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How relationship attributes affect bank customers’ saving

How relationship attributes affect bank customers’ saving The purpose of this paper is to determine how three relational attributes – duration, context and trust – are subjectively perceived by bank customers, and how these affect their saving behavior, as defined by monthly flows to mutual funds and the financial products bought and held in stock.Design/methodology/approachThe authors use a combination of unique bank register and subjective survey data, and a structural equation model for theory development. Four constructs are developed to estimate the structural model, i.e. saving behavior, duration, context and trust.FindingsThe authors find that all three relational attributes have positive effects on saving behavior. The authors also find that duration and context have the largest total effects, and that trust is a mediating variable channeling indirect effects from context and duration to saving behavior.Practical implicationsOne implication for bank managers is that it takes time and understanding of customer context to gain customer trust, but that this increases customer savings. Another implication is that the authors confirm that relational attributes can be studied using subjective measures in surveys, and that these have an effect on objective savings behavior. The findings provide an understanding that could develop both the customer’s value and the banks’ business opportunities.Originality/valueThe impact of relationships between bank advisors and their customers in terms of costs and benefits has been studied, but a little research has focused on the attributes of the relationship and how these affect customers’ saving behavior. The study also uses unique objective bank register data, combined with customers’ subjective perceptions of the relationship. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Bank Marketing Emerald Publishing

How relationship attributes affect bank customers’ saving

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References (66)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0265-2323
DOI
10.1108/ijbm-09-2017-0194
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to determine how three relational attributes – duration, context and trust – are subjectively perceived by bank customers, and how these affect their saving behavior, as defined by monthly flows to mutual funds and the financial products bought and held in stock.Design/methodology/approachThe authors use a combination of unique bank register and subjective survey data, and a structural equation model for theory development. Four constructs are developed to estimate the structural model, i.e. saving behavior, duration, context and trust.FindingsThe authors find that all three relational attributes have positive effects on saving behavior. The authors also find that duration and context have the largest total effects, and that trust is a mediating variable channeling indirect effects from context and duration to saving behavior.Practical implicationsOne implication for bank managers is that it takes time and understanding of customer context to gain customer trust, but that this increases customer savings. Another implication is that the authors confirm that relational attributes can be studied using subjective measures in surveys, and that these have an effect on objective savings behavior. The findings provide an understanding that could develop both the customer’s value and the banks’ business opportunities.Originality/valueThe impact of relationships between bank advisors and their customers in terms of costs and benefits has been studied, but a little research has focused on the attributes of the relationship and how these affect customers’ saving behavior. The study also uses unique objective bank register data, combined with customers’ subjective perceptions of the relationship.

Journal

International Journal of Bank Marketing – Emerald Publishing

Published: Feb 13, 2019

Keywords: Retail banking; Financial advisory services; Relationship attributes; Saving behaviour

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