Financial Services Organization Research Articles

The Impact of (In)Civility on Selected Individual and Organisational Outcomes in Financial Services

Orientation: Despite its ubiquitous impact, the South African financial services sector lacks understanding of the constructs of civility and incivility.Research purpose: The study investigated the impact of (in)civility on work engagement, organisational citizenship behaviour (OCB), and turnover intention in a South African financial services organisation using adapted (in)civility scales.Motivation for the study: The dearth of research within the South African financial services organisation on the constructs of (in)civility and its impact as well as the testing of an adapted tool, necessitated this research.Research approach/design and method: A non-experimental research design, with purposive sampling (N = 305) was used in this study. Specifically, we used latent variable modelling methods in a confirmatory manner to establish a measurement and structural model from which to make inferences.Main findings: The study found that (in)civility is related, can co-exist and is independent. The findings accentuated the need to further explore how (in)civility is conceptualised, experienced and measured. Results showed that civility specifically, yielded positive outcomes, while incivility had a negative effect. Work engagement serves as a mediator in the relationships between civility, OCB and turnover intention only.Practical/managerial implications: The study suggests that organisations deepen their understanding of civility and incivility, and focus on promoting positive behaviours. Cultivating a civil organisational climate leads to beneficial outcomes.Contribution/value-add: The study enhances South Africa’s understanding of workplace (in)civility by testing adapted scales and promoting construct alignment between definition and measurement.

Open Source Software Adoption in the Financial Services Industry

Although OSS has gained traction across industries worldwide, few studies have been reported on OSS adoption in the financial industry and even less in the context of developing countries. This paper presents an exploratory overview of the state of OSS adoption in the financial industry using the case of South Africa as a country with the largest and most developed financial sector in Africa. To achieve this, we conducted a qualitative study that leveraged the Technology-Organisation-Environment (TOE) framework, and the Diffusion of Innovation (DOI) theory as theoretical references and used thematic analysis to analyse the data collected from a focus group discussion (FGD) of eight experts from four financial services organisations based in South Africa. The study's findings reveal the state of practice of OSS and the technological, organisational, and environmental factors that affect OSS adoption, and diffusion in financial services organisations in South Africa. We also identified seven research themes that should gain the attention of researchers from now on.

The role of reskilling programmes on the digital transformation at a large financial services organisation

The primary goal of this study was to examine the role of reskilling programmes on digital transformation at a Large Financial Services Organisation. The business climate and the world of work are going through an unprecedented large-scale transition - such as the transition from the agricultural economy to the industrial revolution. The era of digitisation, automation and acceleration is upon us. The society is in an economy where new critical skills have emerged and these new emerging skills have become necessary for individuals, businesses, and the economy to succeed. However, very little research has been done on the role of reskilling programmes on the digital transformation at a Large Financial Services Organisation. The study employed quantitative research and a structured closed questionnaire was used to collect field data from a selected sample of 88 respondents drawn from a target population in the study area. The field data were analysed using the Statistical Package for Social Sciences (SPSS), version 29. Statistical tools, including frequency tables, pie charts, and graphs, were used to analyse data. The study findings indicate that jobs have been significantly affected by digital transformation and new emerging job functions in large financial services organisations. A digital transformation programme had a direct relationship with the implementation of reskilling programmes. The study recommended that designing technology-focused training programmes appropriately and selecting or creating technology-focused training programmes with essential elements are necessary for successful outcomes.

“The pull to do nothing would be strong”: limitations & opportunities in reporting insider threats

ABSTRACT Though a reporting mechanism, in which employees report suspicious and/or potentially malicious coworker behavior, is thought to be important to tackling insider risk, the literature on the subject is sparse and unconvincing. Empirical evidence of the actual use and utility of this type of detection mechanism is slim. Our article explores the propensity of employees to report a coworker’s concerning behavior suspected to be related to insider activity that would negatively impact an organization. This study uses an inductive approach and qualitative analysis of original interview data collected from 16 financial services organizations to explore attitudes and opinions about reporting a coworker’s concerning behavior, providing lessons on countering insider threats useful across industries and national security domains. The results show that there is confusion, uncertainty, and cognitive dissonance surrounding institutional reporting mechanisms, with some participants expressing both affirmative and negative opinions about their personal likelihood of reporting. Employees do want to report concerning coworker behavior that suggests an insider threat, but not at their own expense. These results are consistent with those from other studies and sectors. Our study will assist organizations in refining their assumptions around workforce attitudes regarding the reporting of coworkers.

Dynamic capabilities for nimbleness and resilience in a continuous digital transformation: action design research in an Australian financial services organisation

PurposeThe research aims to understand the co-existence of nimbleness and resilience in a continuous digital transformation, along with the dynamic capabilities needed to balance the challenges of their co-existence.Design/methodology/approachThe current study draws on dialogical action design research (D-ADR) to investigate interactions among practitioners and executives. Data are collected from a major Australian financial services organisation (FSO) and many international experts.FindingsThe study presents a framework, the continuous transformation model (CTM), to describe digital transformation within an FSO context, emphasising nimbleness and resilience as its foundational pillars. This framework facilitates the identification of the critical role of organisational capabilities in managing continuous digital transformation, supported by dynamic IT capabilities. More importantly, the findings underscore how these capabilities enable managers to effectively balance the coexistence of nimbleness and resilience.Research limitations/implicationsThe CTM contributes to the enterprise information systems literature by offering a coherent understanding of balancing resilience and nimbleness to succeed in digital transformation. In particular, the research model elucidates the relationship between dynamic capabilities and continuous digital transformations.Practical implicationsDigital transformations are not a one-off exercise. Managers in the FSO context must cultivate their organisational capabilities to achieve nimbleness and resilience during their digital transformation journey.Originality/valueThe relationship between dynamic capabilities and continuous digital transformation sheds light on establishing successful management processes within FSOs.

Optimism bias in susceptibility to phishing attacks: an empirical study

Purpose Researchers looking for ways to change the insecure behaviour that results in phishing have considered multiple possible reasons for such behaviour. Therefore, the purpose of this paper is to understand the role of optimism bias (OB – defined as a cognitive bias), which characterises overly optimistic or unrealistic individuals, to ensure secure behaviour. Research that focused on issues such as personality traits, trust, attitude and Security, Education, Training and Awareness (SETA) was considered. Design/methodology/approach This study built on a recontextualized version of the theory of planned behaviour to evaluate the influence that optimism bias has on phishing susceptibility. To model the data, an analysis was performed on 226 survey responses from a South African financial services organisation using partial least squares (PLS) path modelling. Findings This study found that overly optimistic employees were inclined to behave insecurely, while factors such as attitude and trust significantly influenced the intention to behave securely. Practical implications Our contribution to practice seeks to enhance the effectiveness of SETA by identifying and addressing the optimism bias weakness to deliver a more successful training outcome. Originality/value Our study enriches the Information Systems literature by evaluating the effect of a cognitive bias on phishing susceptibility and offers a contextual explanation of the resultant behaviour.

Autonomiaa vai kontrollia?

Autonomy or control? A case study in an organization striving to increase self-management In many organizations increasing self-management is a new way of working. The case organization of this study is a Finnish financial services organization with about 100 employees. We use qualitative interview data to explore the commonalities and contradictions in the interpretations of employees and management in an organization that is in a process of adopting a more self-managed way of working. We also examine the implementation of the basic assumptions of Self-Determination Theory in today's organizational environment. We approach the issue from both theoretical and empirical perspectives. Our analysis shows that self-management in the target organization is initiated and controlled by management, which sets strict limits but allows only a certain amount of freedom. Our case study provides both theoretical and practical insights into the discussion of the process of increasing self-management.

How informal financial service institutes facilitate the financial inclusion of low-income, unbanked consumers

PurposeThe present study aimed to provide an understanding of the roles of community-based financial service organizations (i.e. rotating savings and credit associations [ROSCAs] as institutional pillars in facilitating low-income, unbanked consumers’ access to informal financial services).Design/methodology/approachSemi-structured interviews were conducted with 39 low-income, unbanked consumers participating in ROSCAs in Pakistan, where only 21% of adults have a bank account and almost four out of five individuals live on a low income. The obtained data were analyzed using the thematic analysis technique.FindingsROSCAs’ regulatory, sociocultural and cognitive aspects facilitate low-income, unbanked consumers’ utilization of informal financial services owing to their approachability by, suitability for, and fairness to such consumers. Thus, they promote such consumers’ financial inclusion.Practical implicationsLow-income consumers are mostly unable to access formal financial services due to the existing supply- and demand-side impediments. Understanding ROSCAs’ institutional functioning can help formal financial service providers create more transformative financial services based on the positive institutional aspects of ROSCAs to enhance poor consumers’ financial inclusion and well-being.Social implicationsThe inclusion of low-income, unbanked consumers in formal banking services will help them better control their finances.Originality/valueMany low-income, unbanked consumers in developing countries utilize informal financial services to meet their basic financial needs, but service researchers have rarely investigated how informal financial institutions function. The present study showed that ROSCAs, as informal institutions, meet low-income, unbanked consumers’ personal, social and financial needs in a befitting manner, which encourages such consumers to use the financial services offered by ROSCAs.

US banks need a new approach to customer experience

Increasingly, US consumers engage with brands in the digital sphere. Consumer expectations have increased as leading brands, such as Apple, Netflix and Nike, provide superb digital and digitally enabled customer experiences (CX). Banks and other financial services organisations are struggling to meet these expectations, despite their insistence that they differentiate through CX. This paper analyses the current state of US banking CX and describe the steps that organisations need to take to truly become customercentric.

Anti-Money Laundering by Group-Aware Deep Graph Learning

Anti-money laundering (AML) is a classical data mining problem in finance applications. As well known, money laundering (ML) is critical to the effective operation of transnational and organized crime, which affects a country's economy, government, and social wellbeings. Financial services organizations facilitate the movement of money and have been enlisted by governments to assist with the detection and prevention of money laundering, which is a key tool in the fight to reduce crime and create sustainable economic development. In the application of AML, user identity and financial behavior data are widely used to detect laundering transactions. In recent years, an increasing number of money laundering activities have been conducted by organized criminal gangs while most existing works still treat the actions of each account as independent identity behavior without considering the group-level conspired interactions. Therefore, in this paper, we propose a group-aware deep graph learning-based approach for organized money-laundering detection. In particular, we design a community-centric encoder to represent the nodes and attributes in user transaction graphs and derive the adjacent gang behaviors. Then, we devise a scheme of local enhancement to accommodate nodes with similar transaction features, which are aggregated into gangs for downstream detection. Extensive experiments on the real-world dataset from one of the largest bank card alliances worldwide show that our proposed method outperforms state-of-the-art methods in both offline and online modes, showing the effectiveness of money laundering detection with group-aware deep graph learning.

Pay Premiums and Peer Spillovers: Unpacking the Value Proposition of Employing Stars as They Age

An open question among scholars and practitioners is whether and when the employment of star employees is likely to pay off. Addressing this query, we integrate insights related to star performers’ experiences of cumulative advantage and disproportionate bargaining power with insights from the careers literature to develop theory related to stars’ direct and indirect value creation and value capture as they age. Specifically, we first develop arguments that stars, as a function of their disproportionate status and bargaining power, will enjoy higher pay relative to individual performance (PRIP) in comparison to their non-star peers. Second, we argue that this difference in PRIP will be greater among older employees, as stars’ cumulative advantage is a progressive phenomenon that continues to widen the initial gaps in their PRIP relative to others over their careers. Next, countering the apparent implication that the value proposition associated with employing stars deteriorates as stars age, we find that the magnitude of stars’ indirect contributions through positive spillovers to their peers’ performance increases with age. Lastly, we account for some of the mechanisms through which older stars have a more positive impact on their peers. General support for predictions is found in a financial services organization.

Board diversity, Political Connections and Firm value: An Empirical Evidence from Financial Firms in Nigeria

This study investigates the effect of board diversity, political connections, and firm value on the listed financial services firms in Nigeria. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to its book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of 51 listed financial service firms on the Nigerian Stock Exchange as of December 31, 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012–2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least squares regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive and significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections have a positive but insignificant effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards, as suggested by the resource dependency theory.Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to leverage national spreads and improve firm value.

Board Gender Diversity, Board Ethnic Diversity and Firm Value of Listed Financial Firms in Nigeria

This study investigates the effect of board gender diversity, board ethnic diversity, and firm value on the listed financial service companies in Nigeria. Firm value, measured by Tobin's q and computed as the ratio of the firm's market value of equity to its book value of total assets, is the study's explained variable, while board gender diversity and board ethnic diversity are the study's explanatory variables. The study’s population comprises fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as of December 31, 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012–2020). Data was acquired from the sampled companies' annual reports and analyzed using the feasible generalized least squares regression (FGLS) approach. According to the study, board gender diversity and board ethnic diversity had a significant positive impact on the firm value of listed financial services firms in Nigeria. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value.

Women Whistleblowers: Examining parrhesia, power and gender with Sophocles’ Antigone

How do gender and power intersect in whistleblowing situations? In this article, we deepen understandings of whistleblowing as a contemporary form of parrhesia. To explore the complex interactions of gender and power, we analyse in-depth, qualitative data from senior women managers whistleblowing in financial services organizations in France, Ireland and the United States. Sophocles’ play Antigone, read with a feminist lens, inspires a novel theoretical framing for understanding how structures of gender and power can be subverted, as women whistleblowers move between positions of masculine, feminine, subjugation and control. Our article contributes to organizational research on whistleblowing by showing how parrhesiastic risk intersects with gender in nuanced ways: violent gendered reprisals can occur in momentary interactions that are painfully internalized, prompting a search for support from outside sources. These acts of exclusion necessitate the creation of new subject positions beyond those on offer within the organization. Overall our article demonstrates how experiences of ‘outsider truth-telling’ from the margins shed light on the power dynamics in whistleblowing situations.

Mass lay-offs: study shows motivations behind turnover intentions and mobility-oriented behavior of over-qualified employees

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Researchers from the European Union studied the effect of impending mass lay-offs on employees at a financial services organization. They found that promotion-focused employees (but not prevention-focused employees) who perceived themselves to be overqualified for their current roles, compared with promotion-focused employees who perceived themselves to be underqualified, showed higher turnover intentions and, indirectly, mobility-oriented behavior. Originality The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

BOARD DIVERSITY, POLITICAL CONNECTIONS AND FIRM VALUE: AN EMPIRICAL EVIDENCE FROM FINANCIAL FIRMS IN NIGERIA

The effect of board diversity, political connections and firm value of listed financial service firms in Nigeria is investigated in this study. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to the book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as at 31st December 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012-2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least square regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections had a positive but minor effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value.

A Study of the Revolution in Digital Banking and it’s Connection with Artificial Intelligence

This paper analyzes the performance of Indian banks over the period of the last five year. The paper also conducts an empirical analysis the connection between digital banking and artificial intelligence. In addition it also finds Challenges in Adopting AI in banking industry. The study find that due to the concerted efforts of the entire government and all interested parties, the number of digital payment transactions has greatly increased, rising from 2,071 crore in FY 2017–18 to 8,840 crore in FY 2021–22. With regard to the AI Due to the numerous advantages of the technology, AI and banking go hand in hand. According to a McKinsey analysis on a global AI survey, 60% of financial services organizations have at least one AI capability in place to speed up business operations

Forging customer satisfaction through commitment-trust factors in financial insurance services: moderating role of corporate image

PurposeIt is widely evident that trust and commitment are important pillars for strengthening the relationship between financial service firms and their customers. However, it has not been explored how the service quality, perceived cost and role of agents are important for financial service firms. To overcome this gap, this study aims to investigate the role of service quality, perceived cost and the role of agents as the commitment–trust factors in the financial insurance service (Takaful) in Malaysia, enhancing customer satisfaction.Design/methodology/approachThe study follows a quantitative design in which primary data was collected using a survey instrument. The measurement instrument was adapted from the previous research, and data were collected from 264 customers of the Takaful financial service organizations in Malaysia. The data were analyzed using variance-based structural equational modeling in Smart-PLS software.FindingsThis research has revealed several useful insights that demonstrate a significant impact on service quality, perceived cost and the agents’ role in forging close relationships with their customers. Corporate image has a moderating role in relationships and has significantly impacted takaful insurance companies. The results imply that regardless of the corporate image of the financial service organizations, customers are concerned about the prices and the quality of the agents’ services.Research limitations/implicationsIn this study, only the predictors such as service quality, perceived costs and agents’ roles as trust–commitment factors were examined to determine customer satisfaction. Other investigations are highly recommended, such as value co-creation in takaful, takaful customer experience and takaful trust. This study offers insights to takaful insurance companies on how to keep up a positive corporate image, which will boost their trust–commitment factors and ultimately increase customer satisfaction.Originality/valueBy presenting commitment–trust factors and company image in an identifiable framework, the current study has expanded the discussion on takaful financial insurance services. The methodology is developed and rigorously tested to gauge customer satisfaction in takaful financial service organizations’ context.

TAX4U Pilot Trial: Addressing Material Needs in the Pediatric Hospital Setting.

Interventions to address poverty and food insecurity in pediatric hospital care have been scarce. Access to government support is based on the completion of taxes. Medical-financial partnerships are defined as novel cross-sector collaborations in which health care systems and financial service organizations work collaboratively to improve health by reducing financial stress. The objective of our pilot study was to assess the feasibility of implementing a "free tax service" within a pediatric academic hospital setting. A pilot randomized controlled trial "TAX4U" was conducted from November 2020 until April 2021 in the general inpatient setting of an academic pediatric hospital. Eligible families were randomly assigned to receive either "free tax services" according to the Canada Revenue Agency-funded Community Volunteer Income Tax Program (CVITP) or "care as usual." A total of 140 caregivers filled in the 8-question recruitment survey. We found that 101 (72%) families were not eligible to participate in the study. Reasons for ineligibility were not meeting CVITP criteria (n = 59, 58%), already filed tax (n = 25, 25%), and families did not sign the consent form (n = 17, 17%). Thirty-nine families were randomly assigned, with 20 (51.3%) families assigned to the intervention and 19 (48.7%) families receiving care as usual. Ultimately, 7 (35%) families received the tax intervention. Offering free tax services may be feasible and reached vulnerable families in a pediatric hospital setting; however, the inclusion criteria of the CVITP program did not meet the needs of caregivers. Further research should explore offering a full-scope medical-financial partnership that meets the needs of low-income families in a hospital setting.

Optimising board oversight of compliance as a risk governance instrument

Technological advancements, extended understanding of board members' fiduciary duty and corporate scandals have put an increasing focus on board oversight of compliance as a risk governance instrument. To build and sustain board oversight of compliance, which satisfies regulatory obligations, organisational requirements and boards' needs, is an ongoing challenge and requires significant focus by compliance teams at financial services organisations. This paper outlines a framework for board compliance reporting as a two-way communication process to ensure that boards remain on top of their oversight obligations in today's era of trust, in which stakeholders are more broadly seeking an effective demonstration of organisations' compliance responsibilities. In this practice paper five core levers are defined which are required to be in place in the board compliance reporting, in order to optimise board oversight of compliance as a risk governance instrument: adaptability, empathy, active listening, transparency and effective dialogue.