Retail Banking Products Research Articles

Measuring Effects of Interest Rate Fluctuations on Retail Loan Holder in Metropolitan City: Evidence from Nepal

Background: Interest rate fluctuations have long been a critical research topic, particularly in relation to retail loan holders. In Nepal, the status of retail loans has been progressively improving, making it essential to understand how interest rate changes affect retail loan borrowers in Kathmandu Valley. Objective: This study aims to investigate the impact of interest rate fluctuations on retail loan holders in Kathmandu Valley. It seeks to determine how these fluctuations influence banking performance and retail loan products in the context of Nepalese financial institutions. Method: A descriptive research design was employed, focusing on retail loan holders from Nepalese financial institutions in Kathmandu Valley. A sample of 383 retail loan borrowers was selected using simple random sampling. Data were collected via a structured questionnaire. The analysis involved descriptive statistics, correlation, regression, as well as pre-estimation and post-estimation techniques. Result: The findings indicate that interest rate fluctuations have a positive and significant impact on retail loan products offered by Nepalese banking institutions. Higher interest rates tend to enhance retail loan offerings, contributing to improved banking performance and increased creativity in loan practices. Conclusion: The study underscores the positive role of interest rate fluctuations in shaping retail loan products and banking performance in Nepal. It suggests that financial institutions could benefit from adjusting their interest rates to foster better loan practices and improve overall performance. For economic benefit, banks should consider lowering interest rates and providing attractive returns to depositors to balance their profitability and enhance financial stability. This research provides a foundation for further academic exploration into the effects of interest rates on retail loan behavior. Paper Types: Research Paper Keywords: Interest rate, Retail banking products, Ordered logistic model, Kathmandu valley. JEL Classification: G1, E43, G21 and G41

Retail banking concept from a formal perspective

Expressions like “retail banking”, “retail banking products”, “retail banking services” have become very widespread in recent years in the banking environment, the media, the scientific literature, etc. In addition, such phrases are more and more often found in normative acts. However, there is no definite understanding of those terms. In literature, in order to define the phenomenon, various general and evasive features are used. At the same time, for accounting, taxation, reporting, statistics, but especially for prudential regulation, an exact delimitation of retail banking is necessary. This article is dedicated to an overview of the existing views on the notion of “retail banking” and its clarification from a formal point of view.

An Evaluation of Retail Banking Products’ Performance: A Study on Selected Bankers

The study has examined to categorize the retail banking products according to their important performance on scheduled commercial banks operating in Chittagong, Bangladesh. To do this, the authors have collected data from 118 bankers who are working at different level in different banks. Data have been analyzed with the help of SPSS IBM (Statistical Package for Social Science) 21.0 version. Factor analysis as well as multiple regression analysis has been conducted to get the result. Bartlett's Test of Sphericity along with Kaiser-Meyer-Olkin (KMO) statistics has been used to highlight three (03) categories retail products responsible for retail banking products’ performance of scheduled commercial banks. The study has found that these three (03) categories could explain 59.169% of total variability of retail banking products’ performance. Finally, multiple regression analysis has suggested that these three (03) categories of retail products influenced retail banking products’ performance most significantly. Limitations and further research directions are also discussed.

RETAIL BANKING PRODUCTS: CUSTOMER’S EXPECTATIONS, AWARENESS AND SATISFACTION

RETAIL BANKING PRODUCTS: CUSTOMER’S EXPECTATIONS, AWARENESS AND SATISFACTION

Retail Loan Under Interest Rate Fluctuation in Nepal: Costumers Interest, Challenges and Managerial Solutions

Globally, interest rates play an important role in banking loans for all types of customers. In the present context, the banking sector is growing in Nepal. Banking sector is being popular for saving and retail loan purposes among the people of Kathmandu valley. Now a days, retail banking loan is being considered as one of the most innovative financial services provided by the various banks and financial institutions. This paper presents dimensional analysis of retail loan under interest rate fluctuation in Nepal. Respondents for the study were chosen using convenience sampling and random sampling methods. Convenience sampling was primarily used to select bank employees, while random sampling was used to select bank customers. The structured questionnaire, expert opinion, and pre-test interview are research instruments used in the study to collect data from bank employees and customers of Karhmandu valley. This paper reveals that youth and highly educated people are more attracted towards the retail banking products. Most of the respondents focus that there is a challenge in retail loan.

Digitalization of socially oriented retail banking products and their security

The presented study examines over five years of experience in the development of socially oriented retail banking products and their transition towards remote service channels. Aim . The study aims to structure the major stages in the development of market relations and digitalization of the economy, including the banking sector. Tasks . The authors identify key problems and activities in the application of technological and administrative measures resulting from the transition of customers of credit institutions towards remote service channels for socially vulnerable segments of the population. Methods . This study uses general methods to analyze the development of such socially important banking services as mortgage lending, bank cards, loans to public employees, and education loans. Results. The problems of digitalization of socially oriented banking products consist in the low extent to which banks use their customer base and knowledge about clients. In Russia, there is a need for insurance against fraudulent activities with funds deposited in customer accounts. Digitalization of the financial component is impossible without the implementation and promotion of new technologies in the banking sector. Conclusions . The government should take active part in the development of social responsibility by establishing special programs, prizes, awards, and tax incentives. To substantiate the sustainability of the commitments made towards socially responsible behavior, banks need to constantly maintain internal control over compliance with the current strategy for the development of digitalization of socially oriented retail banking products and their security.

Retail Banking: Impact of Technology-based Service Quality Dimensions on Customer Satisfaction

The focus of this paper is to study the customer satisfaction based on influence of employee’s perception about banking technology used for retail banking of Public Sector Banks (PSBs) of India. The study was based on primary data collected through structured questionnaire by random sampling. The result suggests that there is need to provide continuous training to employees on effective, secure and safe use of banking technology for increasing employees’ overall productivity and building customer loyalty. Identification of these factors may help in better cross-selling and up-selling opportunities for retail banking products and services. This study may enable managers to take better marketing initiatives for existing and prospective retail banking customers.

Generations on New Technologies in Retail Banking in the Context of Knowledge Economy

Together with development of innovative technology, retail banks increasingly and more frequently apply it to create and provide customers value. Such trends are justified in the article, considering the development of information society as well as progressing diversity in customers' preferences. The differences are increasingly stronger, especially if consumers' age representing different generations. The purpose of the article is to identify and evaluate the scope of use of retail banking products based on innovative technologies by customers in total, and while taking into account belonging to three various generations. According to the results of the research, security, lower price and growth of the comfort of use are the key factors to encourage the customers to use innovative solutions in banking. The most important barriers in that area are the costs that occur together with products based on advanced technologies and perceived risk of using unknown earlier services. However, acceptance of technologically advanced products by a wide range of customers depends on generation.

Study on Views of Customers on Retail Banking Products of Banking Industry in Krishna District, A.P.

Study on Views of Customers on Retail Banking Products of Banking Industry in Krishna District, A.P.

Introducing Islamic Banking in New Markets

A mini book on how to introduce Islamic banking in New Markets and highlighting myths, hurdles and thump-rules of Islamic finance. Also it contains brief description of the retail and corporate banking products used in major markets of Islamic banking.

A structural model for estimating losses associated with the mis-selling of retail banking products

In this paper, a structural model is presented for estimating losses associated with the mis-selling of retail banking products. This is the first paper to consider factor-based modeling for this operational/conduct risk scenario. The approach employed makes use of frequency/severity techniques under the established loss distribution approach (LDA). Rather than calibrate the constituent distributions through the typical means of loss data or expert opinion, this paper develops a structural approach in which these are determined using bespoke models built on the underlying risk drivers and dynamics. For retail mis-selling, the frequency distribution is constructed using a Bayesian network, while the severity distribution is constructed using system dynamics. This has not been used to date in driver-based models for operational risk. In using system dynamics, with elements of queuing theory and multi-objective optimization, this paper advocates a versatile attitude with regard to modeling by ensuring the model is appropriately representative of the scenario in question. The constructed model is thereafter applied to a specific and currently relevant scenario involving packaged bank accounts, and illustrative capital estimates are determined. This paper finds that using structural models could provide a more risk-sensitive alternative to using loss data or expert opinion in scenario-level risk quantification. Further, these models could be exploited for a variety of risk management uses, such as the assessment of control efficacy and operational and resource planning

Customer Perception and Influence of Media Campaigns on Retail Banking Products’ Patronage: A Study of Firstbank of Nigeria Ltd

This study examines Customer Perception and Influence of Media Campaigns on Retail Banking in Nigeria: A study of First Bank of Nigeria Ltd adverts. It is aimed at identifying various media used by First Bank of Nigeria Ltd in reaching out to its customers; determining the influence of media campaigns on the customers; determining the perception of the customers towards the bank’s advertisement. A survey research method was used; data was obtained from both primary and secondary. A total of hundred (100) questionnaires were purposively administered to selected customers of Bukuru branch of the bank to elicit information on their perception on its products and services and the efficacy of the various media adverts. The theory used for this study is Cultivation perception of Social Reality theory, which states that the audience should pay attention to mass communication messages, learn the contents of the messages and make appropriate changes in attitudes or beliefs or produce the desired behavioural responses. Uses and Gratification theory was used to examine how media consumers are influenced by the content. The study found that First Bank’s placement of adverts in the television, radio, newspapers, internet and billboards influence the customers’ perception on their products and services and recommends that, more of these media campaigns should be undertaken by the Bank to increase her level of profitability.

Service excellence in UK retail banking: customers’ perspectives of the important antecedents

Purpose – The purpose of this paper is to develop and tests a service excellence model, thus providing a detailed understanding of the key antecedents of service excellence, from a customer ' s perspective. The model presented in this paper is rooted in cross-disciplinary literature and tested amongst customers of UK retail banking services. Design/methodology/approach – Following a systematic approach to scale development, the paper draws on survey data from 260 consumers of retail banking products, with the data collected on national basis in the UK. Findings – The theoretical framework was evaluated using a structural approach. Of the hypothesised antecedents, innovation has the greatest impact on service excellence while reputation the least, as far as customers are concerned. Research limitations/implications – The research was limited to one research domain, i.e. UK retail banking, and thus it is reasonable to hypothesise that other aspects of service excellence will be more or less relevant for other types of financial services or in other geographic regions. Practical implications – Given the challenges faced by the retail banking sector, there are implications for practitioners because the authors identified the key antecedents of service excellence. The antecedents can be used by practitioners to help demonstrate excellence on their part and they could differentiate what are homogenous services at a time when the retail banks are going through a period of recovery following the crisis within the sector. Originality/value – This work complements the understanding of service excellence and provides insight for scholars and practitioners by modelling services for a specific service sector.

English

Automated Teller Machine (ATM) banking is the second popular access channel to banking services behind branch banking in Malawi which offers competitive advantage in the homogenous market of retail banking products and services. It is important that banks achieve service quality and customer satisfaction to remain competitive through ATMs. The results are from 353 ATM card users where over half are satisfied with ATM services from their respective banks. All the ATM service attributes within the five service quality dimensions are important to ATM service users but performance is perceived good in ATM technology related attributes and poor in employee and management functionality related attributes. The results have further found that all service quality dimensions significantly correlate with customers satisfaction with ATM services and that reliability is the most important dimension followed by responsiveness, empathy, assurance and tangibles are the least important dimension agreeing with previous studies by Berry et al., Parasuraman et al. and Zeithmal et al. However, not all service quality attributes rated important by users contributed to their satisfaction. Therefore, the results designate that for banks to remain competitive through ATM banking efforts should be exerted in providing responsive ATM services. Further investment in newer ATM technologies may have marginal returns in creating competitive advantage since all banks are installing newer ATM technologies that enhance functionality and reliability of ATMs but differences are in the provision of responsive services that augment the ATM services provision.   Keywords: Customers’ satisfaction, ATMs, service quality.

Impact of Retail Banking on Customer Satisfaction in Delhi

Retail banking in India has fast emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth in the recent past. The inflow of consumerism has its natural spill over effect in terms of increased demand of retail banking products like loans, cards, customized products and services. The Retail Banking Report provides extensive study & analysis of this rapidly growing sector. It mainly covers analysis of the present status, current trends, major issues & challenges in the growth of the retail banking sector. This report helps in Banks, financial institutions, MNC Banks, academicians, consultants and researchers to have a better understanding of the booming opportunities in retail banking in India.

The Determinants Of Islamic Retail Banking Adoption In Malaysia

This study aims to examine the factors affecting the adoption of Islamic retail banking (IRB) products and services among the banking customers of Malaysia. The market share of Islamic retail banking remains low despite being in operation for the past 28 years. Therefore, an empirical analysis was conducted to study the usage of Islamic retail banking products and services between the urban and rural banking customers of Malaysia. Comparisons were also made on the usage of Islamic deposits and financing schemes between the Muslim and non-Muslim customers. The findings of the study revealed, relative advantage, promotional efforts, complexity, compatibility and awareness on attributes of Islamic retail banking as the significant determinants of the usage of Islamic retail banking products and services. Thus, the findings of this study serves as a valuable guideline to the banking sector and policy makers to devise appropriate marketing strategies to promote Islamic retail banking products and services aggressively among the banking customers of Malaysia.

IBERIABANK Corp

AbstractCommercial Banking (MIC: SIC: 6022 NAIC: 522110)IBERIABANK is the bank holding company for IBERIABANK (the Bank), a Louisiana banking corporation. As of Dec 31 2007, the Bank operated 150 combined offices, including 81 bank branch offices in Louisiana, Arkansas and Tennessee, 30 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 39 locations in eight states. Co. offers commercial and retail banking products and services through the Bank and Pulaski Bank and Trust Company; operates mortgage production offices through Pulaski Mortgage Company, and offers a line of title insurance and closing services. As of Dec 31 2007, Co. had total assets of $4.92 billion and total deposits of $3.48 billion.

IBERIABANK Corp

AbstractCommercial Banking (MIC: SIC: 6022 NAIC: 522110)IBERIABANK is the bank holding company for IBERIABANK (the Bank), a Louisiana banking corporation. As of Dec 31 2007, The Bank operated 150 combined offices, including 81 bank branch offices in Louisiana, Arkansas and Tennessee, 30 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 39 locations in eight states. Co. offers commercial and retail banking products and services through IBERIABANK and Pulaski Bank; operates mortgage production offices through Pulaski Mortgage Company, and offers a line of title insurance and closing services. As of Dec 31 2007, Co. had total assets of $4.92 billion and total deposits of $3.48 billion.

IBERIABANK Corp

AbstractCommercial Banking (MIC: 8.1 SIC: 6022 NAIC: 522110)IBERIABANK is the bank holding company for IBERIABANK (the Bank), a Louisiana banking corporation. As of Dec 31 2007, The Bank operated 150 combined offices, including 81 bank branch offices in Louisiana, Arkansas and Tennessee, 30 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 39 locations in eight states. Co. offers commercial and retail banking products and services through IBERIABANK and Pulaski Bank; operates mortgage production offices through Pulaski Mortgage Company, and offers a line of title insurance and closing services. As of Dec 31 2007, Co. had total assets of $4.92 billion and total deposits of $3.48 billion.

Economics of access in a developing country: an analysis of firm‐conduct in financial services

PurposeThe purpose of this paper is to assess the impact of industrial concentration on the level of access to financial services in a developing country context. In most studies, price is the only variable that is used to assess conduct. In this paper, we extend the standard approach by assessing the impact of concentration on the level of access to retail financial services in South Africa.Design/methodology/approachTwo regression models have been specified and tested.FindingsIt is found – as with most of the literature – that concentration has an impact on the conduct of retail financial services firms. Specifically, the study illustrates that the pricing of retail banking products in South Africa fits with the structure‐performance hypothesis and secondly, the level of access to services is inadequate, does not meet the needs of consumers and is a symptom of market power and the absence of a competitive market in retail banking.Practical implicationsThe findings imply that there is a need for greater regulatory focus on the enhancement of social welfare in the retail banking sector in South Africa. There is also a need to develop policy and increase provision of basic infrastructure, in particular, electricity so as to reduce the cost of distribution, supply and intermediation of retail bank products.Originality/valueThe key contribution of this paper is that it delineates conduct into two parts. It separately illustrates that concentration in the financial services sector can adversely affect social welfare in two ways. First, as is well known, it increases prices second, it reduces the level of supply and access provided to points of need. This is believed to be the first study to explicitly do this in a developing country context.