Bank Customers Research Articles

Understanding customer Decision-Making in retail banking: Insights from a selected retail bank in South Africa

In the ever-changing realm of retail banking, it is essential for banks to grasp the elements that affect customer decisions to stay ahead in the competition. This study delves into customer preferences when selecting a bank, focusing specifically on Absa Bank in South Africa. By utilizing a case study approach, the research delves into the factors that influence customer behavior in the retail banking industry. Referencing the consumer decision model, the study investigates various stages such as problem recognition, information search, evaluation of options, purchase decision, and post-purchase assessment. Factors such as security, convenience, assurance, accessibility, and responsiveness are pinpointed as crucial aspects in bank selection. The study employs quantitative research techniques, conducting surveys with Absa Bank customers to dissect their preferences. Findings suggest that transaction fees, corporate image, bank coverage, and size play a significant role in influencing customer decisions. The study emphasizes the importance of addressing these customer-identified factors to deter customer attrition. Recommendations include conducting regular surveys to keep abreast of changing customer preferences and maintaining a competitive edge. The research offered valuable insights that can guide strategic decision-making and marketing efforts in the retail banking sector.

Impact of the Quality of Financial and Banking Applications Used on Smartphone on the Customer Satisfaction of Jordanian Islamic Bank

This study aimed to identify the impact of the quality of financial and banking applications through the dimensions of (information security, trust, privacy) used on smartphones on the satisfaction of Jordanian Islamic bank customers. The researcher employed a descriptive-analytical approach in constructing the study. The study population consisted of all customers of Jordanian Islamic banks. The researcher developed a research tool (a questionnaire) to align with the study’s dimensions. A random sample of Islamic bank customers was selected, and the research tool was distributed to them electronically. The researcher was able to obtain responses from 249 participants. One of the key findings of the study was that there is a high level of usage of financial and banking applications on smartphones in Islamic banks. Among the dimensions, “privacy” ranked the highest in importance based on the participants’ responses. The results also revealed a significant impact of the quality of financial and banking applications used on smartphones, through the dimensions of (information security, trust, and privacy), at a significance level of (α ≤ 0.05) on the satisfaction of Jordanian Islamic bank customers. Among the key recommendations was the need for greater focus on quality factors related to financial and banking applications by emphasizing the dimensions of information security, trust, privacy, and data protection due to their significant role and impact on customers using these applications. Additionally, there is a potential for further research and studies on the factors affecting the quality of financial and banking applications on smartphones for electronic banking services offered to customers.

Evaluation of banks in terms of customer preferences with fuzzy SWARA and fuzzy MOORA integrated approach

This study examines the factors influencing customer preferences in retail and private banking in Turkey, utilizing the fuzzy SWARA methodology. In response to global challenges and advancements in technology, the banking sector has undergone significant transformations over the past two decades, leveraging technology to enhance services and efficiency. However, customer preferences may vary across countries and cultures, with Turkish banking customers showing a mix of traditional and digital banking preferences. Against the backdrop of a dramatic financial crisis in 2001, trust emerges as a paramount consideration for Turkish banking customers, alongside factors such as mobile services, customer service quality, and pricing compatibility. Through an analysis of nine banks with fuzzy MOORA method, both private and state-owned, this study aims to provide valuable insights into the factors driving customer preferences in the Turkish banking sector. The findings contribute to the existing literature and offer guidance for banks seeking to meet the evolving needs and expectations of their customers in Turkey's dynamic banking environment.

The impact of Islamic banks’ non-Shariah-compliant income on customers’ trust and commitment: case of Islamic banks in Pakistan

Purpose Islamic banking is a financial institution that is concerned with the regulation of the Shariah guidelines. Several full-fledged and Windows-based Islamic banks in Pakistan have reported non-Shariah-compliant income (NSCI) due to various operational investment activities. Hence, this issue has attracted this study to examine the impact of NSCI, especially from the perspective of Islamic bank (IB) customers’ trust and commitment. Design/methodology/approach This study used trust-commitment theory as the underlying theory to examine customers’ trust and commitment. A total of 341 questionnaires have been distributed, and the data is analysed using the structural equation modelling (SEM) method. Findings The results show the commitment of IB customers has a significant relationship with the benevolence, trust and shared values of the top management of IBs. Meanwhile, the other two constructs, the ability and integrity of the top management, are found to be insignificant. Research limitations/implications The gender diversity among banks’ customers in Pakistan is the main limitation in this study. There were difficulties in selecting a more representative sample due to gender domination issues in the country. Thus the data revealed that 62.8% were male respondents, which confirms the prior research on the gender disparity. Originality/value This study provides interesting insights into the context of Pakistan’s Islamic banking sector as it examines top management’s ability, integrity, benevolence and shared values to affect trust and commitment, and the role of trust as a mediator.

Exploring the perceived value-behavioural intention link: An Islamic banking perspective

Orientation: Knowledge of the commitment behaviour (affective and calculative) of Islamic banking customers is central to an in-depth understanding of the perceived value-behavioural intention link in the competitive Islamic banking industry in South Africa.Research purpose: The study investigates the extent of the role of affective and calculative commitment on the perceived value-behavioural intention link within the Islamic banking industry of South Africa.Motivation for the study: To date, there is, however, no clear pathway in a Business-to-Consumer (B2C) setting, and further research is needed on how to strengthen this link.Research approach/design and method: A quantitative exploratory-descriptive research design was used to collect data from 350 Islamic banking customers in the Gauteng province of South Africa purposively through the use of self-administered questionnaires. Exploratory factor analysis, Pearson’s coefficient analysis and multiple regression analysis were applied to measure the proposed hypotheses developed for the study.Main findings: Service quality has a significant and positive impact on perceived value, while the latter has a favourable and considerable impact on affective and calculative commitment. In addition, calculative commitment has a beneficial impact on behavioural intention.Practical/managerial implications: The research informs Islamic banks of the importance of service engagement as a driver of perceived value, which stimulates the future affective and calculative commitment of Islamic bank customers in an emerging market context.Contribution/value-add: This study provides an enhanced understanding of the relevance of selected factors (service quality and calculative commitment) in strengthening the perceived value-behavioural intention link.

Analisis Kinerja Keuangan Bank Syariah Indonesia Sebelum dan Sesudah Merger Menggunakan Metode Maqashid Shariah Index dan Profitabilitas

Bank Syariah Indonesia was established on February 1,2021. The establishment of Bank Syariah Indonesia was a combination of 3 (three) BUMN Banks (State Owned Enterprises), namely Bank Syariah Mandiri, BNI Syariah, and BRI Syariah. For this reason, the merger of the three banks aims to realize efforts to build an advanced Islamic bank. On the other hand, the progress of an Islamic banking industry is certainly inseparable from the evaluation of the Islamic bank's financial performance. This aims to determine the financial conditions that occurred during a certain period, in which this information is intended for the government, investors and customers of the Islamic bank. So because of this, the authors are interested in measuring the performance of Indonesian Sharia Banks, which can still be said to be new because it is the result of the merger of the three state-owned banks based on the Maqashid Sharia Index and Profitability concept. This research aims to analyze the performance achievements of Bank Syariah Indonesia before and after the merger using the Maqashid Shariah Index and Profitabilta methods and to compare the two performance achievements. The results of the study found that after the Merger, Indonesian Sharia Banks achieved the highest average MSI Performance ratio (Maqashid Syariah Index) and Profitability Performance ratios compared to before the Merger.

Retention strategy device for recovering lost customers of united bank of Africa in Ado-Ekiti

The study examined retention strategy: a tool of recovering lost customers of UBA in Ado Ekiti. The specific objectives are to: determine the effect of birthday message on recovering lost customers; examine the effect of interest rate on recovering lost customers; determine the effect of innovative product on recovering lost customers. A descriptive survey research design was adopted for the study. The population of the study comprised UBA customers in Ado Ekiti. The sample size was 399 which were selected through Yamane sampling Model. Primary data used for the study were gathered through structured questionnaire. Questionnaire was used to elicit information from the target respondents. Data gathered were analyzed using regression model. The result showed that product birthday message positively affect recovering lost customers as it was significant on recovering lost customers (t=7.685, t=1.103, p<0.05); it further showed that interest rate affects recovering lost customers as it was significant on recovering lost customers (t= 5.871, t= 1.769,p<0.05); furthermore, it showed that innovative product affect recovering lost customers positively as it was significant on recovering lost customers (t=2.659,t= 6.804, p<0.05). Thus, it concluded that retention strategy positively affects recovering lost customers.

PATTERNS OF ISLAMIC ECONOMIC INSTITUTIONS

The study of the Pattern of Islamic Economic Institutions is very important to be studied more deeply. This is because the study never ceases to be debated. The purpose of this paper is to understand 3 things: First, the Pattern of Islamic Economics. Second, Islamic Economic Institutions internal and external factors that affect society. Third, the positive and negative implications. The method used is literature review, with a descriptive approach based on qualitative theory, while data collection is descriptive and analyzed using content analysis techniques. The results found 3 things: First, there are 3 forms of Islamic Economic Patterns: Sharia Economy, Wellbeing, Islamic Banking. Second, internally there are 3 factors that influence: The methods of Islamic economic practice, Improving the quality of human resources, Expanding the number of Islamic Bank offices. As for externally there are 3 factors: Investor decline, public awareness, Muslim intellectual movement. Third, there are 3 positive implications: Anticipation of monopoly, Zakat and Rikaz policy, Impact of careful planning. Meanwhile, there are 3 negative implications: Limitation of Investment, complicated Akad for ordinary people, Decrease in Islamic Bank Customers. The conclusion that this paper shows that Islamic economics in principle and practice has the principle of justice and benefit. Keywords: Patterns, Institutions, Islamic Economics.

Differences in Generation Y male and female customers’ perceived mobile banking trust, information, and system quality

Trust is key to mobile banking adoption, shaping customer confidence in the service. Trusting behaviors and expectations vary between genders and across generational cohorts, influenced by factors like system and information quality. As such, the purpose of this study was to determine whether South African Generation Y male and female banking customers differ in their mobile banking trust, system, and information quality. In accordance with a descriptive research design, self-administered surveys were voluntarily distributed to 334 South African mobile banking participants. Using structural equation modeling, the study found that, among the male participants, the system quality of mobile banking predicts their mobile banking trust (β = 0.72, p < .001) and perceived information quality of the system (β = 0.94, p < .001). However, their mobile banking trust had an insignificant influence on their perceived information quality (β = –0.04, p > .001). For female Generation Y banking customers, mobile banking system quality was a significant predictor of both trust (β = 0.53, p < .001) and information quality (β = 0.69, p < .001). In addition, the path between trust and information quality was statistically significant (β = 0.17, p < .05). Determining the role of trust and its relationship between information and system quality of mobile banking among males and females is essential for understanding customer behavior, enhancing user experience, mitigating perceived risk, and guiding strategic decision-making in the mobile banking industry.

The Influence of Financial Literacy and Digital Literacy on Mobile Banking Adoption

This research examines the influence of Financial Literacy and Digital Literacy on Mobile Banking Adoption in Jabodetabek. This research data was obtained using a questionnaire in the form of a Google form and distributed via the WhatsApp friendship network and other social media such as TikTok and Instagram. The respondent criteria for this research are bank customers who are over 20 years old, have a mobile banking application, and actively use the mobile banking application for daily transactions. A total of 210 answers have been filled in and all answers have met the requirements for processing. This research observes that there is a significant influence of Financial Literacy and Digital Literacy on Mobile Banking Adoption. The dependent variables, namely Perceived Ease of Use, Perceived Usefulness, and Relative Advantage, have high explanatory power of the model. The independent variables Financial Literacy and Digital Literacy have a strong influence on the three dependent variables of this research, showing that Financial Literacy and Digital Literacy have a direct or positive influence on the use of Mobile Banking.

DEVELOPMENT OF A CREDIT SCORING MODEL USING MACHINE LEARNING FOR COMMERCIAL BANKS IN VIETNAM

In an increasingly competitive financial market, developing an accurate and efficient credit scoring model is crucial for banks to make informed credit decisions, and to help customers obtain credit products that match their financial capabilities. This study aims to develop a credit scoring model for individual customers of Vietnamese banks using machine learning techniques. This article will use a set of financial and non-financial indicators as inputs for various machine learning models such as Logistic Regression, K-nearest Neighbor, Decision Tree, Random Forest, LightGBM, and Support Vector Method. The obtained results from these models will be carefully compared and evaluated to ultimately select the best credit scoring model for the bank. This study leverages Google Colab, a cloud-based platform, for comprehensive data analysis and model development, ensuring a robust and data-driven approach. This study hopes to provide a useful solution for Vietnamese banks in managing credit risk and improving their business performance.

Internal Marketing and its Impact on Customer Value: An Exploratory Study of the Opinions of a Sample of Bank Customers

This research aims to identify the impact of internal marketing in its dimensions (empowerment, internal communication, and teamwork) on customer value in its dimensions (service quality, customer relationship management, and the personal value of employees). It explores the role that internal marketing can play in influencing customers and enhancing their satisfaction with the services provided by the surveyed banks. The banking sector represents the research field, while the research population consists of customers holding bank accounts in the surveyed banks. A total of (150) questionnaires were distributed, of which (116) were returned and (109) were deemed valid for analysis. The data were processed using statistical methods through the SPSS software. The statistical analysis showed a correlation and impact relationship between internal marketing and customer value in the banks included in the study sample.

Breaking up with your bank: the role of competitors’ effective advertising in customer switching intention

The discrepancy between customer expectations and experiences can result in significant adverse consequences. This study, exploratory in nature, utilised the structural equation modelling technique to reveal how competitors’ effective advertising influences customers’ expectations of in-using banks, triggering their switching intentions in line with the expectation-confirmation theory, with a dataset of 471 responses from retail bank customers in China via an online semi-structured survey with a convenient and non-probability method. This study revealed that competitors’ effective advertising not only directly influences customers’ bank switching intentions but also indirectly impacts customers’ switching intentions by influencing customers’ expectations of price and service quality. The study also found that the price was positively correlated with customers’ perceptions of service failure and customers’ switching intentions, while service failure is associated with customers’ switching intentions. This study is the first attempt in the literature to examine customers’ decisions to switch banks that focus mainly on competitors’ effective advertising and provide in-depth insights.

The Role of E-Education Marketing Strategy in the Development of Educational Institution Customers at Bank Sumatra Syariah

This study aims to analyze the role of e-education marketing strategies in developing educational institution customers at Bank Sumatra Utara Syariah. With a qualitative approach, data was obtained through in-depth interviews, participatory observations, and documentation studies from several educational institutions that are bank customers. The results of the study show that the e-education marketing strategy, which includes the provision of digital payment platforms, financing of educational technology infrastructure, and Sharia-based scholarship programs, significantly improves the efficiency of financial management and supports the digital transformation of educational institutions. This strategy has also succeeded in increasing the number and loyalty of customers from the education sector, especially Islamic-based educational institutions that respect Sharia principles in banking services. However, challenges such as limited technological infrastructure in rural areas and lack of service socialization still need to be overcome. This study concludes that the right e-education marketing strategy can play an important role in customer development and support the digitalization of education in Indonesia. The recommendations include increasing socialization and service innovation that is more in line with the needs of educational institutions.

Islamic or Conventional Banking

Purpose: The purpose of this research study is to examine the banking preferences of Kuwaiti university students, their preferences between Islamic and conventional, the reasons supporting their choice and, as a measure of satisfaction, the likelihood of them recommending their bank to their friends and family. Design/methodology/approach: We conduct a short survey among undergraduates using a 4-item paper questionnaire physically distributed and collected at a Kuwaiti business school. The large response (n= 503) is analysed and descriptive statistics used to present the results Findings: Results indicate a majority prefer Islamic banking and that the main reason for this is their religion. Those students who opted for conventional banks gave social reasons such as recommendation for their choice. A higher level of satisfaction was recorded for Islamic banking customers. We conclude that Islamic banks have managed to match their ethical and religious appeal with the delivery of efficient and convenient banking services that are valued by the student segment. Practical Implications: Our results are of interest to those offering retail banking services in binary markets where conventional banks compete with Islamic banks in addition to researchers in this domain. For Islamic banks, the significance of maintaining a strong reputation with the underpinning of robust Shariah principles is emphasized. Originality: The paper contributes fresh understanding to the acceptance of and satisfaction with Islamic banks and their products and services among a strategically important segment. It provides evidence suggesting a bright future for Islamic banking in Kuwait and the wider Gulf region.

Exploration of Reliability and Security of E- Banking: Selected Urban Cooperative banks

The rise of E-banking has introduced unprecedented convenience and accessibility for users, transforming traditional banking operations into efficient online experiences. However, this shift brings challenges, particularly in terms of security and reliability, as users now expect robust protections for their financial data and consistent, dependable service. This study investigates the perceptions of security and reliability in digital banking among 290 urban cooperative banking customers. Using factor analysis, we explore key dimensions of e-banking services, focusing on elements like encryption, biometric security, and trust in transaction reliability. The analysis identified two primary factors: security and reliability, each with distinct contributions to overall user satisfaction. The factor loadings revealed that users had mixed confidence in encryption technologies and data privacy measures, with some expressing high levels of satisfaction, while others indicated significant concerns. Additionally, reliability emerged as a critical factor, with findings indicating that a notable portion of customers were dissatisfied with the timeliness and trustworthiness of e-banking services. For data collection, a structured survey measured responses on a five-point Likert scale, assessing variables such as trustworthiness, encryption effectiveness, privacy maintenance, and personal security practices. Through the use of descriptive and factor analysis, we quantified customer sentiments and identified patterns in user satisfaction. The results suggest that while there is moderate confidence in digital banking security, the reliability of service delivery remains an area for improvement. Banks should consider addressing these findings by enhancing transparency in their security protocols and strengthening service consistency to better meet user expectations in digital banking environments.

The Influence of Financial Literacy and Islamic Business Ethics on Investment in Islamic Financial Instruments: The Mediating Role of Risk Attitude and the Moderating Role of Religious Knowledge

Current challenges in the Islamic banking sector highlight the urgent need to understand the factors influencing ethical and informed investment decisions. This study aims to analyze the impact of financial literacy and Islamic business ethics on investment in Islamic financial instruments, focusing on the mediating role of risk attitude and the moderating role of religious knowledge. Data were collected through a primary method by distributing questionnaires to 300 bank customers and students in Aceh, Indonesia. The model employed is Structural Equation Modeling-Partial Least Squares (SEM-PLS) using Smart PLS software. The findings reveal that financial literacy significantly positively impacts investment decisions and risk attitudes. Islamic business ethics also significantly influence both investment decisions and risk attitudes. Religious knowledge positively affects investment decisions, while risk attitude has a positive impact on investments. However, the moderating effects of risk attitude and religious knowledge on investment are not significant. Risk attitude serves as a crucial mediator in the relationship between financial literacy and investment, as well as between Islamic business ethics and investment. The study underscores the importance of financial literacy, Islamic business ethics, religious knowledge, and risk attitude in shaping investment behavior in the Islamic finance sector, and highlights the need for integrating ethical practices to enhance investment outcomes.

Unfair Online Lending Practices in the Light of Judicial Practice

The author examines unfair practices of providing loans using a remote method of interaction with the borrower. It proves that the introduction of new technologies into banking often makes it even more difficult for citizens to understand the content of concluded contracts. He notes that one of the problems of using the remote format of concluding contracts in banking was the use by third parties of various fraudulent schemes to gain access to the personal accounts of bank customers and issue loans to them, followed by transfer to the accounts of third (unidentified) persons. Banks, formally complying with the requirements established for the conclusion of consumer loan agreements, actually deprive customers of the opportunity to familiarize themselves with the terms of lending, and also do not always check the compliance of the nature of the use of funds the usual nature of account transactions.

The Influence of Financial Literacy, Digital Literacy, and Social Capital on Digital Bank Financial Inclusion through Ease of Use an Intervening Variable

The growth of internet users in Indonesia has experienced a significant increase year by year, reaching 78.19% of the total population in 2022-2023. This indicates a broader penetration of the internet among Indonesian society. The national digital banking transaction value shows an increasing trend, reaching Rp5,098.6 trillion in August 2023, reflecting the growing adoption of digital financial services in Indonesia. This increase is supported by the ease of access offered by banks and online financial management, in line with the preferences of the digital era's growing generation, thus Generation Z quickly and comfortably adopts digital banking services. This brings the potential for greater financial inclusion among the younger generation.This study employed a quantitative approach with a causal purpose, applying the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and Theory of Reasoned Action (TRA). The dependent variable (financial inclusion), the intervening variable (ease of use), and the independent variables (financial literacy, digital literacy, and social capital). This study, which includes 200 Bandung City-based Generation Z digital bank customers, uses the Structural Equation Model (SEM) based on Partial Least Square (PLS) as its analytical tool. The study's findings demonstrate that Generation Z's digital bank customers in Bandung City already have very high levels of social capital, financial inclusion, digital literacy, and ease of use. Furthermore, it was shown that the effects of digital literacy, social capital, and financial literacy on financial inclusion might be moderated by simplicity of use. Financial inclusion is also significantly impacted directly by social capital, digital literacy, and financial literacy. It is intended that this research will provide a greater understanding of the variables impacting Generation Z's financial inclusion and how those characteristics may affect policies aimed at boosting the availability and use of financial services in the digital age.

Communication Strategies & Mobile Banking Adoption

This article, as research study, employed a mixed method research approach; which utilized both qualitative and quantitative methods of data collection and analysis. The utilised tools were an interview schedule and questionnaires. A target population of 3000 customers and 17 staff members from whom the sample of 353 respondents among the bank customers all 17 staff members purposively were selected. Simple stratified random sampling and purposive sampling were applied in selecting customers and staff members for the study respectively. Quantitative data collected was analysed using descriptive statistics and presented in form of tables, graphs and charts. The qualitative statistics were analysed thematically. Its findings revealed that good communication strategies influenced mobile banking adoption by enhancing the good corporate relationship with customers through word of mouth rated at 84.4 %, social media at 71.8%and mass media communication at 68.9%. It recommends creating awareness and elevating customers’ attitude by making the mobile banking platform affordable, easy and accessible to customers of all segments, easing the customers into the technology rather than forcing it on them while being innovative to stay competitive in the current market.