Pub Date : 2023-06-22DOI: 10.1108/ijbm-07-2022-0298
T. Morris, Lamine Kamano, Stéphanie Maillet
PurposeThis article describes financial professionals' perceptions of their clients' financial behaviors and the explanatory factors underlying these behaviors.Design/methodology/approachIn this qualitative research, the authors seek to understand financial professionals' experiences in relation to how their clients manage their own finances. The authorse conduct and analyze 26 semi-structured interviews with financial professionals from several industries within the financial sector in Canada.FindingsThe professionals in this study noted that despite their clients' financial knowledge, several other factors can explain these individuals' financial behaviors. They include psychological factors, (such as financial bias, the need for instant gratification, and the lack of awareness regarding the long-term effects of certain types of financial behaviors), financial habits (such as lifestyle, financial planning and lack of discipline) and the financial system's flexibility with respect to debt financing and repayment. These perceptions are categorized according to whether they are related to debt financing or repayment, savings or investments.Originality/valueBy using a qualitative methodology that relies on the perceptions of financial professionals, this study aims to better understand the financial behaviors of individuals and households, and these behaviors' underlying factors. This study's findings could be useful to various stakeholders interested, in one way or another, in financial literacy, such as organizations aiming to strengthen and promote financial literacy, educators, researchers, regulatory bodies of financial institutions and financial advisers.
{"title":"Understanding financial professionals' perceptions of their clients' financial behaviors","authors":"T. Morris, Lamine Kamano, Stéphanie Maillet","doi":"10.1108/ijbm-07-2022-0298","DOIUrl":"https://doi.org/10.1108/ijbm-07-2022-0298","url":null,"abstract":"PurposeThis article describes financial professionals' perceptions of their clients' financial behaviors and the explanatory factors underlying these behaviors.Design/methodology/approachIn this qualitative research, the authors seek to understand financial professionals' experiences in relation to how their clients manage their own finances. The authorse conduct and analyze 26 semi-structured interviews with financial professionals from several industries within the financial sector in Canada.FindingsThe professionals in this study noted that despite their clients' financial knowledge, several other factors can explain these individuals' financial behaviors. They include psychological factors, (such as financial bias, the need for instant gratification, and the lack of awareness regarding the long-term effects of certain types of financial behaviors), financial habits (such as lifestyle, financial planning and lack of discipline) and the financial system's flexibility with respect to debt financing and repayment. These perceptions are categorized according to whether they are related to debt financing or repayment, savings or investments.Originality/valueBy using a qualitative methodology that relies on the perceptions of financial professionals, this study aims to better understand the financial behaviors of individuals and households, and these behaviors' underlying factors. This study's findings could be useful to various stakeholders interested, in one way or another, in financial literacy, such as organizations aiming to strengthen and promote financial literacy, educators, researchers, regulatory bodies of financial institutions and financial advisers.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44443009","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-22DOI: 10.1108/ijbm-03-2023-0162
Diego Monferrer Tirado, Lidia Vidal-Meliá, J. Cardiff, Keith Quille
PurposeThis 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.
{"title":"Vulnerable customers' perception of corporate social responsibility in the banking sector in a post-crisis context","authors":"Diego Monferrer Tirado, Lidia Vidal-Meliá, J. Cardiff, Keith Quille","doi":"10.1108/ijbm-03-2023-0162","DOIUrl":"https://doi.org/10.1108/ijbm-03-2023-0162","url":null,"abstract":"PurposeThis 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.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46018153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-19DOI: 10.1108/ijbm-09-2022-0419
Kirtika Goyal, Satish Kumar, A. Hoffmann
PurposePrior work expresses concern about young people's rising debt and lack of financial preparedness. This study focuses on how financial socialization and psychological characteristics affect the personal financial management behavior (PFMB) of young professionals in India. The authors examine both the direct effect of these factors and the indirect effects through financial literacy and aforementioned psychological characteristics as mediators.Design/methodology/approachThe authors develop a conceptual framework based on the extant literature and empirically test its hypotheses employing partial least squares structural equation modelling (PLS-SEM).FindingsAttitude towards money, financial self-efficacy, financial risk tolerance, financial socialization through parental direct teaching and peers, and media are all positively associated with young professionals' PFMB, whereas external locus of control and procrastination are negatively associated with their PFMB. Almost all psychological characteristics partially mediate the association between financial socialization and PFMB. Finally, financial literacy plays a partially mediating role in the association between procrastination and PFMB as well as between financial socialization and PFMB.Practical implicationsThis study helps regulators and policymakers understand PFMB among young professionals. Interventions should build on the positive role of financial socialization, cultivating a good attitude towards money and financial self-efficacy, and reducing reliance on an external locus of control and procrastination. This study also helps policymakers and financial educators develop societally beneficial personal finance programs.Originality/valueThis research investigates social, psychological and cognitive characteristics in a comprehensive framework to further the authors’ understanding of the topic of PFMB.
{"title":"The direct and indirect effects of financial socialization and psychological characteristics on young professionals' personal financial management behavior","authors":"Kirtika Goyal, Satish Kumar, A. Hoffmann","doi":"10.1108/ijbm-09-2022-0419","DOIUrl":"https://doi.org/10.1108/ijbm-09-2022-0419","url":null,"abstract":"PurposePrior work expresses concern about young people's rising debt and lack of financial preparedness. This study focuses on how financial socialization and psychological characteristics affect the personal financial management behavior (PFMB) of young professionals in India. The authors examine both the direct effect of these factors and the indirect effects through financial literacy and aforementioned psychological characteristics as mediators.Design/methodology/approachThe authors develop a conceptual framework based on the extant literature and empirically test its hypotheses employing partial least squares structural equation modelling (PLS-SEM).FindingsAttitude towards money, financial self-efficacy, financial risk tolerance, financial socialization through parental direct teaching and peers, and media are all positively associated with young professionals' PFMB, whereas external locus of control and procrastination are negatively associated with their PFMB. Almost all psychological characteristics partially mediate the association between financial socialization and PFMB. Finally, financial literacy plays a partially mediating role in the association between procrastination and PFMB as well as between financial socialization and PFMB.Practical implicationsThis study helps regulators and policymakers understand PFMB among young professionals. Interventions should build on the positive role of financial socialization, cultivating a good attitude towards money and financial self-efficacy, and reducing reliance on an external locus of control and procrastination. This study also helps policymakers and financial educators develop societally beneficial personal finance programs.Originality/valueThis research investigates social, psychological and cognitive characteristics in a comprehensive framework to further the authors’ understanding of the topic of PFMB.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44037131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-13DOI: 10.1108/ijbm-09-2022-0427
Nofie Iman, S. Nugroho, E. Junarsin, Rizky Yusviento Pelawi
PurposeOpen banking, with its promise to revolutionise electronic transactions through open application programming interfaces (APIs), aims to bridge the gap between banks and non-banks, enhancing lending, payments, investments and funds distribution. However, does this bold innovation truly resonate with consumers? This study delves into consumer intentions to adopt open banking in Indonesia by leveraging the technology readiness model, scrutinising its antecedents and moderating factors, and identifying the key attributes that users anticipate.Design/methodology/approachThrough quantitative and qualitative approaches, this study answers the following questions: (1) Are financial service users ready to use open banking/open API applications? (2) What are the key attributes that consumer expects of open banking/open API? First, the authors developed a structural model based on the technology readiness model, distributed the questionnaire in eight major cities in Indonesia, analysed it using PLS-SEM and utilised a machine learning approach to unpack the main attributes expected from open banking.FindingsThis study’s findings indicate that customers are generally prepared to embrace open banking innovations. Nonetheless, to enhance public acceptance, certain factors should be emphasised, including organisational support, user-friendly technology, a comprehensive range of features, consumer financial literacy and banks' readiness to adopt open banking. In contrast to prior research, this study reveals that loyalty to traditional banking positively moderates the connection between customer value and the intention to utilise open banking. Additionally, the authors did not observe a significant moderating effect of financial literacy on the relationship between perceived customer value and the intention to use open banking.Originality/valueTo the best of the authors’ knowledge, this study is one of the few that comprehensively analyses the consumers' readiness for open banking in developing contexts. This study is expected to produce a theoretical contribution as well as effective and optimal policies for the financial services sector.
{"title":"Is technology truly improving the customer experience? Analysing the intention to use open banking in Indonesia","authors":"Nofie Iman, S. Nugroho, E. Junarsin, Rizky Yusviento Pelawi","doi":"10.1108/ijbm-09-2022-0427","DOIUrl":"https://doi.org/10.1108/ijbm-09-2022-0427","url":null,"abstract":"PurposeOpen banking, with its promise to revolutionise electronic transactions through open application programming interfaces (APIs), aims to bridge the gap between banks and non-banks, enhancing lending, payments, investments and funds distribution. However, does this bold innovation truly resonate with consumers? This study delves into consumer intentions to adopt open banking in Indonesia by leveraging the technology readiness model, scrutinising its antecedents and moderating factors, and identifying the key attributes that users anticipate.Design/methodology/approachThrough quantitative and qualitative approaches, this study answers the following questions: (1) Are financial service users ready to use open banking/open API applications? (2) What are the key attributes that consumer expects of open banking/open API? First, the authors developed a structural model based on the technology readiness model, distributed the questionnaire in eight major cities in Indonesia, analysed it using PLS-SEM and utilised a machine learning approach to unpack the main attributes expected from open banking.FindingsThis study’s findings indicate that customers are generally prepared to embrace open banking innovations. Nonetheless, to enhance public acceptance, certain factors should be emphasised, including organisational support, user-friendly technology, a comprehensive range of features, consumer financial literacy and banks' readiness to adopt open banking. In contrast to prior research, this study reveals that loyalty to traditional banking positively moderates the connection between customer value and the intention to utilise open banking. Additionally, the authors did not observe a significant moderating effect of financial literacy on the relationship between perceived customer value and the intention to use open banking.Originality/valueTo the best of the authors’ knowledge, this study is one of the few that comprehensively analyses the consumers' readiness for open banking in developing contexts. This study is expected to produce a theoretical contribution as well as effective and optimal policies for the financial services sector.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43060581","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-13DOI: 10.1108/ijbm-10-2022-0441
John E. Grable, E. Kwak, Kristy L. Archuleta
PurposeThe 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.
{"title":"Distrust of banks among the unbanked and banked","authors":"John E. Grable, E. Kwak, Kristy L. Archuleta","doi":"10.1108/ijbm-10-2022-0441","DOIUrl":"https://doi.org/10.1108/ijbm-10-2022-0441","url":null,"abstract":"PurposeThe 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.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42698112","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-07DOI: 10.1108/ijbm-09-2022-0408
Abhishek Sharma, C. Hewege, C. Perera
PurposeThis 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.
{"title":"How do Australian female consumers exercise their decision-making power when making financial product decisions? The triad of financial market manipulation, rationality and emotions","authors":"Abhishek Sharma, C. Hewege, C. Perera","doi":"10.1108/ijbm-09-2022-0408","DOIUrl":"https://doi.org/10.1108/ijbm-09-2022-0408","url":null,"abstract":"PurposeThis 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.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44105861","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-07DOI: 10.1108/ijbm-03-2022-0093
Xifang Sun, Liyu Liu
PurposeBranching 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.
{"title":"Determinants of branching decisions of State-controlled commercial banks: evidence from China","authors":"Xifang Sun, Liyu Liu","doi":"10.1108/ijbm-03-2022-0093","DOIUrl":"https://doi.org/10.1108/ijbm-03-2022-0093","url":null,"abstract":"PurposeBranching 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.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47763993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-01DOI: 10.1108/ijbm-01-2023-0005
Kuldeep Singh
PurposeThis paper examine whether social performance moderates the linkage between financial risk and financial performance in microfinance institutions (MFIs). The study focuses on the financial self-sufficiency and long-term sustainability of MFIs.Design/methodology/approachThe empirical study uses unbalanced panel data of 2,694 worldwide MFIs from 2009 to 2019. In the first step, the study inspects the impact of social performance and risk on financial performance, proxied as return on assets and operational self-sufficiency. In the second stage, moderated hierarchical regression is applied to test whether social performance moderates the relationship between risk and financial performance. Lastly, the study confirms the significant moderation effects with slope tests.FindingsThe study detects robust evidence that financial risk is negatively related to financial performance. Though social performance exhibits a weak positive link with financial performance in silos, the evidence of its moderating effects on risk is mixed and significant. Social performance indicators, such as the borrower retention rate and female representation, positively moderate the relationship between financial risk and financial performance. The study documents that social performance impacts financial performance and operational self-sufficiency through risk moderation. Thus, social performance fosters the sustainability of these institutions over the long haul.Research limitations/implicationsThe study is relevant to academics and theorists to consider the stakeholder approach in microfinancing. In the context of stakeholder theory, the study advances the specific social responsiveness process, namely stakeholder engagement.Practical implicationsThe evidence that socially sensitive operations can curtail the adverse effects of credit risks on financial performance signify the required attention to social performance. For MFI managers and practitioners, the findings justify the business case for social performance. Stakeholder engagement, under the auspices of social responsiveness, acts as a risk-mitigation mechanism to eventually foster financial performance and self-sufficiency.Social implicationsThe study motivates MFIs to do more for their stakeholders and society by highlighting the benefits of social performance.Originality/valueThe study reaffirms that social performance remains at the epicenter of the MFIs' mission and is an essential risk mitigation mechanism. The study adds to the extant literature on stakeholder engagement and its effects on MFIs.
{"title":"Social performance, financial risk and financial performance in microfinance institutions","authors":"Kuldeep Singh","doi":"10.1108/ijbm-01-2023-0005","DOIUrl":"https://doi.org/10.1108/ijbm-01-2023-0005","url":null,"abstract":"PurposeThis paper examine whether social performance moderates the linkage between financial risk and financial performance in microfinance institutions (MFIs). The study focuses on the financial self-sufficiency and long-term sustainability of MFIs.Design/methodology/approachThe empirical study uses unbalanced panel data of 2,694 worldwide MFIs from 2009 to 2019. In the first step, the study inspects the impact of social performance and risk on financial performance, proxied as return on assets and operational self-sufficiency. In the second stage, moderated hierarchical regression is applied to test whether social performance moderates the relationship between risk and financial performance. Lastly, the study confirms the significant moderation effects with slope tests.FindingsThe study detects robust evidence that financial risk is negatively related to financial performance. Though social performance exhibits a weak positive link with financial performance in silos, the evidence of its moderating effects on risk is mixed and significant. Social performance indicators, such as the borrower retention rate and female representation, positively moderate the relationship between financial risk and financial performance. The study documents that social performance impacts financial performance and operational self-sufficiency through risk moderation. Thus, social performance fosters the sustainability of these institutions over the long haul.Research limitations/implicationsThe study is relevant to academics and theorists to consider the stakeholder approach in microfinancing. In the context of stakeholder theory, the study advances the specific social responsiveness process, namely stakeholder engagement.Practical implicationsThe evidence that socially sensitive operations can curtail the adverse effects of credit risks on financial performance signify the required attention to social performance. For MFI managers and practitioners, the findings justify the business case for social performance. Stakeholder engagement, under the auspices of social responsiveness, acts as a risk-mitigation mechanism to eventually foster financial performance and self-sufficiency.Social implicationsThe study motivates MFIs to do more for their stakeholders and society by highlighting the benefits of social performance.Originality/valueThe study reaffirms that social performance remains at the epicenter of the MFIs' mission and is an essential risk mitigation mechanism. The study adds to the extant literature on stakeholder engagement and its effects on MFIs.","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":" ","pages":""},"PeriodicalIF":5.3,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42115640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-01DOI: 10.1108/ijbm-12-2021-0555
Jaewon Yoo, Jing Chen, G. Frankwick
PurposeThis 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.
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