resilience, followed by retirement planning, savings and credit respectively. Furthermore, the analysis highlights that a gender gap in financial resilience exists as men are characterized with higher financial resilience behaviour compared to women. The results also suggest that employed women and women with higher levels of education are associated with greater financial resilience.Practical implicationsBased on these results, improving access to higher education and employment opportunities for women will enhance their financial resilience and contribute towards addressing SDG (5) on gender equality.Originality/valueAs far as the authors are aware, this paper presents the first empirical analysis of the gender gaps in socio-demographic characteristics that explain financial resilience in South Africa.
Kamran, Sohail; Uusitalo, Outi
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-03-2023-0148
The present study aimed to provide an understanding of the roles of community-based financial service organizations (i.e. rotating savings and credit associations [ROSCAs] as institutional pillars in facilitating low-income, unbanked consumers’ access to informal financial services).Design/methodology/approachSemi-structured interviews were conducted with 39 low-income, unbanked consumers participating in ROSCAs in Pakistan, where only 21% of adults have a bank account and almost four out of five individuals live on a low income. The obtained data were analyzed using the thematic analysis technique.FindingsROSCAs’ regulatory, sociocultural and cognitive aspects facilitate low-income, unbanked consumers’ utilization of informal financial services owing to their approachability by, suitability for, and fairness to such consumers. Thus, they promote such consumers’ financial inclusion.Practical implicationsLow-income consumers are mostly unable to access formal financial services due to the existing supply- and demand-side impediments. Understanding ROSCAs’ institutional functioning can help formal financial service providers create more transformative financial services based on the positive institutional aspects of ROSCAs to enhance poor consumers’ financial inclusion and well-being.Social implicationsThe inclusion of low-income, unbanked consumers in formal banking services will help them better control their finances.Originality/valueMany low-income, unbanked consumers in developing countries utilize informal financial services to meet their basic financial needs, but service researchers have rarely investigated how informal financial institutions function. The present study showed that ROSCAs, as informal institutions, meet low-income, unbanked consumers’ personal, social and financial needs in a befitting manner, which encourages such consumers to use the financial services offered by ROSCAs.
Fernández-Gutiérrez, Marcos; Ashton, John
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-03-2023-0141
This paper examines the relationships between bank switching and both customer vulnerability and consumer-oriented policies (financial education and disclosure practices).Design/methodology/approachThe analysis employs microdata from the Special Eurobarometer on Financial Products and Services, for 24 European nations. It carries out a probit estimation on the factors explaining propensity of bank switching, focusing on three characteristics associated with customer vulnerability: an advanced age, low educational attainment and residence in a rural or a relatively poor region.FindingsThe authors report that the probability of bank switching is significantly lower for three groups of vulnerable customers: the elderly, the less educated and those living in deprived regions. Further the authors identify that national financial education policies and disclosure practices have no significant effects on bank switching.Research limitations/implicationsBased on these results, the authors propose more targeted policies recognising customers' heterogeneity are required to increase bank switching behaviour.Originality/valueThis paper exploits a unique source of information on bank switching behaviour and customer characteristics across European nations. These data are complemented with information about consumer financial education policies and disclosure practices from the World Bank and geographical, market and regulatory factors at the regional and national levels. The paper contributes to two academic areas. First, it presents further evidence on heterogeneity of bank customer switching behaviour, addressed at improving the understanding of customer vulnerability in banking services. Second, it examines the efficacy of consumer-oriented policies (financial literacy and disclosure practices) in encouraging bank switching.
Sakas, Damianos P.; Giannakopoulos, Nikolaos T.; Trivellas, Panagiotis
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-01-2023-0009
The purpose of this paper is to examine the impact of affiliate marketing strategies as a tool for increasing customers' engagement and vulnerability over financial services. This is attempted by examining the connection between affiliate marketing factors and customers' brand engagement and vulnerability metrics.Design/methodology/approachThe authors developed a three-staged methodological context, based on the 7 most known centralized payment network (CPN) firms' website analytical data, which begins with linear regression analysis, followed by hybrid modeling (agent-based and dynamic models), so as to simulate brand engagement and vulnerability factors' variation in a 180-day period. The deployed context ends by applying the cognitive modeling method of producing heatmaps and facial analysis of CPN websites to the selected 47 vulnerable website customers, for gathering more insights into their brand engagement.FindingsThroughout the simulation results of the study, it becomes clear that a higher number of backlinks and referral domains tend to increase CPN firms' brand-engaged and vulnerable customers.Research limitations/implicationsFrom the simulation modeling process, the implication for backlinks and referral domains as factors that enhance website customers' brand engagement and vulnerability has been highlighted. A higher number of brand-engaged website customers could mean that vulnerable categories of customers would be impacted by CPNs' affiliate marketing. Improving those customers' knowledge of the financial services utility is of utmost importance.Practical implicationsThe outcomes of the research indicate that online banking service providers can increase their customers' engagement with their brands by adopting affiliate marketing techniques. To avoid the increase in customers' vulnerability, marketers should aim to apply affiliate marketing strategies to domains relevant to the provided financial services.Originality/valueThe paper's outcomes provide a new approach to the literature, where the website customer's brand engagement comes out as a valuable metric for estimating online banking sector customers' vulnerability.
Sakas, Damianos P.; Giannakopoulos, Nikolaos T.; Terzi, Marina C.; Kamperos, Ioannis Dimitrios G.; Kanellos, Nikos
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-03-2023-0142
The paper’s main goal is to examine the relationship between the video marketing of financial technologies (Fintechs) and their vulnerable website customers’ brand engagement in the ongoing coronavirus disease 2019 (COVID-19) crisis.Design/methodology/approach To extract the required outcomes, the authors gathered data from the five biggest Fintech websites and YouTube channels, performed multiple linear regression models and developed a hybrid (agent-based and dynamic) model to assess the performance connection between their video marketing analytics and vulnerable website customers’ brand engagement.Findings It has been found that video marketing analytics of Fintechs’ YouTube channels are a decisive factor in impacting their vulnerable website customers’ brand engagement and awareness.Research limitations/implications By enhancing video marketing analytics of their YouTube channels, Fintechs can achieve greater levels of vulnerable website customers’ engagement and awareness. Higher levels of vulnerable customers’ brand engagement and awareness tend to decrease their vulnerability by enhancing their financial knowledge and confidence.Practical implications Fintechs should aim to increase the number of total videos on their YouTube channels and provide videos that promote their customers’ knowledge of their services to increase their brand engagement and awareness, thus reducing their vulnerability. Moreover, Fintechs should be aware not to over-post videos because they will be in an unfavorable position against their competitors.Originality/value This research offers valuable insights regarding the importance of video marketing strategies for Fintechs in promoting their vulnerable website customers’ brand awareness during crisis periods.
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-03-2023-0140
This paper aims to examine and compare the associations between financial capability and financial anxiety (FA) before and during the coronavirus disease 2019 (COVID-19) pandemic. Specifically, financial capability is measured by three indicators: financial knowledge, financial behavior and financial confidence. This study also examines and compares the association among different income groups before and during the pandemic.Design/methodology/approachData are from 2018 to 2021 National Financial Capability Study (NFCS). Structural equation modeling (SEM) is employed to examine the direct and indirect associations between financial capability factors and FA. Furthermore, this paper also conducts multi-group SEM for three income groups to examine the heterogeneous effects of household income.FindingsBoth before and during the pandemic, financial knowledge is directly positively and financial behavior is directly negatively associated with FA. In addition, both financial knowledge and financial behavior are positively associated with financial confidence, which in turn is negatively associated with FA. However, when taking the indirect effects into consideration, the total effects of financial capability factors on FA are all negative. Furthermore, the pandemic has intensified the negative association between financial behavior and FA rather than financial knowledge or financial confidence. Multi-group SEM shows that the positive direct effects of financial knowledge are only significant in the low-income group, while the negative direct effects of financial behavior are only significant in the low- and middle-income groups before the pandemic. However, direct effects of financial knowledge and financial behavior are significant in all income groups during the pandemic.Originality/valueFirst, this study specifies a construct, financial confidence, to proxy perceived financial capability. Second, it examines the mediating role of financial confidence in the association between the other two financial capability factors (financial knowledge and financial behaviors) and FA. Third, it also compares the associations between financial capability factors and FA before and during the COVID-19 pandemic.
Zasuwa, Grzegorz; Wesołowski, Grzegorz
2024 International Journal of Bank Marketing
doi: 10.1108/ijbm-02-2023-0099
This study examines how potentially irresponsible banking operations affect organisational reputation. A moderated mediation model is applied to explain how major aspects of social irresponsibility affect the relationship between consumer awareness of allegedly irresponsible operations, blame and bank reputation. The empirical context is the Swiss franc mortgage crisis that affected the banking industry in most Central and Eastern European countries.Design/methodology/approachThe research study uses data collected from a large survey (N = 1,000) conducted among Polish bank consumers, including those with mortgage loans in Swiss francs. To test the proposed model, the authors use Hayes' process macro.FindingsThe findings show that blame fully mediates the effects of corporate social irresponsibility (CSI) awareness on organisational reputation. Three facets of social irresponsibility moderate this relationship. Specifically, the perceived harm and intentionality of corporate culprits cause people to be more likely to blame a bank for the difficulties posed by indebted consumers. At the same time, the perceived complicity of consumers in misselling a mortgage reduces the level of blame and its subsequent adverse effects on bank reputation.Originality/valueAlthough a strong reputation is crucial in the financial industry, few studies have attempted to address reputational risk from a consumer perspective. This study helps to understand how potentially irresponsible selling of a financial product can adversely affect a bank's reputation.
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