Banking World Research Articles

Value-based banking as a factor of sustainable development

The banking sector is one of the drivers of economic development and is closely related to the functioning of society, the demands of which change according to its evolution. In the era of public demand for guidelines regarding the conscious conduct of business and life, the question of introducing values into banking is acute. Its transformation in the direction of introducing a personal approach and ethical principles while working with clients is being observed; awareness that the formation of close relationships is possible only on the basis of socially significant values and assessment of their impact on the environment, communities and space. That is why the implementation of a value-based approach to banking is an impor­tant and relevant topic. During the re­search, a hypothesis was put forward regarding the need to introduce value-based banking as one of the key drivers of sustainable economic develop­ment. A traditional set of methods for researching economic processes is used: ana­lysis, comparison, and logical genera­lization. The essence and basic norms of the functioning of value-based banking are revealed, the authorʼs vision is formulated. The work prin­ciples of value-based banks, defined by the Global Alliance for Banking on Values, the principles of the concept of sustainable develop­ment, the practical aspects of the implementation of value-based banking based on target, ethical characteristics in the work of individual banking institutions were studied, and on their basis, the own principles of value-based banking were formulated. The main interna­tional and domestic aspects of the functioning of banks that introduce elements of value-based banking are analyzed. It was determined that in fact all the leading banks in the world banking sphere prioritize streng­thening the principles of value banking in the near future. Banks of Ukraine are not lagging behind this process, and certain elements of value-based banking, such as corporate social responsibility, ESG prin­ciples, etc., are being introduced into their activities. The prospects of banking based on a client-oriented approach and the application of the principles of conscious business conduct are formulated.

The Role of E-Satisfaction in Mediating Relationship Marketing (RM) on Banking E-Customer Loyalty

The research objective is to analyze the relationship between relationship marketing (RM) and e-customer loyalty, which is mediated by e-customer satisfaction in the banking industry in Banjarmasin. The increasingly rapid challenges of the banking world require organizations to improve their efforts to provide world-class services in order to attract and retain loyal customers. RM is the key answer to retaining loyal customers. The research was conducted in Banjarmasin with a population of 200 conventional government bank customers using a simple random sampling technique. Data were obtained from interviews with customers using a questionnaire distributed via Google Forms, and data analysis techniques using SEM AMOS 24. The research results prove that RM which consists of trust, commitment, communication, and conflict handling has a positive and significant effect on e-customer loyalty through e-customer satisfaction. This means that to further increase customer satisfaction for them to be loyal, the repair company must be able to maintain good relationships by providing a good level of trust, commitment, communication, and resolve conflicts that occur. Keywords: banking industry, commitment, communication, conflict handling, relationship marketing (RM), trust

Global banking systems, financial stability, and uncertainty: How have countries coped with geopolitical risks?

The study provides global evidence on the effects of news-based geopolitical risk (GPR), events, and associated risks on the financial stability of banking systems. With extensive large panel data from 179 economies over the past decades, we document strong adverse effects of GPR on financial stability with the predicted decrease (increase) in the bank (non-performing loans) Z-score. Commercial banking systems are heterogeneously exposed to GPR. Possible mechanisms to mitigate the effects of GPR include multidimensional financial development, enhanced world governance, and public finance. Our findings are robust with a battery of econometric approaches controlling for time-varying macroeconomic factors and banking characteristics (e.g., capitalization, concentration, performance) across countries and regions. The impacts of GPR on global financial stability are persistent when we control for systematic banking crises, economic policy, world uncertainty, and global uncertainty spillovers. While higher capitalized banks could secure ample financial stability with substantial military expenditure, the Asia Pacific and emerging economies are sensitive to widespread GPR. The study highlights the roles of institutional quality and world governance factors through times of uncertainty. In The context of global risks, greater global and comprehensive collaborations with mitigated GPR threats are inevitable for our inclusive growth toward Sustainable Development Goals. Our findings are critical to policymakers, advisers, and economists for our global financial stability and sustainable development.

Who watches the watchdogs? Central bank board members and banking supervisors in Switzerland (1907–2008)

ABSTRACT The Swiss financial center developed spectacularly during the 20th century, becoming one of the main hubs for cross-border financial transactions. The regulatory environment that enabled this growth is still poorly understood. This contribution examines the government appointees who controlled the banking supervisory institutions (Swiss National Bank and Federal Banking Commission). The focus is on the individuals who supervised those two institutions and analyzes the evolution of their board members from their creation, in 1907 and 1935 respectively, to 2008. This prosopographical study – using indicators such as gender, age, education, career paths and political affiliation – seeks to determine: a) their typical socio-professional profile, b) their closeness to the banking industry and c) their representativeness of society, politics, and business. My findings highlight both significant changes in the last decade of the century, with an increase in the level of education and a drop in political affiliation, and a long-term stability of the socio-professional profile of the board members: middle-aged to elderly men, with a PhD in law or economics, considerable experience in the banking or business world, and often an affiliation with the governing political parties. Both institutions were supervised by individuals with close connections to the financial industry. They became arenas for elite networking, simultaneously failing to represent large segments of society.

Pengaruh Lokasi Terhadap Keputusan Menjadi Nasabah di Bank BSI KCP Pasar Aur Bukittinggi

This research is motivated by competition in the banking world. Where Sharia banks are required to be able to influence society with their advantages. With the support of this strategic business location, consumers can make more decisions to become customers at BSI KCP Pasar Aur Bukittinggi. The aim of this research is to find out how much influence location has on the decision to become a customer at BSI KCP Pasar Aur Bukittinggi. This research uses quantitative methods. The data collection technique uses a questionnaire. Sampling in this study used Rao Purba with a sample size of 96 people. The tests used include, Descriptive Analysis, Pre-Research Test (Validity Test and Reliability Test), Classic Assumption Test (Normality Test, Multicollinearity Test and Heteroscedasticity Test), Simple Linear Regression Analysis Test, and Hypothesis Test (t-Test, F Test and R2 test) assisted with SPSS 20. The results of this research partially show that location has a significant influence on customer decisions with a calculated value of tcount ≥ ttable (8.307 ≥ 3.380). Based on the results of research tests using simple linear regression analysis techniques, it can be stated simultaneously or together that there is a positive and significant influence with a significant F value of 0.000 ≤ 0.05. The test value of the coefficient of determination (R2) has an influence of 0.423 or 42.3% on customer decisions, while the remaining 57.7% is influenced or explained by other variables not discussed in this research.

Analisis Penerimaan Dana Kredit Usaha Rakyat (KUR) Pada UMKM pada PT. Bank BRI Unit Tapa Kota Gorontalo

This research aims to find out whether there is an impact on providing people's business credit (KUR) to MSMEs at PT. Bank Rakyat Indonesia (Persero) Tbk. Tapa Unit Gorontalo Branch Office. This research uses qualitative methods with the data sources used, namely primary and secondary data. The data collection techniques used were observation, interviews and documentation. The object of this research is an analysis of the provision of people's business credit (KUR) funds to PT. BRI bank unit tapa Gorontalo city. The results of the research show that there is an assessment of the character of prospective customers at Bank BRI Tapa unit which is intended to determine the candidate's honesty and good faith in paying off or returning the loan, so that it will not cause difficulties for the bank in the future. The relationship between credit giver and credit recipient is a mutually beneficial cooperative relationship with the credit giver's trust in the credit recipient based on the credit recipient's credit rating. The procedures for granting and assessing credit by the banking world between the BRI Tapa unit and other banks are not much different. The difference may only lie in the procedures and requirements established with individual considerations. Settlement of bad debts in KUR credit at Bank BRI Unit cannot be resolved non-litigationally because Kur itself is a program from the government to make it easier for people who want to do business.

Uncovering Patterns of Fintech Behavior in Italian Banks: A Multidimensional Statistical Analysis

Fintech is changing the financial system and increasing the possibility of access to financial services. Considering the centrality of the banking world in providing financial services, this study aims to offer an analysis of banks' adoption of Fintech. Exploiting a sample of Italian listed banks, this study investigates their adoption of Fintech. Multiple correspondence analysis and hierarchical clustering classification are used to study Fintech factors in Italian banks, starting from significant variables highlighted by the literature: disclosure, financial investments, and collaborations in Sandboxes. Results show that different bank subgroups have specific Fintech features based on various structural characteristics. The implications are both academic and practical. On the one hand, we highlight how these measures make it possible to have homogeneous clusters. On the other hand, we have indications of policies and best practices.

Strategi Bank Syariah Indonesia Mempertahankan Nasabah Melalui Handling Complaint Di BSI KCP Purwokerto

Customer Service is a very important aspect in the banking world. Therefore, banks must focus on providing services to customers. Because good service is a bank's strategy to retain its customers. This study aims to describe the Strategy of Bank Syariah Indonesia to Retain Customers Through Handling Complaints at BSI KCP Purwokerto through the role of customer service in handling complaints in order to retain customers. The type of field research with a qualitative descriptive approach. Data collection techniques consist of observation, interviews, and documentation. This study uses data collection methods, data reduction, data presentation, and drawing conclusions as data analysis techniques. The results of this study indicate that customer service plays a very important role. The role of customer service in handling complaints is as a channel for problem information and solution services. To retain customers, customer service must provide friendly service, approach, and really look for solutions and alternatives to solve problems that occur so that customers feel comfortable and satisfied. So that it can retain customers, both new and old customers

Islamic Law Review of the Principle of Freedom of Contract in Murabahah Contracts

In the banking world there is a tendency for standard contracts, in the form of contracts that have previously been determined and determined unilaterally in terms of the content and form of the contract with the intention of being addressed to the public with the same clauses, are continuous and are usually printed and detailed and cannot be negotiated. Likewise, what applies to Bank Aceh Syariah, the contents of the contract are deliberately left blank to give the customer the opportunity to negotiate and are filled in after an agreement is reached. This kind of contract limits the customer and does not provide a balanced position for either party, who basically has the same opportunity to determine what is desired in the contract. The application of the principles of al-hurriyah, fairness and balance between parties in contracts has been limited in banking. For this reason, this writing aims to find out how the process of making a murâbahah contract/agreement is, the position of the customer and the Aceh Syariah bank in formulating the murâbahah contract and the application of the principle of freedom of contract in the process of making the murâbahah contract according to a review of Islamic law at PT. Bank Aceh Syariah Sub-Branch of UIN Ar-Raniry Banda Aceh. This research is categorized as qualitative research based on data collection methods through Library Research and field research. Based on the studies that have been carried out, the results show that the process of making a murabahah contract/agreement at PT. Bank Aceh Syariah does not fully involve the customer, the customer only has the opportunity to read the contract which has been fully prepared by the bank, so that the position of the customer and the bank is not equal. The bank is in a stronger position and can unilaterally determine the contents of the contractual clauses agreed upon, while the customer is in a weak position and must accept all the contents of the clauses that have been determined by the bank. A position like this shows that the principles of freedom, justice and balance in contracts cannot be fully applied in the process of making murabahah contracts/agreements at PT. Bank Aceh Syariah Capem. UIN Ar-Raniry Banda Aceh.

Navigating through pandemics: a bibliometric analysis of research trends in Islamic finance and Islamic banking

Purpose This study aims to provide a bibliometric analysis of 1,104 journal articles to explore the multifaceted research field of Islamic finance and banking, explicitly emphasising the impact of the COVID-19 pandemic. Design/methodology/approach Insights into the evolving trends and dynamics within the academic discourse are presented. Findings The research highlights different patterns and collaborative networks through co-authorship, co-occurrence and thematic map analyses. Prior to the pandemic, research focused primarily on customer satisfaction and compliance with Shariah principles. However, the pandemic heralded an increased discourse on sustainability, fintech and the financial crisis. Research limitations/implications This review describes the prevailing academic terrain and identifies potential avenues for future research, particularly those that examine the socio-economic impact of the pandemic within the context of Islamic finance and banking. Originality/value Prominent author such as M. Kabir Hassan, leading institution such as the International Islamic University Malaysia and esteemed journal such as the International Journal of Islamic and Middle Eastern Finance and Management have been instrumental in shaping academic discussions and creating synergies in research. Moreover, Malaysia’s strong commitment to spatial research, evidenced by its robust global collaborations, underscores its pioneering role in the academic world of Islamic finance and banking.

Exploring changes in banking workplaces because of digital technology implementation

Orientation: The study was conducted in a banking organisation that was undergoing the implementation of digital technologies as part of the organisation’s strategy.Research purpose: The purpose of the study was to determine how work and work processes have changed because of the implementation of digital technologies in the banking workplace. The findings would allow the banking workplace to implement talent management practices that are aligned with the new digital environment.Motivation for the study: The study was prompted by the implementation of digital technologies that is underway in the banking industry, which is precipitating an evolution of the human capital (HC) function, and talent management processes and practices. To appropriately respond to the Fourth Industrial Revolution (4IR), the new digital workplace of banking requires a novel approach to talent management.Research approach/design and method: This study employed a qualitative approach, and 18 interviews were conducted with employees from the selected banking organisation.Main findings: The present study found that the implementation of digital technologies influenced work and work processes, and thus the talent management value chain within the banking sector. The effective implementation of these technologies requires the transformation of talent management processes and practices. Furthermore, it was found that a reimagined HC function delivery is required. The study established that the HC function delivery must incorporate a digitalised HC function to improve the efficiencies of people-related work processes. Human capital must operate as a strategic business partner and must become a change management agent primed by the action of partnering with business leaders to lead digital transformations from a people perspective in the banking workplace.Practical/managerial implications: Practical recommendations for the HC function, HC professionals, leaders and talent management in the world of banking are provided.Contribution/ value-add: The study contributes to extant literature by exploring theory on the implementation of 4IR technologies and the resultant implications for talent management practices in the digital workplace.

Pengaruh Teknologi Informasi Dan Fitur Layanan Terhadap Keputusan Nasabah Menggunakan Aplikasi BSI Mobile (Studi Kasus Bank Syariah Indonesia KCP Palembang Demang)

The role of technology in the banking world is absolute, where the progress of the banking system has been supported by advances in information technology. The increasingly developed and complex facilities offered to facilitate service, if the Mobile banking application has complete service features, is easy for customers to use, this is one of the factors that can determine customers' decisions in using the application. This research aims to determine the influence of Information Technology and Service Features on Customer Decisions using the BSI Mobile application (case study of Bank Syariah Indonesia KCP Palembang Demang). The method used in collecting data is through a questionnaire using a Likert scale. The sample used was 100 respondents using purposive sampling. The data analysis technique used for the questionnaire was validity and reliability testing, classical assumption testing, hypothesis testing with data processing using IBM SPSS Statistics version 26. The results of this research show that information technology has no influence on customer decisions, and service features positively and significantly influence customer decisions, besides that information technology and service features simultaneously have a positive effect on customer decisions.

THE IMPACT OF E-SERVICE QUALITY AND PERCEIVED RISK ON TRUST IN BANKING SERVICES

The world of banking is still the driving force of the national economy today by channeling funds to third parties. To be able to win the competition, banks must be able to maintain the trust of their customers. The design of this research aims to determine the impact of e-service quality and perceived risk on trust in BRI Jember Branch. The population in this research is planned to be all customers of Bank BRI Jember Branch. The sample design was 75 respondents. The data analysis method is to use descriptive analysis. Validity tests and reliability tests are used to test research measuring instruments. Multiple linear regression analysis was used to test the research hypothesis. The results of this research are expected to show that e-service quality and perceived risk can increase customer trust in BRI Jember Branch.

Phenomenological Study: The Role Of The Financial Services Authority In Resolving Islamic Banking Customer Problems

Problems in the banking world often make customers as disadvantaged parties both materially and immaterially. This certainly encourages customers to make efforts that can avoid losses both in litigation and non-litigation. The purpose of this study is to determine the role of the financial services authority in solving problems experienced by Islamic bank customers. The method used in this study is a qualitative method with a phenomenological approach. Phenomenological studies with data collection methods, namely by observation and interviews. The results of this study show that the financial services authority has an important role in solving customer problems and customer legal protection. The manifestation of the role of the financial services authority can be seen from its authority in terms of taking actions both legally and reprimands to the banking industry to respond and resolve Problems experienced by customers, in addition to their authority in terms of filing claims for compensation or return of customer assets lost due to the bank's fault.

Digital Smart Branch Innovation: Increase Customer Satisfaction and Loyalty Through Quality Service

The development of the situation and business conditions of the banking industry in the future will be more competitive. Therefore, the banking world is required to show better performance to create synergy and provide high value to customers so that it can result in customer loyalty to the bank and is the main key for banks to be able to compete with other banks. The purpose of this study is to re-analyze the effect of digitalization of smart branch services, and service quality, on customer loyalty with customer satisfaction as a mediation variable. The method used in determining the number of samples in this study is non-probability sampling. After all, the population of researchers is not limited or unclear, to save work time, energy, and costs because the population of researchers is limited to the category of researchers. Respondents in this study were 80 0rg. The data was analyzed using the Partial Least Squares (PLS) Technique. The results of this study show that digitalization of smart branch services has a negative and insignificant effect on customer loyalty but has a positive and significant effect on customer satisfaction, service quality has a positive and significant effect on customer satisfaction and customer loyalty, and customer satisfaction can mediate the influence of digitization of service and service quality on customer loyalty. The results of this study can be used as a reference for increasing Bank Mandiri customer loyalty

Understanding banking experiences of autistic adults: an inquiry into inclusive banking

Purpose Navigating the banking world may be overwhelming and intimidating for autistic people due to the generally poor accessibility of banks. Banks around the world are starting to improve the accessibility of their services and products to meet the needs of autistic customers better. However, no empirical research has explored autistic adults’ banking experiences and needs. This study aims to determine what banks can do to make banking more inclusive and accessible for autistic people through understanding the banking experiences of autistic adults living in Australia and identifying the factors that shape these experiences. Design/methodology/approach In total, 57 autistic adults aged 18–67 years (Mage = 33.00, SDage = 11.03) and 29 caregivers of autistic adults aged 32–70 years (Mage = 52.24, SDage = 7.88) completed an online survey about the banking experiences of the autistic adults. In addition, 14 of the 57 autistic adults were interviewed. Findings Almost all autistic participants had a bank account, and online banking was the preferred way of banking for most autistic adults. The factor most often raised by participants that influenced the banking experiences of autistic adults was supportive and helpful bank staff. Other identified factors included autistic adults’ lack of financial and banking knowledge and banks’ poor understanding of autism. The majority of autistic adults felt that banks could become more autism-friendly and provided suggestions. Practical implications Given that most autistic adults are likely to access financial products and services, banks must become more autism-friendly to cater to the diverse needs of autistic customers. Recommendations for how financial institutions can become more inclusive were provided. Originality/value To the best of the authors’ knowledge, this is the first detailed examination of the banking experiences of autistic adults. Practical implications of the research were also provided.

Analisis Manajemen Risiko Keamanan Self-Service Technology Perbankan Syariah

Self Service Technology (SST) is a technology that allows customers to make transactions or carry out services independently without depending on employees. In the banking world, the Self-Service Technology services that customers can use are Automatic Teller Machine (ATM), Mobile Banking and Internet banking services to make things easier customers. However, you must be aware of various risks or potential incidents that could occur when customers use SST services. This research aims to analyze the security risk management of Sharia Banking Self-Service Technology. This research method uses a qualitative approach with field study methods through interviews and documentation. The results of this research are that Bank BJB Syariah has implemented Self-Service Technology security risk management with various strategies to minimize the security risks of Sharia Banking Self-Service Technology.

Pengaruh Net Interest Margin (NIM), Capital Adequacy Ratio (CAR), Dan Non Performing Loan (NPL) Terhadap Profitabilitas Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia periode 2017-2021

The role of banking in advancing the economy of a country is very large. Almost all sectors related to various financial activities always need bank services. Therefore, now and in the future we cannot be separated from the world of banking, both individually, institutionally, socially and corporately. This study aims to examine the effect of net interest margin, capital adequacy ratio, and non-performing loans on profitability in banking companies listed on the Indonesian stock exchange for the 2017-2021 period. The population in this study were 46 companies. Determination of the sample in this study using a purposive sampling technique, namely the technique of determining the sample by using certain considerations. Based on purposive sampling technique, the number of samples used in this study was 80 samples. Financial report data used in this research is quantitative with descriptive research techniques. The data analysis technique used in this study is descriptive statistical analysis, classical assumption test, multiple linear regression analysis, F statistical test, t statistical test and coefficient of determination test. The results in this study state that net interest margin has a significant positive effect on profitability, capital adequacy ratio has a significant positive effect on profitability, non-performing loans have a negative effect on profitability, and net interest margin, capital adequacy ratio, non-performing loans have a simultaneous effect on profitability.

Profitability in State-Owned Enterprises Banks Listed on the Indonesian Stock Exchange 2019-2023 as an Effect of CAR, TATO, and NPL

The world of banking plays a crucial role in society and the government. Banks serve as a vital indicator of a country's progress, making them the lifeblood of its economy. As domestic banking becomes more advanced, the competition between banks is intensifying. Just as a financial analyst would recommend, every bank must strive to secure funds and leverage their resources, management, and technology to achieve optimal efficiency and effectiveness in combating competition. This research seeks to analyze the impact of CAR, total asset turn over (TATO), and NPL on profitability (ROA) in state-owned banks listed on the Indonesia Stock Exchange from 2019 to 2023. The data analysis technique in this research utilizes path analysis. Through data collection, a total of 4 state-owned banks were included in this research. These banks have published financial reports for a span of 5 years, resulting in a dataset of 20 data points. The data collected was analyzed using a tool commonly employed by financial analysts to conduct panel data linear regression analysis. According to the research findings, it is evident that CAR has a noteworthy positive impact on Profitability (ROA). Additionally, TATO also has a positive and significant influence on Profitability (ROA). On the other hand, NPL exhibits a negative and significant effect on Profitability (ROA).

Identification of Evaluation Results in E-Banking Services Transaction for Product Recommendation using the BIRCH and Davies Bouldin Index Method

E-banking transaction services in the banking world include many products offered to customers. However, the existence of regulatory factors may limit the extent to which banks can promote e-banking services, especially in cases where promotions involve incentives or special offers. Besides, there is a need for data analysis that is used to help the process of recommending product promos from these services. Recommendations for this product promo can be known from the evaluation process of data collected from e-banking transaction services for purchases and payments. The clustering method suitable for providing significant and influential results compared to other methods is BIRCH, which is assisted by the Davies Bouldin Index method to determine the list of product groups with the lowest value. The results of this evaluation process show that data can be grouped based on which services have low levels of use. The services in question are Deposits, Credit Cards on Mobile Services, OVB, and Inter-Bank Transfers on Mobile Services. Therefore, this service can be used as a reference to increase product promotion by the bank.