Financial Product Market Research Articles

Research on Personalized Marketing Strategy of Financial Products Based on Big Data

With the rapid development of information technology, big data has become one of the most important tools for personalized marketing in the financial industry. Based on big data analysis, this study investigates the practice and impact of personalized marketing strategies for financial products in the current economic environment. Financial institutions can create customer portraits and tailored products and services by gathering and studying data on consumers' buying patterns, behavioral preferences, social circles, and interactive feedback. Using various methods, including case studies, in-depth interviews, and quantitative analysis, we took a closer look at how big data can help financial institutions improve marketing efficiency, optimize product design, increase customer satisfaction, and improve customer loyalty. Research shows that big data can greatly support the marketing of financial products, improving market segmentation, providing better opportunities for cross-selling and value-added services, and optimizing marketing resources through predictive analytics, instant marketing, and highly personalized customer experiences. Nonetheless, financial institutions must demonstrate effective skills in managing data, using analysis technology, protecting privacy, and implementing personalized marketing strategies to fully benefit from these advantages.

Cross Marketing of Financial Products in Public Sector Banks: Empirical Evidence from Bengaluru Metropolitan in Southern India

Cross Marketing of Financial Products in Public Sector Banks: Empirical Evidence from Bengaluru Metropolitan in Southern India

Adoption of digital finance among youth: A study

Financial products and services have been an essential component of an individual's life for decades. Earlier people use to save money in the form of gold, silver, property, etc. The growth within those assets was huge then. Individuals were heavily invested in these assets and have witnessed wealth creation within their lifespan. With time the asset allocation for wealth creation took a jump from such assets to other financial assets. These assets still reap good returns, but other financial products and services can provide better returns and can help an individual in generating wealth. Internet and other digital platforms have entered the market and have established an example of enriching the market with a flood of new customers. It has helped in focusing on the target customers and makes them aware of the best opportunities that they could grab within the available financial products and services. Currently, very few individuals and youth are involved in financial products and services, they need more awareness regarding financial literacy that can help them to understand better products and services for themselves. Currently, the youth has been growing in the field of the internet and digital platforms which has even enlarged the market for financial products and services. This states that such products have high potential within the market and there is a huge gap between the target market and the products and services that can be fulfilled with the help of the internet and digital platforms that tend to flourish all over the world. The future for the financial inclusion of the youth is bright as these products and services are penetrating the market at a very fast pace. The availability of the internet and digital technology makes their marketing and reach very large and fast which suggests its future to be bright with a growing number of youths getting involved with such products and services to generate wealth for their future.

How do Australian female consumers exercise their decision-making power when making financial product decisions? The triad of financial market manipulation, rationality and emotions

PurposeThis study explores the decision-making powers of Australian female consumers in the financial product market. More precisely, it examines how the integrative effects of rationality, emotions and personality traits influence the decision-making powers of Australian female consumers when making financial product purchase decisions.Design/methodology/approachThe study employs a quantitative research approach, utilising a survey strategy. The proposed conceptual model was tested using structural equation modelling (AMOS) on a valid 357 responses from Australian female consumers.FindingsThe findings revealed that rationality, self-efficacy and impulsivity have a positive impact on the decision-making powers of Australian female consumers. Besides this, self-efficacy and anxiety had significant moderating effects on the decision-making power of Australian female consumers when buying financial products, whereas anger and impulsivity were found to have no moderating effects.Research limitations/implicationsThe study offers understanding on the role of emotions and personality traits in financial decision-making, which can help financial institutions design sound products and services that can also ensure consumers' overall well-being.Originality/valueInformed by the theoretical notions of the appraisal-tendency framework (ATF) and emotion-imbued choice model (EIC), the study makes a unique contribution by investigating the impact of rationality, emotions and personality traits on the decision-making powers of female consumers in the Australian financial product market.

ANALYSIS OF ISLAMIC LEGAL STUDY ON FINANCIAL TECHNOLOGY TRANSACTIONS: MAQASHID SHARIA PERSPECTIVE

This paper discussed the impact of digital technology on various economic activities, particularly on the financial sector, which led to the emergence of Fintech. Indonesia was seen as having significant potential for Fintech development due to its geography, growing middle class, and underdeveloped financial product market. The research utilized a descriptive and qualitative literature review approach to analyze the development of Fintech in Indonesia through the lens of Maqashid Sharia. The research analyzed the need for Fintech compliance with Islamic commercial law, which excluded Maysir, Gharar, and Riba. The Maqashid Sharia approach was suggested as a way to ensure that Fintech adhered to Islamic principles. Fintech was described as the hybridization of technology with traditional financial services and explained that it gradually replaced incumbents with better and more efficient services. The importance of Fintech transactions being in compliance with Islamic law, which was based on the Quran and Hadith.

Determinants of Community Decisions To Lend Money To Loaners

Purpose: To meet the needs of the public, the government has provided an official financial institution, which is subject to a certain series of administrations with all the calculations. The problem is that not all community members understand access to finance at these financial institutions. There are Islamic banking, BMT, and Sharia KSPPS, but in borrowing money they choose moneylenders. This problem is influenced by the ease of borrowing money from moneylenders, which are more flexible and the method of payment can be adjusted according to a special agreement between the customer and the moneylender. Disbursement of funds that can be done at any time according to the time needed, without being bound by conditions that are considered complicated by the customer. As a form of compensation, the interest charged by moneylenders is high and burdensome for the borrower. The risk of high-interest rates is often not taken into account by the borrower.
 
 Design/Methodology/Approach: The method for developing public financial literacy is what the moneylender's practice as the object of observation. To be realized as an effort for educational methods is to conduct an analysis of moneylenders in the community and explore how people depend on moneylenders, evaluate financial behavior in the community, deconstruct financial behavior and re-conceptualize public financial behavior.
 
 Findings: Socialization and acceleration of the marketing of financial products from the BMT, or official government financial institutions need to be carried out to prevent the level of community dependence on moneylenders, including by expanding financial literacy in the community, establishing management education methods, and implementing finance that is more inclusive in the community.
 
 Research, Practical & Social Implications: The necessities of life for each individual in the community will certainly not be the same, to be able to fulfill the purpose of these needs it is financed by the availability of funds or financial means. There are members of the community who are relatively able to meet their financing needs, but not a few of the community have not met their needs.
 
 Originality/Value: This study seeks to help the government and society in Indonesia to have a good education in terms of financial literacy, people need information and knowledge that currently in Indonesia there are many formal and legal financial institutions to help financial problems faced by people in Indonesia. Indonesian people are no longer just dependent on moneylenders or illegal financial institutions, which will instead trap them into new financial problems.

LEVEL OF FINANCIAL LITERACY OF ACADEMIC YOUTH FROM RURAL AND URBAN AREAS

Financial literacy is becoming one of the key competencies in the 21st century. In its absence, it is virtually impossible to navigate the market for financial products and services and thus ensure financial stability throughout a whole life. This fact is all the more important given the threats arising from the effects of the pandemic crisis. Thanks to exhausted public budgets and the cooling of the economy, it can be expected that, despite strong regulation, there will be more aggressive sell practices on the market, to which financially literate people are more resilient. The aim of the study is to determine the level of financial literacy of academic youth from rural areas and to compare the results obtained with the level of financial literacy of young people from cities. The source of data used for analysis and inference was primary information obtained from own questionnaire research. To assess the level of financial literacy, the authors use an innovative metric, the personal finance index. In addition to overall success, this approach also makes it possible to analyze knowledge from the eight functional areas of financial literacy. By comparing the results in single areas, the authors reveal that risk management is Achyla’s heel of financial literacy. The authors focus on the differences in financial literacy according to the place of residence. The study explores inequalities in the single functional areas of financial literacy between the respondents living in the urban and rural areas.

Research on the Dependence Structure and Risk Spillover of Internet Money Funds Based on C-Vine Copula and Time-Varying t-Copula

Internet money funds (IMFs) are the most widely involved products in the Internet financial products market. This research utilized the C-vine copula model to study the risk dependence structure of IMFs and then introduces the time-varying t-copula model to analyze the risk spillover of diverse IMFs. The results show the following: (1) The risks of Internet-based IMFs, bank-based IMFs, and fund-based IMFs have obvious dependence structure, and the degree of risk dependence among different categories of IMFs is significantly different. (2) There are risk spillover effects among diverse IMFs, and their risk dependence relationship is characterized by cyclical feature. (3) The risk spillover effect among diverse IMFs is pronounced, and dynamic risk dependence between IMFs is characterized by synchronization.

FINANCIAL LITERACY OF THE MANAGEMENT STUDENTS – CZECH AND SLOVAK EXPERIENCE

Financial literacy is becoming one of the key competencies in the 21st century. In its absence, it is virtually impossible to navigate the market for financial products and services and thus ensure financial stability throughout the whole life. The author presents the results of a survey of the financial literacy of young future managers who are currently university students. Based on a questionnaire survey among full-time and part-time students, the author detects the positive impact of the practical experience of external students on their financial literacy. The author uses an innovative metric in the form of a personal finance index to assess financial literacy. In addition to overall success, this approach also makes it possible to analyze knowledge from the eight components of financial literacy. By comparing the results in individual areas, the author reveals that risk management is Achyla's heel of financial literacy. In addition to the knowledge component, the author also deals with the respondents' access to information sources. Based on these findings, the author formulates conclusions for the content of financial education. There is a need for a stronger link between the development of probabilistic thinking and the development of general numeracy with practical financial subjects. An important part of financial education is also the recognition of credible information sources.

Do women customers love to talk about financial brands? An empirical evidence on the mediated service responsiveness and brand sincerity in creating a positive word of mouth

The difference in purchase behavior between male and female consumers is a well-established narrative because of the considerable differences in their buying preferences and decision-making approaches. Women buyer market for financial products is an untapped yet promising segment, however, beyond certain generic assumptions, very little is known about the consumer behavior patterns, satisfaction, and positive word of mouth (WOM) of women customers related to financial products. Targeting a serving woman as a financial service customer necessitates an understanding of the factors contributing to satisfaction level leading to the positive WOM of female customers. Therefore, this paper is an effort to explore the role of the responsiveness component of service quality and sincerity dimension of brand personality on WOM via customer satisfaction. Using the partial least square method in structural equation modeling (PLS-SEM) on 183 working women respondents in India, the research results highlighted some interesting findings. Results revealed that brand sincerity directly impacts the WOM of the women customers where achieving satisfaction is not necessary; however, the responsiveness of a financial product does not directly lead to a positive WOM, rather through satisfaction. The research is novel in empirically testing and comparing the role of brand sincerity and responsiveness in generating satisfaction and positive WOM. This study provides insights for the financial product designers and marketers intending to target women-customers, by focusing on the specific consumer behavioral dimensions leading to satisfaction and positive WOM to ensure the product success.

Inside and Outside the London Stock Exchange: Stockbrokers and Speculation in Late Victorian Britain

The nineteenth-century growth of the London Stock Exchange and the development of the market for stocks and shares are familiar topics of study. This article provides an alternative perspective on them by decentering the London Stock Exchange and focusing instead on the activities of “outside stockbrokers”—those who operated outside the Stock Exchange and its rules. Often regarded as peripheral, these brokers were in fact instrumental in promoting investment and speculation to a mass market. The article examines their innovative methods, and seeks to explain why they were so successful, despite persistent—and sometimes justifiable—accusations of fraud. It suggests how perspectives from the history of consumer society provide fresh insights into the market for financial products. And it underlines the importance of looking outside formal markets by arguing that focusing on “fringe” markets can help scholars to rethink boundaries, relations, and practices in the history of capitalism.

Management of citizens savings accounting the financial literacy factor under digitalization

The favorable development of the country’s economy depends on the correct distribution of its resources, meanwhile, the higher the return on capital ratio, taking into account all existing risks, the more promising economic development in the long term. Financial literacy of Russian citizens is an important aspect of the financial market and the financial system as a whole, which affects the distribution of resources in the country. The purpose of the study is to establish the relationship between financial literacy and savings in the conditions of digitalization.The main resource possessed by the population are their savings. In a market economy, there is a wide variety of savings and investment opportunities, while it is quite difficult for an individual who does not have a sufficient level of knowledge in the field of finance to make the right decision about the storage and distribution of his temporarily free cash. This can lead to excessive accounts payable, fraud, dependence on the crisis in the country, and as a result – to the loss of part of the accumulated funds. Recently, one can notice a growth trend in cash incomes and savings of the population, as well as an expanding market for financial products and services, which increases personal responsibility for financial decisions made by an individual.In this regard, the problem of increasing financial literacy is facing the state quite acutely, because economic growth, investment attractiveness, development of the financial market, stability of the financial system and increasing the competitiveness of the Russian economy depend on it.

Application of Marketing 4.0 Principles By the Indian Mutual Fund Industry

The competitive Indian Mutual Fund Industry requires the use of Marketing 4.0 principles owing to changing marketplace dynamics and increased competition. Traditional advertising forms got saturated with mutual funds, and the new redefined marketing principles reinforced the need to move to digital media. The recent addition of the fifth A (Advocacy) to the marketing jargon became necessary because of the increased connectedness and social nature of the customers (investors). The O-Zone factor increasingly influences investor decision making and helps in driving loyal investors from Aware to Advocate. This article discusses the social media marketing of Indian Asset Management Companies (AMCs). Improving brand curiosity and extending product reach to prospective clients are some potential advantages of the activity. Engagement marketing practices, marketing expense impact, four C's marketing mix, and online customer care are some new marketing principles. AMCs can use these to build better marketing campaigns for building investor-centric financial products. Different dimensions of social media usage are specified, and their utilization by various Indian mutual fund houses is measured. This understanding can help in better marketing of financial products and services, particularly that of mutual funds.

Twin Peaks after Hayne: Tensions and Trade-Offs in Regulatory Architecture

Australia uses a Twin Peaks financial supervisory architecture, which comprises a prudential regulator and a market conduct regulator. The logic of Twin Peaks is that regulatory functions are allocated between agencies according to the objective, rather than the target. This article argues that there are three, rather than two, distinct underlying objectives for financial sector regulation. The third is consumer protection. Regulation would be strengthened by the establishment of a specialist regulatory agency with responsibility for consumer protection in the retail market for financial products and services. The article therefore parts company with the final report of the Hayne Royal Commission, which recommended that the basic Twin Peaks architecture be retained.

Twin peaks after Hayne: tensions and trade-offs in regulatory architecture

Australia uses a Twin Peaks financial supervisory architecture, which comprises a prudential regulator and a market conduct regulator. The logic of Twin Peaks is that regulatory functions are allocated between agencies according to the objective, rather than the target. This article argues that there are three, rather than two, distinct underlying objectives for financial sector regulation. The third is consumer protection. Regulation would be strengthened by the establishment of a specialist regulatory agency with responsibility for consumer protection in the retail market for financial products and services. The article therefore parts company with the final report of the Hayne Royal Commission, which recommended that the basic Twin Peaks architecture be retained.

Marketing sent by banks to e-mail address in compliance with the law

This article covers considerations on the e-mail marketing of financial products and services aimed at consumers. The research paper presents the practice of banks used by those institutions in the e-marketing; basic concepts such as information, offer, advertisement, communication or spam have been considered. The article addresses in particular relevant problems linked to sending advertising materials by e-mail, i.e specifying what types of messages a bank may send to its customers, whether a bank may send such messages to all its customers, whether a bank may send such messages only to its customers, what the consumers rights with respect to receiving unwanted and unsolicited commercial information are. The research paper took into consideration current judicature and views of legal writers.

Foreign entry and bank competition on financial products in China: A model of bank size

The bank branches act as the main sales channels for financial products in China, the size of which affects the bank's competition for the financial products. In addition, the information asymmetry among investors, banks, and financiers will influence the choice of investors, thereby affecting the competition. Focusing on bonds, this paper establishes a competition model of the banks' financial products based on their outlets. The research shows that the quality of private information and the number of the branches are critical to the market competition between banks, and that banks with larger sizes can better utilize private information. Hence, banks with smaller outlets can gain greater competitiveness by revealing private information, which will force other banks to disclose private information, thus facilitating the transparency of information in the financial products market. When all banks reveal their proprietary information, the banks with better information quality will remain competitive. The study indicates that foreign banks' future investment in the branches and their fairer way of competing will force the local Chinese banks to gather and reveal their private information, enhancing their transparency.

Marketing mix of financial services from the customers perspective

The aim of this paper is to show tactical marketing in the 5C concept, services perception and consumer behaviour in the financial products market. Primary marketing research was based on the number of 412 respondents. The consumers were questioned about their behaviour within the topic of customer value, costs to the customer, convenience, communication and customer approach. When deciding about the selection of financial institutions and financial products as fundamental criteria are said to be costs to the customer – pricing policy, convenience – physical availability of branches and their physical evidence. Further research outputs indicate that customers tend rather to savings products and life insurances than to credit products. The costs incurred for the purchase of financial products are perceived as adequate. Direct distribution channels still play and will play important role in financial services. It seems effective to use BTL communication than massive advertising. Demands on financial institutions front-office employees have increased when regarding a quick solution of customers´ demands and acceptable soft skills. Keywords: marketing, “5C” marketing mix, financial services, primary marketing research.

Index Fund Entry and Financial Product Market Competition

The active money management industry is characterized by both strong competitive pressure from passive investment vehicles and high fees. This paper investigates how the introduction of low-cost index funds affects fund company strategies. The retail mutual fund market is segmented, where unsophisticated investors rely on financial advisers and sophisticated ones invest directly. Exploiting the staggered entry of low-cost Vanguard index funds as competitive shocks, I show that, in response to competition, incumbents sold to self-directed investors reduce their fees by 5% of the mean; however, funds sold with broker recommendations increase their fees by 6% of the mean. Index fund entry also slows the growth of actively managed funds. The responsiveness of broker-sold fund flows to distribution fees increases, suggesting a shift in composition toward less elastic consumers. Further, incumbents increase the degree of active management. The results illustrate why mutual fund fees slowly decline in the aggregate despite competition from lower-cost alternatives. This paper was accepted by Gustavo Manso, finance.

Attention to Risk and Return: Choice Experiment of the Stated and Inferred Use of Investment Attributes

This paper applies a choice experiment method to analyze investors’ attention to investment attributes. Prior research mainly in environmental, agricultural, and transport economics has observed that people actually use different attributes than which they say in choice experiment tasks. This research examines do people pay attention to all the given investment attributes, and if they do not, whether the self-reported attribute attendance corresponds to the behavior inferred from the choices. The experiment is conducted among a pool of 845 financially literate subjects, which enables a study of the factors affecting the investment decisions of informed individuals. The choice experiment puts the subjects in a decision making situation in which they are presented with hypothetical investment opportonities in the agricultural and food production sector. The investments are described with four attributes: voting right, return right, capital appreciation, and expect return. We use the equality-constrained latent class (ECLC) method to infer the choice patterns.The comparison of the stated attribute attendance patterns to the inferred attribute non-attendance patterns shows that the investors are prone to overstate the importance of expected return in their choices. The result indicates that individuals may not be fully aware of the factors affecting their investment decisions. Finding such behavioral bias among financial professionals implies that financially less knowledgeable people may be even more prone to uninformed investment decisions, be for example lured by the marketing of financial products with high returns.