Designing a customer-experience-management model for the banking-services sector

2019 ◽  
Vol 10 (3) ◽  
pp. 790-810 ◽  
Author(s):  
Ebrahim Heshmati ◽  
Hamidreza Saeednia ◽  
Ali Badizadeh
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Customer Experience ◽  
Important Indicator ◽  
Banking Services ◽  
Final Model ◽  
Content Type ◽  
Services Sector ◽  
Grounded Theory Method ◽  
Customer Experience Management

Purpose This paper aims to develop an appropriate model for customer-experience management (CEM) for the banking-services sector. Design/methodology/approach The research method used in this study is qualitative. Techniques used for data collection and data analysis are based on the grounded theory method and include open, axial and selective coding to develop a hierarchical model. Information and data, based initially on concepts in the literature, are gathered as open code through expert interviews with 11 academic and 20 industry experts from Iran. Research data are classified and filtered by micro and macro categories and validated and edited to provide the final model. Findings The final model of the study is based on expecting, conceptual and caretaking factors. Micro dimensions and related propositions for the banking industry are also identified. Research limitations/implications The final model should have practical uses in the banking sector, enabling banking managers to successfully incorporate CEM into their strategy by focusing on the key elements. Originality/value The development of a model to measure customer experience is an important indicator for performance improvements in the banking industry. This is one of the few papers to propose an appropriate model for CEM for the banking-services sector and the first to do so in an Iranian context.

scholarly journals CUSTOMER EXPERIENCE MANAGEMENT IN BANKING SECTOR - A BRIEF REVIEW

2018 ◽  
Vol 6 (7) ◽  
pp. 164-178
Author(s):  
Suvarchala ◽  
V. Narasimha Rao
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Customer Experience ◽  
Services Sector ◽  
Financial Services Sector ◽  
Customer Experience Management ◽  
Customer Knowledge Management ◽  
Banking Structure ◽  
Over Time

The competition among the organizations in financial services sector is continuously increasing.  Banking industry is a backbone of nation’s economy and it is one of the largest industries in India in terms of revenue and employment.  The banking structure played a major role in the mobilisation of savings and promoting economic development. The intensity of customer-organisation relationship has changed dramatically over time.  Customer experience is the product of an interaction between an organisation and a customer over the duration of their relationship.  The key elements like strategy, culture, processes and systems etc. impact the CEM in banks. The antecedents like customer knowledge management, satisfaction, trust and loyalty influence the CEM in organizations.  This paper is an attempt to trace out the elements of CEM and the various factors leading to the neglect of CEM in banking sector.

scholarly journals Augmenting customer loyalty through customer experience management in the banking industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Forbes Makudza
Keyword(s):  
Customer Loyalty ◽  
Financial Services ◽  
Banking Industry ◽  
Customer Experience ◽  
Business Environment ◽  
Physical Interaction ◽  
Content Type ◽  
Customer Experience Management ◽  
Service Interaction ◽  
Virtual Interaction

PurposeThe purpose of this paper is to analyse and evaluate the effect of customer experience management (virtual interaction, physical interaction and service interaction) on customer loyalty in the banking industry.Design/methodology/approachThe study followed an explanatory research design to sample 384 respondents. Stepwise regression analysis was used to validate the relevance of the study model.FindingsThe results indicated that there is a positive association between customer experience management and customer loyalty. The dimensions of customer experience management, namely virtual interaction, physical interaction and service interaction, were also found to be statistically significant in explaining customer loyalty behaviour.Practical implicationsThe study practically influences the way banks and other financial institutions gain competitive advantage through managing the experiences of customers in a volatile business environment. At a time when banks are no longer the only providers of financial services, the study offers a road map to reduce portfolio purchasing and switching behaviour through enhanced experience management at all customer touch points.Originality/valueThe study presents an augmented model of customer experience management which is linked to consumer loyalty.

Protection of Customers for Management of Digital Banking Services (Study at PT. BRI Unit Boyolali)

2020 ◽  
Vol 3 (2) ◽  
pp. 170
Author(s):  
Herdian Ayu Andreana Beru Tarigan ◽  
Darminto Hartono Paulus
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Industry ◽  
Service Innovation ◽  
Quality Of Services ◽  
Legal Research ◽  
Banking Services ◽  
Services Sector ◽  
Financial Services Sector

<p>Increasing competition in the Indonesian banking industry has encouraged many banks to improve the quality of services to customers by utilizing information technology developments. Service innovation in the use of information technology encourages banks to enter the era of digital banking services. However, the development of digital banking services also increases the risks faced by banks. The purpose of this study is to provide an overview of the implementation of digital banking services and customer protection for risks from digital banking services. The method used in this study is an empirical legal research method. The results of this study indicate that the implementation of digital banking services is regulated by OJK Regulation No.12/POJK.03/2018. The existence of this OJK Regulation is expected by banks as providers of digital banking services to always prioritize risk management in the use of information technology. In addition, this study also shows the existence of 2 types of customer protection for the use of digital banking services, namely preventive protection in the form of legislation related to customer protection in the financial services sector and repressive protection in the form of bank accountability for complaints from customers using digital banking services.</p>

Exploring relationships among ethical climate types and organizational commitment

2017 ◽  
Vol 9 (1) ◽  
pp. 20-40 ◽  
Author(s):  
Japneet Kaur
Keyword(s):  
Organizational Commitment ◽  
Employee Turnover ◽  
Ethical Climate ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Predictive Ability ◽  
Content Type ◽  
The Relationship ◽  
Three Components

Purpose Indian banking sector is facing a number of challenges, and increasing number of corporate frauds and employee turnover are among the top list. Literature reveals that gaining insights about ethical climate may provide a possible solution and relief from the challenges being faced. This paper aims to contribute to the understanding of the prevalent various ethical climate types in the Indian banking industry. Furthermore, it presents interesting results by investigating the effect of five theorized ethical climate types on organizational commitment along with its three components in the banking sector. Design/methodology/approach This empirical research encompasses a descriptive research design. Sample uses 266 respondents from four prime banks of the Indian banking industry. Findings Statistical analyses unveiled that all five conceptualized ethical climate types are prevalent in the Indian banking industry. However, the perception of employees for caring climate was the highest among all others. In contrast to the results reported by Western studies, this research reveals a strong negative impact of instrumental climate on affective commitment. Furthermore, it has been seen that instrumental climate is a significant predictor for the three components of commitment (affective, continuance and normative). However, it fails to predict the overall organizational commitment construct. Likewise, opposed to findings of Western countries, law and code, rules and independent climate types have shown significant relationship and impact on organizational commitment for Indian banking sector employees. It has been found that different commitment components are predicted by a diverse mix of climate types in India. Practical implications Findings highlight varying strength of relationship and predictive ability of different ethical climate types with commitment. This helps in elucidating that managers and top executives should focus on building an ethical work environment to warrant high-level commitment among employees. Congruence between employee, manager and organizations’ perception of ethics is a pre-requisite for maintaining a long-term relationship among the parties. This study will enable understanding the role of ethical climate in reducing corporate frauds and employee turnover. Originality/value This research addresses a significant gap in literature by exploring the relationship between ethical climate and organizational commitment. The study uses data from the Indian banking industry which contributes to expanding knowledge of the relationship in the Indian context.

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.

scholarly journals Customer experience management: asking the right questions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ian R. Hodgkinson ◽  
Thomas W. Jackson ◽  
Andrew A. West
Keyword(s):  
Decision Making ◽  
Business Models ◽  
Management Practices ◽  
Management Practice ◽  
Customer Experience ◽  
Content Type ◽  
Customer Data ◽  
Customer Experience Management ◽  
New Perspective ◽  
The Right

Purpose Customer experience is more critical than ever to firms’ successes and future growth opportunities. Typically measured through aggregate satisfaction scores, businesses have been criticized for oversimplifying what experience means. The purpose of this study is to provide a new perspective on experience management and offers a novel way forward for customer-centric strategizing. Design/methodology/approach Mapping the current digital technologies being used across businesses in all sectors to engage and connect with customers more effectively, this paper outlines some of the fundamental challenges of experience management and future opportunities to enhance business practice. Findings Businesses are capturing what they know about customers, rather than what a customer thinks and feels about the firm. Many experience management initiatives create customer pains (not gains), while for businesses, decision-making can be jeopardized by fake customer data. A framework based upon the five experience dimensions is presented for optimal customer-driven decision-making. Practical implications Going beyond aggregate satisfaction scores that serve as an output rather than an input into businesses strategizing, the paper presents an actionable framework for targeted investments and enhanced experience management practices. Originality/value Businesses are seeking to grow intelligent customer experience analysis capabilities to disrupt traditional business models toward greater customer-centricity and to track the digital spread of positive and negative experiences. Examining how this is being done and where the weaknesses lie by bridging management practice and the scientific literature, this paper provides new knowledge to advance customer-centric strategies for growth and profitability.

Gamification in banking: a review, synthesis and setting research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilpa Chauhan ◽  
Asif Akhtar ◽  
Ashish Gupta
Keyword(s):  
Research Agenda ◽  
Banking Sector ◽  
Banking Industry ◽  
Psychological Theory ◽  
Future Research ◽  
Content Type ◽  
Bank Management ◽  
Customer Behaviour ◽  
The Future ◽  
The Impact

Purpose The objective of this paper is to explore and extend the existing literature on the use of gamification in banking. Design/methodology/approach Gamification is a new concept, further its application in banking is in a nascent stage both from the perspective of research and application. To systematise the limited literature and to draw the future research prospects, studies are presented based on theories, characteristics, context and methodologies framework. Findings The synthesis of the literature on gamification opened to a spectrum of areas to determine the future of gamification in the banking industry. The study emphasises the use of social and psychological theory building in the banking industry. Further, the research on game elements is an underexplored area in the banking domain, while they have well exploited in other contexts. Banking context needs more literature evidence, empirically tested and validated research methods to understand the personality traits and customer behaviour arising from the use of gamification. Practical implications For bank management, this study lays the impact of gamification in this era of digital banking. With the right mix of hedonic and utilitarian elements, bank management shall be able to boost financial literacy, improve saving habits, simplify banking products and strengthen knowledge updates among bank employees. Understanding the key elements and present status of research on gamification and their impact on customer behaviour development is crucial for the bank in building strategic advantage. Originality/value This study on gamification applied explicitly to the banking sector. With no clear application of the elements and mechanics of technology used in gamification, this study presents past literature in a systematised manner and draws the future research agenda of gamification in banking services.

Customer experience management in medical tourism (case study: Iranian hospital’s medical tourists)

2021 ◽  
Vol 13 (1) ◽  
pp. 198-226
Author(s):  
Hamed Dabaghi ◽  
Saeid Saieda Ardakani ◽  
Seyed Mohammad Tabataba’i-Nasab
Keyword(s):  
Medical Tourism ◽  
Statistical Tests ◽  
Statistical Significance ◽  
Data Gathering ◽  
Customer Experience ◽  
Research Literature ◽  
Content Type ◽  
Research Areas ◽  
Customer Experience Management ◽  
Data Saturation

Purpose The purpose of this paper is to focus on the emerging phenomenon of medical tourism in the context of Iran from a customer experience management perspective and benchmark of their judgment including positive or negative, of the experience they have achieved of the Iranian health (medical) experience (CE) and suggest scenarios for the improvement of the Iranian customer experience management (CEM). Design/methodology/approach The research methodologies and research methods that are used in this descriptive-analytical research are based on an inspection of the remarkable literature related to medical tourism and customer experience management. The data gathering instrument is a researcher-made questionnaire based on the variables in the conceptual model extracted from the research literature. The study was conducted from May to August 2019. The population cohort of this study was the foreign patients calling selected Iranian hospitals and the sampling method was a purposive and snowball sample of prospective medical tourists. As the study was conducted throughout Iran, some important hospitals in Iran were selected by stratified sampling Yang et al. (2020b). The sample size and data saturation were 500 participants Lv and Song (2019). The collected data using the questionnaire were analyzed by SPSS software and statistical tests. Findings According to the results, the customer experience management statistical significance in the task aspect is (p = 0.0523), in the mechanical aspect is (p = 0.0563), in the human aspect is (p = 0.0544). The study showed positive customer experience among the patients who had been treated in the Iranian hospitals. Originality/value There is a lack of study that focuses on medical tourism and customer experience management in Iran. Therefore, based on the results of this study, the experience of medical tourists in Iran proved to be positive and satisfying. As little research has been conducted in the area of customer experience management (CEM) in Iranian medical tourism, future researchers can use these valuable results precisely and in more detail to benchmark more accurately the customer experience in all areas of medical and health tourism and other research areas in different aspects of CEM in Iran.

Assessing the Determinants of Adoption of M-Banking by Students

2016 ◽  
pp. 120-136
Author(s):  
Gazal Punyani ◽  
Sourabh Sharma
Keyword(s):  
Banking Sector ◽  
Service Providers ◽  
Banking Industry ◽  
Banking System ◽  
Study Data ◽  
Mobile Banking ◽  
Banking Services ◽  
Technology Adoption Model ◽  
Adoption Model ◽  
The Impact

Technology is entwined in almost every part of one's lives. Today's students are using more technology than ever before. Information technology has revolutionized every industry and especially the banking industry. Tremendous improvements in technology have taken place in the Indian banking sector. Among all, Mobile Banking (m-banking) is the recent phenomenon that changed country's banking system. Students, being considered as most technically knowledgeable make most use of mobile banking services among all the banking customers. Therefore, the focus is particularly towards the young students engaging in m-banking services and to evaluate the factors that influence them to adopt m-banking. The study considers extended Technology Adoption Model (TAM) to measure the impact of the factors on adoption of m-banking. For the study, data was collected through questionnaire from 217 students of Western Rajasthan. The result of this research would provide valuable information to service providers in order to improve their m-banking services.

Identifying brand touchpoints to increase switching costs in the banking industry

2019 ◽  
Vol 38 (3) ◽  
pp. 718-736 ◽  
Author(s):  
Abdullah Sultan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Banking Industry ◽  
Service Failure ◽  
Customer Experience ◽  
Equation Modeling ◽  
Exploratory Research ◽  
Content Type

Purpose The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry. Design/methodology/approach Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling. Findings Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality. Research limitations/implications Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications. Practical implications Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting. Originality/value This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

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