News of the finance

BAbstract:/BBR/ BPurpose/B – Adopting technological service innovations entails substantial learning effort requiring information and guidance from the provider. The purpose of this paper is to investigate the effect of information and guidance offered by a bank on five adoption barriers – usage, value, risk, tradition, and image – in a mobile banking context. BDesign/methodology/approach/B – The measurement development and hypotheses were based on consumer resistance theory and the earlier literature on internet and mobile banking. A large empirical study on bank customers with 1,551 effective observations was conducted. The measure items were validated by measurement model and hypotheses were tested using structural equation modelling. BFindings/B – The results show that the information and guidance offered by a bank has the most significant effect on decreasing the usage barrier, followed by image, value and risk barriers respectively. The information and guidance showed no effect on the tradition barrier. BOriginality/value/B – This paper provides further understanding of how the information and guidance of a bank affect consumer attitudes and resistance in particular, on mobile banking. It also has implications for management in overcoming resistance to mobile banking.

BAbstract:/BBR/ BPurpose/B – Mobile financial services (MFS) applications require a hardware secure storage, secure element (SE) for crucial payment and authentication credentials, comparable to the EMV chip cards recently introduced in the payment card world. However, the diffusion of MFS is currently obstructed due to debate within the industry over which SE technology is to be adopted. The purpose of this paper is to demonstrate how industry participants can position themselves in the value chain and select the ideal SE option, thereby accelerating the acceptance of MFS. BDesign/methodology/approach/B – This paper is based on previous research done in this field by Mobey Forum and other mobile payments bodies. BFindings/B – The study shows that MFS value chain positioning has a direct effect on which SE alternative is most suitable to the company. Identifying the most suitable SE technology in turn allows companies to seek out the most interesting business partners, and thereby results in a quick and widespread diffusion of MFS. BOriginality/value/B – This study has implications for the adoption of MFS technology and the development of the mobile payments marketplace. It is especially relevant to management working towards creating a working MFS ecosystem.

BAbstract:/BBR/ BPurpose/B – The aim of this paper is to investigate the perceived obstacles to the adoption of mobile banking services among Brazilian internet users and search for patterns according to socio-demographics variables. BDesign/methodology/approach/B – Data were collected through an online survey involving the internet banking customers of a major Brazilian bank. A total of 3,585 usable cases were collected from customers who do not use any kind of mobile devices (cell phones, PDAs or Smartphones) to access electronic banking services. The main reasons for rejecting the service were explored using multidimensional scaling, while chi-square tests were used to assess differences between socio-demographic variables. BFindings/B – The results indicate that the majority of respondents do not use any kind of mobile banking service. Perception of cost, risk, low perceived relative advantage and complexity were revealed to be the main reasons behind the reluctance to use the service. The influence of other background factors is less evident. BPractical implications/B – The research has practical implications, as it suggests guidance strategies and presents directions for service enhancement as a key to overcoming the perceived obstacles to m-banking adoption. BOriginality/value/B – This is the first empirical research exploring mobile banking resistance factors in Brazil.

BAbstract:/BBR/ BPurpose/B – This paper aims to investigate the barriers for adopting mobile banking services. From a methodological perspective, this paper seeks to build on two widely used models for technology adoption, the Technology Acceptance Model (TAM) and Innovation Diffusion Theory and to test a model that is better able to predict consumers' intention to use mobile banking. BDesign/methodology/approach/B – A research model extends the TAM model by additionally examining the effects of compatibility, trust, credibility, perceived risk and cost on behavioural intention. The empirical approach was based on an online survey of 263 young people in Germany, undertaken during August/September 2009. The data were analysed using structural equation modelling. BFindings/B – The results of the study indicated that compatibility, perceived usefulness, and risk are significant indicators for the adoption of m-banking services. Compatibility not only had a strong direct effect but was also identified as an important antecedent for perceived ease of use, perceived usefulness and credibility. Trust and credibility are crucial in reducing the overall perceived risk of m-banking. BOriginality/value/B – The results of this study have implications for researchers and practitioners. The proposed model explains 65 per cent of the variance in intention to adopt mobile phone banking, which is more than the 40 per cent of variance typically found in other studies using the TAM. This study provides a basis for further refinement of models to predict technology adoption, in particular the inclusion of compatibility as a predictor of behavioural intention. In terms of behavioural and demographic data, the study focuses on segments of individuals who are most likely to adopt m-banking.

BAbstract:/BBR/ BPurpose/B – This paper seeks to test the factors that can influence adoption of mobile banking among current users of internet banking in Singapore and gender as a moderating variable. BDesign/ methodology/ approach/B – A sample of more than 600 current users of electronic banking provided opinions about their intention to use mobile banking, perceptions of relative advantage of the mobile device, perception of risk, social norms, ease of use and usefulness of the device for banking purposes. The data were submitted to LISREL for structural equation modeling. BFindings/B – Usefulness, social norms and social risk, in this order, are the factors that influence the intention to adopt mobile banking services the most. Ease of use has a stronger influence on female respondents than male, whereas relative advantage has a stronger effect on perception of usefulness on male respondents. Social norms (or the importance of others in the decision), also influence adoption more strongly among female respondents than male. BResearch limitations/implications/B – The sample is biased towards people who are currently using internet for banking. However, mobile banking innovators may not come mainly from current users of internet banking. BPractical implications/B – Since gender plays a moderating role in the perception of ease of use, social norms and relative advantage, companies are advised to target their communication tactics according to gender. Social norm is more important to females than males as well as ease of use, whereas, relative advantage is more important for males. BOriginality/ value/B – The study purposefully uses gender as a moderator and risk as an independent variable not often considered in previous studies.

BAbstract:/BBR/ BPurpose/B – This paper's objective is to propose an integrated framework to investigate the adoption intention of mobile banking technology and to test it in the Brazilian context. BDesign/methodology/approach/B – A total of 666 respondents from the most economically developed cities in Brazil were surveyed. The sample comprised 333 mobile banking users and 333 mobile banking non-users. Partial least squares was used to analyze the proposed framework's construct relations. BFindings/B – The framework offers an integrated view, taking into account more predictors than other studies on the adoption of innovations. For non-users, the framework was able to explain approximately 69 percent of the dependent variable (intention to adopt mobile banking) variation, which is a figure higher than those obtained in previous studies. However, for current users of mobile banking, only 27 percent of the dependent variable variation was explained by the framework. It was also observed that the predictors' influence over the criterion variable was different for each group of mobile banking users and non-users. BOriginality/value/B – The findings suggest that the proposed integrated framework offers a deeper understanding of the variables that influence the adoption of mobile banking.

BAbstract:/BBR/ BPurpose/B – The purpose of this paper is to examine whether community banks have gained market share at the expense of larger, regional banks in small metropolitan statistical areas (MSAs). The authors also seek to examine market share gains of community banks relative to each other. BDesign/methodology/approach/B – The empirical research is conducted using deposit and market share data for community and regional banks between 2001 and 2008. The authors employ regression analysis. BFindings/B – It is found that community banks have gained market share. When regional banks are excluded and the market share gains of community banks relative to each other examined it is found that community banks with lower market shares gain relative to banks with a larger initial share of the deposit market. BResearch limitations/implications/B – Research is conducted using eight metropolitan statistical areas (MSAs) in Wisconsin, Minnesota, and Iowa. Thus, conclusions drawn are based on analysis conducted in one region of the United States. BPractical implications/B – The paper's findings are in contrast to traditional thinking about size and market share and suggest that community bank managers should focus on each other as well as regional and mega-bank competitors. BOriginality/value/B – The paper uses market share as a proxy for bank size as a means of explaining the competitive landscape that exists within community banking.

BAbstract:/BBR/ BPurpose/B – This paper aims to empirically examine the factors that affect the adoption of online banking in Vietnam. Perceived usefulness, perceived ease of use, trust and government support were examined to determine if these factors are affecting online banking adoption. BDesign/methodology/approach/B – A survey was distributed to 156 respondents in Vietnam with 103 usable samples giving a response rate of 66 percent. Data were analyzed by employing correlation and multiple regression analysis. BFindings/B – The results showed that perceived usefulness, trust and government support all positively associated with the intention to use online banking in Vietnam. Contrary to the technology acceptance model, perceived ease of use was found to be not significant in this study. BResearch limitations/implications/B – This study was conducted in Vietnam and future research can use this model to study the adoption of online banking in other countries. BPractical implications/B – The results allow banks' decision makers to develop strategies that can increase the adoption of online banking. Banks should improve the security and privacy of the web sites, which will increase the trust of users. Banks should also create features which are useful to users and make sure users are aware of these features. Lastly, government should also play a role to support banks in their efforts to increase online banking adoption. BOriginality/value/B – The findings allow the factors that can influence the adoption of online banking in Vietnam to be understood. Unlike existing studies based on Technology Acceptance Model (TAM), this study includes both security and government support on top of the existing variables used in TAM. Most studies on adoption of online banking are focused on developed countries. By focusing on Vietnam, this model can also be applied to other countries which are relatively new to e-commerce and online banking.

BAbstract:/BBR/ BPurpose/B – This paper aims to investigate the different types of perceived relational benefits in the bank-retail customer relationship. It further seeks to assess the influence of these benefits on satisfaction with the bank and on three behavioral outcomes, word-of-mouth, intention to continue the relationship and cross-buying. BDesign/methodology/approach/B – Three focus groups with retail bank customers were conducted to identify perceived relational benefits. Then exploratory and confirmatory factor analyses were run on survey data to confirm the structure of relational benefits. Finally, a structural equation model was estimated in order to test the relationships between relational benefits, satisfaction with the bank and behavioral outcomes. The country of study was Greece. BFindings/B – Five types of perceived relational benefits were identified: two trust-related (competence and benevolence), special treatment, social and convenience. Only competence and convenience significantly affect satisfaction with the bank. No direct link between relational benefits and behavioral outcomes was found, as satisfaction plays a mediating role between them. BResearch limitations/implications/B – Findings are context specific but extend previous knowledge on the nature of relational benefits and point out the need to study trust benefits in a multidimensional way as well as to further confirm “convenience” relational benefits. BPractical implications/B – Findings suggest additional leverages to build relationships and help identify priorities for enhancing overall bank satisfaction through relational actions. BOriginality/value/B – This is the first time that two types of trust-related benefits are distinguished and a convenience benefit is identified. Further, two of these newly identified benefits (convenience and competence) are the ones that build satisfaction.

BAbstract:/BBR/ BPurpose/B – US foundations make up such a large part of the economy that they form a distinct economic sector. In the UK this is commonly referred to as the third sector. The first and second sectors are private business and the government itself. In the United States, the third sector controls over $3 trillion and enjoys exceptional liquidity. This article aims to provide a blueprint for a highly productive engagement of foundations and banks to harness these assets for the benefit of not-for-profit organizations, the depositing foundations, and the banks themselves BDesign/methodology/approach/B – The paper explains how these third sector enterprises., intent on being helpful, are so befuddled structurally that they have failed to do what any person would do with similar liquid assets, It then supplies an organizational and marketing methodology for harnessing some of those assets to the benefit of the respective missions of foundations, not-for-profit organizations, and for-profit banking companies. BFindings/B – A modest reorganization of existing bank and philanthropic structures will open the door to harmonious engagements between foundations and banks for their mutual benefit and for the benefit of their clients and beneficiaries. BOriginality/value/B – The findings herein are a novel utility which comes into being through the innovative engagement of foundations, not-for-profit organizations, and banking companies that want to enjoy low risk, high reward expansion of both deposits and assets.