Retail Banking Customers Research Articles

The Impact of Sustainability Considerations on Investment Intentions—The Case of Generation Y

When investing, the investment motives of return, liquidity, and risk play a role in decision-making. However, due to the increasing relevance of environmental and social issues and the higher availability of sustainable investments, sustainability is an additional investment motive. The attitude of an individual toward sustainability has implications for other investment motives. This paper examines the interplay between the established financial investment motives of return, liquidity, and risk on the one hand and sustainability considerations on the other hand, with a view to the Generation Y cohort. A questionnaire approach was used to collect data from randomly selected Generation Y retail banking customers from Germany. The data were analyzed using correlation and regression methods. The findings of the paper confirm that there is a negatively directed relationship between the profit maximization motive and the green tradeoff intention. Furthermore, education moderates the relationship between the risk minimization motive and the green tradeoff intention. The paper contributes to different stakeholders. Practical implications result for retail banks and investment firms, which could continue to motivate Generation Y customers for sustainable investments and generate stronger financial education through targeted marketing and information campaigns.

The Impact of United Nations Sustainable Development Goals on Customers’ Perceptions and Loyalty in the Banking Sector: A Multi-Mediation Approach

The pursuit of sustainable development has become a global priority, with the United Nations Sustainable Development Goals (UN SDGs) serving as a comprehensive framework for addressing various social, economic, and environmental challenges. Employing the stimulus–organization–response (SOR) model, this study examines the impact of customer’s perceptions of the firm’s compliance with the SDGs on customers’ perceptions and loyalty through the mediation roles of image, trust, and reputation in the customer’s evaluation of the firm in the banking sector in Turkey. To achieve these objectives, a quantitative research approach was used, and 455 valid responses were collected from retail banking customers through an online survey. Data from the study were statistically analyzed using partial least-squares–structural equation modeling (PLS-SEM). The findings reveal significant positive relationships between SDG implementation and customers’ perceptions of banking institutions’ image, trust, and reputation. Furthermore, favorable image, trust, and favorable reputation are found to positively influence customer loyalty in the banking sector. The mediation analyses confirm that each of the mediating variables partially mediates the relationships between SDG implementation and customer loyalty, underscoring the significance of these intermediate variables in shaping customers’ loyalty behaviors. This research contributes to both theoretical and practical domains by providing insights into the role of SDG implementation in enhancing customer perceptions and loyalty in the banking sector. Managerial implications are discussed, and recommendations are provided for banking institutions seeking to leverage the SDGs to strengthen customer relationships and achieve sustainable growth.

Assessing The Effect of Digital Banking Services on Retail Banking Customers’ Satisfaction Levels in Lusaka’s Central Business District

Digital banking platforms have improved the way banks deliver their services to clients which has resulted in the gradual movement from brick and mortar to the use of digital applications such as mobile phones, iPads, laptops and ATM machines. The purpose of this study was to assess the effect of digital banking on retail banking customer service satisfaction levels in Lusaka Town. The study was guided by three objectives which were; to determine customers’ perception of the reliability of digital banking services in Lusaka Central Business District; to assess customers’ perception of the responsiveness of digital banking services in Lusaka Central Business District and, to examine customers’ perceptions of the security of digital banking services in Lusaka Central Business District. This study investigated customers' perceptions of digital banking services, focusing on reliability, responsiveness, and security, using a quantitative approach. Simple random sampling was used to collect data using a structured questionnaire with 5-point Likert scale. The researcher ensured that the respondents remained anonymous to avoid bias and that whatever information they provided would be treated with confidentiality. The researcher did not influence the responses provided by the respondents in anyway. The sample size was 150 and 140 respondents who are bank customers in Lusaka Central Business District responded. The response rate was 93.33%. The data was analysed using descriptive statistics, ANOVA, hierarchical regression, and correlation analysis. The findings reveal that customers generally perceive digital banking services positively in terms of reliability and responsiveness, with significant associations found between these factors and overall customer satisfaction. However, concerns remain regarding security, despite moderate confidence in digital banking security measures. The study underscores the importance of trust, transparency, and technological advancement in shaping customer perceptions. Recommendations for further research include exploring the impact of AI technologies, regulatory frameworks, and demographic differences on digital banking adoption and satisfaction. These findings contribute to understanding customer behaviour in digital banking and inform strategies for enhancing service delivery and customer experience in the financial sector.

Communal-brand connection and service loyalty: the mediation effect of corporate reputation and customer satisfaction among retail banking customers

PurposeThe study explores the dynamics among communal-brand connections, corporate reputation, customer satisfaction and their collective influence on service loyalty within the retail customer segment of commercial banks.Design/methodology/approachHypotheses are proposed for a parallel and serial-mediated model, in which corporate reputation and customer satisfaction mediate the influence of communal-brand connections on service loyalty. Data are collected from a sample of retail customers of commercial banks in a European country.FindingsFindings indicate that individuals who perceive a strong affiliation with a brand that emphasises community engagement are more likely to demonstrate loyalty to that brand. Results highlight the need for managers allocate resources to cultivate community initiatives that foster communal-brand connection in their drive to improve service loyalty.Research limitations/implicationsA non-representative sample was collected, with a focus on a limited set of variables and employing a unidimensional measure of service loyalty. Additionally, the significance of communal-brand connection may vary across brands, warranting replication studies among smaller banks.Practical implicationsRecognition of communal-brand connection as an important driver of customer loyalty suggests that customers are motivated by intrinsic positioning factors related to the community. As part of their positioning, commercial banks can leverage their marketing and communication efforts to foster community development, thereby enhancing customer identification, connection and narratives that foster belongingness among customers.Originality/valueThe model of direct and mediated model of communal-brand connection on service loyalty has not been previously explored. Moreover, the research is conducted among retail bank customers that representing a context seldom considered in the domain of brand communities.

A Framework of Customer Service Training Competencies for Proactive Business Recovery in a Post-COVID Era: A Case Study

Abstract Customer service is a core competitive edge in any service industry, including the retail banking sector. However, retail bank customers, especially in Angola, often complained of standing in long queues waiting to be served and difficulty handling technology while transitioning to online banking. This qualitative single-case study used competency-based theory to develop a framework for the customer service training competencies of a selected retail bank in Angola. Purposeful sampling was employed to select eight participants, including bank employees and customers who voluntarily participated in this study. Data was collected through semi-structured interviews using WhatsApp calls and audio recordings. It was thematically analyzed using the HyperResearch software. The emerging themes included change, customer service, responsiveness, human resource process improvement, managerial competency, customer relationship management, and online banking. The findings have implications for bank employees’ training and development of the identified competencies needed to redefine the future of customer relationship management and different dimensions of managing customer satisfaction for proactive business recovery.

Do you want my loyalty? Then understand what drives my trust – a conventional and Islamic banking perspective

PurposeThe purpose of this research is to develop an enhanced understanding of the drivers of trust and loyalty in a conventional and Islamic banking setting.Design/methodology/approachThe study’s sample included South African retail bank customers who had Islamic or conventional products and who were 18 years or older. A field services company collected data from respondents through the distribution of self-administered questionnaires and a total of 949 questionnaires were deemed suitable for data analysis. SmartPLS 3.2.7 and Hayes Process Macro for SPSS tested the study’s hypotheses.FindingsComparing conventional banking customers with Islamic banking customers, the path from trust to customer loyalty was statistically significantly different across customer type, while the paths between trust and customer orientation, information sharing, and service fairness were not statistically significantly different across customer type. A closer examination of the path coefficients reveals that the relationship between trust and loyalty is stronger for conventional banking customers than for Islamic banking customers.Practical implicationsThe findings of the study guide both conventional and Islamic banks in South Africa on how banks should redesign their purpose as the providers of financial resources to their customer segments. It highlights the need for these banks to secure a more focused approach on how to deliver financial resources and consulting services to customers in a trusting, engaging and reliable manner.Originality/valueThe study provides insight into Islamic and retail bank customers’ perceptions of the drivers of trust and loyalty and how these constructs’ interrelationships differ between Islamic and conventional banking customers.

Bank identification and perceived bank brand personality: A gender comparison

Understanding how gender impacts millennial retail banking customers’ bank identification, as well as their perceptions of bank brand personalities, is important, given that retail banks need to effectively segment their markets and develop targeted marketing campaigns to engage and retain millennial customers. The paper aimed to investigate the differences between millennial male and female banking customers in terms of their identification with their retail bank and the brand personalities they associate with their bank. The research utilized a self-executed survey, collecting data from a sample comprising 116 males and 119 females for analysis in South Africa. Using a descriptive research design, the study employed several statistical methods, including independent samples t-tests and multiple linear regression analysis, to observe the potential differences between the genders in bank identity and perceived brand personality. The analysis of the survey data revealed significant differences between male and female participants. It was found that males identified less with their retail bank compared to females. In terms of brand personality, males associated more with the community-driven personality and less with the success, sophistication, and sincerity brand personalities. On the other hand, sophistication (β = 0.356; p = 0.003) and community-driven (β = 0.432; p = 0.002) brand personality influenced the males’ bank identification. None of the brand personalities significantly affected females’ bank identification.

Revisiting the satisfaction–loyalty link in retail banking – An emerging market perspective

Orientation: Revisiting the satisfaction–loyalty link is critical to better understand the driving factors of satisfaction and loyalty. This is especially true considering the increasing competitive nature of South Africa’s banking industry.Research purpose: The study revisits the satisfaction–loyalty link and the mediating effect of affective and calculative commitment on the satisfaction–loyalty link.Motivation for the study: Numerous scholars have explored and proposed different pathways to enhance the satisfaction–loyalty link in multiple contexts and industries. To date, there is, however, no clear pathway in a business-to-consumer (B2C) context and further research is required on how to strengthen this link.Research approach/design and method: A quantitative descripto-explanatory study that is cross-sectional in nature was used to collect empirical data from 871 banking customers in South Africa purposively selected using interviewer-administered questionnaires. SmartPLS 3.2.7 was used to test the direct effect (H1–H4) and Hayes Process Macro for SPSS (Model 4) was used to test the indirect effects (H5 and H6).Main findings: Satisfaction has a significant and positive relationship with affective and calculative commitment, and calculative commitment in turn has a significant and positive relationship with loyalty. Both affective and calculative commitments partially mediate the relationship between satisfaction and loyalty.Practical/managerial implications: The importance of affective commitment in the relationship between satisfaction and loyalty among customers of South African retail banks is highlighted.Contribution/value-add: This study provides an enhanced understanding of the importance of affective and calculative commitment in strengthening the satisfaction–loyalty link.

Social media, brand loyalty and the banking industry in Colombia

This study analyzed the relationship between retail bank customers’ loyalty and trust, and focused social media marketing in Barranquilla, Colombia. The survey was conducted in-person among customers (528 participants) at various Colombian banks over a period of seven months, from May 2021 to November 2021. The responses on the survey were rated on a 5-point Likert scale, ranging from “Strongly disagree” to “Strongly agree”. The study also incorporated a focus group with 25 participants aged between 34 and 51. Moreover, the research employs factorial analysis to elucidate the underlying correlations between the variables. The discussion was structured around seven pre-determined variables: Personalization, Entertainment, Engagement, Marketing, Word of Mouth, Trust, and Loyalty. The load factors range between 0.583 and 0.914, implying a high correlation between the survey questions and the constructs. The Cronbach’s Alpha values (from 0.753 to 0.996) and the Composite Reliability values (from 0.739 to 0.875) suggest a high level of internal consistency within the constructs. In the realm of social media marketing, the research underscores the pivotal role of trust as an intermediary in cultivating brand loyalty. The study abstains from concentrating on hypothesis testing, instead it illuminates the criticality of understanding the role trust plays in social media marketing. The research results provide valuable insights for future investigations as well as for enhancing service marketing strategies in the banking sector. AcknowledgmentsThis study was funded by Education For All Online EU. We thank our participants for their generous contribution to this work.

Impact of Trust and Service Quality on Retail Banking Customers' Satisfaction and Loyalty

Impact of Trust and Service Quality on Retail Banking Customers' Satisfaction and Loyalty

The impact of blockchain technology on customer attitude and behavioral intentions in the banking sector

This study examines customer attitudes towards blockchain technology (BCT)-supported banking applications in Oman and explores the relationship between these attitudes and behavioral intentions, highlighting the influencing factors. Blockchain Technology (BCT) has disrupted the banking sector, but understanding customer attitudes towards BCT-supported banking applications and their impact on behavior remains limited. In pursuit of this objective, a quantitative research design was employed, involving the collection of data from retail bank customers in Oman through a structured questionnaire. The collected data underwent rigorous analysis using a robust Structural Equation Model, confirming the constructs' validity, reliability, and distinctiveness. The study uncovered that BCT has a positive impact on various aspects of the banking sector, including customer service quality, regulatory compliance, secured transactions, and cost reduction. By augmenting transparency, efficiency, and trust in banking transactions, BCT significantly improves customer attitudes towards BCT-supported banks. Furthermore, the research reveals that positive attitudes play a pivotal role in influencing customers' intentions to prefer and continue using these blockchain-backed banks. The study also highlights the importance of trust factors and transaction frequency as moderators in shaping customer attitudes and behavioral intentions in this context. The insights gleaned from this research hold practical significance for banks operating in Oman, offering guidance for tailored marketing campaigns, product design, and aligning their offerings with customer expectations in the realm of blockchain-supported banking applications. Additionally, the study provides practical recommendations for the successful implementation and adoption of blockchain-supported financial applications within the banking sector.

How phygital customers’ experience transforms the retail banking sector? Examining customer engagement and patronage intentions

PurposePhygital emerges as a promising phenomenon, as it uses innovative technologies to connect digital spaces and physical places that provide customers with an interactive and unique experience. Drawing the stimuli–organism–response (S-O-R) framework, the study aims to examine the phygital customer experience by using key drivers and their effect on customer engagement (CE), trust (TRU) and patronage intentions (PI).Design/methodology/approachData were obtained by using convenience sampling from 389 respondents from northern parts of India between December 2022 and February 2023. After checking reliability and validity, “variance-based structural equation modeling” has been applied to obtain results.FindingsThe outcomes reported that stimuli constructs such as customer brand experience (CBE), service quality (SQ) and emotions during the service (EDS) significantly influence organism (CE). However, pain points (PP) have a statistically insignificant impact on CE. Further, the outcomes also reveal a positive relation between organism and response variables (i.e. CE, TRU and PI).Practical implicationsThis study’s results offer strategic insights to enhance CE and PI, ultimately contributing to the advancement of the retail banking industry. The financial service provider must prudently interrelate digital and physical platforms to make the customer journey fruitful.Originality/valueTo the best of the authors’ knowledge, this study is the first to look at the effect of key drivers on the PI of active retail banking customers in national capital region, India by using the S-O-R framework.

The role of perceived quality of personal service in influencing trust and satisfaction with banks

Trust is of paramount importance to banks. Previous research has shown that trust increases with repeated personal contacts. We investigate if this applies to the customer-employee relationship in banks. Data from an on-line survey of 293 customers of Swedish retail banks are used to construct indicator measures. By means of structural equation modeling we find that trust in the bank is influenced by perceived quality of personal service through employees’ perceived competence, perceived benevolence, and perceived transparency, and that satisfaction with the bank is influenced by perceived quality of personal service through perceived competence, perceived benevolence, perceived transparency, and trust.

The moderating role of high- and low-involvement product types on customer loyalty and satisfaction in banking: an Australian perspective

PurposeThe study aims to develop a holistic model identifying the constructs that impact customer loyalty in retail banking and introduce product type as a moderating variable to the model.Design/methodology/approachA conceptual model of customer loyalty is introduced and empirically tested with 416 valid samples obtained from Australian retail banking customers. The data were analysed using partial least squares structural equation modelling and multigroup analysis.FindingsThis study confirms the moderating effect of high- and low-involvement products on the relationship between customer loyalty and satisfaction, trust, service quality, commitment and perceived value. Surprisingly, the effect of satisfaction on loyalty was much stronger with low-involvement product types and the effect of commitment on loyalty was much stronger with customers who utilise high-involvement products.Research limitations/implicationsThe study uses a sample population in Australia who utilise one of the top four banks and investigates three product types. Further research could expand the product selection and include customers who use credit unions and other banks not in the top four categories.Originality/valueThis study is the first to confirm the moderating effect product type has on the customer loyalty relationship in retail banking in regard to high- and low-involvement product categories. The research provides a deeper understanding of the factors that influence customer loyalty and identifies which types of products influences customer loyalty the most. Additionally, this study highlights the importance of understanding the different needs and priorities of customers using different product types in order to effectively influence their loyalty.

Transitions of value creation from traditional media to social media architecture

This study aims to assess the relationship between service value (SV), interactive value (IV), customer experience (CX), customer engagement (CE), and customer loyalty (CL) in the context of social media (SM) for domestic retail bank customers in Malaysia. The value-attitude-behavior model was used as the theoretical framework. To test this hypothesis, a partial least square structural equation model was used to analyze data from 181 active customers of domestic retail banks’ SM platforms. The results of the analysis indicate that CX and CE have a direct effect on CL. The study also found that CX and CE mediate the relationship between IV and CL, as well as SV and CL. The results highlight the importance of using SM platforms for value creation beyond just social interaction and the significance of IV, CX, and CE in digital platforms. Results also suggest that additional resources should be allocated to manage activities on these platforms to ensure that bank personnel can effectively design their SM strategies.

The effects of the theory of planned behaviour on the switching propensity of retail banking customers at different critical switching incidents

PurposeThe paper aims to explore the effects of the behavioural antecedents suggested by the theory of planned behaviour (TPB) (i.e. positive subjective norms, high perceived behavioural control and positive attitudes towards switching) on the switching propensity of retail banking customers at several critical switching incidents (CSIs) (i.e. events of unfavourable reputation concerning their current bank or favourable reputation concerning competitor banks, service failures, problems with charges and interest rates, herding behaviour, inconvenience, alternative banks' attractiveness and unethical bank practices).Design/methodology/approachA self-completed online survey was conducted among 324 Cypriot retail banking customers. For the data analysis, the researchers used principal component analysis (PCA), confirmatory factor analysis (CFA) and structural equation modelling (SEM).FindingsThe study revealed that the behavioural antecedents specified by TPB play different roles in various CSIs. Positive subjective norms may drive bank customers to switch at critical incidents such as: service failure, unfavourable bank reputation, alternative banks' attractiveness, inconvenience, favourable reputation of other banks and herding behaviour. High perceived behavioural control can lead to switching, only in the case of other banks' favourable reputation. Finally, positive attitudes towards switching may affect bank clients to switch in cases of service failure, unfavourable bank reputation, alternative attractiveness and inconvenience.Originality/valueTo the best of the authors' knowledge, no other previous research work has examined the interaction between the antecedents of switching behaviour (as specified by TPB) and switching propensity at different CSIs. The study addresses the gap of explaining the reasons for which, at similar incidents, some bank customers choose to switch to other banks, whereas others do not.

Customers Loyalty in Malaysian Retail Bank Sector from the Perspective of Equity Theory and Expectation-Confirmation Model: A PLS-SEM and NCA Approach

Purpose: The retail banking market has witnessed substantial changes over the years due to new technological advancements, increased regulations, and the rise of digital channels. Meeting customer expectations stands out as a key challenge for sustainable growth of the industry. This examines the impact of service quality, customer knowledge management, and confirmation on customer satisfaction within the domestic retail banking sector. Furthermore, it seeks to explore the association between customer satisfaction and customer loyalty in retail banking.
 Design/Methodology/Approach: Self-administered questionnaires were distributed to retail banking customers in the Klang Valley using convenience and purposive sampling techniques. A total of 268 samples were obtained for data analysis with the Structural Equation Modelling (SEM) and Necessary Condition Analysis (NCA).
 Findings: The study’s results validated the strong connection between service quality, customer knowledge management, and confirmation with customer satisfaction in Malaysian retail banks. Additionally, customer satisfaction has significant impact on customer loyalty. The NCA outcomes further substantiate these findings, highlighting the significant role of customer knowledge management, service quality, and confirmation as significant factors affecting customer satisfaction in Malaysian retail banks.
 Implications/Originality/Value: This study offers valuable insights for academia to better understand this area as well as allows sector stakeholders to improve and sharpen their competitive edge in the market.

The Causal Relationship Model of Factors Affecting Brand Equity in Thai Bank Sector

Purpose: This study investigates the effects of self-service technology and service qualities on the brand equity of retail bank customers living in six Bangkok districts, Thailand. Theoretical framework: Recent research on the effects of self-service technology and onsite service quality on brand equity, particularly in the banking industry, has been limited. Even though research has been conducted on the effects of these technologies and service qualities, the majority of prior research has focused on the effects of these precedents on dependent variables, such as customer satisfaction (Raheman, 2017) and customer loyalty (Miguel-Dávila et al., 2010), which are indirectly related to brand equity. Moreover, it is frequently studied outside the banking industry (ArulPrasad, 2021). The results of these previous studies frequently corroborate the positive effects of self-service technology and onsite service quality on such dependent variables, suggesting that these precedents may have an effect on brand equity in the banking sector. Design/Methodology/Approach: We analyzed the 450 valid questionnaires collected from retail bank customers living in six Bangkok districts using EFA and SEM. Findings: Improving the quality of self-service technology and on-site service can increase brand equity. Research, Practical & Social implications: Top bank managers need to focus on investing in service technology and training bank officers on customer service skills. Qualitative research should be conducted to better understand the relationships between self-service technology quality, on-site service quality, and brand equity. Moreover, the model should be extended to consider factors that act as moderators or mediators. Originality/Value: Investing in self-service technologies and bank officers' service capabilities can enhance the brand equity of the banking sector.

GREEN BANKING: AN ANALYSIS OF THE RETAIL BANKING CUSTOMER PERCEPTIONS

The growing prominence of the need for businesses to consider various stakeholders interests including the environmental aspects has correspondingly led to an interest in green banking. Green Banking is viewed as important for multiple factors including for the achievement of various targets such as the Sustainable Development Goals (SDGs). The views of various stakeholders of banks including the banking customers towards green banking are important for consideration and hence this study uses a descriptive research methodology that focuses on the aspect of green banking and retail banking customers in the urban cities of India. The various responses of the retail banking customers were collected through the use of a semi-structured questionnaire and were subsequently collated and analysed. It was found that the awareness towards green banking was less, but there was a favourable view towards the concept. However, there is an unclarity in their understanding of the resulting influence of green banking practices on the bank itself and less amenability to an increase in costs due to green banking practices. Subsequently, the various identified impediments were analysed with suggested measures to address them and the potential results.

Self-Service Technology: Examining the Influence of Emotions

The purpose of this study is to examine the influence of positive and negative emotions on behavioral intentions as a consequence of self-service technology evaluation by customers. A cross-sectional survey research design was adopted to collect data from 414 customers of retail banks in an emerging market. Structural equation modeling procedure was performed to test the hypothesized relationships. The findings show that positive evaluation of self-service technology leads to positive emotions and consequently influence affective commitment, cross-buying, and positive word-of-mouth; negative evaluation of self-service technology leads to negative emotions and consequently influence patronage reduction, negative word-of-mouth, and third party complaining.