Bank-customer Relationship Research Articles

An Integration of the PLS/fsQCA Approach for Investigating the Impact of Quality Parameters on Relationship Quality in Mobile Banking

Understanding the channel-specific, post-adoption relational aspect in digital banking landscapes enables banks to refine their customer relationship strategies to acquire technology-driven benefits and improve bank customer relationships. The study aims to empirically assess the impact of a set of quality variables with word-of-mouth driving relationship quality (satisfaction and trust) that further strengthens bank-customer relationships. Using a stratified random sampling technique, the response of 370 mobile banking users was analyzed with PLS-SEM for the confirmatory analysis and then a configurational method was applied employing a fuzzy-set qualitative comparative analysis. The findings indicate, that customers satisfied with quality aspects cultivate trust as a relational quality in mobile banking services. Further, the study found relevant configurations of significant antecedents that need to be prioritized in fostering bank-customer relationships through mobile banking.

Sanctions compliance as a basis for non-performance of contractual obligations

Targeted financial sanctions are routinely used to combat financial crime. As they are endorsed by the United Nations and the Financial Action Task Force, the vast majority of jurisdictions have established regulatory frameworks that make provision for targeted financial sanctions. These frameworks translate into compliance obligations and expectations for so-called regulated entities, which includes banks. Although sanctions have been the subject of much discourse recently in the wake of the escalation of the Russia-Ukraine conflict, the risk of non-performance of contractual obligations due to sanctions compliance has not been explored sufficiently. The objective of this contribution is to shed light on the distinction between compliance with domestic sanctions and compliance with foreign sanctions with specific reference to the risk of non-performance of contractual obligations. It focuses on the basis and legal implications of compliance in each case within the context of the bank-customer relationship. This is undertaken primarily from a South African perspective. The contribution finds that compliance with domestic sanctions may give rise to an interference with contractual performance that is rooted in law, while compliance with foreign sanctions may necessitate an interference that is based on either a contractual provision (force majeure clause) or business and reputational considerations. In both instances, clients of banks are less certain that their payment instructions will be processed and banks, in turn, run the risk of being sued. This tension between sanctions and international banking and finance requires serious reflection by the relevant authorities.

Navigating Reputational Risks: Cautionary Considerations for South African Banks in the Unilateral Termination of Bank-Customer Relationships

Bredenkamp v Standard Bank of South Africa Ltd (SCA) and subsequent cases that followed this precedent exhibit that banks have the right to terminate the bank-customer relationship unilaterally. This right is usually entrenched in the contract between the bank and its customer and may also have its origin in an implied term of the contract. Some major banks in the Republic of South Africa have recently been under the spotlight for unilaterally terminating the bank-customer relationship with their customers (the Sekunjalo Group) based on reputational risks. It is alleged that in terminating the relationship, these banks unfairly discriminated against Sekunjalo Group, therefore asserting that the principle of reputational risk is not attributed similarly across customers of different racial groups. Whereas the paper does not intend to decide on such allegations of racial discrimination, the paper asserts that the unilateral termination of a bank-customer relationship is both a right and an obligation. The paper adopts a qualitative research approach in analysing the contractual nature of a bank-customer relationship, the common-law principles regarding the termination of the bank-customer relationship, and the developments in the application of the principle of reputational risk by South African banks and courts in the wake of the applications lodged by members of the Sekunjalo Group.

The Role of E-CRM Systems in Strengthening Bank-Customer Relationships: Evidence from Visakhapatnam Banks

The Role of E-CRM Systems in Strengthening Bank-Customer Relationships: Evidence from Visakhapatnam Banks

The effect of bank artificial intelligence on consumer purchase intentions

PurposeArtificial intelligence (AI) is shaping the future of the marketing world. This study is the first to examine the effect of AI marketing efforts, brand experience (BE) and brand preference (BP) in light of the stimulus-organism-response (SOR) model.Design/methodology/approachThe data collected from 398 participants by the questionnaire method were analyzed by SEM (structural equation modeling) using Smart PLS 4.0 and IBM SPSS 26 programs.FindingsWe find that four SOR elements of AI marketing efforts (information, interactivity, accessibility and personalization) positively impact bank customer BE, BP and repurchase intention (RPI). Further, we find that BE plays a mediator role in the relationship between AI marketing efforts, RPI and BP.Originality/valueThe findings of the study have significant implications for the bank marketing literature and the banking industry, given the limited evidence to date regarding AI marketing efforts and bank–customer relationships. Moreover, the study makes important contributions to the AI marketing and brand literature and helps banks increase customer experience with artificial intelligence activities and create long-term relationships with customers.

A study on analysing customer attitudes towards online banking and its impact on bank customer relationship management

A study on analysing customer attitudes towards online banking and its impact on bank customer relationship management

Regional Bank customer relationship management model through Public Relations functions

The banking industry, in practice, was established as the community's economic foundation that provides financial services expected to restore and enhance national and regional economic growth. Bank BPD DIY has a strategic role as a government partner and a motor accelerator of regional development in the Special Region of Yogyakarta. State civil apparatus (ASN) DIY is required to use Bank BPD DIY; it is necessary for customer relationship management (customer). This study aimed to find a model of customer relationship management of regional banks through public relations functions. This research uses a descriptive qualitative approach with a case study method. The results of this study indicate that the customer relationship management model at Bank BPD DIY is carried out through three aspects. The first is to provide excellent service (excellent service), which is implemented by implementing the main values of Bank BPD DIY, namely respect, accuracy, modernity, trust, and reliability (friendly), providing funds and credit services, mobile banking, and customer service, and call center. Second, build customer satisfaction and loyalty through programs that provide promos, giveaways, sweepstakes, birthday greetings, and Corporate Social Responsibility. Third, develop good relationships with consumers through the use of social media such as Facebook, Instagram, Twitter, and WhatsApp broadcasts, organizing events, as well as providing sponsorship assistance in the form of products and cash.

Duties, Liabilities And Protection of The Banker in Banker-Customer Relationship in Nigeria

Duties, Liabilities And Protection of The Banker in Banker-Customer Relationship in Nigeria

Analyzing customer attitudes towards online banking and its impact on bank customer relationship management

Analyzing customer attitudes towards online banking and its impact on bank customer relationship management

Tinjauan Yuridis Pengawasan Perbankan Dan Perlindungan Nasabah Oleh Otoritas Jasa Keuangan (OJK)

The function of a bank is as a financial intermediary institution, namely as a bridge between fund owners and parties who need funds, both as depositors and borrowers. Bank-customer relationships often involve banking practices that have a negative impact on customers, but legal protection is often less than optimal. Because if you look at the relationship between banks and customers, banks have enormous control over banking transactions, and in some cases they control banking transactions. So that sometimes it is detrimental to customers. Based on the above facts, Law Number 21 of 2011 concerning the Financial Services Authority (UU OJK) has been promulgated. As a bank supervisory institution and as an institution that protects customer interests.

Anti-money laundering and customer due diligence: empirical evidence from South Africa

PurposeThe purpose of this study is to examine the South African banks’ customer due diligence (CDD) practices in the fintech era to mitigate money laundering (ML) risks and ensure financial stability. Financial technologies have brought substantial transformations to the financial services sector. However, such technologies have exposed the sector to emerging risks that threaten the integrity and stability of the financial system globally. Before any bank–customer relationship is established, proper customer background checks must be conducted. These background checks enable financial institutions to validate information provided and ensure customers are properly risk profiled. Failure to risk profile customers could result in financial institutions being used as conduits for ML. Undoubtedly, CDD procedures are pivotal to overall anti-money laundering efforts and curbing financing terrorism in a regulatory framework.Design/methodology/approachA qualitative research approach was adopted to address the research questions of the study. Given the confidentiality associated with the financial services sector, data triangulation was used in blending mainly secondary and primary data sources. Secondary data sources used in the study were published reports available in the public domain that were corroborated with subject matter experts’ interviews.FindingsBased on the findings of this study, it is concluded that in South Africa, technological solutions have been incorporated into CDD functions, which is now risk-based (enhanced due diligence). Also, legally, South Africa has incorporated the biometrics, integration with Department of Home Affairs and Companies and Intellectual Property Commission databases, customer consent to third-party sources with the Financial Intelligence Centre Act and the Protection of Personal Information Act.Originality/valueThe shift towards digital banking in South Africa results in increased data and dynamic risk profiling. This study advocates a policy shift requiring a risk-based approach to mitigating emerging ML risks (in particular digital laundering), especially in the wake of South Africa’s recent greylisting by the Financial Action Task Force.

Upholding Banker’s Duty of Confidentiality in Tanzania: an Examination of Legislative and Judicial Responses

Abstract Trust and confidence are the foundations of a banker-customer relationship. As a result, any information customers submit to their bankers is expected to be kept confidential. This expectation can only be met if the relevant legislative frameworks are in place to ensure that bankers are held accountable for their confidentiality agreements. While there is legislation in place to protect the privacy of customer information in Tanzania, a growing number of laws, notably those dealing with crime prevention and control, have been enacted, with the consequence of undermining bankers’ confidentiality obligations. Therefore, this article examines how recent legislative and judicial developments have addressed the confidentiality obligations imposed on bankers. In general, it has been observed and established that the protection of customers’ information provided by banking laws is usually degraded by other laws, particularly those pertaining to crime prevention, hence weakening banker’s duty of confidentiality.

Bank-Customer Relationship and Performance of Selected DMBs in Imo State, Nigeria

The concern of this study was to empirically investigate the relationship between bank -customer relationship marketing and performance of selected money deposit banks in Imo State, Nigeria. Emphasis was on determining the extent to which relationship identification, establishment, maintenance, enhancement, modification and termination have impacted on deposit money banks returns on equity and assets in Nigeria while adopting stakeholders’ theory of relationship marketing. Data for the study were primarily sourced using structured research questionnaires. These generated data were quantified using 5-point likert scale of strongly agreed, agreed, neutral, disagreed and strongly disagreed. These generated data were analyzed using Ordinary Least Square (OLS) multiple regression technique. The analyses covered demographic analysis, descriptive analysis, correlation analysis, regression analysis, F-test, t-test, R2 -test and diagnostic tests. SPSS statistical software was used to carry out these analyses. Specifically, results from these robust analyses revealed that identification, establishment, maintenance, enhancement, modification and termination of bank-customer relationship have positive and significant impacts on deposit money banks’ return on equity (ROE); relationship identification, establishment, maintenance and modification also have positive significant effects on return on assets (ROA) of deposit money banks in Nigeria; relationship enhancement has a negative insignificant impact on the ROA of deposit money banks in the country; the impact of relationship termination is positive but insignificant; and these measures of identification, establishment, maintenance, enhancement, modification and termination have joint significant impacts of 93.4% and 79.1% on ROE and ROA of deposit money banks in Nigeria. Hence, there is need for high level of professionalism in the recruitment process of bank staff in this part of the world, as the corner

Outreach and Efficiency of Inclusive Banking Through Technology in Tamil Nadu

Financial inclusion is one of the means for overall economic development of a country. The growth of the retail banking industry fosters financial inclusion by providing financial products and services to people in the rural areas of the country. The nationalization of prominent commercial banks has improved the banker customer relationship. The measures taken by the Reserve Bank of India and other regulatory bodies have strengthened the banking industry and have raised the level of confidence in the minds of the public about the banking sector. The banking history has undergone tremendous changes in the last few decades.

Effects of Self-service Technologies’ Attributes on Bank Customers’ Experience, Relationship Quality and Re-use Intention: Insights from a Developing Economy

Services providers’ recent inclusion of technology-enabled mechanisms in services delivery especially in banking sector in developing economies are significantly replacing earlier human-to-human dominated pattern of bank–customer relationships. Notwithstanding glaring penetration of self-service technology applications in bank service delivery, how its attributes influence customer experience, relationship quality and reuse intention has been largely eluding research attention. Therefore, this article investigates influence of self-service technology applications’ attributes on customer experience, relationship quality and reuse intention among customers in deposit money banks. Data was collected from 310 respondents using online-based questionnaire. Structural Equation Modelling approach with the aid of SmartPLS serve as the analytical tool in the examination of hypothesized paths in the research schema. Findings reveal that perceived ease of use and perceived usefulness were positively related with cognitive and affective experience. Also, cognitive and affective experience had positive-significant influence on customer satisfaction; however, cognitive and affective experiences demonstrate statistically insignificant relationships with trust. Furthermore, satisfaction and trust positively and significantly correlate with reuse intention. Implication for theory and practice were put forward as well as suggestions for future research.

Antecedents of customer loyalty in Islamic banking: evidence from Tanzania

PurposeThis study aims to examine the association between relationship quality, service quality, customer satisfaction, switching barriers and Islamic banking customer loyalty using evidence from Tanzania.Design/methodology/approachThis study used correlational research design to test the hypotheses. Completed questionnaires were received from 572 Islamic bank customers in three major cities of Tanzania (Dar es Salaam, Dodoma and Zanzibar).FindingsThere is a significant positive relationship between relationship quality, service quality, customer satisfaction and customer loyalty. Switching barriers have an insignificant effect on customer loyalty. Further, the four antecedents contribute differentially to customer loyalty, with service quality having the most significant contribution.Practical implicationsThe findings of the study can help managers of Islamic banks build and maintain customer loyalty through high service quality, high customer satisfaction and high-quality bank–customer relationships and attain a competitive advantage that would enable Islamic banks to grow and succeed in a competitive banking environment.Originality/valueThis study provides new insights on Islamic banking consumer loyalty by comparing the levels of contributions of the customer loyalty antecedents in a single study. This knowledge would enable Islamic banks to identify antecedents that have the highest contribution to customer loyalty and where best to target marketing attention and limited corporate resources.

The Role and Necessity of Change Management in Organizations։ Investing CRM as an Effective System to Manage Customer Relations

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of change management characteristics in organizations. The main purpose of the research is to find out and discuss the role of change management in organizations, the main change management models, the benefits of investing CRM in a banking system that will change the way of work. A systematization of literary sources on the issue of change management presents some models steps of change management in organization. It indicates the importance of change management in today’s fast-moving world. Investigation of the topic proves that change management may help organizations become more effective customer-oriented. Analysis in the paper is carried out in the following logical sequence: literature review shows some examples of international experience of the discussed topic; also, the experience of CRM investing is discussed in one of the Armenian banks. Methodological tools of the research methods were analysis and synthesis, surveys. The paper presents the results of an empirical study, which shows that there are some transactions for which people prefer going to the bank. Certain services tend to go online, for example, to request account information or transfer money between accounts. The trend is that customers are moving more and more to online platforms. It was due to the introduction of the latest IT technologies in the banking system; also, during Covid-19, people preferred to do transactions online. The results show that it is necessary to use CRM tools to manage customer relationships throughout a customer life cycle, including marketing, sales, digital marketing, and customer service interactions. We suggest using CRM tools in banks to identify customers’ needs as much as possible to build a stable and long-lasting bank-customer relationship. The results of the research can be helpful for banks to improve their experience, invest in CRM systems and do better change management.

The breach of banker's duty of confidentiality within the Economic and Monetary Community of Central African States (CEMAC Zone): The case of Cameroon

Banks are at the heart of every nation and the need to regulate this sector with a lot of care, since they are pivotal in catalyzing economic growth and development. Proper regulation of banking institutions would guarantee maximum and effective protection of its customers and the enhancement of economic growth and development. Adopting the doctrinal and analytical research methods, this paper sets out to determine the legal mechanisms established to ensure the protection of confidentiality, the information which falls within the ambit of secrecy, the ambiguity surrounding the disclosure of customers’ private information, the penalties imputed on violators of the laws and the qualifications of the duty of confidentiality. This paper reveals that clients still face divulgement of their secret information, though legislation guarantee the protection of their right to privacy. Thus, it is imperative for bankers to scrupulously respect their obligation of secrecy so as to instill clients with confidence in order to guarantee a sound banking environment in the CEMAC zone and Cameroon specifically. Furthermore, the optimization of banking secrecy would adequately protect customers since the underlying element governing banker-customer relationship would be cemented. In addition, there is high need for sensitization of bankers through seminars, workshops and conferences in order to guarantee a proper respect of banking deontologies when exercising their profession.

The breach of banker’s duty of confidentiality within the Economic and Monetary Community of Central African States (CEMAC Zone): The case of Cameroon

Banks are at the heart of every nation and the need to regulate this sector with a lot of care, since they are pivotal in catalyzing economic growth and development. Proper regulation of banking institutions would guarantee maximum and effective protection of its customers and the enhancement of economic growth and development. Adopting the doctrinal and analytical research methods, this paper sets out to determine the legal mechanisms established to ensure the protection of confidentiality, the information which falls within the ambit of secrecy, the ambiguity surrounding the disclosure of customers’ private information, the penalties imputed on violators of the laws and the qualifications of the duty of confidentiality. This paper reveals that clients still face divulgement of their secret information, though legislation guarantee the protection of their right to privacy. Thus, it is imperative for bankers to scrupulously respect their obligation of secrecy so as to instill clients with confidence in order to guarantee a sound banking environment in the CEMAC zone and Cameroon specifically. Furthermore, the optimization of banking secrecy would adequately protect customers since the underlying element governing banker-customer relationship would be cemented. In addition, there is high need for sensitization of bankers through seminars, workshops and conferences in order to guarantee a proper respect of banking deontologies when exercising their profession.

Modeling the factors that explain customer loyalty in retail banking

Literature suggests that achieving adequate customer loyalty is a significant determinant of growth and profitability. However, in South Africa, there is no evidence of a validated customer-loyalty-in-retail-banking scale. Thus, this study aimed to contribute to the literature by validating customer loyalty in retail banking as a six-factor structure comprising customer loyalty, service quality, customer commitment, trust, switching cost and customer satisfaction, which practitioners can use as a marketing guide to better understand customer loyalty. Data was collected from one sample only once, and the sample size was selected (N = 400). Descriptive and confirmatory factor analyses were undertaken to achieve the study’s objective. Confirmatory factor analysis results validated customer loyalty in retail banking as a six-factor structure that includes customer loyalty, service quality, customer commitment, trust, switching cost and customer satisfaction. The results show no serious multicollinearity between the latent factors and that acceptable internal-consistency reliability was returned for each factor. Moreover, the measurement model returned acceptable composite reliability together with construct, convergent and discriminant validity. Moreover, IFI, TLI, CFI, SRMR and RMSEA model fit index values suggest a good fitting model. Thus, the results concluded that this six-factor model is a reliable and valid instrument of customer loyalty in retail banking and is the first validated customer loyalty scale within the retail-banking context of South Africa. Retail banks are encouraged to use this instrument as a marketing guide in their quest to provide excellent banking services to their market segments, as well as build solid bank-customer relationships.