Revisiting expectation confirmation model to measure the effectiveness of multichannel bank services for elderly consumers

PurposeThis study aims to understand the expectations of elderly bank customers with mobile banking services and to measure its impact on their long-term satisfaction and continued intention. The study is based on two theories, expectations-confirmation theory (ECT) and hedonic adaptation theory.Design/methodology/approachA self-administered longitudinal survey was completed with a sample of 208 elder customers who do not use mobile banking services. Latent growth curve modelling approach was used to determine the change in their post-adoption experience over four time points.FindingsResults of the study confirm that the use of mobile banking services prolongs the duration of customer satisfaction and continued intention level, post-adoption, reinforcing the hedonic adaptation theory.Research limitations/implicationsMobile banking services are going to be a significant component of the multichannel banking agenda. But it might be interesting to review other digital channels of banking services. The key contribution of this study is that it measures the expectation-confirmation link of elderly customers with mobile banking services. The study sheds light on factors that positively influence customer inclination and adoption of multichannel banking services in the long run, which is important for the commercial success of such channels.Practical implicationsThe study highlights the importance of elder customers' pre-expectations, related dimensions which are important for post-adoption experiences of mobile banking services to improve customers' satisfaction and continued intention in the long run. This is crucial for the commercial success of banks.Originality/valueThis is the first such study that used the expectation confirmation model (ECT) and related it with hedonic adaptation theory to assess elderly customer's post-adoption satisfaction and continued usage of mobile banking services over time.

Financial inclusion through Kiosk-based banking services: a study with reference to business correspondent models in the state of Kerala

PurposeThe paper aims to study the outreach and performance of business correspondent (BC) models, which are implemented as a subsidiary agent of banks to accelerate the financial inclusion (FI) mission in India. In this regard, the study illustrates BC's products and services rendered to customers, forms of delivery channels and BC's view on banking services and Kiosk-based BC programs.Design/methodology/approachThe current paper is an empirical study based on surveying 200 Kiosk-based BCs working in the state of Kerala. After the preliminary screening analysis of the data with outlier deletion, removal of missing values and normality test, both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were executed followed by reliability test, convergent and discriminant validity tests. Covariance-based structural equation modeling (CBSEM) was performed for CFA and inferential tests were carried out by using statistical package for the social sciences (SPSS) and analysis of a moment structures (AMOS) and Eviews.FindingsChiefly, eight operational forms of BCs were found from the field survey. Hypothetical tests show the significant impact of the serviceability of banks on BC's profitability. Validity tests such as average variance extracted (AVE), composite reliability (CR), maximum shared variance (MSV) and average shared variance (ASV) were established after the removal of the cross-loaded items of the questionnaire from the rotated component matrix. BCs perform main banking services especially bank account opening facility and Akshaya E-Centers are widely used for this model as Kiosk banking in the surveyed state.Originality/valueSo far, no study has encompassed empirical research on performance analysis and outreach of the BC model in the state of Kerala where this BC model well functions. Since the study is a novel form of banking channelization for FI, the study can contribute to understanding the further feasibility and future dimension of the model based on experimental views of BCs.

On the Assessment of e-Banking Websites Supporting Sustainable Development Goals

The main aim of this article was to test the authors’ proprietary method (i.e., the conversion method applied to evaluate e-banking services that support sustainable development goals in households, communities, and society). The authors’ conversion method can be applied with the aim of maintaining a balance between households, producers, and public administration services in line with the principles of sustainable development of the information society in Poland. To achieve this goal, the authors identified the differences between the results obtained using the conversion method and the results produced by other methods such as TOPSIS, Promethee II, and PROSA involving the same group of respondents. A hypothesis was made about the existence of significant differences in the results obtained as part of the studies. The research was carried out on a sample of nearly 830 ratings concerning the 27 most popular electronic banks in Poland. As part of the survey, the respondents assessed 18 characteristics (attributes) of the selected banks using a simplified Likert scale. The study was conducted during the pandemic in Poland in 2020. The authors compared the results achieved in the case of the TOPSIS, Promethee II, and PROSA methods and the ones obtained with the application of the conversion method. Then, the ratings of the e-banking websites were arranged in descending order, and the distances between the positions in the rankings obtained by the conversion method and other methods were calculated. In addition, the R2 correlation coefficients were calculated for all combinations of the results received using individual methods. The results showed the greatest differences both in the absolute distances between the positions obtained in the ranking and the lowest value of the R2 correlation coefficient in the case of the conversion method in relation to the other methods. The limitation of the present research resulted from the fact that the study sample included respondents who were all members of the academic environment. The students analyzed in the study were part of a group supporting globalization processes where e-business solutions are widely used. However, the purchases of goods and services both local and foreign made by this group were often limited in scope and value due to a lack of funds. The research results indicate a potential need for improvement of the conversion method.

Non-Muslim Customer Switching Behavior In Islamic Bank In Indonesia

The growth of Islamic banking in Indonesia has occurred significantly, one of which is in the Metro City area, Lampung Province, Indonesia. Many consumers have moved from conventional banks to Islamic banks, even this has happened to non-Muslim consumers. This study aims to describe the factors that influence the behavior of non-Muslim consumers in Metro City, Lampung Province, Indonesia, when choosing Islamic banking services over conventional banks. This is because the understanding of non-Muslim customer switching behavior is very important, especially for Islamic banking, where the application of religious principles is contained therein. This research was conducted using a mixed method with quantitative and qualitative approaches. Data collection was carried out by filling out questionnaires and interviewing 40 non-Muslim customers who became customers at Islamic Bank. Furthermore, the data were analyzed statistically using ANOVA test and Post Hoc Test to see the influence of the factors that gave the most significant influence. The results of this study indicate that the factors of price, reputation, service quality, promotion, product, location, profit, coercion, and recommendations from other customers have a significant effect on non-Muslim customers to switch to services to Islamic banks with a significance value of 0.000 at ANOVA test. Of the nine factors, recommendation factors from other customers (whether friends, relatives, or family), price, and profit are the most influencing factors.

Solutions to Financial Exclusion in Rural and Depopulated Areas: Evidence Based in Castilla y León (Spain)

Access to banking and financial services is defined by various international organizations as essential to ensure the development of countries and regions. However, this access is not always guaranteed, even in developed countries. Our study focuses on analyzing the current situation of several rural and depopulated areas of Castilla y León (Spain) in terms of access to banking services and cash. For this purpose, an initial spatial analysis has been carried out to compute the access to these services measured in kilometers needed to travel to access them. Subsequently, we included, as a possible solution, the access to these financial services through their implementation (as a cash back point) in the extensive Spanish network of pharmacies. The results obtained in the spatial analysis show that the introduction of the network of pharmacies as a point of access to cash means a significant reduction in the distance to travel in municipalities in rural and unpopulated areas in order to access cash. In the case of the province of Avila the distance would be reduced by 55%, in the province of Segovia the distance would be reduced by 38.5%, in the province of Soria the distance would be reduced by 20%, in the province of Palencia the distance would be reduced by 22%; and finally in the province of Zamora the distance would be reduced by 33%.

Evaluation of Financial Inclusion in the Villages of India

Financial inclusion refers to making financial services available at the doorsteps of the citizens of India. There has been a lot of research to identify the various factors that lead to the adoption of technology for banking and availing of financial services. But there is no study on the factors that impact the adoption of technology and formal banking services in India. A large section of the population in India still uses the informal banking channel such as money lender, relatives which leads to difficulties in availing the financial services. Qualitative research and that grounded theory have been used for research. Direct interview has been used to collect data from the participants across 11 different villages. The study highlights that the level of financial and digital literacy has improved in India though the Kisan credit card scheme faces various problems in implementation.

Factors Affecting User Intention Towards Mobile Banking Applications in Henan, China

With the rapid development of mobile applications, the people of China have become increasingly dependent on mobile finance applications such as Alipay, WeChat pay, and some other finance applications. These finance applications seriously affect the number of mobile banking users. Hence, it is important to investigate the factors affecting the users' intention of mobile banking users. In this research, quantitative technique via survey research was used. The sample data was collected from Henan, China. The data collected were analysed with Pearson correlation analysis as well as multiple regression analysis. The results of the analyses show that client demand, banking services, and quality of mobile applications possess significant relationships with users' intention. Among these independent variables, the quality of mobile applications possess the strongest positive relationships with user intention followed by banking services and client demand.