Traditional Banking Services Research Articles

How Fired Up Is BCA's Strategy for AEC 2016 Banking Regime?

Bank BCA as the largest transactions payments bank in Indonesia has a lot of competitive edge compared with domestic rivals. It is the leading bank in adoption of latest technology in areas that range from traditional banking services, mobile banking and internet banking services, transactions payments, to bank security. And thanks to its corporate governance structures and risk management capabilities the bank that ranks as the second largest bank by assets in the US$800 Billion Indonesian economy, rarely suffers from financial fraud. Nonetheless, with the coming into force ASEAN economic community and the ASEAN financial services market in 2020, the key factors that have sustained the bank’s competitive advantage may not hold any longer as competitors from Thailand, Singapore, Malaysia, and other ASEAN members will also be allowed to establish their services in the country. The challenge the bank faces then include the need to reorient its competitive strategy from one that is domestically focused to that that traverses the entire ASEAN region as the potential market for its services; the need to diverse its customer base; enhance its human resources to meet the demands of an increasingly diverse, demanding, mobile customer base. The new economic and financial landscape that will take shape after 2016 demand a revisiting of the business strategy, and positioning, for the bank to not only maintain its competitive advantage but also explore and expand its market share to financial markets in other ASEAN member economies. Recommendations drawn are basically driven by that perspective in mind.

The 'Other' Credit Report: What You Don't Know Can Hurt You

Nearly 90% of financial institutions use ChexSystems or similar account screening reports in their account opening process, yet they are under no duty to disclose this to consumers until an account is denied due to information contained in the report. For those consumers denied accounts, it is too late. They had no idea information was being collected on their checking account usage, much less that it could be used to deny them an account in the future, and are subsequently forced to go outside the mainstream and use expensive alternatives like check cashing services and money orders to conduct their everyday financial business. Increased consumer awareness of these reports is necessary so that consumers better understand the impact poor account management may have on their future usage of traditional banking services. This article examines these reports, the impact on consumers when they can’t open a new account based on information contained in such reports, and how changes in overdraft practices have encouraged poor account management, which in turn may have resulted in even more negative reports. The article also examines how the Fair Credit Reporting Act (“FCRA”) applies to account screening reports and whether new overdraft practices technically result in loans, triggering additional disclosure. The article concludes with recommendations, discussing how the reporting system could be improved and how consumers could be better informed and protected.

A Behavioural Model of E-Banking Usage in Italy

E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. “Pure online” banks are characterized by the absence of physical windows and front-office personnel. Traditional banks are still integrating traditional distribution channels with online ones; the scenario is therefore still evolving over time. Despite the intrinsic potentialities, Italy is far from being a leader in the usage of innovative online instruments in the banking system and will struggle with new innovation waves.In this paper, we measure the potential effective e-banking usage. Furthermore, we investigate the behaviour of users and adopters, identifying the major causes influencing satisfaction and usage and the impact of these different causes on the intensity of utilization. The analysis is based on a panel of 495 real users, thus allowing the profiling of the Italian adopter to discover the causes of usage and outline strategies for the growth of e-banking services in Italy.

An exploratory study of mobile banking services resistance

The purpose of this study is to investigate mobile banking services use in the USA, China, Korea and Finland which are using the most advanced wireless infrastructure but encountering numerous inhibitors delaying the widespread use of m-banking services. Through a qualitative approach, a case study using semi-structured interview was employed to identify the crucial factors leading the users who do not use m-banking services to reject, postpone, or oppose them. Twenty non m-banking users from each country were interviewed and the data were analysed using qualitative content analysis with the software NVivo9. This study informs m-banking decision-makers of the significant inhibitors of m-banking services use and the characteristics of those who are classified as non-users. The results indicate that well developed traditional electronic banking services are significant barriers to m-banking services use. Perceived risk and lack of knowledge about m-banking contribute to non-use or rejection of m-banking services.

Exploring attitude of Indian customers towards internet banking

Internet banking is considered a latest technological fad, which is supposed to transform the traditional banking services. This research is focused towards understanding the suitability of internet banking as a delivery channel and consequently its acceptability in the minds of Indian customers. The customers’ concerns visible were related to difficulty in using internet, navigating the bank website and fears associated with committing mistakes that might result in financial loss and inconvenience.

Zoning Out Payday Loan Stores and Other Alternative Financial Services Providers

Payday lenders and similar alternative financial services providers are primarily regulated at the state level, but local governments have increasingly begun to impose restrictions of their own on these fringe financial services providers. While some ordinances have focused on lending restrictions and other consumer protections, most municipal payday lender regulations are found in zoning and other land use laws.Zoning has long been used to restrict the siting of undesirable land uses – ranging from junkyards and landfills to tattoo shops and adult businesses – making it an ideal method for local governments to regulate payday lenders. Experience with other unwanted land uses has led to the development of various zoning techniques appropriate for controlling these businesses, such as separation and dispersal requirements, nonconforming use limitations, special permit procedures, and partial or total exclusions.This article provides an overview of these and other approaches that local governments have taken to regulate alternative financial services providers. After providing some background regarding the general functions and characteristics of these businesses in the first section, the second section discusses state-level financial regulations and preemption issues. The third section covers the different types of municipal controls that have been imposed on payday lenders and similar businesses, drawing on actual ordinances as well as on case law discussing their use and validity. Finally, the fourth section mentions several alternative, incentive-based non-zoning approaches that have been used to improve financial literacy and extend traditional banking services to a broader population. An appendix listing and briefly describing more than 60 payday lender ordinances is also included.

E*Trade Financial Services

The electronic age continues to grow and to offer new and more efficient forms of electronic trade and electronic commerce. As this evolution continues, it is no surprise that the online financial services industry is seeing both significant changes and new revenue potential. One of the players in the online financial services industry is E*Trade Financial Services. Launched in 1992, the company was a pioneer in online brokerage services. At its inception, E*Trades focus was on becoming Americas dominant deep-discount brokerage firm by fully automating the front and back-office trade processing function and maintaining its position as the low-cost provider. Today, E*Trade offers a diverse and integrated portfolio of services including deep-discount brokerage services, traditional banking services like checking and savings, and mortgage and equity services. E*Trade strives to provide a range of services that are consolidated under one website, to provide convenience, and to be accessible 24/7. E*Trade also provides the tools necessary to guide clients through their financial needs. E*Trade faces growing competition as the industry is facing self-destructive price-war and, thus to reduce the costs, undergoing huge consolidations. While the competition is tough, E*Trade has a strong presence and percentage of marketshare in the industry. The company has proven that it can attract customers and provide the information and tools that they require to manage their own portfolio. The self-directed investors and the individuals who want control of and access to their finances are the core customers of E*Trade, and the company caters to them in terms of products and services. Where will E*Trade go from here? Should the company continue to slash the fee and commission charges like others do, or should it diversify its services and focus on core revenue generator of brokerage services? These questions are addressed in this paper as well as the current market position and the types of services that are offered. The paper provides a snapshot of what E*Trade is, what it does, and where it is going.

Old National Bancorp (Evansville, IN)

AbstractCommercial Banking (MIC: SIC: 6021 NAIC:522110)Old National Bancorp, with total assets of $7.85 billion and deposits of $5.66 billion as of Dec 31 2007, is a financial holding company headquartered in Evansville, IN. Co., through its wholly owned banking subsidiary, provides a range of services, including commercial and consumer loan and depository services, investment and brokerage services, lease financing and other traditional banking services. Through its non‐bank affiliates, Co. provides services to supplement the banking business including fiduciary and wealth management services, insurance and other financial services. As of Dec 31 2007, Co. operated 115 banking financial centers primarily in Indiana, Illinois, and Kentucky.

BankAtlantic Bancorp, Inc.

AbstractOther Depository Banking (MIC: SIC: 6035 NAIC: 522120)BankAtlantic Bancorp is a financial services holding company and owns BankAtlantic and its subsidiaries. As of Dec 31 2007, BankAtlantic provided traditional retail banking services and a range of business banking products and related financial services through a network of more than 100 branches or stores in southeast and central Florida and the Tampa Bay area, primarily in the metropolitan areas surrounding the cities of Miami, Ft. Lauderdale, West Palm Beach and Tampa, which are located in the Florida counties of Miami‐Dade, Broward, Palm Beach, Hillsborough and Pinellas. At such date, Co. had total assets of about $6.38 billion, and total deposits of about $3.95 billion.

Trustmark Corp.

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Trustmark is a multi‐bank holding company. Through its subsidiaries, Co. operates as a financial services organization providing banking and financial services to corporate, institutional and individual customers mainly in Florida, Mississippi, Tennessee and Texas. Co.'s key subsisiary is Trustmark National Bank. Co. operates through four segments: general banking, which provides traditional banking products and services; wealth management, which provides services for accumulating, preserving, and transferring wealth; insurance; and administration, which consists of Co.'s internal operations. As of Dec 31 2007, Co. had total assets of $8.97 billion and deposits of $6.87 billion.

Old National Bancorp (Evansville, IN)

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Old National Bancorp, with total assets of $7.85 billion and deposits of $5.66 billion as of Dec 31 2007, is a financial holding company headquartered in Evansville, IN. Co., through its wholly owned banking subsidiary, provides a range of services, including commercial and consumer loan and depository services, investment and brokerage services, lease financing and other traditional banking services. Through its non‐bank affiliates, Co. provides services to supplement the banking business including fiduciary and wealth management services, insurance and other financial services. As of Dec 31 2007, Co. operated 115 banking financial centers primarily in Indiana, Illinois, and Kentucky.

BankAtlantic Bancorp, Inc.

AbstractOther Depository Banking (MIC: SIC: 6035 NAIC: 522120)BankAtlantic Bancorp is a financial services holding company and owns BankAtlantic and its subsidiaries. As of Dec 31 2007, BankAtlantic provided traditional retail banking services and a range of business banking products and related financial services through a network of more than 100 branches or stores in southeast and central Florida and the Tampa Bay area, primarily in the metropolitan areas surrounding the cities of Miami, Ft. Lauderdale, West Palm Beach and Tampa, which are located in the Florida counties of Miami‐Dade, Broward, Palm Beach, Hillsborough and Pinellas. At such date, Co. had total assets of about $6.38 billion, and total deposits of about $3.95 billion.

Trustmark Corp.

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Trustmark is a multi‐bank holding company. Through its subsidiaries, Co. operates as a financial services organization providing banking and financial services to corporate, institutional and individual customers mainly in Florida, Mississippi, Tennessee and Texas. Co.'s key subsisiary is Trustmark National Bank. Co. operates through four segments: general banking, which provides traditional banking products and services; wealth management, which provides services for accumulating, preserving, and transferring wealth; insurance; and administration, which consists of Co.'s internal operations. As of Dec 31 2007, Co. had total assets of $8.97 billion and deposits of $6.87 billion.

Old National Bancorp (Evansville, IN)

AbstractCommercial Banking (MIC: 8.1 SIC: 6021 NAIC: 522110)Old National Bancorp, with total assets of $7.85 billion and deposits of $5.66 billion as of Dec 31 2007, is a financial holding company headquartered in Evansville, IN. Co., through its wholly owned banking subsidiary, provides a range of services, including commercial and consumer loan and depository services, investment and brokerage services, lease financing and other traditional banking services. Through its non‐bank affiliates, Co. provides services to supplement the banking business including fiduciary and wealth management services, insurance and other financial services. As of Dec 31 2007, Co. operated 115 banking financial centers primarily in Indiana, Illinois, and Kentucky.

BankatlAntic Bancorp, Inc.

AbstractOther Depository Banking (MIC: 8.5 SIC: 6035 NAIC: 522120)BankAtlantic Bancorp is a financial services holding company and owns BankAtlantic and its subsidiaries. As of Dec 31 2007, BankAtlantic provided traditional retail banking services and a range of business banking products and related financial services through a network of more than 100 branches or stores in southeast and central Florida and the Tampa Bay area, primarily in the metropolitan areas surrounding the cities of Miami, Ft. Lauderdale, West Palm Beach and Tampa, which are located in the Florida counties of Miami‐Dade, Broward, Palm Beach, HillsboroughandPinellas. At such date, Co. had total assets of about $6.38 billion, and total deposits of about $3.95 billion.

Alternative financial service providers and the spatial void hypothesis

This paper studies the spatial relationship between traditional banking services (Banks) and alternative financial service providers (AFSPs). The main objective is to test the so-called spatial void hypothesis that AFSPs tend to locate in markets where traditional banking services are under-provided. The key question of interest here is whether or not AFSPs serve markets with significantly lower income levels than those of Banks. One of the main contributions of this paper is to develop a statistical methodology for addressing this question that builds on previous studies. The present approach is based largely on K-function analyses of both individual and paired point patterns. These Monte Carlo testing procedures are applied to Banks and AFSPs in the four-county region around Philadelphia, Pennsylvania, and are also compared with previous methods. In contrast to previous work, the key finding of the present research is that there is indeed strong empirical support for the spatial void hypothesis in this Philadelphia region.

Old National Bancorp (Evansville, IN)

AbstractCommercial Banking (MIC: 8.1 SIC: 6021 NAIC: 522110)Old National Bancorp, with total assets of $8.15 billion and deposits of $6.32 billion as of Dec 31 2006, is a financial holding company headquartered in Evansville, IN. Co., through its wholly owned banking subsidiary, provides a range of services, including commercial and consumer loan and depository services, investment and brokerage services, lease financing and other traditional banking services. Through its non‐bank affiliates, Co. provides services to supplement the banking business including fiduciary and wealth management services, insurance and other financial services. As of Dec 31 2006, Co. operated 120 banking financial centers primarily in Indiana, Illinois, and Kentucky.

BankAtlantic Bancorp, Inc.

AbstractOther Depository Banking (MIC: 8.5 SIC: 6035 NAIC: 522120)BankAtlantic Bancorp is a financial services holding company and owns BankAtlantic and its subsidiaries. As of Dec 31 2006, BankAtlantic provided traditional retail banking services and a range of commercial banking products and related financial services through a network of more than 90 branches or stores in southeast Florida and the Tampa Bay area, primarily in the metropolitan areas surrounding the cities of Miami, Ft. Lauderdale, West Palm Beach and Tampa, which are located in the Florida counties of Miami‐Dade, Broward, Palm Beach, Hillsborough and Pinellas. At such date, Co. had total assets of about $6.50 billion, and total deposits of about $3.87 billion.

First Commonwealth Financial Corp. (Indiana, PA)

AbstractCommercial Banking (MIC: 8.1 SIC: 6021 NAIC:522110)First Commonwealth Financial is a bank holding company. Co. has one chartered bank and trust company subsidiary, First Commonwealth Bank (FCB), which engages in the general banking business and offers a range of financial services including traditional retail banking services such as savings and time deposits and mortgage, consumer installment and commercial loans. In addition, Co. has a personal financial‐planning subsidiary named First Commonwealth Financial Advisors, and provides insurance products through First Commonwealth Insurance Agency, a wholly owned subsidiary of FCB. As of Dec 31 2006, Co. had $6.04 billion in total assets and $4.33 billion in total deposits.

Does quality of alternatives matter for internet banking?

This study aims to examine how the quality of service alternatives influences Internet Banking (IB)customers' behaviours. Although the newly developed IB is a fast-growing channel, the traditional brick-and mortar face-to-face banking services are still pervasive. Therefore, it is important to understand how the quality of alternatives (traditional banking services) influences customers' behaviours. In the present study, we proposed that quality of alternatives dampens the perception of service quality, value, satisfaction and ultimately customer's intention of using IB. The model was tested using survey data from 156 individuals who were using IB. The results indicated that the quality of alternatives has both direct and indirect influences on IB customers' behaviours.