Bank Customers Research Articles

Artificial intelligence caters to banks and customer needs

Banking customers do not think, speak, text, or communicate as financial institutions do. For humans, banking is as simple as “check balance,” “transfer,” “credit card payment,” and we prefer to talk in that language. When users contact a customer service representative, they want accurate answers without spending too much time over the phone or email. However, during these “new normal” times, the waiting time to reach a customer service rep has tremendously increased. Human agents cannot scale up with the ever-increasing demand to resolve customers’ queries. More often than not, agents feel burned out as they do not have enough tools at their disposal for delivering fast response time. With conversational artificial intelligence (AI) kicking in, the technology uses machine learning (ML) and natural language processing (NLP) to create a better customer experience. With the right set of programs and rules written, AI/ML tools can do much more than chatting and providing basic information to customers. For example, you could also update your contact and residential address, check your credit card balance, activate your card, etc. Chatbots are no longer “bots” just with pre defined answers to limited questions fed into them, with conversational AI and NLP- they are at par with human like responses and answer as accurately as a human would do. The businesses which are time zone independent find them more helpful.

You want my loyalty? Treat me fairly! A study of Islamic banking customers in South Africa

Purpose The purpose of this study is to investigate possible drivers of loyalty amongst Islamic banking customers in Gauteng, South Africa. We ponder the relationships of service fairness (a secondorder reflective construct) with perceived value, satisfaction, and loyalty. Design/methodology/approach Data were obtained from Islamic banking customers in South Africa using interview-administered questionnaires. A total of 350 responses were perceived as being suitable for data analysis. The measurement and structural models were measured through structural equation modelling. Findings Service fairness and perceived value were found to be important drivers of loyalty within this context. Research limitations/implications This study demonstrates that service fairness and perceived value are precursors to the future loyalty intentions of Islamic banking customers. As such, they should be nurtured as key elements of the relationship building process. Practical implications The study guides South African Islamic banks and South African banks with Islamic windows to better understand how service fairness (interactional, procedural and distributive) fosters satisfaction, perceived value and loyalty (attitudinal and behavioural). Originality/value Enhancing comprehension of the relationship between service fairness and customer loyalty, with satisfaction and perceived value playing intermediary roles, represents an unexplored avenue in academic research within the context of Islamic banking in an emerging African market.

Tecnología financiera al servicio del cliente: percepción sobre herramientas digitales bancarias en Lima

The scientific study aims to establish the perception of banking customers in a district of Lima, Peru, regarding the effect of digital tools on the quality of service and customer care in the banking sector. It is based on a positivist approach, adopting a quantitative paradigm through a descriptive, non-experimental, and cross-sectional field method. The research employs a probabilistic random sampling method to select a representative sample of 350 banking customers in Lima, Peru. Data collection is conducted through surveys using a 21-question questionnaire. Before its implementation, the questionnaire underwent a pilot test and was evaluated by a panel of five experts. The reliability of the questionnaire was verified using Cronbach's alpha coefficient, obtaining an index of 0.87. The data were analyzed using SPSS v.27 statistical software and presented in the form of tables and graphs. The results revealed a positive perception among banking customers about the impact of digital tools applied in the banking sector on the quality of service and customer care. Additionally, the study highlights the importance of understanding individual user expectations and ensuring a regulatory framework that fosters customer trust. The research concludes by emphasizing the positive perception of banking customers regarding the impact of financial technology on the quality of service and customer care in the banking sector.

The level of Emotional Value and Customer Trust Assessment of State-Owned Enterprise Bank Customer of Kebayoran Baru South Jakarta

Purpose: The rapid development of economy in Indonesia has given a positive influence to the services sectors including State-Owned Enterprise banking, everyone will need banks as their business partners. Customers’ trust is a great asset for banks. The long-term relationship of customer-banks depends on the presence of customers’ trust on the banks. The significance of this phenomenon in banking industry becomes more critical where banks have to know their individual customers as well as contextual factors that influence on customers’ emotional value and customers trust.Design/methodology: This study aims to measure the level of customers emotional value and customers’ trust. 400 customers from any state-owned enterprise bank in Kebayoran Baru - South Jakarta were selected to form the sampling frame.Findings: The results show that both emotional value and customer trust is at a good level. All products, services and product features are able to create the emotional value expected by customers. All employees, products and facilities provided by bank are able to create consumers trust in the bank.Practical implications: The empirical implication of this research is to determine the conditions and the level of emotional value and customer trust in state-owned enterprise bank.Originality/Value: All companies in the banking industry must increase their awareness of the importance of providing value related to the emotional side of customers and also the importance of maintaining customer trust. The contribution of this research focuses on efforts to attract customer through their emotional value and trust.Keywors: Emotional Value, Customer Trust, State-Owned Enterprise Bank.

Influence of technological usage on customer service and customer satisfaction in the banking sector

Technology-based self-service banking enables customers to complete services for themselves without support from bank staff. The study investigated the influence of technological usage on customer service and customer satisfaction in the Nigeria banking sector in Nigeria. The study made use of two objectives, which specifically find out the influence of technological usage on customer services and the influence of technological usage on customers’ satisfaction. Two null hypotheses were formulated to guide the study. A survey research design was adopted. The population of the study were commercial bank customers in Ondo State, Nigeria. A purposeful sampling technique was used to select one hundred participants from ten commercial banks in Ondo State. Results of the study reveal that technological usage has a significant influence on customer service [F (l, 98) 194.244; there is a significant influence of technological usage on customers’ satisfaction [F (1, 99) = 27.452; p<0.05]. It was concluded that the use of technologies in customers’ services can be used to increase the efficiency of banks.

Perspicacity Customer Satisfaction of Online Banking: A Study in India

The usage of online banking by the banking sector has been expanding quickly as a practical and effective way to add value for customers. Faster and more dependable services for online consumers is one of the well-liked offerings from traditional banks. Online banking has the potential to draw in more clients to affiliated banks by taking use of the swift advancements in information technology. But the primary issue that providers of online banking are dealing with is that many bank customers are unwilling to use the services that are available for online banking. This occurred as a result of the fact that customers are still not satisfied with the services provided by online banking. A crucial component in assisting banks in maintaining their competitive advantages is customer satisfaction. Thus, the goal of this study is to identify and investigate the variables that affect customers' satisfaction with online banking. Customer satisfaction with online banking can be influenced by five factors: convenience, speed, security and privacy, web design and content, and service quality. 216 working adults who took part in the study were asked a series of questions (questionnaire), and their answers and comments on the aforementioned elements that affect customers' decisions to utilize online banking were very insightful. The study's findings revealed that the top three factors influencing consumers' satisfaction with online banking are ease of use, speed, and web design and content.

Satisfaction and green finance continuance behaviour at Ho Chi Minh City commercial bank

Customers are displaying heightened awareness and involvement in their banking arrangements, and they are actively assessing and remembering information to make informed decisions regarding the allocation of their financial resources towards environmental protection solutions such as clean energy, sustainable construction, climate change control and social protection. Based on the current theoretical gap of factors influencing customer satisfaction and thereby encouraging continued engagement in green finance initiatives, this study aims to identify the factors influencing customer satisfaction as a means of fostering greater participation in green finance amongst customers of commercial banks in Ho Chi Minh City. Using data from a survey of 479 individuals who are customers at commercial banks in Ho Chi Minh City, this study analyses and evaluates the impact of factors influencing customer satisfaction and the role of customer satisfaction in green finance continuance behaviour. Combining basic analysis techniques in quantitative research such as statistics, evaluation of Cronbach’s alpha reliability, exploratory factor analysis (EFA), measurement models and Partial Least Squares structural equation modelling (PLS-SEM) from SPSS and SMART PLS software. the results of this research indicate that: (1) Green Banking initiative (GB), Information Support (IS) and Emotional Support (ES) positively impact Customer Satisfaction (SA); (2) Customer Satisfaction (SA) positively impacts Green Finance Continuance Behaviour (GF).

Corporate Social Responsibility, Bank Size and Customer Trust amongst Commercial Banks in Kenya

Despite the commercial banks’ significant position in Kenya's ever growing economy there is limited study on the influence of Corporate Social Responsibility (CSR) on consumer trust in the commercial banking industry. This study therefore sought to explore the impact of Corporate Social Responsibility (CSR) on customer trust in the commercial banking sector of Kenya. With focus on commercial banks, this research delved into how community investment, sustainable initiatives, stakeholder engagement, social welfare, and bank size influence customer trust. This study was anchored on Stakeholder Theory. A correlational research design was employed, targeting all the 39 commercial banks in Kenya. The analysis was centered on the banks as units of analysis, while observations were drawn from both customers and bank managers. The study used stratified sampling to select 384 bank customers population exceeding 1 million. Data was gathered through structured questionnaires and Key Informant Interview (KII), ensuring reliability and validity through Cronbach’s Alpha test and content/construct validity testing. Analysis was conducted using descriptive and inferential statistics, including regression analysis and ANOVA. The results were presented on tables, charts and bars. The findings revealed a coefficient of determination (R²) of 0.605 indicating that the CSR activities used in this study explain 60.5% of the variation in customer trust, suggesting a strong relationship between CSR and customer trust. The regression analysis demonstrated significant positive effects, with community investment (β = 0.354, p = 0.000), sustainable initiatives (β = 0.235, p = 0.003), stakeholder engagement (β = 0.275, p = 0.000), and social welfare (β = 0.329, p = 0.000) all positively influencing customer trust. Based on the findings, the study concludes that corporate social responsibility (CSR) activities, including community investment, sustainable initiatives, stakeholder engagement, and social welfare, significantly influence customer trust among commercial banks in Kenya. In view of the findings, the study recommends that commercial banks in Kenya should continue to invest in CSR activities as a strategic approach to enhance customer trust and loyalty. Policymakers should create supportive regulatory frameworks that encourage banks to adopt comprehensive CSR practices. Keywords: Corporate Social Responsibility, Community investment, Sustainable initiatives, Stakeholder engagement, Social welfare, Bank Size, Customer trust.

Crypto Savvy: Navigating the World of Digital Assets for Financial Gains

This research investigates the impact of Crypto Savvy and Digital Assets on Financial Gains through Investment Strategies at BNI Cabang Surakarta. Using a quantitative approach and structural equation modeling (SEM) with Smart PLS, data from 70 bank customers were analyzed. The results indicate significant direct effects of Crypto Savvy and Digital Assets on Investment Strategies and Financial Gains. Specifically, Crypto Savvy and Digital Assets positively influence Investment Strategies, which in turn enhances Financial Gains. Moreover, indirect effects analysis reveals that Crypto Savvy and Digital Assets indirectly contribute to Financial Gains through Investment Strategies, highlighting the mediating role of Investment Strategies in translating crypto literacy and digital asset integration into financial gains. These findings underscore the importance of enhancing knowledge and strategic management of digital assets within banking operations to optimize financial performance. The study's insights provide actionable recommendations for BNI Cabang Surakarta and similar institutions to improve their digital asset strategies and achieve sustainable financial success in the evolving financial landscape.

Impact of Core Banking Solutions in Public Sector Bank comparison with HDFC Bank

A study has been analysed the “Impact of core banking solutions in public sector bank comparison with HDFC bank.” There is no significant relationship between customers perception towards dimensions of service quality of core banking solutions offered by public sector and private banks. A method was used to random sample was conducted on 2 respondents selected from Bhagalpur district and the primary data was collected from 60 respondents (customers) of core banking solutions, public sector and HDFC banks selected from Bhagalpur district. In order to draw the conclusion, the primary data collected through interview schedule from the customers of core banking, public and sector banks comparison with HDFC bank and analysed with the help of statistical tools. The study reveals the respondents positively view about the core banking services offered by public and HDFC bank respondents positively view about the customers using selected channel of core banking services towards public bank and HDFC bank.

Service Quality Variables and Customer Satisfaction at A Nepalese Commercial Bank

Customer satisfaction is a critical component of banking strategy, which reflects customer sentiment towards an organization's offerings, emphasizing emotional attachment over mere satisfaction. This research investigates customer satisfaction in commercial banks of Kathmandu Valley in Nepal. The study conducted a descriptive cross-sectional study using a quantitative research design, explicitly targeting 380 general customers of commercial banks in Kathmandu Valley through convenience sampling. Participants received a semi-structured questionnaire via email in Google Forms, encompassing inquiries on demographics, banking habits, and customer satisfaction. Data analysis was performed using SPSS version 20, and a p-value below 0.05 was considered statistically significant. The investigation found that the study population appears to be young, as 46.6% of the participants are in the 18–30 age range and predominantly male (56.6%). Most respondents (88.4%) hold accounts with private banks. Among those experiencing ATM service-related problems, 45.5% encountered them most frequently. Despite this, overall customer satisfaction remains high. Customers are notably content with the bank's reliability, including timely service and accurate record-keeping. Conversely, dissatisfaction mainly stems from communication issues, particularly regarding timely interest rates and service updates. Customer satisfaction is significantly influenced by service quality factors such as reliability, responsiveness, empathy, assurance, and communication. These findings highlight the necessity of addressing service challenges to enhance customer satisfaction and service quality within Nepal's banking sector.

Analisis Putusan Sengketa Ekonomi Syariah Pengadilan Pasaman Barat Tentang Putusan Arbitrase Bpsk Nomor 1409/ARB/BPSK-BB/IX/2016

The great interest of the public today regarding Islamic economics, in line with the increasingly massive number of people who become customers in all Islamic Banks, which is likely to have an impact on the emergence of disputes. As an example at this time is the matter of sharia economic disputes, initially a consumer protection complaint was made through BPSK Batu Bara Regency, which then the BPSK Decision was made a Legal Objection to the West Pasaman District Court with Decision Number 55/Pdt.Sus-BPSK/2016/PN.Psb by Bank Syariah Mandiri Pasaman Barat, and was appealed to the Supreme Court of the Republic of Indonesia with Decision Number 622 K/Pdt.Sus-BPSK/2017. The purpose of this study is to determine the extent to which the law enforcement of dispute resolution is in accordance with the provisions and its application seen from the contents of the decision number Case Number 622 K/Pdt.Sus-BPSK/2017; and Decision Number 55/Pdt.Sus-BPSK/2016/PN Psb. While the location of the Dispute is in West Pasaman, West Sumetara. The result of this research is that it turns out that there is still a limited understanding of the actors of Islamic banking business activities who do not fully understand the regulations.

Corporate Social Responsibility, Bank Size and Customer Trust amongst Commercial Banks in Kenya

Despite the commercial banks’ significant position in Kenya's ever growing economy there is limited study on the influence of Corporate Social Responsibility (CSR) on consumer trust in the commercial banking industry. This study therefore sought to explore the impact of Corporate Social Responsibility (CSR) on customer trust in the commercial banking sector of Kenya. With focus on commercial banks, this research delved into how community investment, sustainable initiatives, stakeholder engagement, social welfare, and bank size influence customer trust. This study was anchored on Stakeholder Theory. A correlational research design was employed, targeting all the 39 commercial banks in Kenya. The analysis was centered on the banks as units of analysis, while observations were drawn from both customers and bank managers. The study used stratified sampling to select 384 bank customers population exceeding 1 million. Data was gathered through structured questionnaires and Key Informant Interview (KII), ensuring reliability and validity through Cronbach’s Alpha test and content/construct validity testing. Analysis was conducted using descriptive and inferential statistics, including regression analysis and ANOVA. The results were presented on tables, charts and bars. The findings revealed a coefficient of determination (R²) of 0.605 indicating that the CSR activities used in this study explain 60.5% of the variation in customer trust, suggesting a strong relationship between CSR and customer trust. The regression analysis demonstrated significant positive effects, with community investment (β = 0.354, p = 0.000), sustainable initiatives (β = 0.235, p = 0.003), stakeholder engagement (β = 0.275, p = 0.000), and social welfare (β = 0.329, p = 0.000) all positively influencing customer trust. Based on the findings, the study concludes that corporate social responsibility (CSR) activities, including community investment, sustainable initiatives, stakeholder engagement, and social welfare, significantly influence customer trust among commercial banks in Kenya. In view of the findings, the study recommends that commercial banks in Kenya should continue to invest in CSR activities as a strategic approach to enhance customer trust and loyalty. Policymakers should create supportive regulatory frameworks that encourage banks to adopt comprehensive CSR practices. Keywords: Corporate Social Responsibility, Community investment, Sustainable initiatives, Stakeholder engagement, Social welfare, Bank Size, Customer trust.

Prediction and Feature Importance Investigation for Bank Churn Based on Machine Learning

Since bank customers are one of the main sources of bank income, preventing the loss of bank customers has always been the primary and struggle problem for banks. This paper chooses three machine learning methods, random forest, decision tree and logistic regression should focus to predict the leaving customers. In order to more accurately determine the factors affecting the departure of bank customers, this paper grouped the data set according to the age of over and under 40. The results shows that the prediction performance of random forest is the best one in both groups, and the logistic regression is the worst one. The precision of this model is higher in younger group than in older group, the accuracy in each group is about 90% and 76% respectively. Then the random forest method is used to return the important features for two groups. For people older than 40 years old, whether to continue to stay in the bank to buy its products is greatly affected by their Balance and Age factors. Having more balance and being younger, the more possibility to keep purchasing. While for under 40 years old customers, their counterpart behaviors are more determined by the Estimated Salary and Credit Score. Thus, when banks managers tackle customer management, they should focus more on the above factors to better prevent the loss of customers.

The Effect of Trust, Perceived Ease of Use, and Service Features on Trust and Customers’ Interest in Using Mobile Banking

This study aims to describe the effects of security, perceived ease of use, and service features on customers' interest in using mobile banking, with trust as an intervening variable. This study used quantitative approach as the research methodology. Data were garnered using a questionnaire. Participants were 200 customers of BPD DIY bank, recruited using purposive sampling technique. The result showed that service feature affects customers’ trust in using mobile banking, but not their interest. Security and perceived ease of use do not affect customers’ trust and interest. Thus, the bank is recommended to focus on building trust and ensuring the security of its mobile banking service in order to improve customers’ interest in using it. Future studies are recommended to explore other factors affecting customers’ interest in using mobile banking.

Pertanggungjawaban Tindak Pidana Perbankan Perspektif Hukum Pidana dan Undang-Undang Perbankan

Criminal acts in the banking sector are defined as all types of unlawful acts related to activities in carrying out bank business activities and intersect with the provisions of laws and regulations containing special criminal law and general criminal law. The purpose of this study is to determine the Accountability for Banking Crimes from the Perspective of Criminal Law and Banking Law. Using the Normative Juridical method.The practice or mode of violation of the bank procedure system carried out by bank employees and resulting in banking crimes is carried out with the following characteristics: Banking crimes are always followed by violations of the bank procedure system.In the event of a violation of the bank procedure system and resulting in a crime in the banking sector, the bank as a corporation cannot be held criminally responsible for the crime committed by bank employees because of banking laws and regulations, especially Article 49 of Law No. 10 of 1998 limits the perpetrators to individuals only, namely Directors, Commissioners or Bank Employees. In the event that the impact of the act is detrimental to the bank's customers concerned, then the responsibility that can be demanded of the bank as a corporation is civil responsibility.

Service Quality Model for Modern Retail Banks in India – A Questionnaire Development and Validation

With significant changes in the Indian banking sector, private sector and foreign banks greatly emphasise the standardisation of 'high-tech' services and their application in retail banking. The shift in how modern banks are perceived for the quality of their services in recent years has made it more important for scholars and professionals to comprehend its facets. Prior research on this concept has mainly focused on the SERVQUAL model (developed by Parasuraman et. al, 1988). The theoretical contribution of the present study lies in extending the SERVQUAL model to modern retail banks in India. The study starts with identifying and testing dimensions of service quality. Based on the analysis of data collected from 173 customers of different banks, the questionnaire has been found to be reliable and valid for measuring various dimensions of service quality in modern banks in India.

설명 가능한 인공지능을 활용한 은행대출연체 예측 모델 연구

[Purpose] This study aims to create a loan default prediction model using machine learning, a core concept of AI technology, and explainable AI (XAI) techniques, and to compare and evaluate it against highly interpretable models such as logistic regression. [Methodology] This study utilizes the data of household loan customers of Local Bank A in South Korea from December 2020 to June 2022 to generate and compare the logistic regression model and the XGBoost model. We used SHAP, one of the XAI techniques, to explain the XGBoost model. [Findings] The XGBoost model shows better prediction performance than the logistic regression model. By applying SHAP to the XGBoost model, we identify key predictors： credit rating, average bank deposit balance over the past six months, card loan risk rating, K rating agency’s multiple debt risk index, average core deposit balance over the past six months, and the current interest rate of the loan account. [Implications] The machine learning model (XGBoost) combined with XAI shows better prediction performance than the logistic regression model, and the key predictors identified by the two models are similar. Therefore, the combined model could serve as an alternative to the logistic regression model commonly used in business research.

DO TRUST AND CUSTOMER INTIMACY AFFECT CUSTOMER LOYALTY?

This study aims to identify factors influencing customer loyalty in Islamic Banking customers. One hundred seventy respondents filled out the questionnaire online. The sample collection techniques were purposive sampling and the Structure Equation Model (SEM). The results indicated that customer trust and intimacy positively affect customer loyalty.

On the issue of the security of bank payments in modern Russian practice

he interaction of the banking sector with the external environment (which is not always favorable) determines the possibility of new threats, financial losses and, as a result, the need to use tools to ensure the security of bank payments. Its development is a priority task for the banking community and falls within the sphere of interests of each participant in the settlement and payment segment. In this publication, a dynamic and factor analysis of the number and volume of fraudulent transactions with bank customers' funds is carried out. It is possible to reduce their number thanks to the joint actions of IT specialists and employees of the security services of banks, telecom operators, law enforcement agencies, and the regulator. To achieve greater efficiency in protecting client funds, the entire arsenal of available methods should be used, starting from the simplest, such as training in selfsecurity skills, and ending with complex scientific, methodological and technological methods.