Antecedent of Organizational Change and Its' Consequnce towards Organizational Performance

2021 ◽  
Vol 12 (1) ◽  
pp. 87-87
Author(s):  
Lambas Marasi Tua LG ◽  
Kurniawati Kurniawati
Keyword(s):  
Organizational Change ◽  
Organizational Performance ◽  
Financial Services ◽  
Technology Development ◽  
Banking Industry ◽  
Consumer Preferences ◽  
Business Environment ◽  
Retail Banking ◽  
Macroeconomic Conditions ◽  
Impact Of Technology

Even very successful organizations need to constantly change (evolve) due to very dynamic business environment conditions (Pangarkar, 2015). An organization needs to adapt to any changes in technology, economy, demographics, regulations, competition, and consumer preferences that change rapidly (Anyieni, 2016). Dynamic changes also constantly occur in the banking industry in Indonesia. As the central institution in driving economic growth, the bank needs to be more adaptive to changes in the business environment driven by customer expectations, technological capabilities, policies, demographics, and macroeconomic conditions. Over the last ten years, competitive pressures in the industry have put pressure on the level of banking profitability and efficiency issues (Source: SPI 2019, www.ojk.go.id). Barquin et al. (2018) also mentioned that technology development had brought a new competitive landscape in the banking industry. Technology has provided more convenience in terms of access to the financial services that also raise concern on the relevance of old-style banking services with high reliance on the conventional branch as access. As an impact of technology development change in financial services, increasing financial technology (fintech) services have emerged another competition platform in the banking industries in recent years. Digital technology will change the competition platform in the financial services industry. If banks are not ready to adapt to the change will be exposed to the shrinking market share (www. Economy.okezone.com, 2019). Fintech is expected to put more pressure on banking lending products, particularly within the retail banking segment, potentially will exist in 2025, as explained by McKinsey (www.keuangan.kontan.co.id, 2018). The commercial lending segment will expose to the competition due to technical support in terms of ease of access. Strong investor support to develop their market in Indonesia is expected to accelerate the change of competition landscape in the small-medium enterprise business (www.money.kompas.com, 2019). Keywords: Change, Leader, Organizational Commitment, Organizational Change, Organizational Learning, Organizational Performance.

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.

FinTech banking industry: a systemic approach

foresight ◽  
2017 ◽  
Vol 19 (6) ◽  
pp. 590-603 ◽  
Author(s):  
Jarunee Wonglimpiyarat
Keyword(s):  
Diffusion Of Innovation ◽  
Financial Services ◽  
Research Study ◽  
Technology Development ◽  
Banking Industry ◽  
Content Type ◽  
Innovation Model ◽  
Systemic Innovation ◽  
And Diffusion

Purpose This paper aims to explore FinTech and its dynamic transitions in the banking industry. In particular, the study analyses the systemic innovation nature of FinTech-based innovations. The main contribution of this research study is the development of systemic innovation model which can be used as a dynamic tool to track the progress and pattern of technology development and diffusion. The research also discusses the latest financial innovation of PromptPay FinTech – the e-payment system in Thailand. Design/methodology/approach This research uses the case study approach to analyse the systemic innovation characteristics of FinTech-based innovations. This research offers a new systemic innovation model which is developed and can be used as a dynamic tool to track the progress and pattern of technology development and diffusion. The study uses FinTech-based innovations as case study samples to gain a better understanding concerning the systemic characteristics and the pattern of technology diffusion under the analytical framework of systemic innovation model. This research involves qualitative interviews with five major commercial banks in the financial services industry of Thailand. Findings The analyses of findings show the systemic characteristics of FinTech-based innovations in the banking industry, both at a global scale and Thailand case. The analyses have shown that systemic characteristics of the innovation process are the outcome of interactions between the complexity of the innovation and the capabilities of innovators in managing the innovation. The insightful implications on the systemic nature of innovation give the trend and direction of FinTech-based innovation development in the banking industry. Originality/value The main contribution which shows originality and value of this paper is the development of systemic innovation model. This research study develops a systemic innovation model to analyse the systemic characteristics which can be applied to all innovations in any industry. The model can also help track the progress and pattern of technology development and diffusion. Therefore, the model can be used to project the trend and diffusion of innovation competition in the banking industry.

Banking in the United States

2019 ◽  
pp. 977-999
Author(s):  
Robert DeYoung
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Financial Stability ◽  
New Technologies ◽  
Banking Industry ◽  
High Volume ◽  
The United States ◽  
Retail Banking ◽  
Small Community ◽  
Banking Services

The past forty years has witnessed a near total transformation of the US banking industry, as well as a near total disaster. The bank regulatory framework established during the Great Depression was dismantled, new technologies revolutionized how banks produce and distribute financial services, and dramatic increases in competition have pressured banks to operate more efficiently. The population of commercial banks has been halved by a wave of acquisitions and the largest banks have increased ten-fold in size. A strategic dichotomy has emerged, with small ‘community’ banks providing person-to-person retail and small business banking services, and large commercial banks providing high-volume retail banking services in domestic markets and corporate and investment banking services around the world. These changes have brought great efficiencies to the banking industry and its customers, but have also introduced new instabilities to the system. A decade of historically high profits was followed by large investment losses and government bailouts during the financial crisis of 2008–9. A partial re-regulation of the industry has followed, and both bankers and policymakers seek to balance market efficiencies with financial stability as this dynamic industry moves further into the twenty-first century.

Marketing of financial services to the elderly in the retail banking industry: Strategic guidelines

1991 ◽  
Vol 6 (2) ◽  
pp. 157-175
Author(s):  
Joseph Belonax ◽  
Rajshekhar Javalgi ◽  
S. R. Rao ◽  
Edward Thomas
Keyword(s):  
Financial Services ◽  
Banking Industry ◽  
The Elderly ◽  
Retail Banking

scholarly journals Emergence of Non-Traditional Financial Service Providers in the Market - A Threat or An Opportunity for the Georgian Banking Industry

2021 ◽  
Vol 4 (2) ◽  
pp. 97
Author(s):  
Tea Kasradze
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
New Technologies ◽  
Service Providers ◽  
Banking Industry ◽  
Secondary Data ◽  
Financial Service ◽  
Retail Banking ◽  
Financial Industry ◽  
The Impact

Each banking institution has a customer-oriented strategic plan, although the sudden emergence of competition does not allow them to relax. The explosion of new technologies and the rise in consumer demand have been putting pressure on banks since the 2008 recession. Retail banking customers are constantly expecting new, improved, affordable, convenient continuous service from the bank. In an environment of increasingly competitive, innovative financial services, banks need to be able to maintain not only customers but also brand awareness. The emergence of non-traditional financial service providers in the market such as FinTech, NEO Banks, Challenger Banks, BigTech, which reduces the relationship between banks and their customers, completely changes the banking industry. Today we face a new open ecosystem of consumers, traditional banks, FinTech and BigTech companies, regulators, developers, non-banking firms and other players, with customers at the center. Banks will have to significantly change their commercial and operating models to retain customers and remain active players in the market. The presented paper examines the development trends of new players in the financial industry - non-traditional financial service providers and the readiness of the banking industry to respond to these trends. The paper is a study of the impact of digitalization of financial services on the banking sector based on the study and analysis of reports of the various international organizations, local policy documents, reports and regulations of the National Bank, the papers of various researchers and their secondary data. Based on the research, suggestions have been made on how Georgian banks should strategically approach non-traditional providers of financial services to avoid losses, withstand competition and remain active market players.

scholarly journals MANAGING THE ORGANIZATIONAL CHANGE AND CULTURE IN THE AGE OF GLOBALIZATION

2008 ◽  
Vol 9 (1) ◽  
pp. 3-11 ◽  
Author(s):  
Mirjana Radović Marković
Keyword(s):  
Human Capital ◽  
Organizational Change ◽  
Organizational Performance ◽  
Product Life Cycle ◽  
Business Environment ◽  
Good Effect ◽  
Business Success ◽  
Full Potential ◽  
Continuous Learning ◽  
The Future

Great shifts ‐ genuine and radical transformation ‐ have been shaping the economy and business environment in recent decades. The world is going to be too tough and competitors too ingenious as companies are shaken loose from traditional ways of conducting business. Therefore, the old principles no longer work in the age of Globalization. Based on her research, Dr Radović Marković tried to make a profile of a successful organization which will be in the best way adopted to business environment in the new economy. Namely,in order to get a complete picture how the winning organization will look like in the future, the author concluded that the successful companies in the future will be the ones which are wise enough to harness the full potential of the entire organization in the rapidly changing business environment .It means that the winners will be the unbridled firms that are responsive to challenges and adroit in both creating opportunities and capturing them. In other words, to match the business environment that is more networked within and among companies, the ability to manufacture value will have to be distributed across the company to a much greater extent than in the past. Under these circumstances, managers need to transform themselves, too. They need to have a better framework for thinking about and understanding organizational change. Additionally, continuous learning is the key competency required by any organization that wants to survive and thrive in the newknowledge economy. Market champions keep asking learning questions, keep learning how to do things better, and keep spreading that knowledge throughout their organization. Knowledge organizations obtain competitive advantage from continuous learning, both individual and collective, concluded Dr.Radović Marković. The author also stresses that it is necessary to determine general personal knowledge and education, then to examine knowledge or various specializations in certain areas and lastly to identify their skills. Recent researches in the USA show that business owners who were not educated enough for the business in which they were engaged, were not successful (80 % of their businesses failed during the first year of their existence). On the opposite, those entrepreneurs who were educated and who showed constant interest in improving their activities have increased their business success by 60 % after the completion of the basic training programs for entrepreneurship and management. Therefore the author pointed out that more highly skilled workforce should be beneficial to organizations. Additionally, the human capital approach reflects the view that the market value of the firm increasingly depends on intangible rather than tangible resources. The three main components of human capital are described as a) early ability, b) qualifications and knowledge acquired through education and c) skills, competencies and expertise through on‐and off‐the‐job training. This would suggest that individual capability is enhanced by greater qualifications and higher skill levels. If this can be assessed and used in good effect in the firm then better human capital should, ceteris paribus, enhance organizational performance. Better organizational performance should, in turn, translate into better national performance. Finally, the author concluded that we should further recognize that we are living in the globalization era, or the Global Age. From the viewpoint of a product life cycle, we are in the introductory phase of globalization because we are in the early stages of the digital revolution that is creating the technologies that are enabling real time relationships among dispersed individuals and organizations. To meet constantly changing conditions and demands, business has to transcend boundaries to get what it needs regardless of where it exists—geographically, organizationally and functionally.

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>

Validating the Measurement Constructs Affecting the Technology Adoption in Indian Mobile Banking Industry

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Muragesh Y. Pattanshetti ◽  
Sachin S. Kamble ◽  
Sudheer M. Dhume ◽  
Shradha Gawankar
Keyword(s):  
Technology Adoption ◽  
Perceived Risk ◽  
Service Providers ◽  
Business Environment ◽  
Retail Banking ◽  
Appropriate Technology ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Measurement Scale ◽  
Mobile Banking

Mobile phones have undeniably brought a paradigm shift, affecting both the lives of people and the business environment. Today, mobile phone has permeated the lives of billions of people around the world, becoming for many an indispensable device. Moreover, adoption of mobile banking has significant impact on reducing costs and enabling change in retail banking. Factors influencing the intention to use or adopt mobile banking are very important and will play a vital role for mobile banking service providers. The proposed study focuses on a comprehensive set of potential factors that influence the adoption of mobile banking. The research model identifies appropriate factors and captures dependency relationships among these factors in the form of a number of hypotheses to be tested in this research. This paper aims to design a scale with a high degree of reliability, validity, and dimensionality which helps to determine the appropriate technology adoption model based on the identified constructs, viz. Optimism (OPTI), Innovativeness (INNO), Insecurity (INSC), Discomfort (DISC), Perceived Usefulness (PU), Perceived Ease of Use (PEU), Perceived Risk (PR), Subjective Norms (SN), Attitude (ATTI), Behavioural Control (BC) and Behavioural Intention (BI). The data were collected through questionnaire survey from 201 respondents comprising software engineers, bank employees, professors, entrepreneurs. Confirmatory factor analysis was used to test the validity of the proposed measurement scale for all the identified constructs. This instrument helps bankers to determine and design there applications which will contribute to the knowledge of predicting customer intention.

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