Banking Operations Research Articles

Unveiling the Impact of Perceived Benefits on Digital Banking Readoption in Malaysia

Malaysia's banking sector has undergone significant transformation driven by digital technologies, revolutionizing traditional banking operations and customer engagement strategies. The introduction of digital banking products has redefined the financial landscape, providing unparalleled convenience, accessibility, and financial control to consumers and businesses. Key advantages such as operational efficiency, cost savings, 24/7 accessibility, and real-time financial management have been crucial in driving the adoption and readoption of digital banking services across various demographic segments in Malaysia. The study leverages theoretical frameworks like the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) to understand user acceptance and behavior towards digital banking readoption. These models highlight constructs such as performance expectancy, effort expectancy, social influence, and facilitating conditions as essential factors influencing technology adoption. Recent research emphasizes the importance of service quality in mobile banking applications as a determinant of customer satisfaction and loyalty, reflecting the advanced expectations of tech-savvy Malaysian consumers. a rigorous methodological approach, the study examines the factors influencing the readoption of digital banking products among Malaysian consumers. Utilizing Smart Partial Least Squares Structural Equation Modelling (Smart PLS-SEM), the study validates the relationships between perceived benefits and digital banking readoption decisions. The findings reveal that effort expectancy, rather than performance expectancy, is a critical factor influencing readoption, underscoring the importance of usability and convenience. The model explains 66.4% of the variance in readoption behavior, highlighting the complexity of consumer decision-making in digital banking. This study concludes that banking institutions must continuously enhance digital platform functionality and security while prioritizing superior user experiences. Trust, perceived security, and customer service quality remain pivotal in shaping consumer attitudes towards digital banking adoption and readoption, reflecting the dynamic and evolving preferences within Malaysia's digital banking ecosystem.

Improving the Intervention Effect of Employees’ Job Satisfaction on Employees’ Job Engagement Through ODI: an Action Research Case Study of ICBC Bank Hunnan Branch

Background and Aim: This investigation explores the link between employee engagement and job satisfaction at ICBC Bank in China, using John Kotter's 8-step Change model for organizational development interventions (ODI). The study aims to identify and improve job engagement factors through an action-oriented approach. Data was collected from 33 employees at the ICBC Shenyang Hunnan Branch using a survey tool, analyzing variables such as managers' leadership styles, employee communication competence, job satisfaction, and employees’ job engagement. Materials and Methods: The mixed-method research strategy analyzed the differences in variables before and after the ODI phase using a paired sample t-test. The organization development intervention (ODI) activities included group dynamics, appreciative inquiry, coaching leadership, goal setting, and team building to modify leadership styles, motivation, and communication competence and influence employees' job satisfaction and engagement. Results: The post-ODI results indicated significant improvements in leadership styles, motivation, communication competence, and subsequently, job satisfaction and engagement among employees. "The researcher's recommendation promises to deliver significant results by implementing the ODI design in as many as 250 ICBC branches in Shenyang. This approach paves the way for a more efficient and streamlined banking operation to enhance employee satisfaction and engagement. Conclusion: Quantitative and qualitative results prove that the IVs are significantly related to the intervening variables. In other words, as the IVs improve, the intervening variable also improves. The study underscores the efficacy of targeted OD interventions in enhancing job satisfaction and engagement, offering a model for broader application within the banking sector

Особливості правового статусу банків як юридичних осіб

The article describes the peculiarities of banks’ legal personality and considers approaches to the universal and special legal capacity of banks as legal entities. It also argues the expediency of using the dynamic theory for determining banks’ legal capacity and the application of special legal ability of banks. The analysis provided in the article is based on the approach according to which the legal ability of legal entities that in the future must obtain permission (permit, license, registration or authorization) for the right to conduct certain types of activities arises in two stages. First, a legal entity receives a minimum universal civil legal ability from the moment of its state registration to the extent necessary for its functioning as a legal entity. The second stage is obtaining a banking license by a bank, which is actually obtaining a special legal capacity. The article analyses all banks’ services (banking services, other financial services, as well as non-financial services provided by the banks), the provision of which requires a special legal capacity. It is argued that special legal ability of the bank provides for the ability to have rights and bear responsibilities necessary for the provision of banking services. A banking service on raising funds and refundable investment metals, in contrast to such raising by other financial institutions, should be considered raising to a bank account. Banking services on opening bank accounts provides for a unique feature of banks - their systemic technological nature to ensure monetary settlements between banks and bank clients. It is suggested to introduce in the legislation the provision that not only the opening of bank accounts should be considered a banking service, but also the provision of settlements between parties which have bank accounts. It is argued that the bank is a unique universal financial institution not so much because of the list of services itself, most of which can be provided by other financial institutions, but because it can provide these services in combination with other services (in complex way). It is indicated that the peculiarity of the legal capacity of the bank as a legal entity lies in introducing a two-tier governance system only with a collegial executive body and tighter requirements in regard to the quality of academic and professional background of members of such governing bodies.

The efficiency of financial management systems in selected schools in the Amathole West education district in the Eastern Cape, South Africa

Managing school finances by school governing bodies (SGBs) in South African secondary schools has proven to be a challenge that has several negative consequences for education, infrastructure, and other resources. The purpose of this article was to assess the efficiency of financial management systems (FMSs) in selected schools in the Amathole West education district. A case study design and qualitative approach were employed in the study. Purposive sampling was used to select SGB members from 2 schools in the district. The research participants were interviewed using face to face and telephonic interviews. We found that while there is understanding and alignment of financial systems by SGBs, insufficient or limited financial resources, inconsistencies in dealing with financial management matters, and government deposit allocation delays, SGBs’ level of education and bank operations pose challenges and lead to the misalignment of school operations. Based on the study, we suggest that SGBs adopt strategies to enhance the financial management of schools, namely monitoring and evaluation, the appointment of qualified SGB members, increased training, a stipend system for SGBs and timeous deposit of funds to schools.

ANALISIS KREDIT BERMASALAH DAN PENYALURAN KREDIT DALAM UPAYA MENINGKATKAN PENDAPATAN PERUSAHAAN

Non-performing loans are the biggest risk that can lead to the liquidation of a bank. Non-performing loans are something that can affect the continuity of bank operations, because they can cause losses and do not accumulate interest and other income, thus disrupting bank operations, especially in terms of liquidity adequacy. The type of research used by the author is a qualitative descriptive method, the data processed is data obtained from the results of interviews and unstructured observations that will be analyzed qualitatively and described in descriptive form. Non-performing loans (NPL) are one of the main risks faced by PT BPR Supra Artapersada KC Sukabumi. Although the company has implemented strict procedures in credit distribution based on the 5C principle (Character, Capacity, Capital, Collateral, Condition), various internal and external factors still affect the NPL level. BPR Supra has implemented the 5C principle in the credit distribution process, it is advisable to update and tighten the credit evaluation criteria periodically, especially in the face of uncertain economic conditions

The Legal Position of the Indonesian Ulema Council in Applying the Principles of Islamic Law in Islamic Banking Operations in Indonesia

National economic development through the establishment of Islamic Banks is an implementation of Article 29 of the 1945 Constitution of the Republic of Indonesia. The presence of Islamic Banking in the national economy is a strategic legal policy of the government because its operations are based on the principles of Islamic law, namely principles derived from the Qur'an, Hadith, Ijma', and Qiyas. However, in its application, these principles of Islamic law are manifested in the form of fatwas issued by the National Sharia Council-Indonesian Ulema Council (DSN-MUI) as a source of positive law for Islamic banking. Therefore, this study raises legal issues related to the legal position of the Indonesian Ulema Council in the application of sharia principles to Islamic Banking operations in Indonesia. This study aims to analyze and determine the legal position of the Indonesian Ulema Council in the application of sharia principles to Islamic Banking in Indonesia. The research method used is normative research, which provides answers to the problems raised with the perspective of what should be done. The results of the study indicate that the DSN-MUI fatwa has a crucial role as a positive legal basis in the operation of Islamic Banking in Indonesia, although formally it is not a statutory regulation. The implications of this study indicate the importance of recognizing and strengthening the role of the DSN-MUI in the national legal system to ensure compliance of Islamic Banking operations with applicable sharia principles.

Analisis Faktor-Faktor yang Mempengaruhi Biaya Transaksi Nasabah pada PT Bank Perkreditan Rakyat Nusuma Gondang Legi Malang

This study aims to analyze the factors that affect customer transaction costs at PT Bank Perkreditan Rakyat Nusuma Gondang Legi, Malang, using qualitative methods through library research using secondary data from sources such as the bank's official website, books, journals, and related articles. The results show that the cost of obtaining third-party funds has a significant positive effect on transaction costs, while bank operational costs do not. Target profit margin and timely payment incentive costs have a significant positive effect, but loan risk costs and asset depreciation are not significant. In conclusion, factors related to bank management and operations, including cost of obtaining funds, operational costs, target profit margin, timely payment incentive costs, and asset depreciation costs, have a significant effect on customer transaction costs. Effective management is needed to minimize transaction costs and improve the efficiency of the banking industry, providing additional insights for further analysis development in supporting the growth of the banking sector

Strategic Management Accounting Techniques and Their Role in Enhancing the Market Share of Private Banks Operating in Baghdad

This study aims to examine strategic management accounting practices and their influence on increasing the market share of private banks based in Baghdad. In order to achieve the objectives of the current research, the researcher followed the steps of the descriptive analytical method as an approach to the current research through a sample of workers in private banks amounting to (137), according to a set of variables. In order to collect the necessary data and information, a questionnaire was designed consisting of three parts, the first about demographic variables and the second. On strategic management accounting techniques and the third on market share. After applying the current research tool, the study reached the following results: 1-There is a high level of use and employment of strategic management accounting techniques in private banks operating in Baghdad?, 2- There is a good level of market share for private banks in Baghdad, 3-There is no effect of the two techniques (activity-based costing and target costing) in enhancing the market share of private banks in Baghdad.4- The use of benchmarking techniques has an impact on improving the market share of private banks operating in Baghdad.

The Safety Measures on Electronic Banking Operations and Its Cybersecurity: Basis for Enhancement Plan

The Safety Measures on Electronic Banking Operations and Its Cybersecurity: Basis for Enhancement Plan

Analysis of Legal Aspects of The Murabahah Agreement In Islamic Banking

Islamic Banking According to Law Number 21 of 2008 concerning Islamic Banking, specifically Article 1 number 7, Islamic Banks are banks that carry out their business activities based on Islamic principles and by their nature, consisting of Islamic Commercial Banks and Islamic Commercial Banks. Islamic People's Financing. In general, Islamic banks are banks whose operational activities are based on Islamic law, or banks that base their operational activities on interpreting the Qur'an and Hadith as the basis for Islamic law. It is stated that according to Law Number 21 of 2008 concerning Islamic Banking, in Article 1 number 12, the basis of Islamic faith for bank operations is a fatwa issued by an institution authorized to issue fatwas in the field of Islamic banking. The National Sharia Council confirms that murabahah sales and purchase transactions, whether in cash or installments, with the terms and conditions being met, are financed under a murabahah contract at a Sharia bank in terms of determining profits by Sharia principles. In the Islamic banking system, there is always a need for collateral or a loan prepared with the understanding that every debtor must adhere to Islamic law, as previously explained to parents. Islamic banking allows customers to be more cooperative when purchasing goods on credit or cash.

Evaluating the Impact of Customer Engagement on Customer Retention for Sustainable Bank Operations

Evaluating the Impact of Customer Engagement on Customer Retention for Sustainable Bank Operations

Analysis of Fatwas No. IX: 78/DSN-MUI/IX/2010 on Interbank Money Market in the Maslahah Mursalah Perspective

Fatwas issued by DSN-MUI are generally related to sharia banking products and contracts. However, these fatwas cannot be immediately applied in sharia banking operations because they are not part of the legal and regulatory hierarchy. Fatwas NO: 78/DSN-MUI/IX/2010 specifically regulates sharia principles in the mechanisms and instruments of the interbank money market. The formulation of the problem in this research is how is the DSN-MUI fatwas NO: 78/DSN-MUI/IX/2010 reviewed from the perspective of maslahah mursalah? This research uses a library method, with a descriptive approach that prioritizes in-depth analysis of various available sources and data. The results of this study indicate that in the DSN-MUI fatwas NO: 78/DSN-MUI/IX/2010, there are 13 provisions that regulate the interbank money market mechanism based on sharia principles. This is in line with the qualification of maslahah ad-Dharuriyah, namely the benefits related to the basic needs of humans both in the world and the hereafter, and humans cannot survive without wealth/property which is the main element in human life. There are 5 benefits, namely: Hifz ad-Din (preserving the religion), Hifz an-Nafs (preserving the soul), Hifz al-'Aql (preserving the intellect), Hifz an-Nasl (preserving of offspring), Hifz al-Mal (preserving the property), these basic needs are considered non-negotiable and must be prioritized to ensure a just, balanced, and prosperous society.

Research on the Impact of Digitalization on Bank Performance Based on BP Neural Network

With the promotion and development of digital finance, the degree of digitalization has an increasingly significant impact on the banking business, which cannot be ignored in the operation of commercial banks. Therefore, establishing a digitalization bank profitability system model is of great significance for the sustainable development of banks and digital finance. This article selects 6 Chinese state-owned banks from 57 listed banks in the A+H stock market as samples, constructs a digital indicator system and evaluation model for banks through the literature review method, and uses simulation training to explore the effectiveness of BP neural network in evaluating the impact of digitalization on bank profitability. The aim is to provide a reference for the evaluation of financial statement information of other banks and other factors affecting bank digitalization. The innovation of the article lies in the innovative use of the entropy weight coefficient of variation method to establish a digital evaluation system model, which utilizes the data itself to objectively establish an evaluation system, incorporate the established digital system into the black box model of the BP neural network model to study the impact of changes in digitalization on banking operations.

Liquidity Risk Mediation in the Dynamics of Capital Structure and Financial Performance: Evidence from Jordanian Banks

Maximising financial performance while maintaining adequate liquidity is a crucial and ongoing challenge for bank management, particularly in emerging markets. This study focuses on the relationship between capital structure and financial performance in Jordanian banks, with the mediating role of liquidity risk. Using panel data from 13 central Jordanian banks over the 2015–2022 period, we employ structural equation modelling (SEM) to analyse how capital structure ratios (equity-to-asset, debt-to-loan, and deposit-to-asset) influence financial performance metrics (return on assets and net income-to-expenditure ratio). Our findings reveal a significant positive association between capital structure and financial performance. However, liquidity risk fully mediates this effect. Capital structure primarily impacts performance by influencing a bank’s liquidity risk profile. Furthermore, the strength of this mediating effect is noteworthy—capital structure exhibits a statistically more robust association with liquidity risk than its direct impact on performance. This highlights the crucial role of managing liquidity risk within the complex dynamics of bank operations. This research makes a significant contribution to the existing literature by demonstrating the positive impact of capital structure on performance using the underlying mechanism through which this effect occurs. The insights of this research provide several implications for practice in the context of banking industries.

Internal and External Factors on Profitability of Islamic Banks in Indonesia Mediated by Operating Expenses Operating Income (Period 2013 to 2023)

Lucrativeness is a vital element for evaluating Islamic banks' monetary achievement. It's critical to grasp the determinants that influence Indonesian Islamic banks' lucrativeness. The objective of this examination is to explore the factors—such as problematic financing, financing to store ratio, currency rates, price rises, and operational proceeds as an intermediary variable—that impact the productivity of Islamic banks in Indonesia. This research intends to provide choice makers in the Islamic fiscal industry a more comprehensive discernment of the budgetary operation of Islamic banks by scrutinizing these guidelines. This research methodology uses a panel data approach using secondary data from Islamic banks in Indonesia. Through panel data analysis, this study examines the effect of these variables on the profitability of Islamic banks. The conclusions showed that, in Sub-structural I, Financing to Deposit Proportion (FDR) favorably affects the productivity (ROA) of Indonesian Islamic banks, while Non-Performing Financing (NPF), Currency Ratios, and Rising Prices have no consequence on operational expenses operational proceeds (BOPO). As indicated by sub-structural II, profitability is impacted by inside factors (NPF and BOPO), outer variables (expansion and cash rates) have no significant effect on productivity, and financing to store proportion (FDR) has no impact on productivity. In this examination, the BOPO fills in as a mediating variable that just intercedes the effect of the Financing to Deposit Ratio on Lucrativeness. Concerning the other autonomous factors, it has no bearing. Other than featuring the significance of hazard relief and operational effectiveness in accomplishing positive monetary outcomes, this exploration illuminates the variables influencing the productivity of Islamic banks in Indonesia.

Navigating the Integration of Blockchain Technology in Banking: Opportunities and Challenges

Integrating blockchain technology within the banking sector represents a pivotal transformation, promising enhanced security, transparency, and efficiency in financial operations. This qualitative research employs a systematic review approach to investigate the current state, challenges, and prospects of blockchain adoption in banking, drawing insights from a comprehensive analysis of scholarly literature. Through a systematic search and review of relevant academic journals, conference papers, books, and reports, this study explores critical variables such as security, transparency, efficiency, challenges, opportunities, and impact associated with blockchain adoption in banking. Thematic analysis is the primary methodological approach to identify recurring themes, patterns, and relationships across literature, facilitating a nuanced understanding of blockchain's implications for banking operations. The findings reveal a dual nature of blockchain adoption in banking, highlighting significant opportunities alongside critical challenges. While blockchain technology offers enhanced security, transparency, and efficiency, challenges like scalability issues, regulatory uncertainties, and interoperability concerns persist. Nonetheless, the study underscores the transformative potential of blockchain in revolutionizing banking operations, urging policymakers and banking practitioners to address these challenges through continued research, technological innovation, and collaborative efforts. By leveraging blockchain effectively, the banking industry can navigate the digital landscape, enhance operational efficiency, and deliver superior customer experiences, thereby gaining a competitive edge in the financial sector

Conversational Artificial Intelligence (AI) and Bank Operational Efficiency

Purpose: The main objective of the research was to analyse the effects of conversational artificial intelligence (AI) on bank operational efficiency. The emergency of conversational artificial intelligence (AI) has revolutionised the way business interacts with its customers. Methodology: The study employed a mixed- method approach where interviews and questionnaires were used to collect qualitative and quantitative data. A sample of 92 bank employees was drawn from ten Zimbabwean banks. Findings: Conversational AI has a positive impact on banking operational efficiency. Specifically, conversational AI improves customer services by providing faster and more accurate responses to customer inquiries, reduces operational costs by automating routine tasks and improve workflow efficiency Limitation: The study concentrated on the banking industry of one particular country. Contribution: The study makes a significant contribution in understanding the advantages of adopting conversational artificial intelligence in banking operations.

Central Bank Operations Under Foreign Exchange Accumulation: The Case of the Macedonian Central Bank (2005–2022)

ABSTRACT The present article analyses the balance sheet composition and the evolution of the operational framework of the Macedonian central bank. It shows that the compensating movements on its balance sheet could not be attributed exclusively to domestic liquidity management operations, as in the absence of substantial foreign currency inflows, the central bank has increased foreign reserves through the proceeds arising from the issuance of government bonds denominated in foreign currency on international financial markets. Despite retaining some of the characteristics of a currency board, the absence of a strict commitment to such a regime has allowed the central bank to employ a range of instruments of domestic liquidity management and to maintain relatively tight control over its policy rate. The level of the policy rate under a rigidly fixed exchange rate parity meant to be sustained over time, would however continue to depend on the ability of the authorities to ensure a sufficient level of foreign exchange reserves.

Donor and newborn profiles and their influence on donation volume and duration: a cross-sectional study in a Spanish human milk bank

BackgroundHuman milk banks are essential facilities to provide donated human milk (DHM) to preterm and term infants with health complications. Little is known regarding milk bank donors and how their characteristics may influence the particularities of the donation process. The present study aims to assess characteristics of donors and their newborns to identify associations with the amount of DHM and initiation and donation time, during the first and second year of the milk bank operation in Córdoba, Spain.MethodsThis cross-sectional study was conducted in three periods: pre-opening of the milk bank (PRE) including all women who gave birth to a newborn between January – May 2017 and were hospital users; donors in the first year after the opening (Period 1 (P1): April 2019 – March 2020); and in the second year (P2: April 2020 – March 2021). For P1 and P2, DHM data were recorded. The relationships between donor and newborn characteristics and the donation process were examined using univariable and regression models.ResultsFrom 391 women interviewed in the PRE period, 55 (14%) showed intention to donate. In P1 and P2, there were 51 and 25 human milk (HM) donors, respectively. Age, gestational age (GA) and parity were similar between periods. In P2, a higher proportion of donors had higher education (P1: 46%; P2: 70.8%, p = 0.045). Around 40% of donors in both periods were on maternity leave. In P1, donors who had low birth weight infants (< 2500 g) donated more HM than those with infants weighing ≥ 2500 g (p = 0.020). In P2, women whose GA was < 37 weeks donated a higher volume vs. those with ≥ 37 weeks (p = 0.002). Maternity leave was linked to a shorter initiation time for donations in both periods (P1: p = 0.002; P2: p < 0.001).ConclusionsData obtained from a Spanish human milk bank indicate that prematurity and low birth weight appear to influence the amounts of DHM. Employment status might be a decisive factor in initiating HM donation. Additional efforts are required to identify shared donor characteristics that influence the initiation and volume of donation.

Pengaruh E-Banking Service Quality dan Brand Image untuk Membangun E-Wom dan Niat Pelanggan Menggunakan E-Banking

The COVID-19 pandemic has disrupted banking operations that are carried out directly to customers and increased the threat of physical contact for retail bankers and customers, as a result, the world is turning to Internet banking to continue routine transactions for bill payments, grocery purchases, and brand shopping. This study aims to determine the effect of e-banking service quality and brand image on Ewom and the effect of e-banking service quality, brand image, and EWOM on customer intentions to use e-banking at Bank BRI in Denpasar City. The variables studied in this study are e-banking service quality, brand image, E-wom, and customer intentions in using e-banking. The data used is primary data, namely the results or answers of respondents through questionnaires. The study employed a purposive sampling technique to gather data from BRI Bank customers in Denpasar City, with a total of 235 respondents participating. Path analysis was utilized as the analytical method. The findings indicated a favorable impact of E-banking service quality on electronic word-of-mouth (e-wom) at BRI Bank in Denpasar City. Additionally, E-banking service quality demonstrated a positive influence on customers' intentions to utilize BRI Bank E-Banking services in the same city. Likewise, the brand image variable exhibited a constructive effect on e-wom for BRI Bank in Denpasar City and also positively influenced customers' intentions to use BRI Bank E-Banking services. Ultimately, the e-wom variable was found to have a positive impact on customer intentions to engage with BRI Bank E-Banking services in Denpasar City.