Bank Preferences Research Articles

Banking Preferences and Perceptions Among College Students: A Study on Influential Factors and Service Satisfaction

This study investigates customer perceptions of their choice of bank among college students, focusing on factors influencing their banking decisions. Through a survey of 150 respondents, the study reveals that most students prefer commercial banks, valuing service quality and security. The majority have not utilized bank loans or relief measures during the COVID-19 pandemic. Dissatisfaction with service or limited options are common reasons for considering a bank switch. While respondents generally rate their banks positively, there are varied opinions on employee behavior, individual attention, and operating hours. The findings indicate that while overall perceptions are favorable, there is room for improvement in specific service aspects. This research provides insights into student banking preferences and highlights areas for banks to enhance their service offerings.

Investigation of The Factors Affecting The Banking Preferences of Public Employees Using Advertisements Through Mixed Method

In this study, exploratory survey design, which is one of the mixed methods, was used to determine the factors affecting the banking preferences of the public employees. 36 commercials of 9 banks broadcast on television were used as qualitative data. These commercials were examined with NVivo 10 package program in terms of factors affecting the banking preference of public employees. In the qualitative analysis, 83 codes and 6 themes were obtained. The 83 codes obtained were used for the item pool of the scale. 6 themes were determined as the factors of the scale. The draft scale was administered to 400 public employees working in Sivas province by using stratified sampling method. Based on the data obtained, a measurement tool consisting of 6 factors and 26 items was developed by using SPSS and AMOS package programs. As a result, the relationships between the banking preference criteria and demographic variables of the public employees in Sivas were evaluated by statistical methods and the differences were interpreted.

The influence of pension savings and economy development on the dynamics of bank deposits

This article presents a comprehensive methodological framework designed to explore the complex relationships among pension savings, economic growth, and bank deposits over the period spanning from 2014 to 2022. The objective of this study is to illuminate the intricate dynamics that influence household financial behavior and decisions. Through rigorous statistical analyses, the research seeks to uncover nuanced patterns and trends within these interactions. The confirmed findings of the study provide substantial support for Hypothesis 1. This underscores the significant impact of pension savings on the increase in bank deposits. This finding not only highlights the importance of understanding these dynamics within the context of contemporary financial landscapes but also carries implications for strategic financial planning. The recognition of the link between pension savings and the escalation of bank deposits suggests potential avenues for optimizing financial strategies and policies. Conversely, the rejection of Hypothesis 2 indicates that GDP (Gross Domestic Product) exerts an insignificant influence on the growth of bank deposits. This emphasizes the intricate and multifaceted nature of the current interplay between economic growth and individual banking preferences. The insights gained from this rejection contribute to a nuanced understanding of the factors shaping financial decisions, offering valuable perspectives for navigating the evolving financial terrain. In conclusion, the article contributes to a deeper understanding of the multifaceted factors that shape financial decisions. The identified relationships between pension savings, economic growth, and bank deposits provide valuable insights for policymakers, financial institutions, and individuals alike, offering a foundation for informed decision-making in the ever-changing financial landscape.

Assessing Digital Bank Preferences in the Philippines: An Application of Analytic Hierarchy Process

Individuals at present utilize technologies such as digital banking for faster and more convenient transactions brought by globalization. This study determined the significant factors affecting user preference of digital banking and identified the most ideal digital bank in the Philippines. Data were collected from 150 respondents through an online survey using Google Forms. Applying analytic hierarchy process (AHP), results indicate that usefulness, usability, and security were the most important criteria while trust, health and safety, and risk were the least important. On user preference, Rizal Commercial Banking (RCBC) is the most preferred digital bank while Komo is the least. The study recommends the use of other evaluation tools such as structural equation modeling and machine learning algorithms to deepen understanding of digital banking preferences.

Effect of Advertising Campaigns on Consumer Banking Preferences

Effect of Advertising Campaigns on Consumer Banking Preferences

Determinants Influencing Banking Practices among Municipal Residents

Sustaining financial stability and managing family finances require the application of sound banking practices. Finding the important variables that affect city dwellers’ banking preferences is the main goal of this study. The research was conducted in the Rupandehi District of Nepal, specifically located in the Lumbini Zone within the Western Development Region, specifically within the Tilottama Municipality. A diverse range of individuals, encompassing various age groups, genders, occupations, and educational backgrounds, actively participated in the study by diligently completing comprehensive questionnaire. Using a mix of descriptive and causal research frameworks, the study found that factors like convenience, and security have a positive influence on banking behaviors. Conversely, no meaningful relationship was found between the urban population’s banking practices and awareness, availability and motivational factors. The similarity of bank services and the greater levels of financial awareness and literacy that are common in cities may be the cause of this lack of correlation. Therefore, the results of this study may be helpful to banking institutions in creating and putting into practice plans to boost banking participation.

How does the repo market behave under stress? Evidence from the COVID-19 crisis

We examine how the repo market operates during liquidity stress by applying network analysis to novel transaction-level data of the overnight gilt repo market including the COVID-19 crisis. We find that during this crisis the repo network becomes more connected, with most institutions relying on previously used counterparties. There are however important changes in the repo volumes and spreads during the stress relative to normal times. There is a significant increase in volumes traded with the central counterparties (CCPs) sector. At the same time non-banks, except hedge funds, decrease borrowing and face higher spreads in the bilateral segment. Overall, this evidence reflects a preference for dealers and banks to transact in the centrally cleared rather than the bilateral segment. Our results can inform the policy debate around the behaviour of banks and non-banks in recent liquidity stress and on widening participation in CCPs by non-banks.

PUBLIC PREFERENCE FOR MICRO WAQF BANKS: AN EFFORT TO INCREASE COMMUNITY BUSINESS

The Islamic financial literacy index in Aceh is still relatively low at 18.64% compared to the conventional financial literacy index. The purpose of this study is to analyze the level of preference of Acehnese people towards micro Waqf Banks. The presence of micro Waqf banks in Aceh seeks to improve the welfare of urban and rural communities. Quantitative method with multiple regression analysis techniques is used to study those variables. The source of data obtained is the primary source through distributing questionnaires to 100 respondents throughout Aceh. The variables used in this research are literacy index, preference, religiosity, and business motivation. The results indicate that the preference, religiosity, and business motivation have a positive and significant effect on Islamic financial literacy with the prob value. 0.00 < = 0.05. the coefficient of determination shows a value of 0.9900, or 99.00 % which means that all dependent variables have a significant effect on islamic financial literacy while the rest are influenced by other variables. Regarding the fact that Islamic financial literacy for micro waqf banks is 52% as well as the role of microwaqf banks support in increasing micro-scale businesses in the community, public preference for micro waqf banks is still low compared to Islamic banks. Therefore the implications of this research have a positive impact on the community and academics in suggesting to continue supporting the emerging of sharia-compliant businesses by utilizing micro waqf banks.

Banking Selection Criteria among Millennials: Insights from Islamic and Conventional Banks

The increasing number of millennials presents an enticing market opportunity for business. Understanding their preferences is the key to attracting their sympathy and interest. Thus, this study aims to analyze banking selection criteria for Islamic and conventional banks among the young generation. A group of students represents the millennial group in this study. Data is collected through questionnaire instruments, and factor analysis is employed to capture millennials' preference for banking. The finding highlights a relatively lower level of knowledge and awareness among millennials regarding the products and services offered by Islamic banks. Interestingly, among them, an inverse relationship exists between the criteria for selecting Islamic and conventional banks. Factors associated with banking preference among millennials are managerial performance and service quality, religiosity, recommendations, and finances. This study provides valuable insights for banking industry players, enabling them to understand millennial banking preferences better and formulate suitable marketing strategies.JEL Classification: G21, G32, D81How to Cite:Rama, A., & Wiranata, S. (2023). Banking Selection among Millennials: Insights from Islamic and Conventional Banks. Signifikan: Jurnal Ilmu Ekonomi, 12(2), 341-354. https://doi.org/10.15408/sjie.v12i2.35104.

Bank price competition and enterprise innovation——Based on empirical evidence of Chinese A-share listed companies

This paper mainly discusses the influence and mechanism of bank price competition on corporate innovation activities. Taking China's A-share listed companies from 2013 to 2021 as a sample and constructing a Lerner index to measure bank price competition based on the data of 130 banks in China, a fixed effect model is used to analyze the influence of bank price competition on enterprise innovation. At the same time, the influence mechanism of bank price competition on enterprise innovation activities is analyzed from the perspectives of financing cost, credit availability and bank risk preference. The study found that the deepening of bank price competition can effectively increase the R&D investment of enterprises and promote the innovation output of enterprises. At the enterprise level, bank price competition can reduce the financing cost of enterprises and improve the availability of credit for enterprises, thereby alleviating the financing constraints faced by enterprises, encouraging enterprises to enter the innovation sector, and increasing R&D investment and innovation output. Moreover, bank competition can also improve the risk preference of banks so that innovative projects and enterprises with higher risks can obtain more credit support. In addition, the study also found that bank price competition can significantly promote the innovation input and output of private enterprises and small and medium-sized enterprises, but the promotion effect on the innovation input and output of state-owned enterprises and large enterprises is not obvious.

Hard money and fiat money in an inflationary world

The purpose is to determine whether a borrower prefers to borrow hard and fiat money from a bank to buy other assets from a seller, whether the seller wants to sell, how the nontraders are impacted, and whether the bank prefers to lend money and print or withdraw fiat money. The method is to compare the agents’ and bank’s Cobb Douglas utilities over two periods. The conclusions are that the bank prefers to print fiat money to a certain extent. Fiat money printing benefits the borrower/buyer which prefers inflation, benefits the bank if not excessive, and hurts the seller and nontraders. The seller and nontraders prefer a hard money economy or a fiat economy where the bank withdraws money to ensure deflation. More nontraders decrease inflation since the bank’s money printing gets spread across more agents. The article provides further results illustrated by varying 64 parameters relative to a benchmark.

Service Differentiation and Customer Patronage of Deposit Money Banks in Port Harcourt

This study explored service differentiation and customer patronage of deposit money banks in Port Harcourt. The study adopted the correlational survey research design. The population of the study consisted of twenty-two (22) licensed deposit money banks in Port Harcourt. A sample size of 159 respondents were drawn from the population of 264 top level managers of the 22 licensed deposit money banks in Port Harcourt. The sample size was determined using the Taro Yamene’s formula while the simple random sampling technique was used to select the sample for the study. The main instrument used for data collection was a structured questionnaire. The data collected were analyzed statistically while the hypotheses were tested using Spearman Rank Order Correlation Coefficient (rho). The analysis was done with the aid of the SPSS version 22.0. The findings revealed that service quality has a positive and significant relationship with customer patronage (customer preference and customer loyalty) of deposit money banks. The study also found a positive and significant relationship between strong network connection and customer patronage (customer preference and customer loyalty) of deposit money banks. This study equally revealed that a positive and significant relationship exists between value added service and (customer preference and customer loyalty) of deposit money banks. Based on these findings, it was concluded that service differentiation significantly enhance customer patronage of deposit money banks in Port Harcourt. Based on the findings and conclusion, it was recommended that deposit money banks in Port Harcourt especially those that are experiencing low customer patronage should adopt service differentiation strategies as it would increase their level of customer patronage.

Pengaruh Literasi Keuangan dan Digital Terhadap Preferensi Bank Digital

Banking is a growing sector that can drive economic growth; by continuing to adapt, banks are adopting digital technology to survive. Currently, the challenges of the digital world are increasing. Banks must not only compete with other banks but also must be able to compete with other financial technology companies. One way to adapt and survive in this era is with the emergence of digital banks. The public must also be educated about these digital banking services because financial and digital literacy must be understood first. This research aims to find out and confirm the relationship between financial literacy and digital literacy with consumer preference for digital banks. This type of research is descriptive research with a quantitative approach using primary data. The results obtained are: Financial literacy partially affects consumer preferences for digital banks; Digital literacy partially affects consumer preferences for digital banks; Financial literacy and digital literacy simultaneously affect consumer preferences for digital banks. This research aims to contribute to the development of digital banks in Indonesia

Risk preferences, global market conditions and foreign debt: Is there any role for the currency composition of FX reserves?

I estimate a transition probability matrix associated with a two-state Markov process of emerging market economies (EMEs) volatility. The different states of EMEs volatility, generate switches in central bank preferences between approximated constant relative risk aversion and increasing relative risk aversion expected utility. Therefore, I construct and propose constrained portfolio selection frameworks with skewness, for the currency composition of FX reserves over different EMEs volatility states for Brazil, Indonesia and South Africa. These EMEs have constituted as part of the “Fragile Five”. Thus, I propose progressive risk management procedures for these EMEs. These portfolio selection frameworks satisfy Pratt–Arrow measures of risk aversion and are constrained by each country’s currency composition of foreign debt. Using different methods of computing expected FX reserves returns, traditional strategic FX reserve assets and different maturity structures, I simulate optimal FX reserve weights for each EME and validate my proposal.

Analyzing the linkage between Islamic financial literacy and Islamic banking services adoption: evidence from Turkey

PurposeThe purpose of this study is twofold. First, this research explores the level of Islamic financial literacy of customers in the context of Islamic banking. Second, this study examines the determinants of customer adoption of Islamic banking in Turkey.Design/methodology/approachThis study gathered sample data from 409 participants determined using the purposive sampling method. In the study, first, the reflective measurement model is used to examine the reliability, validity and multicollinearity problems of the variables. Then, AMOS structural equation model (SEM) is used to reveal the relationship between Islamic financial literacy and Islamic banking services. Additionally, this study performed both descriptive and inferential analysis to understand customer literacy about Islamic banking and their adoption behavior of Islamic banking.FindingsThe results obtained from descriptive assessment indicate that Turkish customers of Islamic banking possess sufficient literacy about Islamic banking. Moreover, the results from SEM indicate that the adoption of Islamic banking by customers is significantly predicted by the role of Sharia Board management, Islamic banking and purpose of financial institution, religious factor and legitimacy of Islamic financial system.Research limitations/implicationsThis study focuses only on the level of knowledge and perceptions of customers who have accounts in Islamic banks or financial institutions in Turkey. It does not focus on the level of knowledge and perception of Muslims who do not have accounts in Islamic banks and financial institutions.Originality/valuePrevious studies on Islamic banking are mostly studies that investigate customers’ perceptions of the Islamic banking system and why individuals prefer Islamic banks. In particular, studies examining the relationship between individuals’ Islamic financial literacy level and Islamic banking preferences are limited. This study is considered to be an original study as it investigates the relationship between the Islamic financial literacy level of individuals and their adoption of Islamic banking services in Turkey.

The role of artificial intelligence in consumers’ brand preference for retail banks in Hong Kong

Artificial intelligence (AI) technologies are increasingly integral to our world, as they serve as the foundation for new value propositions and distinctive customer experiences. AI is crucial for offering better customer experiences, which strengthen the consumer–brand relationship and brand differentiation. Based on the stimulus–organism–response model, this study examined the influence of AI on brand preference for retail banks in Hong Kong. Structural equation modeling was used to analyze 300 responses collected from a questionnaire survey of Generation Z subjects. The findings indicate that AI marketing efforts affected brand experience, brand preference, and repurchase intention. Among AI marketing efforts, information, accessibility and customization exerted influences on brand experience, while interaction had no significant impact on it. Brand experience also mediated the relationship between AI marketing efforts and brand preference. The study will help retail banks to design AI marketing activities and formulate better marketing and branding strategies for customer acquisition and retention.

THE IMPACT OF MARKETING COMMUNICATION PERFORMANCE AND REFERENCE GROUP ENCOURAGEMENT ON CUSTOMER ATTITUDES IN CHOOSING BANKING IN MAKASSAR CITY, INDONESIA

The objective of this research is to find out customer response index decision (CRID) and the influences of marketing communication performance, reference group, both partially and simultaneously towards customer’s attitude. Descriptive analysis used in this research based upon customer’s response index decision which utilized to predict the proportional value that’s linked with research variable dimensions, for hypothesis testing is applied structural equation modelling (SEM). Result of this research which describe based on statistical frequency distribution analysis and customer response index decision, show that customers have high level categorize toward decision on branch banking preferences, both partially and simultaneously to answered the hypothesis conceptual paradigm shown marketing communication performance and its effects toward customers’ attitude on the bank product or services significantly.

Time value of money dan economic value of time

The concept Time Value of Money states that the value of money today is more valuable than the value of the same money in the future. But in sharia principles there is no such thing as Time Value of Money. In sharia principles, it is better known as the Economic Value of Time, meaning that money actually has no time value, but has economic value. Then the Time Value of Money itself triggers the human desire to develop their money in various ways, one of which is property investment. The purpose of this study is to answer how the investment scheme is in the theory of Time Value of Money and Economic Value of Time. The method discussed here is a case study of property investment using a home ownership credit system using conventional and sharia platforms. From the research conducted, it was found that based on assumption case calculations from several banks, using KPR with the best choice, namely KPR BCA First, if prospective buyers have a preference for Islamic banks by considering Islamic economic principles, the best choice is KPR BTN Syariah. The P2P Lending funding scheme is not a good choice because of the high interest charged.

Impact of Financial Digitalization on Organizational Performance

Digitalization profoundly affects organizational performance, especially in the financial industry, by disrupting established business models and providing new opportunities for value creation. The combination of advanced internet technology and financial services—namely financial technology (fintech)—has become the most inflammatory component of financial digitalization. However, there is limited knowledge in academia about the effect of fintech on traditional financial intermediation. Using panel data of China's bank sector from 2013 to 2019, the researchers found that financial digitalization is negatively associated with the performance of banks. In addition, further research on the moderating effect shows that the monetary policy easing cycle, the high financial friction environment, and the risk-taking preference of banks could mitigate the negative effect of fintech development on bank performance. These findings contribute to the literature on financial digitization and traditional financial intermediation and have implications for banking practitioners and regulators.

Islamic financial literacy and Islamic banks selection: an exploratory study using multiple correspondence analysis on banks' small business customers

PurposeAlthough Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several Islamic countries. This problem could be attributed to some causes not addressed. The current study proposes Islamic financial literacy as an important factor that could help aggress this problem. Due to a wide variety of Islamic financial services and the lack of understanding of these services, the banks' small business customers are indifferent between Islamic and interested-based conventional services to finance their business.Design/methodology/approachThis study uses the exploratory technique of multiple correspondence analysis to detect any potential role of Islamic financial literacy in customers' preference for Islamic banks over conventional ones. The potential effect was tested with other essential factors, such as the customers' age, gender, and educational level. This analysis was conducted on a data set from 2061 banks' small businesses customers using the mall-intercept survey method.FindingsThe study shows a low level of Islamic financial literacy among Yemeni banks' small business owners' customers. Furthermore, despite integrating some critical factors that could influence the actual bank selection process among Yemini banks' customers, the authors found a decisive potential role of Islamic financial literacy as one of the key determinants of bank selection preferences.Originality/valueThis is the first paper to explore the potential role of Islamic financial literacy on the actual selection between Islamic Banks and their counterparts: the conventional banks in Yemen. The research results could build a more comprehensive theoretical model on Islamic banks' customer behavior.