Banking Products Research Articles

Machine Learning Algorithms Based Prediction for Customer Churn in Banks

Currently, competition within the service sector is intensifying rapidly. Acquiring new customers is becoming increasingly costly for banks compared to retaining existing ones. Consequently, it becomes imperative to forecast customer attrition in banks. This paper presents a method to predict customer churn in banks using machine learning. The study explored the possibility of customer churn in banks through a dataset of customer information on Kaggle. This study uses four kinds of machine learning such as ANN, Random Forest, Decision tree and Logistic regression. And the correlation analysis of the data set is carried out. Finally, the ROC curves of four kinds of machine learning were compared to get the model with the highest accuracy. Therefore, the accuracy of ANN is higher than that of the other three models. Then the importance is analyzed, and the most important feature of this experiment is the number of banking products owned by customers.

Process improvement strategy (PIS) and employee productivity amid COVID-19 pandemic among bank employees

PurposeThis study aims to examine process improvement strategy (PIS) (proxied by remote work, workforce training, and technological innovation), and employee productivity amid the COVID-19 pandemic among bank employees.Design/methodology/approachThe study employed cross-sectional and descriptive design by applying multistage sampling techniques using convenience sampling to select the study organization and stratified and simple random sampling to select 900 respondents for the study. Data were collected by using validated measures of the study variables designed into a questionnaire. Pearson’s correlation and simple regression analysis were employed to establish relationships and causal effects among variables respectively.FindingsResults showed significant relationships between the PIS (work-from-home, workplace training, and technological innovation) and the outcome variable (employee productivity); and predictive capabilities between the PIS and the outcome variables (employee productivity). The study revealed that remote work accounted for the highest variability (R2 = 0.775) in employee productivity, followed by workplace training (R2 = 0.499), and finally investment in technological innovation (R2 = 0.486)] and as such PIS fosters employee productivity and may, therefore, be applied when faced with a similar pandemic in the future.Originality/valueThe study was recognized for its significance in examining how PIS supports enhancing employee productivity in banks and, by extension, other organizations during a pandemic. The research has proven to be crucial in providing insights into bank management in emerging economies and other organizations worldwide that have previously gone unnoticed during a pandemic. It has aided in the extension of existing literature on PIS and employee productivity by carefully developing a framework, thus covering practical knowledge gaps.

Pengaruh Religiusitas dan Pengetahuan tentang Produk Perbankan Syariah terhadap Keputusan Masyarakat Kota Palembang Menabung di Bank Syariah Indonesia

This research aims to test and determine the influence of religiosity and knowledge about sharia banking products on the decision of the people of Palembang to save at Indonesian sharia banks. Research Method This thesis is a type of quantitative research. This research uses one independent variable and one dependent variable. The independent variables in this research are religiosity and product knowledge, while the dependent variable in this research is people's decision to save in Islamic banks. The data collection technique in this research was in the form of a questionnaire distributed to 100 respondents and the data was analyzed using the PLS (Partial Least Square) analysis technique. In analyzing the data, researchers used data analysis with several steps, namely validity test, reliability test, outer model test, inner model test and hypothesis test. The results of the hypothesis test carried out show the significance value of the influence of religiosity (X1) and knowledge about sharia banking products (X2) on the decision of the people of Palembang to save at Indonesian sharia banks (Y). The results of the research show that the religiosity variable obtained a t-statistic value of 7,540 > 1.96 with a p-value of 0.000 < less than the significance level of 0.05, so it can be explained that religiosity has a positive effect on the decision of the people of Palembang city to save at Indonesian sharia banks and the variable knowledge about products Islamic banking obtained a t-statistic value of 4,091 > 1.96 with a p-value of 0.000 < less than the significance level of 0.05, so it can be explained that knowledge about sharia banking products has a positive effect on the decision of the people of Palembang city to save at Indonesian sharia banks. The conclusion of this research is that religiosity and knowledge of sharia banking products influence the decision of the people of Palembang to save at Indonesian sharia banks.

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.

Impact of Islamicity on the productivity of conventional and Islamic banks in selected southeast Asian countries

This study provides a new understanding of how bank-specific characteristics, the macroeconomic environment, and Islamicity affect the productivity of conventional banks (CBs) and Islamic banks (IBs) in selected Southeast Asian countries. The data of 153 banks, collected between 2015 and 2020, were used, and the influence of the selected factors was investigated by using panel data approaches, as well as the data envelopment analysis-based Malmquist productivity index (DEA-MPI). In the first-stage analysis, bank productivity was measured by using total factor productivity changes (TFPC), and in the second-stage analysis, panel regression analysis was performed, specifically, multiple panel regression analysis, which employed pooled ordinary least squares, a fixed-effects model, and a random-effects model. Parametric and nonparametric (Mann–Whitney and Kruskall–Wallis) tests found that the IBs were more progressive than the CBs. The findings indicated that unlike the IBs, change in the productivity of the CBs was adversely affected by economic Islamicity, as well as legal and governance Islamicity, which indicated that macroeconomic and legal structures that leaned toward Islamic values adversely affected the CBs. Meanwhile, the IBs were likely to be structured in line with such values and thus can mitigate the adverse impact of various factors. Both groups were negatively affected by human and political rights Islamicity, which indicated the use of a setup that could not benefit from Islamic values. This finding lends credence to the arguments in the literature that IBs mirror CBs in practice to remain competitive in their pricing based on market principles. The IBs were found to benefit from international relations Islamicity, which bodes well for the competitiveness of new players against the ancient setup of CBs in the globalized world.

Potential customers’ intention to use Islamic banking products in Cameroon: the mediating effect of attitude

Potential customers’ intention to use Islamic banking products in Cameroon: the mediating effect of attitude

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.

Analysis of Factors Affecting the Level of Public Knowledge of Sharia Bank Products

This research aims to describe the factors that influencing people’s insight into sharia banking products. Case study of Deli serdang district. This research using qualitative data analysis public knowledge of sharia banking products in the case study of kab. Serdang Deli. The data collection techniques used were direct interviews obtained from respondenst, researcher interviews with sources and direct observation of the research writer’s objects or places in the community of the Deli serdang district. And also from notes, books, aticels, government reports, books related to research, and to get actual data. Based on research results, not many people know what is a sharia bank and what products are available at sharia banks?. then from the results of interviews, most people are interested in transact with sharia banks, so there is a need for socialization from the banking side sharia in order to increase public knowledge about sharia banks as well as the availability of islamic banking institutions that are closer to public.

Kualitas Pelayanan dan Reputasi Manajemen Terhadap Produk Bank BTN Syariah KCP Solo

This research aims at Service Quality and Management Reputation for Bank BTN Syariah KCP Solo Products. The approach used in this research is a quantitative approach. The sampling technique in this research was a purposive sampling technique with the sample used amounting to 96 respondents. The data collection technique uses online questionnaire distribution with the help of Google forms. Data analysis techniques in this research are validity test, reliability test, normality test, multicollinearity test, heteroscedasticity test, multiple linear regression test, coefficient of determination test, f test and t test. Based on data research analysis, the results show that there is an influence of service quality on bank products, there is an influence of management reputation on bank products, the f test shows that there is a simultaneous influence of service quality and management reputation on bank products. The results of the coefficient of determination test show an r square value of 0.502, which means that the influence of the service quality variable (x1) and management reputation (x2) simultaneously on the bank product variable (y) is 50.2%..

The failure mode and effect analysis of Islamic banking product marketing in Indonesia

Purpose This study aims to use a risk management approach to analyze the factors influencing the marketing failure of Islamic banking products in Indonesia. Design/methodology/approach Data were collected from respondents to be involved in the risk assessment of failure based on the criteria of severity score, likelihood of occurrence and detection ability of employees. The dominant factors were grouped into the number of new customers and transaction value categories. The failure mode and effect analysis (FMEA) method was used to identify the highest risk dominant factors. Findings The study results show critical factors and prioritized for immediate improvement. The number of new customers can be identified based on the following factors: occupation of prospective customers; income level of prospective customers; the lifestyle of the prospective customer. Transaction value can be identified based on the following factors: total balance; the level of convenience in transactions; turnover of funds; profitability; and risk management. Practical implications The Islamic banking industry in Indonesia needs to consider the importance of suitability: target market with the products offered, considering the income level of customers with suitable products, the level of profit sharing expected by consumers, improving customer education about Islamic banking products, the capabilities of financing staff and staff capabilities on risk management in Islamic banking products and services. Originality/value To the best of the author’s knowledge, this research is the first to apply FMEA in analysing marketing failures of Islamic banking products and services.

Effect of Managerial Coaching on Employees’ Productivity in Commercial Banks in Calabar, Cross River State

The study examined effect of coaching dimensions (task guidance, task feedback and employee support) on employee in-role and innovative performance, with role clarity mediating the effect of managerial coaching on employee productivity. Descriptive survey design was adopted and data collected from staff commercial banks in Calabar Metropolis, Cross River State using structured questionnaire. The validity and reliability of the instrument were ascertained using Cronbach alpha, convergent and discriminant tests. The sample size was 268 staff conveniently sampled from the population of 810. Descriptive statistics and correlation analyses were conducted using SPSS 25 and Amos 24 to analyse the data. The test of direct effects of the hypotheses was performed through multivariate regression analyses while the mediating effect was tested using structural equation modelling with Sobel estimations. The findings revealed that task guidance, task feedback and employee support had positive and significant effect on employees’ in-role and innovative performance. Also, role clarity fully mediated the connection between managerial coaching and innovative performance but did not reveal any mediating effect between managerial coaching and in-role performance. The study expanded the extant notion on the results of managerial coaching on employee productivity. The findings provided justification for the inclusion of coaching practices in organisations and suggest direction for understanding the motivation underlying these relationships.

Các nhân tố ảnh hưởng tới năng suất lao động tại các ngân hàng thương mại Việt Nam

In the context of globalization and increasingly expanding economic integration, when traditional advantages such as cheap human resources and raw material costs gradually disappear, to strengthen competitiveness and sustainable development, improving labor productivity is becoming an urgent issue for the Vietnamese economy. The banking system plays an important role, being the capital circulation circuit of the economy, however, in Vietnam currently, there is very little empirical research on labor productivity and factors affecting labor productivity within commercial banks. Therefore, the paper aims to investigate macroeconomic determinants (institutional quality, inflation, financial development, trade openness, and financial openness) and microeconomic determinants (salary and ownership) of productivity in Vietnamese commercial banks during 2014-2023. There are some main findings as follows. First, increased salaries and bonus would lead to higher productivity, especially in private-owned banks. Second, state ownership has a negative impact on productivity in commercial banks, while higher private ownership will lead to higher productivity in commercial banks. Third, macroeconomic determinants such as institutional quality, inflation, and financial developments positively impact bank productivity in the context of price stability . However, we found that the relationship between institutional quality and bank productivity is different for different types of ownership. Last, it is proved that trade openness is found to have a negative impact on bank productivity, while financial openness is a very important factor in bank productivity.

Regulation and Practice of Salam and Istishna Contracts in The Islamic Banking System in Indonesia

This study analyzes the regulation and practice of akad salam and istishna in the Sharia banking system in Indonesia. By paying attention to the existing regulatory framework, this article examines the practical implementation of akad salam and istishna by Sharia banks in Indonesia as well as the challenges faced in the application of the contract. The results of the analysis highlight the importance of a deep understanding of sharia principles in the development of appropriate sharia banking products and services. Keywords: Akad Salam, Istishna, Sharia Banking, Regulation, Practice.

Wadiah Savings Fund Strategy and Bank Products at Bank Syariah Indonesia

This study aims to find out about the development of Islamic banks in Indonesia. This research is qualitative descriptive. This study included literature to examine the written sources such as scientific journals, books referesni, literature, encyclopedias, scientific articles, scientific papers and other sources that are relevant and related to the object being studied. As for the object of study of this research is in the form of texts or writings that describe and explain about the development of Islamic banks in Indonesia. Results from this study is Indonesian banking now enlivened by the presence of Islamic banks, which offers financial products and investment in a different way than conventional banks, as Indonesia is the largest Muslim country in the world. The development of Islamic banking in Indonesia has become a benchmark for the success of the Islamic economic existence. Bank Muamalat as the first Islamic bank and a pioneer for other Islamic banks in Indonesia.

How are Islamic banking products developed? Evidence from emerging country

How are Islamic banking products developed? Evidence from emerging country

Adoption of fintech products through environmental regulations in Jordanian commercial banks

Purpose This study aims to examine the adoption of fintech products in Jordanian commercial banks, focusing on the influence of environmental regulations. Specifically, the study investigates the impact of environmental pressures (competitors pressure, customer pressure) and top management support on the adoption of fintech products. Design/methodology/approach A questionnaire survey was conducted, and data from 550 respondents familiar with the bank’s operations, once you have responses, use structure equation modeling to understand the relationships between variables. Also, applied the regression model to predict outcomes for new respondents. Ensure ethical considerations, like informed consent, are addressed throughout the process. Findings The results reveal that competitors pressure and customer pressure have a significant positive influence on the adoption of fintech products, indicating that banks are more likely to adopt fintech solutions when faced with increasing competition and customer demands. Furthermore, top management support was found to be positively associated with the adoption of fintech products, emphasizing the importance of leadership in driving successful integration. Also, regulators and policymakers can foster FinTech adoption in the banking sector by creating supportive frameworks that balance innovation and risk. The findings highlight the need for Jordanian commercial banks to recognize and respond to environmental pressures to remain competitive and meet customer expectations. Additionally, regulations might encourage the development of financial products and services within the fintech sector. This study enriches fintech adoption literature in the context of Jordanian commercial banks. Originality/value This study contributes to the existing literature by shedding light on the factors influencing fintech adoption in Jordanian commercial banks and provides practical implications for banks, regulators and policymakers seeking to promote fintech adoption within the financial sector.

Methodological Aspects of Elaborating Marketing Strategy of Innovation Bank Products and Services

Today the key factor of influencing banking sector is the development of information systems and overall strategy of economy digitalization as its consequence. On today’s competitive banking market we can observe the necessity to elaborate and promote approaches to banking product and service marketing that are meant to provide finance stability of banking business and orientation of marketing innovation bank functioning not only to their opportunities but also to market needs. In spite of a big number of publications dealing with this issue, academic research should be developed further. In research by Russian scientists there are actually no developments dealing with the problem of finding structural components for elaborating marketing strategy of banking products and services. Insufficient attention was paid to approaches of defining the essence of banking product and service marketing. The problem of assessing the level of the impact of banking innovation marketing on competitive positions and finance stability of banks has not been settled yet. The article showed components necessary to elaborate strategy of banking product and service marketing, among which the author underlined their characteristics depending on the model of commercialization, sub-system of their implementation process and interconnection between the chosen marketing strategy and classification features of banking innovation. The author designed a structural and logical scheme of elaborating strategy of baking product and servicer marketing and formulated its definition.

Protection of Electronic Money Saving Customers At the Bank

Currently developing again with the emergence of a new payment instrument in the form of a certain amount of money stored in an electronic media owned by someone, this payment instrument is known as Electronic Money. As a means of payment, the acquisition and use of Electronic Money (e-money) can be considered quite easy. Prospective holders or users only need to deposit a certain amount of money to the issuer or through issuing agents and the total value of the money will be digitally stored in electronic media. The problems raised in this paper are regarding the characteristics and status of electronic money as a non-cash payment instrument in banking products and the urgency of legal protection against stored customer electronic money. This type of thesis research uses normative juridical research. The results of this study are that electronic money is essentially cash that is converted into electronic data that is stored on storage media on cards in the form of chips or servers belonging to electronic money holders. The value of the electronic money is also recorded on electronic media managed by the issuer of electronic money. Payment transactions with electronic money are carried out by transferring funds electronically at merchant payment terminals (merchant), by directly reducing the value of electronic money on electronic media managed by electronic money holders. The status of the value of money received by the electronic money issuer, both for the results of the electronic money issuance and refilling, is a float fund, which is the obligation of the electronic money issuer to electronic money holders and traders at the time of billing reconciliation by the merchant to the electronic money issuer and the urgency of guaranteeing funds Customers using electronic money by customer fund guarantee institutions (LPS) have not yet reached the point where they really need them. Because currently existing regulations regarding electronic money, both those regulated by Bank Indonesia Regulations and Financial Services Authority Regulations are still able to protect the rights of customers who use electronic money, but it is possible that in the future IDIC will guarantee the funds of electronic money customers. Considering the very rapid development of electronic money users and the very large circulation of money, then of course LPS can be present as a guarantee institution, of course with updated regulations. And at this time LPS is also reviewing with OJK about the need for LPS to be present as a guarantor of electronic money customer funds.

The Role of Islamic Financial Literacy and Local Wisdom in Decisions to Use Sharia Banking Products: A Systematic Literature Review

This qualitative research aims to identify the role of Islamic financial literacy and local wisdom in using Sharia banking products. The study employs a qualitative method through a systematic literature review, sourcing data from credible journals with national and international indexes. The collected data is analyzed using the VOSviewer tool, which systematically maps trends and bibliometric networks and visualizes overlay maps and research density levels. The findings indicate that Islamic financial literacy and local wisdom significantly influence financial decisions to use Sharia banking products wherever these banks operate. In addition, local values have fundamental values that are integrated with the operational principles of Sharia banking so that it becomes a meeting point between Sharia banking and local wisdom that is owned by the community so that people in choosing Sharia banking products as a financial decision are not only driven by values. Sharia is also greatly influenced by culture.

Factors Influencing Behavioral Intention to Adopt Mobile Banking: With Special Reference to Gampaha District Sri Lanka

Mobile phones have created a platform to expand commercial transactions and it has created a wide array of business opportunities. With the emerge of mobile commerce, the concept of mobile banking has emerged. Mobile banking offers ubiquitous and hassle-free access for banking customers. Nevertheless, it has been observed that Sri Lankan banking customers are sometimes cautious to conduct their financial activities through mobile devices. Therefore, this research study has been carried out with the objective of identifying the factors influencing behavioral intention to adopt mobile banking with special reference to Gampaha district, Sri Lanka. The dependent variable of this research study is the behavioral intention towards mobile banking adoption and the dimensions of the independent variable includes perceived usefulness, perceived ease of use, relative advantage, perceived risk and compatibility. 310 mobile banking users in the Gampaha district has been utilized as the sample for this study and data collection has been performed through an online questionnaire. Both quantitative method and deductive approaches were utilized to identify the determinants that influence on behavioral intention. Regression analysis has been conducted to analyze data and the results indicate that perceived usefulness, perceived ease of use, relative advantage and compatibility depicts a positive and significant impact on behavioral intention towards mobile banking adoption of customers. On the contrary, perceived risk depicts a negative and significant impact on behavioral intention. Therefore, banks should align their product offerings to the needs of their customers in the process of developing mobile banking products. It will be much more convenient to provide banking customers with a service in order to deliver a superior value and retain them in the long run.