Exploring the Managerial Perspectives of Banking Industry Towards Consumer Empowerment: A Study in Banking Industry

Bassam Sahibzada

doi:10.7176/rjfa/11-15-05

Abstract

This study aims to explore and extract the managerial perspective of banking industry towards consumer empowerment. This is an emerging and growing phenomenon that has multiple dimensions and implications for the stability of consumers, financial sector as well as economy. Moreover, it is also one of the latest objectives of State Bank of Pakistan. Thus, this study aims at fulfilling the gap of local context by catering the supply side perspective along with methodological gap as most of the researches conducted globally related to this topic are quantitative while this research will be qualitative in nature. It is a mono method study i.e. qualitative based on exploratory strategy which focuses on in-depth knowledge and understanding of the managerial insights about the concept of consumer empowerment in banking sector such as its importance, current scenario, benefits, impediments etc. The sampling method that has been used is non probability purposive sampling. Primary data has been collected through interview protocol which was adopted and modified. The validity of the interview protocol has been checked through face validity which includes approval by research and domain expert. The interviews were conducted till saturation point and after conducting the interviews, the data was analyzed through content analysis i.e. by coding sorting and sifting. The reliability of the research has been checked through member checking and triangulation. The findings of this study indicate the initiatives, status and prospects of consumer empowerment particularly through financial literacy and digitalization in the banking sector of Pakistan. Different dimensions of consumer empowerment have been discovered along with its benefits not only for the consumers but for banks as well. Moreover, this study also enlightens the techniques to gauge effectiveness of these initiatives, the challenges hindering the motives and implementation, the regulatory stance as well as the future prospects. This significance of this study lies in the fact that consumer empowerment is an emerging trend and need in our banking sector upon which the regulator is dynamically working and therefore seeking for the outlook of banks. Thus, the obtained information can be used by regulator to understand the perspective of banking sector towards consumer empowerment. Moreover, the findings can also be used by banks and other financial institutions as it would aid them in planning and execution of initiatives by indicating the avenues that can be tapped. DOI: 10.7176/RJFA/11-15-05 Publication date: August 31 st 2020

Highlights

IntroductionBackground of the Study It has been precisely delineated by Wang (2012), “When you focus on the consumer, the consumer responds”
Problem Statement How managers in banking industry of Pakistan perceive about emerging trend and implications of consumer empowerment? The purpose of this study is to explore the perception of banking industry’s managers on the emerging trend of consumer empowerment through in-depth analysis of managerial insights
Concordant with the literature, all the respondents consider that consumer empowerment especially in the form of educating consumers about financial products/services is highly needed in the banking sector of Pakistan because despite of increasingly convenient, user friendly and efficient banking solutions, effective usage is being hindered due to lack of knowledge on the side of consumers

Summary

Introduction

Background of the Study It has been precisely delineated by Wang (2012), “When you focus on the consumer, the consumer responds”. This is because with the rapidly growing dynamics of the world, there has been a shift from passive consumer to an empowered consumer who possesses greater access, alternatives, platforms and opportunities (Rosenbaum, 2015). Consumer empowerment refers to giving consumers power through resources such as greater information, options and tools which facilitate decision-making and allow them to tailor a product as per their own specifications. The consumers must be provided novel solutions that can empower them by enhancing the domain of their opportunities like through digitalization and technological advancements (Bauhaus, 2013)

Objectives

Methods

Findings

Discussion

Conclusion