Competition In Financial Services Research Articles

Perceived Impact of Performance Appraisal on Employee’s performance

This study explores the perceived impact of performance appraisal on employee performance at Vocation Investments and Securities, a leading financial services firm. Performance appraisal is a critical aspect of organizational management, aiming to assess and enhance employee performance. The study adopts a mixed-methods approach, combining quantitative surveys and qualitative interviews, to capture a comprehensive understanding of employee perceptions. Quantitative surveys are utilized to assess employees’ perceptions of various dimensions of the performance appraisal process, including fairness, transparency, feedback effectiveness, alignment with organizational goals, motivation, and job satisfaction. A structured questionnaire is administered to a representative sample of employees across different departments and levels within Vocation Investments and Securities. Statistical analyses, such as descriptive statistics, correlation analysis, and regression analysis, are employed to identify patterns, trends, and relationships in the data. Qualitative interviews are conducted to delve deeper into employees’ experiences and perspectives regarding performance appraisal. Semi-structured interviews are conducted with a subset of employees to explore themes such as perceptions of fairness, feedback delivery, alignment with organizational goals, and suggestions for improvement. Thematic analysis is employed to identify recurring patterns, themes, and insights emerging from the qualitative data. The findings from both quantitative surveys and qualitative interviews are integrated to provide a comprehensive understanding of employee perceptions of performance appraisal at Vocation Investments and Securities. The study aims to identify areas of strength and areas for improvement in the current performance appraisal process, offering actionable recommendations to enhance its effectiveness. By understanding and addressing employee perceptions, Vocation Investments and Securities can foster a culture of trust, engagement, and continuous improvement, ultimately driving employee performance and organizational success in the competitive financial services industry.

Influence of Differentiation Strategy on the Financial Performance of Deposit-Taking Saccos in Kenya

Purpose: The purpose of the study was to assess the influence of differentiation strategy on the financial performance of deposit-taking SACCOs in Kenya.
 Methodology: A descriptive research cross-sectional approach was applied. The target population of this study was 174 DT-SACCOs in Kenya. The sample size was 227 respondents. Structured questionnaires were used to collect primary data from the selected respondents. Data collection method was by use of questionnaires. Quantitative data was analyzed descriptively and inferentially. Descriptive data was analyzed through measures of central tendency including means, standard deviations, frequencies and percentages. Data was coded and analyzed using the Statistical Package for Social Sciences (SPSS v23.0). Results were then presented in tables, diagrams and charts.
 Findings: The results showed that differentiation strategy had a positive and significant relationship to financial performance (r=0.590, p=0.000; R2=0.348, β=1.039). The findings emphasize the importance of implementing effective differentiation strategies to achieve better financial performance.
 Unique Contribution to Theory, Practice and Policy: The study recommended that deposit-taking SACCOs in Kenya prioritize the implementation of differentiation strategies to enhance their financial performance. By adopting these strategies, SACCOs can position themselves for improved financial success and sustained growth in the highly competitive financial services sector. The study's findings contribute to academic theory by offering significant insights and presents practitioners in strategic management, policy makers, and the leadership in SACCOs with valuable recommendations. They are able to utilize the findings from the current study based on how to model dynamic capabilities that will ensure their knowledge and practicality of competitiveness is beefed up.

ALTERNATIVE FINANCE TECHNIQUE IN THE LOGISTICS SECTOR: BLOCKCHAIN

Purpose- As a new generation financial concept “Blockchain and Cryptocurrencies”, which have rapidly entered into the world recent years, have intense effects on our social norms, financial system and business models in the industry. In this research, it is aimed to examine the effects and contributions of innovative financial technologies that have developed with the intense digital transformation, which started with the concept of Logistic 4.0, through the sector. Actually innovative solutions to be developed by the fintech companies are expected to emerge in the logistics sector in the coming years. As we are experiencing the financial opportunities offered by fintech companies in the world, the logistics industry can also take new financial steps forward in our country with the help of great technological opportunities. However, logistics service providers traditionally focus on the delivery of goods and can quickly adapt to the realization of the opportunities so that Fintech’s can present new techniques to their business processes. Both fintech and logistics companies can provide significant added values to the industry by bringing their forces together. Methodology- In this study, I searched the current financing practices in the industry through a comprehensive literature review of the blockchain as an alternative way in financing options in the logistics sector. Findings- When a logistics company agrees to work with blockchain technology, it enrolls in an intensive collaborative effort. This is because much of it involves facilitating reliable co-operation between multiple entities, including state institutions of all types, industrial organizations, regulators, partners, and even competitors public and private organizations. Collaboration platforms have been created to enable competitors to work together to research the implementation of blockchain technology, taking the very competitive financial services industry example. Although competing cooperation does not seem intuitive, economies of scale affect the value of the blockchain. When more parties agree to use a single blockchain solution, more value is generated for each participating organization. That's why several blockchain consortia appear in the logistics sector. Conclusion- Fintech’s provide logistics service providers with an opportunity to expand their service portfolio. In particular, they can increase their role in the supply chain and add value to their business. By reducing risks and costs, customers logistics service providers have real-time insight, reliable supply-chain data can provide them with commercial opportunities for new enhancements. These services can gradually change the role in the supply chain. Logistics service providers that want to make the industry strategic are trying to fully understand these markets in their decision to enter new markets. At this stage, it is important to enhance the infrastructure investments and to encourage governments to invest in transportation. According to the OECD, changes in infrastructure construction and investment decisions, including maintenance, will require investments in the industry globally from 2010 to 2030 of $220 billion per year. For roads, infrastructure needs, maintenance needs have emerged. According to the model employed, maintenance needs and infrastructure expenditure varies between 3.3 percent of GDP. Low-income countries require an additional investment of 2.5 percent of their GDP for middle-income countries and 0.76 percent for high-income countries. Keywords: Logistics, supply chain, blockchain, fintech, smart contracts. JEL Codes: M10, M15, M16

PROBLEMS OF FORMATION OF A COMPETITIVE FINANCIAL SERVICES MARKET IN UZBEKISTAN

Since gaining independence, much attention has been paid to competition policy in Uzbekistan. In recent years, the relevance of the problem of developing competition in commodity markets has decreased, but the issue of underdeveloped competition in financial services markets remains unresolved. In this connection, the problem of monopolistically high prices for financial services in these markets remains. In this article, we have identified the main problems of the formation and functioning of the competitive financial services market in Uzbekistan.

Trust recovery tactics in financial services: the moderating role of service failure severity

PurposeGiven the fierce competition in financial services, service failure management and trust restoration tactics are becoming strategic priorities. Studies investigating trust restoration have increased over the years due to the significance of trust in services and the frequency of trust violations. Drawing on the sense-making and defensive approaches of attribution theory, this study aims to explore the effectiveness of various trust recovery tactics (e.g. apology, explanation, and investigation) in financial services considering the prevalence of service failure severity.Design/methodology/approachBased on a scenario-based survey, this study gathered data from 402 consumers of different banks in Pakistan. The study analyzed the data using ordinary least square regressions and structural equation modeling.FindingsThe study indicated that explanation is more effective in repairing character-competence and commitment-based trust, while investigation remained highly effective for inducing congruence-based trust. Interestingly, an apology was more effective for communication-based trust repairing, while context-based trust recovery was unaffected against all recovery tactics. Despite the prevalence of severe service failure, recovery actions proved fully effective for character-competence and commitment-based trust while partially effective for congruence-based trust recovery. This study also found that severe service failure undermines the effectiveness of recovery actions in repairing communication and context-based trust.Originality/valueThe study extends the literature on trust recovery by integrating sense-making and defensive attribution theory. The sense-making approach contributes to the existing knowledge on trust recovery by elucidating how consumers and service providers develop a shared understanding to facilitate the recovery mechanism of multidimensional trust in financial services.

The Effect of Executive Competence and Integrity on Employee Performance: Motivation as a Mediation

Aims: The financial services sector is a strategic industry, so developing a competitive financial services sector needs to be supported by professional human resources with integrity and global competitiveness. This study aimed to determine the effect of competence and integrity on employee performance through motivation as a mediating variable.
 Study Design and Methodology: The sample of this study was 205 employees of Sharia Rural Bank (BPRS) in Lampung Province, Indonesia. Data were obtained through questionnaires and processed using the Smart PLS analysis tool.
 Results: The results of this study show that competence has a positive and significant effect on employee performance. Integrity has a positive and significant effect on employee performance. Competence has an insignificant positive effect on employee performance through motivation mediation. Integrity positively and significantly affects employee performance through motivation mediation.
 Implications: This research suggests that BPRS needs to increase Good Corporate Governance (GCG) in the management to produce executive officers and employees with high competence and integrity so that they can make banks healthy. They can minimize fraud in bank financial management.

MiFID II Opportunities and Regulatory Challenges

The Markets in Financial Instruments Directive Version I (MiFID I) was adopted primarily to promote competition in financial services in the EU as a core component of the single market agenda. But its implementation, in the midst of the 2007 global financial crisis, uncovered several flaws negatively impacting investor protection and market efficiency. This inspired a review of its impact that subsequently led to MiFID II. MiFID II that came into effect on 3 January 2018 combined the revamped MiFID I and the Markets in Financial Instruments Regulation (MiFIR). Financial services market participants under its purview, while envisaging the opportunities unfolding, would also need to contend with several key challenges.

Analisis Kepuasan Nasabah yang dipengaruhi Nilai Pelanggan dan Kepercayaan Pelanggan serta Kualitas Pelayanan

Banking services are financial institutions as intermediation in financial services. It plays an essential role in enhancing the company's operational activities. People's credit bank, which is a financial service, contributes to the development of small and medium enterprises. Competition in financial services, especially people's credit banks, which is increasingly stringent requires increasing the quality of their services to increase their customer satisfaction. This study aims to determine the effect of service quality on customer value and trust as well as its implications on customer satisfaction analyzed by a survey approach to rural credit banks in the City/Regency of Bandung, West Bandung, and Cimahi. The samples are 384 customers with the Cluster Proportionate Stratified Random Sampling, which is processed by path analysis. The results indicate that there is a significant influence on the service quality to customer value and trust and its implications for customer satisfaction. The results of this study contribute to the development of a study in the marketing field, specifically customer satisfaction in the financial services sector as the people's credit bank.

Antitrust and Financial Services in the EU: Commitments in Credit Default Swaps (CDS)

Abstract Following the financial crisis, far-reaching regulation of financial services was introduced to achieve sustainable growth and systemic stability. Whereas regulation tackles broad structural market failures, competition policy addresses harmful behaviour of individual market participants. The systemic risks evidenced in the crisis therefore merit specific additional attention to market failures and imperfect competition in financial services, to address issues such as market power, asymmetric information and entry barriers. This article examines a recent example of antitrust enforcement in financial services, focusing on the rationale and adequacy of using antitrust commitments in this sector, addressing the application of this rationale to the recently adopted Commission Decisions in the Credit Default Swaps (CDS) case. It will place the CDS case in context of antitrust enforcement and regulation in financial services, in particular derivatives, and examine the value added of the CDS commitments and the necessity for antitrust enforcement going forward.

The Application of European Competition Law in the Financial Services Sector

‘At every moment, we need to strike a careful and difficult balance: on the one hand, to preserve financial stability and on the other hand to minimise distortions of competition between banks and across Member States in the single market... Europe needs a healthier and safer banking sector, to break the vicious circle between banks and sovereigns, to protect taxpayers and also very importantly, to restore the foundations for real growth of the economy.’1 These comments, from Johannes Laitenberger, Director-General at DG Competition, demonstrate the challenge that the Commission faces when enforcing competition law in the financial services sector. Since last year's survey, the Commission has remained active in this systemically important sector and has used the full range of enforcement tools to protect competition in financial services. As regards State aid, the Commission has issued several decisions approving individual bank restructurings and resolutions, mostly in relation to aid granted subsequent to capital shortfalls identified by the regulatory framework put in place during the last few years. The Commission notably also declared that the aid package for one bank constituted incompatible State aid and blocked its sale to a third party in the process.

The west and China: globalisation and competition in financial services

This paper examines the evolution of the industrial structure of global financial firms since the 1970s, during which time, free market policies dominated theoretical and practical policy discussion. It examines the logic behind and evidence on consolidation in the international financial services industry. It analyses the impact of Washington Consensus policies upon the expansion of global banks in developing and transition economies. It contrasts the evolution of the international banking structure during the era of modern globalisation with that in China, which has followed a fundamentally different path. Although Chinese banks have large profits and market capitalisation, their international competitiveness is still limited. Global banks have only a small role in the Chinese economy and Chinese banks have a small role in the international economy. The contrast between the two systems is of central importance for the way in which competition and regulation develops in the global financial sector.

Competition in Financial Services

Competition in Financial Services

Competition in Financial Services

Competition in Financial Services

Competition in Financial Services: Evidence from British Mutual Funds

This article explores the effects of competition on risk‐taking behavior and firm performance within the financial services industry. It does so by exploiting a regulatory change that allowed new players to enter the British mutual fund industry. Exploiting this regulatory shock, we trace nontrivial linkages among industry competition, risk taking, and performance. Greater competition followed the regulatory liberalization, leading to a significant increase in risk‐taking behavior of funds. Competition generated performance efficiencies, forcing underperforming funds to exit and halting earlier value destruction. Competition, however, did not produce tangible cost savings for consumers of investment services.

ANALYSIS OF MOTIVES IN CUSTOMER CHOICES OF BANKING SERVICES: THEORETICAL ASPECT

During the world of globalization, European integration, the expansion of credit institutions on competition in financial services, supply is growing, so as to better meet customer needs and remain competitive, banks are aware of users' choice and reasons to take them to attract customers. Therefore, this article examines key consumer banking selection criteria. It was found that when consumers choose a bank, most pays attention to the reputation of the bank, deposit and loan interest rates, the range of services and convenience. When choosing a bank to purchase a particular service, convenience is the key criteria associated with the formation of branches, service charges and low minimum required balance, open a checking account. It is also important and personal relationships, and additional range of services, you can learn about direct contact with bank staff at the time. Electronic banking system the most user friendliness, clarity and simplicity, bank fees and timeliness of information.DOI: http://dx.doi.org/10.5755/j01.em.17.1.2255

Impact of Customer Relationship on Brand Equity in Chinese Retail Banking

Building strong brand equity is imperative in the highly competitive financial services sector. Despite tremendous interest in brand equity and relationship marketing, little conceptual development or empirical research has addressed whether relationships exist between these important marketing issues. This study explores the associations between customer relationships and brand equity in the context of the Chinese banking system. A conceptual framework is proposed, in which the constructs of customer relationships including relationship closeness, relationship strength and relationship satisfaction are related to the dimensions of brand equity comprising of perceived quality, brand loyalty and brand associations combined with brand awareness. Empirical tests using structural equation modelling support the research hypotheses and reinforce the importance of the linkage between the two domains of branding and relationship marketing, which are traditionally apart. The research findings provide bank managers with a comprehensive understanding of how customer relationships impact on the dimensions of brand equity, which will enable them in turn to design more effective marketing strategies to enhance the evaluation of brand equity.

Understanding customer‐specific factors underpinning internet banking adoption

PurposeThe purpose of this paper is to deepen our understanding of customers' actual internet banking behaviour by combining the construct of technology readiness with the technology acceptance model and demographics, such as age and gender, into one integrated framework.Design/methodology/approachThe customer‐specific internet banking acceptance model (CSIBAM) is validated through 435 UK internet banking users.FindingsThe results indicate the importance of customer‐specific factors in predicting actual behaviour. Technology readiness, age and gender moderate the beliefs‐intention relationship. Customers with varying levels of technology‐related views and demographics hold different beliefs about technology. The relationship between usefulness and behaviour was stronger for younger males with high levels of optimism and innovativeness (explorers and pioneers), whilst the relationship between ease of use and behaviour was stronger for older females with a high level of discomfort (paranoids and laggards).Practical implicationsIn today's highly competitive financial services market, knowledge of key customer‐specific factors can help banks to enhance customer experience by focusing more on each segment's particular needs. This knowledge would also help managers to decide about the extent to which technology‐based systems can be used, the appropriate type of these systems, the pace of implementation, and the type of customer support required.Originality/valueA distinctive contribution of this study is that it does not rely on self‐reported intention or usage, but instead it employs actual behavioural data. Greater understanding of seemingly established relationships could improve the design of the service and the development of differential marketing strategies aimed at driving adoption and allaying rejection.

The New Mandate for the Supervision of Financial Services Conduct

The UK is redesigning the institutional architecture of financial services supervision. The Financial Conduct Authority is meant to play a central role in the reformed system by delivering a new policy approach to the supervision of financial services conduct, which places considerable emphasis on competition as a force for the promotion of good consumer outcomes. The article examines the Financial Conduct Authority’s statutory mandate, and focuses in particular on the interaction of the competition and consumer protection objectives. It accepts that putting a heavy responsibility on a financial regulator to create the right environment for competition in financial services to flourish has the potential to help consumers, but it is skeptical about the likelihood of success. The article examines the risk of lighter forms of regulation once again coming into favour as, over time, the current drive for more consumer protection increasingly gives way to a competition promoting, business-friendly agenda. It explains why a statutory mandate is a weak mechanism for preventing this result.

New theories to underpin financial reform

Before 2007, financial crises were not widely studied in economics and finance. The lack of importance ascribed to financial stability and our limited knowledge of this topic were significant contributors to the crisis. This paper suggests five areas where new theories are needed. These are asset price bubbles, central bank checks and balances, global imbalances, banking regulation, and competition in financial services.

Policy framework for effective and efficient financial regulation

The structure and operation of the financial system have undergone marked changes in the past couple of decades, driven by dramatic improvements in technology, rapid product innovation, integration of financial systems, competition in financial services, and policy, regulatory, and trade reforms. These developments have led to a dynamic, sophisticated, and global financial services arena which fostered economic growth. Yet, the financial and economic crisis has brought to the fore many inappropriate or ill-adapted elements of our approach to financial regulation. The crisis has forced us to think hard about the financial system: how it works, the objectives it should fulfil, and the tools and policies to help shape it. The Policy Framework for Effective and Efficient Financial Regulation, supported by General Guidance and a High-Level Checklist, is a tool that can support ongoing efforts by policymakers, regulators, and supervisors to achieve a stronger, more resilient financial system. It is not meant to substitute for the more focused, micro-prudential principles and guidelines of international standard-setting bodies. But it can guide our strategic thinking and promote governmental leadership and action so that the financial system can play its vital role in the functioning of the economy, both domestically as well as globally. The Policy Framework, including the General Guidance and High-Level Checklist, is the product of work by the Committee on Financial Markets and the Insurance and Private Pensions Committee, and was the subject of a broad public consultation. The Policy Framework challenges policy makers to think about the fundamentals of financial regulation in a globalised financial system. It also invites them to improve their understanding of the financial system and work in close cooperation with other countries to develop proper tools and instruments so that public policy objectives are met. I hope that policymakers will use the Policy Framework in setting national policy and in working with international partners.