Relationship between ethical corporate social responsibility and customer loyalty: the mediating role of customers’ gratitude

The purpose of this study was to examine whether customer gratitude mediates the association between ethical corporate social responsibility and customer loyalty. A cross-sectional survey was adopted. A total of 430 individual customers of retail banks located in some selected towns in north-east region of Nigeria were selected using convenience sampling. Structured questionnaires were used to collect. Descriptive statistics and partial least square structural equation modeling were used in data analysis. Finding showed that ethical corporate social responsibility positively and significantly affected customer loyalty. Also, a positive and significant effect of ethical corporate social responsibility on customer gratitude was observed. Furthermore, it was observed that customer gratitude and customer loyalty are positively associated. Also, customer gratitude mediated between ethical corporate social responsibility and customer loyalty. This study concluded that customer gratitude mediated the influence of ethical corporate social responsibility on customer loyalty. The finding of this study will help managers of Nigerian retail banks to develop ethical corporate social practices which strongly create feelings of gratitude among their banks’ customers in order to take advantage of customers’ gratitude, and eventually cultivate customers’ loyalty.

Identification of Effective Leadership Indicators in Ghanaian Retail Banks Using AMOS Based Confirmatory Factor Analysis

In the light of the importance of banks to the economic growth process in Ghana, this study sought to identify the determinants of effective leadership style that is appreciated by employees in retail banking firms in Ghana, towards providing practitioners with crucial information that could enable them make informed decisions towards improving the workplace. Using data collected from employees in eleven firms which were analyzed using the AMOS programme, minimum was achieved for the leadership measurement model and the goodness of fit statistics showed that the overall model fit quite well to the data. Based on the findings from both factor analysis and Confirmatory factor analysis, the study established that managers of retail banks in Ghana could be perceived by their employees as good leaders if they give employees full credit for the work that they do. Handling employee issues very well and taking care of their complaints as well as putting in place systems for enhancing employees’ career advancement into specialist departments or management positions are also perceived as good determinant of leadership. It is therefore hypothesized that managers of retail banks in Ghana could be perceived as good leaders by employees if they are seen as giving employees full credit for the work that they employees do at the workplace, handling employee issues very well and taking care of complaints brought up by employees, as well as putting in place systems for enhancing employees’ career advancement into specialist departments or management positions are also perceived as good leaders.

Bank business models, negative policy rates, and prudential regulation

Using data from Italian banks over the period 2011–2017, we study how negative interest rate policy and prudential regulation impact on bank business models. We report four key findings. First, banks shifted into retail- and market-oriented business models. Second, high- and low-deposit banks reduced loans and increased security/liquid assets; only market-oriented banks expanded lending. Third, interest rate income compression induced by negative rates has been substantial for the Italian banking system as a whole, although retail banks seem to have suffered less. Fourth, non-interest incomes played a compensatory effect. The portfolio reshuffling, as we observed for wholesale and retail banks (less lending and more securities/liquid assets), is related to the goal of reducing risk exposures and, in turn, the connected capital absorption required by prudential regulation.

Evaluating Customer Relationship Management (CRM) as a Business Knowledge and Intelligence Management Tool

Tense competitions have always been the case in the banking industry. Its very customer-oriented nature explains the need to recognize the importance of customers with respect to growth and success, and so the battle to recruit new and retain existing customers are inevitable. Related competitiveness in such area has been highly linked to effective Customer Relationship Management (CRM) systems implementation that can provide the necessary business knowledge and intelligence. This paper seeks to evaluate the preparedness and the extent Omani retail banks are incorporating CRM as a business knowledge and intelligence management tool to assist in their customer recruitment and retention activities. This study uses a quantifiable methodology with MS Excel data analytic tool to analyse primary data to determine the extent to which CRM systems are being incorporated as a business knowledge and intelligence management tool in the banking industry. Data were collected across departments from 5 of the 7 Omani retail banks with average ratings used for each question. The findings show that CRM as business intelligence management tool is already well incorporated in banks of Oman and the banks are also well equipped to further embrace such tools to strengthen their customer recruitment and retention capabilities. The findings also show that the banks have the necessary Information Technology capabilities, Customer Service capabilities and marketing capabilities which have assisted them to deliver higher quality customer services, run more effective marketing and promoting campaigns, and enhance their management decision making. The findings should assist decision-makers in realizing the importance of CRM with appropriate kind of functionalities as a business intelligence tool to optimize customer recruitment and retention activities.

Generation Y consumers’ perceived brand personality of South African retail banks

Successful management of a retail bank’s brand requires some form of brand image, such as brand personality. Creating a retail bank’s brand personality is effective in establishing attachment between customers and the retail-banking brand they choose to support based on self-identification. As such, this study’s aim is to investigate the bank identification and perceived brand personality dimensions of retail banks among the profitable and significantly sized Generation Y banking market. For this study, a non-probability convenience sample of 300 Generation Y banking customers was used. A self-administered questionnaire was developed for data collection. The results of the study suggest that Generation Y customers perceive their chosen retail bank as successful, sophisticated, sincere, rugged, community driven and classic. Moreover, the results showed that the brand personality dimensions of community driven and successfulness are mostly related to the identification of Generation Y customers with their retail bank brand. Customers who easily identify with their retail bank brand bring financial benefits to the bank, as these customers remain loyal to the brand. The results provide insights that can help retail banks to better understand their current brand personality perceptions, which is important given that brand personality can improve bank brand identification among customers.

Experience of Research Misseling in the Practices of Russian Retail Banks

The study examined phenomenon of misseling — a sales practice in in which a product or service is deliberately misrepresented or a customer is misled- in the activities of banks in the retail market. Currently, this phenomenon is clearly insufficiently studied, especially from a scientific standpoint. Meanwhile, the problem of banks using unfair practices is relevant not only because of violation of consumer rights, but also because it undermines the strategic foundations for the development of the banks themselves and the banking system as a whole, destroying the trust and customer loyalty to banks and the banking system as a whole. The authors employed Mystery Shopper observation method and content analysis of ads posted on social networks Instagram, Facebook, YouTube to study the misseling in the activities of three banks in Irkutsk .The study found the presence of misseling: deliberately providing consumers with incomplete information about the characteristics of the product; using not entirely reliable information in working with clients by hiding possible alternatives for choosing and persistently offering a certain solution option as the only one or the best; imposing additional services or product options; the use of manipulative methods of persuading consumers in advertising of the bank and its products. We believe that the use of misseling reduces the socio-economic role of the bank as a financial organization, and its activities "slide" to the level of usury.

Developing corporate social responsibility in financial services

PurposeThe purpose of this study is to contribute to the theory and practice of financial services marketing in sub-Saharan Africa (sSA) by investigating how financial service providers are developing corporate social responsibility (CSR) practices, in particular, seeking to uncover the involvement of stakeholders.Design/methodology/approachFollowing an interpretivist approach, the study uncovers fresh and context-rich insights through an analysis of a multiple case study consisting of retail banks in Ghana. Data consist of semi-structured interviews with senior managers and analysis of documents and archives.FindingsThe study uncovers three key CSR practices practised by the retail banks: giving, community and corporate reputation/brand with which their stakeholders are only to some extent involved. Banks not as yet drawing extensively on stakeholder resources for CSR practices.Research limitations/implicationsThe study uses an inductive and in-depth approach to explore contextual insights into CSR, but with subsequent limitations on how far the findings can be extended.Practical implicationsThe study offers outline for financial services marketing involving stakeholders in CSR.Social implicationsIt discovers that banks acquire social capital through their CSR activities in the community.Originality/valueThe study contributes to financial services marketing theory and practice through an evidence-based framework uncovering the development of CSR through practices that as yet draw on stakeholder resources to a limited extent. Research suggests that CSR practices are dynamic and subject to a range of situational conditions.

Economic Effects of the Digital Transformation on the Banking Market Using the Example of Savings Banks and Cooperative Banks in Germany

Due to the digital transformation, the banking sector in Germany is undergoing massive change. This structural change is massively influenced by technological progress, regulation and supervision, the low-interest phase and demographic change. The focus of this research is on the comparison of savings banks and cooperative banks in Germany, as there are many similarities between the two banking groups. Both belong to the so-called retail banks. The respective bank clients are very similar due to the regional principle, the structure in regional associations and in their clientele. The main purpose of this research is to investigate which of the two banking groups, savings banks or cooperative banks, is more operationally efficient under the same prevailing competitive pressure from the Digital Transformation. This paper summarises the analysis of both banking groups based on real ratios. The relevance of the findings on this scientific problem is that the comparison of savings banks and cooperative banks in Germany has not been addressed in the scientific literature so far. The aim of the research is to make a statement as to which banking group has performed better given the same external market factors. Furthermore, arguments and counter-arguments within the academic discussion on the topic of digitalization in the German banking market will be compiled. The results of the research can be useful for academics who deal with the digital transformation in the banking sector in Germany.

Effects of Financial Determinants on Dividend Payout: Evidence from Nepalese Retail Banks

This paper aims to examine the impact of five commonly used dividend determinants as; net profit, cash flow, size, market to book value, and slack on the dividend payout ratio of 19 Nepalese commercial banks. This study uses secondary data collected from annual financial statements of the banks listed on the Nepal Stock Exchange. A total of 95 observations of the variables five fiscal years are considered. The method used casual comparative research design and regression analysis is conducted. The results showed a positive and significant effect of two variables; market to book value and slack on dividend payout ratio. The result also showed the positive effect of size on the dividend payout ratio. However, the results indicated a negative effect of profitability and cash flows on the dividend payout ratio of the banks.