scholarly journals Digital banking, customer experience and financial performance

2018 ◽  
Vol 12 (4) ◽  
pp. 432-451 ◽  
Author(s):  
Cajetan Ikechukwu Mbama ◽  
Patrick Ezepue ◽  
Lyuba Alboul ◽  
Martin Beer
Keyword(s):  
Financial Performance ◽  
Perceived Risk ◽  
Developed Countries ◽  
Customer Experience ◽  
Customer Engagement ◽  
Brand Trust ◽  
Content Type ◽  
Functional Quality ◽  
Bank Managers ◽  
Perceived Usability

Purpose This study aims to examine managers’ perceptions of digital banking’s (DB) effect on customer experience and banks’ financial performance. Design/methodology/approach The research uses interviews from the senior UK bank managers to gather their views on DB’s impact on customer experience and financial performance. The interviews were thematically analysed to produce results and a model. Findings The attributes affecting DB experience are as follows: service quality, functional quality, perceived value, service customisation, service speed, employee–customer engagement, brand trust, DB innovation, perceived usability and perceived risk. They affect customer experience, satisfaction and loyalty and financial performance. The research revealed relationships amongst these attributes (e.g. brand trust and loyalty). Research limitations/implications The study is a UK bank specific and can be replicated in other developed countries’ banks, helping in further comparison. However, DB is conducted globally, which implies that the findings are robust enough to be potentially applied in other countries. The proposed model shows customer experience drivers and outcomes through managers’ views, which can be theoretically tested. Practical implications The findings suggest important attributes (as above) for consideration to improve DB customer experience and financial performance. They show the relevance of employee–customer interaction, service personalisation, value proposition, quality service offering and DB experience, which have useful implications for improving DB design and interactive marketing. Originality/value Gauging DB customer experience as perceived by bank managers has not been studied in this way, highlighting DB effectiveness, which is important for multi-channel marketing and banks’ financial performance, and advances theory.

scholarly journals Digital banking, customer experience and bank financial performance

2018 ◽  
Vol 36 (2) ◽  
pp. 230-255 ◽  
Author(s):  
Cajetan I. Mbama ◽  
Patrick O. Ezepue
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Perceived Risk ◽  
Structural Equation ◽  
Customer Experience ◽  
Customer Engagement ◽  
Financial Reports ◽  
Content Type ◽  
Functional Quality ◽  
Bank Marketing

Purpose The purpose of this paper is to examine customers’ perceptions of digital banking (DB), customer experience, satisfaction, loyalty and financial performance (FP) in UK banks. Design/methodology/approach The research consists of a survey of UK bank customers’ perceptions of the above themes; use of banks’ financial reports to obtain FP ratios; multivariate factor analysis; structural equation modelling; and analysis of variance tests to explore research hypotheses on the relationships among the study factors. Findings The main factors which determine customer experience in DB are service quality, functional quality, perceived value (PV), employee-customer engagement, perceived usability and perceived risk. There is a significant relationship among customer experience, satisfaction and loyalty, which is related to FP. Research limitations/implications This study concentrates on UK bank customers which limits its generalisability to other banks globally. However, the fact that banks typically adopt common standards in bank financial management implies that the findings are potentially robust for global bank management. Replicating the study in banks in other countries will further enhance this robustness. Practical implications Some significant effects of customer characteristics on the study factors were observed, which have useful implications for DB, bank marketing services and bank FP. Originality/value Unlike previous studies, this study uses both Net Promoter Score and financial ratios as dependent variables, to provide a combined study of the relationships among 14 study factors, with implications for bank marketing and FP.

The Structural Relationship Information Technology Used and Risk toward Banking Customer Satisfaction during Covid19, Indonesia

2021 ◽  
Vol 12 (4) ◽  
pp. 1618-1630
Author(s):  
Surachman Surjaatmadja, Et. al.
Keyword(s):  
Information Technology ◽  
Customer Satisfaction ◽  
Technology Use ◽  
Perceived Risk ◽  
Customer Value ◽  
Customer Experience ◽  
Structural Relationship ◽  
Service Development ◽  
Functional Quality ◽  
Number Of Customers

Investigation on the structural relationship of  information technology functional quality, customer value, technology used, risk perception and customer experience of banking customer satisfaction during covid19 pandemic is very important to provide significant benefits to increase the number of customers. This research design uses a quantitative approach through a questionnaire survey conducted on banking customers in Indonesia. Data analysis was performed using statistical software, namely LISREL Version 8.0. The results of the analysis show that functional quality, perceived customer value, technology use, perceived risk and customer experience have a significant relationship with banking customer satisfaction  during the covid19 pandemic. In detail, the functional quality of banking technology is considered to have contributed 39% to  customer satisfaction when implementing health protocols. Customer value contributes to customer satisfaction, technology used  contributed to the customer satisfaction and perceived risk shaping customer satisfaction. In addition customer experience when implementing health protocols during the covid19 pandemic influence to customer satisfaction.  In conclusion, functional quality, customer value, technology used, perceived risk and customer experience show the most significant contribution to banking customer satisfaction  when implementing health protocols during the covid19 pandemic and create good acceptance of banking service performance from the aspects of empathy, physical evidence, reliability, fast response, time saving and cost-effectiveness and the new service development. 

Exploring the influence of store attributes on customer experience and customer engagement

2017 ◽  
Vol 45 (11) ◽  
pp. 1138-1158 ◽  
Author(s):  
Suhaily Mohd-Ramly ◽  
Nor Asiah Omar
Keyword(s):  
Structural Equation ◽  
Department Store ◽  
Customer Experience ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Original Research ◽  
Retail Sector ◽  
Term Survival ◽  
Content Type ◽  
Store Attributes

Purpose The global retail landscape has changed drastically. The rising role of Asia as one of the fastest growing international retail penetration and expansion will continue to make the region to be the driving force in world economic growth. However, the ambitious expansion plans are making the retail sector to be more challenging. Emphasizing on the customer experience and enhancing the value proposition to customers are undeniably vital factors for the long-term survival of any retail business. Therefore, the purpose of this paper is to examine the influence of store attributes on customer experience and customer engagement in the context of department store in Malaysia. Subsequently, the influence of customer experience on customer engagement is also analyzed. Design/methodology/approach Using drop and collect survey, 484 valid responses of department store cardholders of age 18 years and above in the area Klang Valley, Malaysia, were collected. PLS structural equation modeling was used to test the hypotheses of this study. Findings Results revealed that customer experience is influenced by merchandise, store atmosphere, and loyalty program, while customer engagement is influenced by merchandise, communication, interpersonal communication, and loyalty. In contrast, post-transaction services were found to have non-significant impact on both customer experience and customer engagement. Analysis also revealed a strong relationship between customer experience and customer engagement. Research limitations/implications This study is carried out on customers of department store in Malaysia. However, the researchers urge other researchers to replicate the study from different countries and category of department stores. Originality/value Retail researchers recognize little knowledge on the contribution of store attributes to customer experience and customer engagement. This paper represents original research that encourages foreign retailers to employ service-dominant logic as a new marketing thought in designing strong customer engagement and experience strategies to capture the Malaysia market.

Beyond customer experience models: identifying idiosyncratic perceptions

2018 ◽  
Vol 36 (7) ◽  
pp. 1311-1328
Author(s):  
Michele Gorgoglione ◽  
Umberto Panniello
Keyword(s):  
Design Methodology ◽  
Scientific Research ◽  
Customer Experience ◽  
Personal Factors ◽  
Content Type ◽  
Segmentation Analysis ◽  
Bank Managers ◽  
Cluster Profiles ◽  
A Company ◽  
Practical Implications

Purpose The purpose of this paper is to demonstrate that a deeper analysis of customer experience (CE) can identify idiosyncratic and critical perceptions in the experiences of groups of customers. Design/methodology/approach The methodology that the authors used is made of three main steps: segmentation analysis, profiling and identification of idiosyncratic clusters’ profiles (i.e. those with a CE perception different respect to the whole sample) and among these idiosyncratic clusters, identification of those that may be critical for the business. Findings The authors identified clusters of customers showing significant differences in their perceived experience with respect to the holistic CE model. Nevertheless, a sample of bank managers assessed three cluster profiles among them to be critical signals a company. The identification of these idiosyncratic patterns provides managers with interesting additional insights that would be hidden in a holistic CE model. Practical implications Managers can gain valuable insights of CE from this analysis that should be added to those coming from an holistic CE model. Originality/value This paper contributes to the scientific research in that it extends the knowledge about CE by showing how personal factors can be identified and how drawing additional managerial insights.

Do firm-specific risks affect bank performance?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Asad Mehmood ◽  
Hung Phu Nguyen ◽  
Tahar Tayachi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Content Type ◽  
Nonperforming Loans ◽  
Operational Risks ◽  
Bank Managers ◽  
The Impact

PurposeThe authors examine the impact of credit, liquidity and operational risks on the financial performance of commercial banks of South Asia.Design/methodology/approachData are extracted from DataStream of 76 commercial banks of four countries, i.e. Pakistan, India, Bangladesh and Sri Lanka for the period 2009–2018. The generalized method of moments (GMM) is used to analyze the results.FindingsAll three risks are significantly associated with financial performance. The authors find that Z-score positively affects the bank performance, whereas the nonperforming loans (NPLs) ratio has a negative impact on financial performance of bank. Liquidity risk analyses show the current and loan-to-deposit (LTD) ratios positively and negatively, respectively, affect financial performance. While operational risk positively affects financial performance. The authors further present the significant effects of joint occurrence of credit and liquidity risks on financial performance.Practical implicationsFor managing credit risk, banking management should ensure the policies for granting loans and timely reimbursement of the loan installments from customers. Bank managers should regularly monitor the liquidity position by maintaining the necessary levels of loans and deposits. Management should retain a healthy capital charge to meet operational risks.Originality/valueCredit, liquidity and operational risks are considered the most important categories of risk which are faced by financial institutions. To the best of the authors’ knowledge, this is the first study which investigates the impact of these risks on banks’ financial performance in selected South Asian countries. The results of this study have relevance and probable generalizability about the impact of risks on the performance of banks in emerging markets.

Measuring customer experience in banks: scale development and validation

2014 ◽  
Vol 9 (1) ◽  
pp. 87-117 ◽  
Author(s):  
Ruchi Garg ◽  
Zillur Rahman ◽  
M.N. Qureshi
Keyword(s):  
Scale Development ◽  
Scale Validation ◽  
Customer Experience ◽  
Content Type ◽  
Effective Strategies ◽  
Bank Managers ◽  
Service Sectors ◽  
Indian Banks ◽  
Development And Validation ◽  
The Relationship

Purpose – The paper aims to measure customer experience in Indian banks. This study examines the 14 factors of customer experience and identifies their impact on customer satisfaction. Design/methodology/approach – In this study, psychometric scale development procedure is followed comprising with the steps of item generation and selection, scale refinement and scale validation. A one-way ANOVA test is applied to identify the relationship between 14 experience factors and demographics of respondents. Findings – The findings of the study present a 41-item 14 factor reliable and valid customer experience scale among which “convenience” appears as the most significant among all the factors. Research limitations/implications – This study concentrates on a sector-specific scale, whereas a generalized scale that can be applied in other service sectors should be developed. In comparison with previous studies, the results of the current study provide a more absolute coverage and understanding of various touch points used in measuring customer experience in banks. Practical implications – By this reliable and valid scale, bank managers can identify the current and expected experiences of the customers and can build up effective strategies for the utmost satisfaction of the customers. Originality/value – To the best of the authors' knowledge, this study represents the foremost studies for developing a validated tool to measure the experiences of banks' customers.

Impact of risk perception on customer purchase behavior: a meta-analysis

2020 ◽  
Vol 35 (1) ◽  
pp. 76-96
Author(s):  
Zhihong Li ◽  
Yongzhong Sha ◽  
Xuping Song ◽  
Kehu Yang ◽  
Kun ZHao ◽  
...  
Keyword(s):  
Risk Perception ◽  
Perceived Risk ◽  
Meta Analysis ◽  
Negative Relationship ◽  
Developed Countries ◽  
Purchase Behavior ◽  
Effect Estimate ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose Risk perception is an essential factor affecting how individuals evaluate risk, make decisions and behave. The impact of risk perception on customer purchase behavior has been widely studied; however, the association has been debated. Therefore, the purpose of this paper is to examine the relationship between risk perception and customer purchase behavior and to examine factors that could moderate it. Design/methodology/approach This study conducted a meta-analysis of this relationship and examined factors that could moderate it. Six databases were comprehensively searched. Two reviewers independently selected the studies for inclusion, extracted data and assessed quality. Pearson's r was used as the effect estimate. A total of 33 studies were included in the meta-analysis. Findings The results revealed a negative relationship between risk perception and customer purchase behavior. The geographical region, purchase channel and country development level affected the relationship. The correlation between perceived risk and purchase behavior in European consumers was the highest, followed by the correlation in American consumers; the weakest correlation was found in Asian consumers. For consumers in developed countries, perceived risk had a stronger negative influence on customer purchase behavior than that for consumers in developing countries. The perceived risk of online purchase channels had a stronger negative impact on customer purchase behavior than that of offline purchase channels. Research limitations/implications Risk perception is a useful context in which to explain barriers to customer purchase behavior. In addition, reducing consumers’ risk perception and perfecting the market transaction process with respect to buying behavior should be further studied. Originality/value The findings of this review indicate a direct negative relationship between risk perception and customer purchase behavior. To the best of the authors’ knowledge, this review is the first to meta-analytically summarize the impact of risk perception on customer purchase behavior in social sciences research, and it also illuminates new perspectives for future studies.

Effect of digital banking-related customer experience on banks’ financial performance during Covid-19: a perspective from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nhung Thi Hong Nguyen ◽  
Nguyen Kim-Duc ◽  
Teresa Lien Freiburghaus
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Positive Impact ◽  
Financial Statements ◽  
Customer Experience ◽  
Moderator Variable ◽  
Content Type ◽  
Considerable Impact ◽  
Intermediate Variables ◽  
The Impact

Purpose This study aims to investigate customer experience (CE) and its relationship with intermediate variables to analyze the impact of digital banking (DB) on banks’ financial performance (FP) before Covid-19 and during the lockdown in Vietnam. Design/methodology/approach These research data are from a survey of Vietnamese customers. The survey was deployed to a sample of 238 and 218 customers of 20 Vietnamese commercial banks via email in 2018Q4 and 2020Q2, respectively. FP is measured using banks’ quarterly financial statements before Covid-19 and during the lockdown. Findings CE with DB had a significant and positive impact on FP via customer satisfaction before Covid-19, while the other two intermediate variables (word-of-mouth [WoM] and trust) had no considerable impact. During the lockdown, only WoM had a positive impact on FP. These findings indicate that before Covid-19, when customers could easily interact with their bank through many touchpoints, customer satisfaction with DB services created higher FP for the bank. However, during the lockdown, DB became the customer’s main touchpoint and WoM mediated the CE–FP relationship. Originality/value During the national lockdown from the beginning of the Covid-19 pandemic in January 2020, customers in Vietnam may have had different experiences with DB when no alternate modes of payment were available. The study uses Covid-19 as a moderator variable to offer different viewpoints and findings related to CE with DB and its impact on FP.

Reference effects and customer engagement in a museum visit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Noel Yee Man Siu ◽  
Tracy Junfeng Zhang ◽  
Ho Yan Kwan
Keyword(s):  
Structural Equation ◽  
Customer Experience ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Content Type ◽  
Self Identity ◽  
Museum Visit ◽  
Response Sets ◽  
Likelihood Model ◽  
Promotional Messages

Purpose By extending the expectancy-disconfirmation theory and integrating the elaboration likelihood model, this study aims to explore the reference effects (i.e. disconfirmation and self-identity) and customer engagement that affect customer experience on satisfaction with a museum visit. The study is designed to test a dual-mediator mechanism involving disconfirmation and self-identity. The moderating role of cognitive, affective or behavioral engagements is also examined with the overall purpose to advance the understanding of customer experience in cultural consumption such as museum visits. Design/methodology/approach A self-administered field survey in two stages was carried out on visitors to the Hong Kong Museum of Art. A total of 465 valid response sets were used for analysis. Hypotheses were tested using confirmatory factor analysis, three-step mediation test, structural equation modeling and moderation regressions. Findings Disconfirmation and self-identity are found to be dual mediators in the experience–satisfaction relationship. Cognitive engagement reduces the effect of knowledge experience on disconfirmation and self-identity but increases that of the entertainment experience on disconfirmation and self-identity. Affective engagement amplifies the effect of knowledge experience on self-identity but mitigates the importance of entertainment evaluations. Practical implications Findings highlight the importance of both perceived knowledge and entertainment experiences in visitors’ evaluation of a cultural experience. Managers are suggested to craft promotional messages with the psychological appeal that connects visitors with museum services. Appropriate engagement tactics for museums can be developed to avoid overloading visitors with information. Originality/value Previous studies treat disconfirmation as the dominant reference effect in the formation of customer satisfaction. This study shows both disconfirmation and self-identity as dual reference effects that link the customer experience to satisfaction in the museum context, serving as a pioneer in defining how the influence of experience on reference effects varies depending on how customers are cognitively and affectively engaged in such context.

Does the country’s religion affect the financial performance of conventional and Islamic banks? Comparative study in the international framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Achraf Haddad ◽  
Achraf Haddad
Keyword(s):  
Financial Performance ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Emerging Countries ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact ◽  
Conventional And Islamic Banks

Purpose The purpose of this study is to compare the impact of religion on the financial performance of conventional and Islamic banks in the framework of stakeholders’ theory. Design/methodology/approach Few studies have focused on studying the impact of religion on banking performance. Although religion represents an external governance mechanism for financial institutions, by using the generalized method of moments (GMM), this topic constitutes a research opportunity. The already modeled variables are collected from 76 countries located on 5 continents. The data were collected from DATASTREAM, banks’ annual reports, WIKIPEDIA and World Bank. It concerns 210 banks of each type during the period (2010–2020). Findings The author retained that religion negatively affects the financial performance of both conventional and Islamic banks. More specifically, results showed that religion affected the liquidity and solvency of two bank types. It also affected conventional banks’ profitability and efficiency of conventional banks. Research limitations/implications I summarized the theoretical contribution in the integration of a new original governance category to enhance its presence with impacts directly affecting the banks’ financial performance. Empirically, the study can be seen as a compass for all stakeholders to consider environmental, behavioral and doctrinal factors in studying the financial performance evolution and to become more competitive in the banking market. Originality/value Although conventional banks located in developed countries are different from those existing in emerging countries and Islamic banks located in developed countries are different from those existing in emerging countries, I carried out a diversified study in the global context. Referring to the comparative literature review between conventional and Islamic banks, the study was the first conditional research that compared the impacts of religion on the financial performance of conventional and Islamic banks.

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