Abstract
There is fierce global competition within the banking industry. Therefore, banks endeavor to grow and strive to increase their market share. We analyzed the effect of developing innovative channels of presenting bank services on banks’ market share. The statistical population of this research was Shahr bank’s central headquarter and its branches in Tehran, Iran. We developed questionnaires for gathering the data. The validity and reliability of the scales were tested by EFA, CFA, experts’ opinion, and Cronbach’s alpha. We used linear regression to assess the impact of innovative channels, including internet banking, automatic teller machines (ATMs), mobile banking, telephone banking (TB), and point of sales (POS) on banks’ market share. The results indicated that some of these channels, including internet banking, POS, and TB, positively affect a bank’s market share. The effect of two other platforms, including mobile banking and ATM development, on banks’ market share was rejected. The findings of this study expand our understanding of how bank managers can improve their market share by developing innovative e-banking channels.
Highlights
Today, due to the global competition among financial organizations, market share plays a vital role in banks’ success
The results further show that the development of other innovative platforms, including Automatic Teller Machine (ATM) and mobile banking, has no significant association with increasing the bank’s market share
The purpose of this study was to investigate the effect of the development of new banking services on a bank’s market share
Summary
Due to the global competition among financial organizations, market share plays a vital role in banks’ success. Studies have recognized that a bank’s market share is a key element of a bank’s profitability, growth, and survival (Khan, Ahmad, & Chan, 2018). It is considered as an indicator of a bank reputation (Dunbar 2000). Striving to achieve a significant share of the whole market is of great importance for all banks and financial organizations wanting to grow and to survive in a competitive environment. An organization can boost its market share by lowering its prices, and/or by improving its product and service quality (DeYoung and Nolle 1996). By the means of new technologies, to increase service quality, and increase market share, banks can present their services through innovative channels like electronic banking (hereafter e-banking) and its components (Bloemer et al 1998)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
