Determinants of older consumers’ interest in home equity conversion products

2019 ◽  
Vol 37 (5) ◽  
pp. 1275-1295 ◽  
Author(s):  
Simona Cosma ◽  
Stefano Cosma ◽  
Alessandro M. Peluso
Keyword(s):  
Locus Of Control ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Financial Education ◽  
Probit Regression ◽  
Home Equity ◽  
Content Type ◽  
Internal Locus Of Control ◽  
Credit Culture

Purpose The purpose of this paper is to highlight opportunities for the banking sector arising from the population’s aging and the expected reduction in pension incomes. Home equity conversion (HEC) instruments are a potentially useful way of restoring households’ finances and satisfying their needs, with implications for the demand for financial services. Design/methodology/approach By using an ordered probit regression model, the paper analyzes data obtained from a survey of 2,000 Italian households. Findings The main finding of this paper is that individuals with greater familiarity with consumer credit, a cognitive and decision-making approach favorable to use of credit, and an internal locus of control show greater interest in various forms of equity conversion. Originality/value This paper extends the analysis of the determinants of individuals’ interest in HEC products. It focuses more closely than the existing literature on households’ credit behaviors, attitudes toward credit and locus of control. The paper helps identify the potential targets of marketing campaigns and commercial proposals, and highlights the levers that the banks can focus on in communicating with customers and future prospects. Moreover, this paper suggests that there is a need to develop greater awareness on the part of people who could be interested in these products. Therefore, appropriate financial education projects should be implemented to develop a better “credit” culture, with due appreciation of the usefulness of credit as a means of supporting household budgets.

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.

Egyptian public’s concern for global warming

2016 ◽  
Vol 13 (1) ◽  
pp. 31-45 ◽  
Author(s):  
Mohamed Mostafa
Keyword(s):  
Global Warming ◽  
Locus Of Control ◽  
Design Methodology ◽  
Environmental Concern ◽  
Scientific Evidence ◽  
Political Orientation ◽  
Content Type ◽  
Internal Locus Of Control ◽  
Modeling Techniques ◽  
Bayesian Logistic Regression

Purpose – Despite the growing scientific evidence regarding risks caused by global warming and climate change, virtually no studies have been conducted to investigate general public’s attitudes toward this phenomenon in a non-Western context. The purpose of this paper is to investigate factors influencing concern for global warming in a representative sample of 2,551 respondents in Egypt. Design/methodology/approach – The study uses logistic and Bayesian logistic regression modeling techniques to test the influence of post-materialistic tendencies, religiosity, political orientation and locus of control on concern for global warming in Egypt. Findings – Results contradict the post-materialist hypothesis and show that concern for global warming is driven by religiosity, political orientation and internal locus of control. Originality/value – The findings highlight the importance of investigating the specificity of global warming and environmental concern in a non-Western context.

The influence of homeschooling on entrepreneurial activities: a collective case study

2017 ◽  
Vol 59 (7/8) ◽  
pp. 706-719 ◽  
Author(s):  
Sarah Jeanne Pannone
Keyword(s):  
Locus Of Control ◽  
Small Sample Size ◽  
Research Literature ◽  
Small Sample ◽  
Content Type ◽  
Collective Case Study ◽  
Internal Locus Of Control ◽  
Entrepreneurial Characteristics ◽  
Entrepreneurial Activities

Purpose The purpose of this paper is to investigate how a homeschool education influences entrepreneurial characteristics and activity. Design/methodology/approach A collective case study design was used to investigate how a homeschool education influences entrepreneurial characteristics and activity. Findings From the participant interviews, surveys, and document analysis, three salient themes emerged. First, participants noted that their home education, at least in later years, was largely self-directed and that this independent, self-motivated type of learning impacted their subsequent entrepreneurial activities. Next, participants also related that they believed the alternative nature of their homeschooling education and its emphasis on being comfortable with being different influenced their entrepreneurial pathway. Finally, the third theme to surface was the idea that homeschooling helped develop an internal locus of control, a belief that is helpful in entrepreneurial undertakings. Research limitations/implications Research limitations included a lack of generalizability due to a small sample size and possible selection bias. Practical implications Despite these shortcomings, however, several implications exist. For example, the findings from this study show that homeschooling may be a viable alternative education method for parents looking to encourage entrepreneurial traits and activities in their children. Social implications Future areas of research were also identified, including a call to research the role locus of control plays in homeschooled students. Originality/value This study addresses an area that, to the knowledge of this researcher, is completely lacking from the research literature.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

Customer participation and the roles of self-efficacy and adviser-efficacy

2019 ◽  
Vol 37 (1) ◽  
pp. 241-257 ◽  
Author(s):  
Chung-Yu Wang
Keyword(s):  
Synergistic Effect ◽  
Financial Services ◽  
Self Efficacy ◽  
Customer Value ◽  
Design Methodology ◽  
Switching Costs ◽  
Customer Participation ◽  
Perceived Efficacy ◽  
Content Type ◽  
Survey Sample

Purpose The purpose of this paper is to examine how customers derive value and switching costs from their own participation conditional on their perceived efficacy of themselves (self-efficacy) and their advisers (adviser-efficacy) in financial services. Design/methodology/approach Student interviewers approached customers exiting banks with a skip interval of two. The respondents received the questionnaire items translated into Chinese. The final survey sample consists of 220 respondents. Findings Empirical results confirm that customer participation influences switching costs through customer value. The synergistic effect of self-efficacy and adviser-efficacy moderates the relationships among customer participation, customer value and switching costs. The incongruent levels of self-efficacy and adviser-efficacy can increase customer value and switching costs. Originality/value This study looks beyond self-efficacy to demonstrate that the synergistic roles of self-efficacy and adviser-efficacy significantly influence the relationships among customer participation, customer value and switching costs.

Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana

2019 ◽  
Vol 37 (5) ◽  
pp. 1215-1233 ◽  
Author(s):  
Kong YuSheng ◽  
Masud Ibrahim
Keyword(s):  
Customer Satisfaction ◽  
Service Delivery ◽  
Financial Services ◽  
Structural Equation ◽  
Banking Sector ◽  
Innovation Management ◽  
Service Innovation ◽  
Initial Study ◽  
Equation Modeling ◽  
Content Type

Purpose The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana. Design/methodology/approach Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling. Findings The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty. Research limitations/implications This study offers theoretical support for the adoption of innovative techniques in service provision and delivery. Originality/value This paper provides an initial study into innovation management in financial services context in an emerging economy.

Municipal-owned community bank: capital raising dilemma

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Tobias Aloisi Swai
Keyword(s):  
Commercial Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Order Theory ◽  
Individual Investors ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Content Type ◽  
Community Bank

Learning outcomes The case introduces student to basic understanding of banking sector in Tanzania as well as the strategies and struggle to raise capital through shareholders’ funds. Application of Banking theory and Pecking order theory is evidenced from the case. The case outlines why the bank struggled to raise capital and what triggers the capital raising strategies. It also give students an opportunity to think about applicable theories of capital structure and bank capital, and strategies the bank could use to rescue its capital crunch in the future. Case overview/synopsis The case provides details of how the Capital Community Bank (CCB) raised its capital through strategic financial engineering which enabled it to raise the minimum regulatory capital required to be licensed as a financial institution unit, to a regional financial institution, to a fully fledged commercial bank. The bank started with a paid up capital of TZS 472.3m in 2002, involving four Local Government Authorities and individual investors. Capital raised to TZS 31.3bn in 2014 and down to TZS 20.6bn at the end of 2016. The minimum regulatory capital required is TZS 15bn, while paid up capital was 16.9bn. With the change of the management team in 2017, the bank is looking for avenues to raise further capital to meet the regulatory limits and continue to survive as a commercial bank, given dramatic changes in the banking sector in Tanzania. Complexity academic level The case is suitable for third year students in Bachelor of Commerce/Economics specializing in banking/financial services. It also suits postgraduate/master's students seeking a Postgraduate Diploma or Master of Business Administration in financial institutions/banking course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 1: Accounting and Finance.

Determinants of the knowledge of the total cost of consumer loans

2019 ◽  
Vol 32 (1) ◽  
pp. 2-19
Author(s):  
Pablo Farías
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Market Segment ◽  
Actual Knowledge ◽  
Content Type ◽  
Total Cost ◽  
Consumer Loans ◽  
Vulnerable Consumers ◽  
Advertising Exposure ◽  
Price Advertising

Purpose The purpose of this paper is to examine the influence of consumer-related and bank-related characteristics on the knowledge of the total cost of consumer loans paid by consumers and test the hypothesized relationships between them. Design/methodology/approach In order to identify the proportion of consumers who do not know the total cost of consumer loans and reasons for it in the Chilean consumer loans industry, an empirical study using a survey administered through personal in-home interviews was carried out. Findings Results show that knowledge of a consumer loans total cost is positively associated with product satisfaction as well as recent and infrequent purchases. This study also shows that a big market segment, comprising 37.2 percent of the probability sample, represents vulnerable consumers with high self-reported knowledge but low actual knowledge of the total costs of consumer loans. This study shows that this market segment has a higher use of the price-quality cue and a higher purchase frequency of consumer loans. Originality/value The present study contributes to the existing literature in the following ways. First, while previous research measured only self-reported knowledge for financial services, the present study examines actual knowledge of the total cost of consumer loans. Second, while previous research for financial services only examined the effects of the use of the price-quality cue and price advertising exposure, the present study also examines 11 other determinants, which are relevant for managers, regulators and researchers.

scholarly journals Do mergers and acquisitions affect information asymmetry in the banking sector?

2020 ◽  
Vol 46 (12) ◽  
pp. 1521-1547
Author(s):  
John S. Howe ◽  
Thibaut G. Morillon
Keyword(s):  
Mergers And Acquisitions ◽  
Information Asymmetry ◽  
Design Methodology ◽  
Banking Sector ◽  
Policy Makers ◽  
Content Type ◽  
Deal Completion ◽  
Asymmetry Measures ◽  
The Impact

PurposeThis paper aims to investigate the consequences of mergers and acquisitions (M&As) on information asymmetry in the banking sector. Specifically, the authors look at whether specific firm or deal characteristic influence information asymmetry levels between insiders and investors, as well as the impact of recent regulation such as the Dodd–Frank Act.Design/methodology/approachThe authors decompose the M&A process into three periods (pre-announcement, negotiation and post-completion period) and document changes in the information asymmetry levels between insiders and investors through the M&A process. The authors capture changes in information asymmetry using six different spread-based information asymmetry measures.FindingsThe authors find evidence that information asymmetry increases following M&A announcement and decreases following deal completion. These findings are more pronounced for acquisitions involving a private target, all-cash deals and for mergers, as opposed to acquisition of assets. We find that overall, successful mergers improve the quality of the information environment, while failed deals degrade it. Additionally, the enactment of Dodd–Frank reduced the magnitude of the changes in information asymmetry during the M&A process. The results are important to regulators, policy makers and investors.Originality/valueTo authors’ knowledge, this is the first study that looks at the effect of bank M&As on information asymmetry as well as the effect of regulations on information asymmetry.

scholarly journals Financial development, openness in financial services trade and economic growth

2019 ◽  
Vol 3 (2) ◽  
pp. 42-65 ◽  
Author(s):  
Rabia Khatun ◽  
Jagadish Prasad Bist
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Development ◽  
Financial Services ◽  
Banking Sector ◽  
Market Development ◽  
Services Trade ◽  
Content Type ◽  
Stock Market Development ◽  
Insurance Sector

Purpose The purpose of this paper is to examine the relationship between financial development, openness in financial services trade and economic growth in BRICS countries for the period 1990–2012. Design/methodology/approach An index for financial development has been constructed using principal component analysis technique by including banking sector development, stock market development, bond market development and insurance sector development. For the robustness of the result, the long-run cointegrating relationship amongst the variables has been analyzed. Findings Overall financial development has a positive and significant impact on economic growth. To take the full advantage of openness in financial services trade, countries need to put more emphasis on the development of their stock markets, bond markets and the insurance sector. The result shows that openness in financial services trade has a positive impact on economic growth when the stock market, bond market and insurance sector are included in the system. Research limitations/implications The policy implication of the findings is that policymakers should focus more on developing all four areas of finance to get the full benefit of the financial system on the process of economic growth. Originality/value The authors have constructed the better indicators of financial development in the case of BRICS economies. Most of the studies in BRICS economies have measured the development of the financial sector as either banking sector development or stock market development. However, the present study includes all four areas of finance (banking sector development, stock market development, insurance sector development and bond market development) into account.

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