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

2015 ◽  
Vol 33 (7) ◽  
pp. 904-921 ◽  
Author(s):  
Harjit Singh Sekhon ◽  
Dima Al-Eisawi ◽  
Sanjit Kumar Roy ◽  
Adrian Pritchard
Keyword(s):  
Financial Services ◽  
Service Sector ◽  
Banking Sector ◽  
Retail Banking ◽  
Banking Services ◽  
Content Type ◽  
Service Excellence ◽  
The Uk ◽  
Retail Banks ◽  
Practical Implications

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.

Beyond placement, layering and integration – the perception of trade-based money laundering risk in UK financial services

2019 ◽  
Vol 22 (4) ◽  
pp. 614-625 ◽  
Author(s):  
Mario Menz
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Trade Finance ◽  
Content Type ◽  
Proceeds Of Crime ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this study was to investigate the perception of trade-based money laundering in Letters of Credit (“L/C”) transactions among trade finance practitioners in the UK banking sector and to compare it to the perception of the same risk by the Financial Conduct Authority (“FCA”), the regulator of the UK’s banking sector. Design/methodology A survey was used to carry out research among financial services professionals engaged in trade finance in the UK. Findings This paper contributes to the existing literature in a number of ways. First, it investigates the perception of trade-based money laundering risk from the perspective of financial services professionals, which has not previously been done. Second, it argues that the perception of trade-based money laundering in financial services is overly focussed on placement, layering and integration, and that the full extent of the offence under the Proceeds of Crime Act 2002 is less well known. It further found that financial services firms need to improve their understanding of the nature of trade-based money laundering under UK law. Practical implications This study argues that the financial services sector’s perception of trade-based money laundering risk in trade finance is underdeveloped and makes suggestions on how to improve it. Originality/value It provided unique insight into the perception of trade-based money laundering risk among financial services professionals.

ESMA issues Brexit opinions to EU regulators: a warning shot not only to the UK but also to the EU27

2017 ◽  
Vol 18 (4) ◽  
pp. 50-52
Author(s):  
William Yonge ◽  
Simon Currie
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Financial Firms ◽  
Practical Guidance ◽  
The Uk ◽  
Practical Implications ◽  
The Eu

Purpose To summarize and analyse four opinions issued in May and July 2017 by the European Securities and Markets Authority (“ESMA”) concerning regulatory and supervisory arbitrage risks that arise as a result of increased requests from financial market participants to relocate activities and functions in the EU27 following the UK’s decision to withdraw from the EU, and the expected regulatory response to those risks. Design/methodology/approach Discusses the possible relocation of financial firms, activities and functions following the UK’s decision to withdraw from EU; the resulting cross-sectoral regulatory and supervisory arbitrage risks that ESMA foresees; nine principles that ESMA enumerates to guide its regulatory response to those risks; some common themes that emerge from ESMA’s July Opinions; and the implications for UK firms and trading venues seeking to establish a presence in the EU 27. Findings ESMA foresees regulatory and arbitrage risks in Brexit and a potential “race to the bottom” as certain national regulators jostle for and grab UK market share. Practical implications UK firms and trading venues seeking to establish a presence in the EU27 from which to operate will need to give detailed consideration and focus to the resources and operational substance which will need to be located in the jurisdiction in which that presence is established. Originality/value Practical guidance from experienced financial services, securities and fund management lawyers.

The role of positioning in the retail banking industry of Sub-Saharan Africa

2017 ◽  
Vol 35 (4) ◽  
pp. 685-713 ◽  
Author(s):  
Charles Blankson ◽  
Seth Ketron ◽  
Joseph Darmoe
Keyword(s):  
Banking Sector ◽  
Participant Observation ◽  
Retail Banking ◽  
Service Industries ◽  
Sub Saharan Africa ◽  
Case Study Method ◽  
Content Type ◽  
Sub Saharan ◽  
Retail Banks

Purpose The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study context. In addition, it explores the applicability of western-based typology of positioning strategies in the Sub-Saharan African environment. Design/methodology/approach Six retail banks – three national and three foreign – are studied, each through an in-depth case study method: covert and participant observation techniques; and face-to-face interviews of chief executive officers, marketing managers, and bank branch managers provided data for the study. Findings The results show that the “service” positioning strategy is the most popular strategy employed by retail banks. “Value for money,” “attractiveness,” “brand name,” and “country of origin” positioning strategies are also dominant. “Top of the range” and “selectivity” strategies are minimally pursued by the sample of banks studied. The results reveal that both foreign and national retail banks employ multiple positioning strategies in the face of competition. However, foreign retail banks consistently employ a; large number of strategies relative to national retail banks. This paper supports the applicability of a western-derived set of positioning strategies in the Sub-Saharan African marketplace. Research limitations/implications This study closes a gap in the understanding of positioning, as well as filling the empirical gap in the application of positioning. In addition, it helps resolve a contextual gap of knowledge in Sub-Saharan Africa’s retail banking sector. Originality/value This study responds to Porter (1996), Clancy and Trout (2002), and Knox (2004) for continued empirical research in positioning in service industries and specifically in Sub-Saharan African economies (Coffie, 2014, 2016; Coffie and Owusu-Frimpong, 2014). Moreover, this research adds value to the banking and marketing literatures through a qualitative case study method, which is an important yet overlooked research method (Yin, 2009).

Examining determinants of cross buying behaviour in retail banking

2015 ◽  
Vol 32 (8) ◽  
pp. 863-880 ◽  
Author(s):  
Brian Tung ◽  
Jamie Carlson
Keyword(s):  
Hong Kong ◽  
Relationship Quality ◽  
Customer Loyalty ◽  
Financial Services ◽  
Structural Equation ◽  
Retail Banking ◽  
Content Type ◽  
Quality Dimensions ◽  
Buying Behaviour ◽  
Retail Banks

Purpose – The purpose of this paper is to examine the drivers of the customers’ cross-buying intentions for retail banking services in Hong Kong. Design/methodology/approach – The research model was developed based on literature and tested empirically among 269 customers of retail banks in Hong Kong. Structural equation modelling was used to test the system of relationships. Findings – The results indicate that the customers’ cross-buying intentions are primarily associated with image conflicts about the provider’s abilities to deliver high quality financial services from different activities and high levels of customer loyalty. Research limitations/implications – The research is limited to a single country focus of Hong Kong retail banking. The generalizibility of these findings is therefore limited to this context. Practical implications – The findings of the study have important implications for academicians in understanding what drives cross-buying behaviour as well as retail bank practitioners to help design more effective cross-buying strategies. Originality/value – The authors show that perceived image conflict and customer loyalty directly influences cross-buying intentions and that cross-buying intentions is not affected by dimensions of relationship quality directly. However, relationship quality dimensions was found to influence customer loyalty and play an important indirect role in unlocking cross-buying intentions.

Open Banking: The Emergence of New Digital Business Models

2020 ◽  
Vol 17 (05) ◽  
pp. 2050033
Author(s):  
Boumediene Ramdani ◽  
Ben Rothwell ◽  
Elias Boukrami
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Banking Sector ◽  
Retail Banking ◽  
Policy Makers ◽  
Innovation Activities ◽  
Digital Business Models ◽  
Innovation Analysis ◽  
The Uk ◽  
Shed Light

Open banking has recently been advanced as a measure to foster competition and innovation in the retail banking sector. Since its introduction in the UK, a number of banks have created new digital business models (BMs) that offer individuals and businesses access to more personalized financial services. Yet, it is still unclear what new entrants (smaller and newer banks) have done to potentially disrupt incumbents (larger and well-established banks). To shed light on the innovations in BMs that have been initiated by digital banks to move away from traditional retail banking BM, seven digital BMs operating in the UK financial sector were examined using the BM innovation analysis framework. Our findings suggest that innovation in the new digital BMs has been achieved by building on the existing retail banking activities, developing new digitally enabled activities, and leveraging open innovation activities. Implications of our findings for researchers, managers and policy makers will be outlined.

Gaining the upper hand through innovation

2018 ◽  
Vol 34 (11) ◽  
pp. 29-31
Keyword(s):  
Design Methodology ◽  
Service Sector ◽  
Reading Time ◽  
Web Design ◽  
Content Type ◽  
Digital Development ◽  
Pertinent Information ◽  
The Common ◽  
The Uk ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings When it comes to innovation, the common perception of the kinds of innovation that are effective are often way out of line with what actually creates value for firms. Take the service sector – despite its huge size and domination of mature economies such as the UK, innovation will not be regarded as important outside of web design or digital development. However, there are so many ways in which true innovation can disrupt, revolutionize or create an entire new market in ways that does not involve tech teams at all. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Slipping through the net

2018 ◽  
Vol 21 (2) ◽  
pp. 203-214
Author(s):  
Adebola Adeyemi
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Current Approach ◽  
Content Type ◽  
Services Sector ◽  
Secondary Sources ◽  
Financial Services Sector ◽  
The Uk ◽  
Practical Implications

Purpose The purpose of this paper is to highlight the activities of the FCA with respect to the incidence of money laundering and highlight regulatory gaps. The financial services sector provides a crucial infrastructure for the promotion of wealth and innovation in the UK. This attractive infrastructure also appeals to criminals looking to launder the gains of their illicit activities. Design/methodology/approach The paper analyses the UK money laundering regime, highlighting specific challenging areas. The paper investigates the role of politically exposed persons and the use of corporate structures in promoting money laundering. In this context, it also becomes crucial to investigate the role of financial institutions and the sufficiency of their governance approach in lessening the incidence of money laundering. The paper investigates secondary sources and relies on their findings. It compares these findings to the regulatory outcomes. Findings The paper recommends steps that can be used to lessen the incidence of money laundering in the UK. From the reports evaluated, it is clear that the Financial Conduct Authority is working towards reducing the incidence of money laundering, but this could be further strengthened with the adoption of additional enforcement tools. Practical implications The paper suggests that different approaches should be used based on firm size, the type of business and the risk that a financial services firm presents to the financial sector. A large firm will need to bear more regulatory burden compared to a smaller firm. Originality/value The paper investigates the current approach to minimising the incidence of money laundering in the UK. It suggests that the regulator can guide financial services firms to meet the regulatory objectives by relying on an approach that discerns the regulatory risks presented by different firms depending on their size.

Developing a service value measurement scale in retail banking services

2018 ◽  
Vol 36 (4) ◽  
pp. 616-633 ◽  
Author(s):  
Sanjit Kumar Roy ◽  
Rik Paul ◽  
Ali Quazi ◽  
Bang Nguyen
Keyword(s):  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Measurement Scale ◽  
Equation Modeling ◽  
The West ◽  
Banking Services ◽  
Content Type ◽  
Service Value ◽  
Value Measurement

Purpose The purpose of this paper is to develop and validate a scale for measuring consumers’ perceived service value in the Indian retail banking services. This purpose is rooted in the absence of consensus on what constitutes service value and how to measure such value in the above context. Design/methodology/approach The scale development procedure comprised qualitative and quantitative approaches. A list of possible measurement items was compiled based on literature review and expert opinion through focus groups. Data were collected from a sample of 442 respondents representing the Indian retail banking sector using survey instrument and were analyzed using the structural equation modeling. Findings The study revealed a seven-dimensional scale for measuring service which includes service equity, service quality, customer intimacy, product leadership, operational effectiveness, customer communication, and perceived sacrifice. Thus, the scale emerging from this study is consistent with established scales and is applicable to the Indian retail services setting. This study contributes to the knowledge gap by confirming that the west-centric service value measurement scale is moderately applicable to the services sector in India. Originality/value This research is a direct response to calls from the leading marketing pundits to explore the validity and applicability of the existing marketing constructs and models originated in the west to Indian markets. Keeping in mind the established service value measurement scale, this study develops and validates a seven-dimensional scale for measuring service value in an Indian setting with novel sub-dimensions.

Determinants of sales misconduct in Indian retail banking services

2019 ◽  
Vol 26 (1) ◽  
pp. 313-329
Author(s):  
Suman Mittal ◽  
Krishan K. Garg
Keyword(s):  
Banking Sector ◽  
Retail Banking ◽  
Primary Data ◽  
Bank Account ◽  
Banking Services ◽  
Content Type ◽  
Public Sector Banks ◽  
Private Banks ◽  
Close Supervision ◽  
Private And Public

Purpose The purpose of this paper is to demonstrate those factors which are responsible for the sales misconduct in Retail banking services across the world and try to find out the determinants which majorly affect the Indian Retail banking industry. The authors also try to find out whether the sales approach leads to malpractices in sales and how does it affect the different categories of the customers. Design/methodology/approach Primary data have been collected from the bank account holders having account in various private and public sector banks operating in India. Findings The authors have come out with finding that sales misconduct is majorly affected by misrepresentation of facts, complexity of products, lack of disclosure norms and more. They also found that push sales approach is adopted by banks, particularly by private banks to majorly tap the class customers to sell the financial products without their requirement and achieve the revenue targets. Practical implications Banking regulators can keep a close supervision on sales mal practices in banking sector and implement stringent norms to reduce these kinds of practices. Originality/value Very few studies have been conducted on the basis of the class of the customer, and how sales approach leads the malpractices in sales and how it affects the class of the customers.

The effect of nWOM firestorms on South African retail banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
James Lappeman ◽  
Robyn Clark ◽  
Jordan Evans ◽  
Lara Sierra-Rubia
Keyword(s):  
South Africa ◽  
Social Media ◽  
Banking Sector ◽  
Retail Banking ◽  
Firm Level ◽  
Content Type ◽  
Human Validation ◽  
Retail Banks ◽  
Negative Sentiment ◽  
Media Sentiment

PurposeThis study analysed the effect of online negative word-of-mouth (nWOM) firestorms in the retail banking sector. By understanding negative sentiment and sentiment recovery across an entire retail banking sector, the research exposed a unique view of banking in South Africa.Design/methodology/approachThe study made use of both a sentiment and topic analysis of over 1.7 million social media posts in South Africa. The methodology made use of both NLP and human validation techniques to measure changes in social media sentiment during online firestorms. This measurement included each of South Africa's major retail banks over a twelve month period.FindingsFrom the analysis, key trigger characteristics for these firestorms (product failures, service failures, social failures and communication failures) were categorised. In addition, the average duration of a firestorm was calculated and factors that impact sentiment recovery were explored.Originality/valueThe study was located in South Africa and, unlike firm level studies, researched nWOM for the whole retail banking sector. A theoretical footprint depicting the typical anatomy of a firestorm was derived in order to aid stakeholders to be more vigilant and better equipped to provide correct intervention in such times of crisis.

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