Investigating the adoption of banking services delivered over remote channels: the case of Chinese Internet banking customers

Customers adoption of Internet banking has become a widely-researched topic, although it is fair to state that some research gaps still exist. This research aims to fill some of the research gaps by examining the factors that determine the relevant behaviour of three different categories of Internet banking customers in China (i.e. current users, non-users, and discontinued users), and by developing two conceptual models that are derived from different, but complementary, theoretical approaches. The Decision Making Model and the Service and Relationship Evaluation Model are developed in this research. The Decision Making Model is grounded in the technology acceptance model (TAM) and it incorporates an additional construct of perceived value of using Internet banking. Additionally, the Service and Relationship Evaluation Model is derived from the service quality evaluation and relationship quality evaluation literature. Unlike in most other Internet banking adoption studies, these two conceptual models are used complementarily to deliver a comprehensive understanding of customers Internet banking adoption in China. The models are tested using a sample of 614 Chinese Internet banking customers collected via mall-intercept personal interviews based on questionnaires. Partial Least Square (PLS) path modelling and mediation analysis are applied to test the hypotheses advanced in the two models. The key findings of this research show that perceived value is a major factor for explaining customers Internet banking adoption, thus indicating to the banks that they should reduce costs associated with using Internet banking while providing more (perceived) benefits to customers; the importance of incorporating perceived value in Internet banking adoption model(s) is also demonstrated. The findings also confirm that perceived usefulness and perceived ease of use are important factors that determine the adoption of Internet banking by all categories of customers. Current users and non-users perceptions of their behavioural control over using Internet banking contribute to their adoption of Internet banking, and such control perceptions are shaped by self-efficacy, perceived government support and technological support. Additionally, it is demonstrated that both current users and discontinued users perceived value and perceived service quality of Internet banking have positive associations with their satisfaction with Internet banking, which lead to their Internet banking adoption. Moreover, the findings reveal that current users are more likely to continue with Internet banking if they are affectively committed to their banks; they are less likely to continue with Internet banking if they are calculatively committed to their banks due to the costs associated with leaving the banks. These therefore indicate the importance of establishing high-quality customer-bank relationships and placing less strict switching cost barriers that impose less pressure on their existing customers. This research contributes to the Internet banking adoption literature by (i) identifying the important category of Internet banking discontinued users, apart from current users and non-users; and (ii) using two complementary conceptual models, which are grounded in different theoretical streams, to investigate the relevant adoption behaviour of all three categories of Internet banking customers. It hence delivers a comprehensive understanding of personal customers adoption of Internet banking in China

Acceptance of Islamic Banking in New Zealand: Perspectives from Potential Customers

The Islamic banking system stems from an interest free economic transaction model, which was introduced well in the early days of Islam. Even though the development of Islamic banking in the southern hemisphere is not as rapid as in the northern hemisphere, this does not imply that small western countries such as New Zealand are not interested in this niche sector. The increasing number of the Muslim population in New Zealand, which grew to 70,000 by 2018, shows that there may be a potential demand for Islamic financial services. This perception study which is part of a larger feasibility study uses a quantitative approach to examine the perception level of New Zealand residents towards their intention to use Islamic banking. Using purposive sampling technique, 300 questionnaires were distributed to potential banking customers, irrespective of religion, residing in New Zealand. Multiple regression analysis was conducted to capture whether the variables based on the theory of reasoned action including knowledge, religious values, subjective norms and attitude had an effect on the New Zealand residents' intention to use Islamic banking. It was interestingly noted that only attitude had a significant effect on how New Zealand residents perceive their intention to use Islamic banking in their daily lives. Overall, this study has ascertained the level of perception towards their intention to use Islamic banking among potential customers in New Zealand. The results of this study can be used as a framework for the setting up of an Islamic banking system in New Zealand

From the roots of sharing to shared escooters platforms factors influencing users’ adoption

The continuous increasing traffic volume, global warming challenges, and shift in urban society values, demand to rethink and forge a new framework of urban development. Sharing has emerged as one of the most proponent solutions for a principle of sustainable development to be embraced by the contemporary society. Fueled by information communication technologies, shared mobility transport platforms are drastically reshaping the urban landscape. Nonetheless, the literature on this topic is still limited to a few numbers of fragmented studies exploring distinct aspects of micromobility. Therefore, this research aims to fulfill this knowledge gap by exploring what factors are influencing the consumer adoption of shared e-scooter platforms. Drawn from a theoretical established and relevant literature, a research model was built upon the frameworks of Technology Acceptance Model and Theory of Planned Behavior. Subsequently, empirical data was gathered from 201 contributors through a questionnaire and, the hypothesized relationships between the variables were tested employing Structural Equation Modeling (SEM). The results of this study indicate that Subjective Norm was the strongest predictor regarding intention to adopt shared e-scooters, followed by Attitude that revealed similar correlation toward intention, and Perceived Behavioral Control. In contrast to the designed research model, Perceived Usefulness does not contribute significantly to Behavioral Intention. Additionally, the results demonstrate that Perceived Usefulness and Perceived Ease of Use positively influence Attitude, as well as Perceived Ease of Use influences Perceived Usefulness.O aumento do volume de tráfego urbano, o aquecimento global e as mudanças nos valores da sociedade, exigem uma reestruturação do desenvolvimento urbano. A partilha surgiu então como uma solução para a necessidade de uma evolução sustentável. As plataformas de mobilidade partilhada, alimentadas pelas tecnologias de comunicação e informação, têm vindo a transformar a maneira como nos deslocamos em meios urbanos. No entanto, a literatura referente a este tema é ainda limitada, e está fragmentada em estudos que exploram diferentes aspetos da mobilidade partilhada. Posto isto, esta tese de mestrado visa preencher a lacuna existente na literatura, explorando os fatores que influenciam a adoção de plataformas de trotinetes elétricas partilhadas pelo consumidor. Assente em estudos passados, contruiu-se um modelo de investigação baseado nos princípios estabelecidos pelos modelos teóricos de Technology Acceptance Model e Theory of Planned Behavior. Com vista à recolha de dados, realizou-se um questionário online, do qual se recolheram 201 respostas. Consequentemente, as diferentes correlações entre as variáveis estabelecidas no modelo de investigação foram testadas, aplicando o modelo de equações estruturais. Em suma, os resultados deste estudo indicam que Subjective Norm foi a variável que mais contribuiu para a intenção de adotar trotinetes elétricas partilhadas, seguida pela variável Attitude, que mostrou uma correlação similar. A variável Perceived Behavioral Control, por sua vez também mostrou influenciar, com menor intensidade a intenção dos usuários em adotar os sistemas partilhados. Por outro lado, e em contraste com o modelo de pesquisa, a variável Perceived Usefulness não contribui significantemente para a intenção em adotar a plataforma

Bank Management, Finance and Sustainability

This book comprises a collection of empirical and theoretical studies covering a wide range of themes related to bank management, finance and sustainability. Sustainability represents an opportunity for banks as it contributes to improvements in trust in the banking system. However, sustainable business models must be financially viable so that they can have a positive impact on banks’ profitability, stimulating the long-term growth and resilience of the banking industry and overall financial stability.Banks are widely acknowledged as playing a crucial role in achieving the Sustainable Development Goals (SDGs), as they can promote responsible investments and integrate environmental and social criteria into lending and investment strategies. Financial intermediaries can support projects and activities that create a measurable positive economic, social and environmental impact by providing easier access to capital. Furthermore, they can have an active role in improving the financial awareness, inclusion and resilience of the most vulnerable individuals in society

Students’ perceptions of and loyalty towards internet banking: the case of the Kingdom of Saudi Arabia and the United Kingdom

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University.The contribution of this study based on the development of a cross-cultural universal framework, which is moderated by the culture dimension (uncertainty avoidance) and examines the factors influencing the individuals’ attitudes and behaviour and, ultimately, the individuals’ loyalty towards Internet banking across different countries (KSA and the UK). The study will contribute towards filling the gap in Internet banking literature by: 1) examining customers’ loyalty as a dependent variable of intention; 2) invariant acceptance of customers across the UK and KSA cultures; 3) and integration of the cultural dimension (i.e. uncertainty avoidance) and demographics (i.e. gender and experience) as factors of invariance across the groups. The framework is based on a number of constructs adopted from the validated theories in information systems (IS), psychology and marketing literature perspectives. Specifically from a psychology perspective, using Theory of Reasoned Action (TRA) and Social Cognitive Theory (SCT) constructs, Attitude, Intention, Subjective Norms, Self-efficacy and Actual Behaviour (i.e. intention towards loyalty) were integrated. From a technological perspective, using Technology Acceptance Model (TAM) constructs, Perceived Usefulness and Perceived Ease of Use were integrated. Besides these constructs, the model also integrates constructs of privacy, security, communication, customers’ experience, Internet banking reputation, trust and loyalty from IS, as well as a marketing perspective. To examine the hypothetical relationships within the conceptual model, this study applied the positivist philosophical approach with quantitative methodology. Out of 1000 questionnaires distributed amongst undergraduate students in UK and KSA, 532 were useable, i.e. 53%. Due to the multilevel stages of the conceptual model, structural equation modelling (SEM), based on analysis of moment structure (AMOS), was applied to analyse the data. In addition, invariance analyses were applied to see the differences across the groups (i.e. moderation effect). Initially, sixteen hypotheses were developed in the model but due to the merger of three constructs (i.e. trust, security and privacy ) into one construct (i.e. trust), and the deletion of three constructs (i.e. communication, customers’ experience and Internet banking reputation) at the confirmatory factor analysis (CFA) process, eleven hypotheses were finally retained for examination. The modification indices (MI) suggested three new paths, and hence, the addition of these new hypotheses brought the number up in total to fourteen hypotheses. The results suggest that the conceptualised model was able to fit with the data in both UK and KSA sample. Within the KSA sample, the model explained 45% variance in customer loyalty, but 60% in UK sample. From the path relationships perspectives, out of fourteen hypotheses ten were supported in the KSA and nine were supported in the UK. The results confirm the study’s argument that customer loyalty is the main construct of individuals’ behavioural intention to accept Internet banking. Within specific countries’ context, after behavioural intention, perceived ease of use was a more important predictor of loyalty in the KSA (i.e. b= 0.28); whereas perceived usefulness was a more important predictor of loyalty (i.e. b= 0.27) in the UK. Furthermore, it was noticed that subjective norm towards behavioural intention, perceived usefulness and ease of use was only significant in the KSA sample. The invariance analysis across the countries revealed significant differences between the KSA and the UK for nine hypotheses. Furthermore, invariance analysis also revealed significant differences across the cultural dimension of uncertainty avoidance (i.e. high and low), and the demographical variable of gender (i.e. male and female). Contrary to this, no difference was found for the demographic variable of experience (i.e. high and low). Based on these results, theoretical and practical implications are advised.King Khalid Universit

DETERMINANT FACTORS OF MOBILE BANKING USAGE: CASE STUDY IN KUPANG, EAST NUSA TENGGARA

A review of previous research on m-banking in developing countries reveals that research on the drivers of trust in mobile banking is somewhat limited. Therefore, this study attempts to investigate the factors that influence the user's perception of confidence in mobile banking services. This model was tested empirically using an online survey from a convenience sampling of 95 respondents and analyzed using SEM PLS. This study estimates that six variables (perceived credibility, perceived benefits, security risks, privacy risks, social influence, and perceived behavioral control) directly impact perceived trust in mobile banking. The results, in particular, perceived benefits positively affect perceived trust in mobile banking, followed by social influence, security risk, and privacy risk has power on perceived trust in mobile banking. On the other hand, perceived credibility and PBC show no significant effect on the belief of mobile banking users

WHAT MAKES ROMANIANS TO BANK ON THEIR SMARTPHONES? DETERMINANTS OF MOBILE BANKING ADOPTION

Mobile banking is becoming a priority for the banks and an increasingly popular banking channel for the consumers as well. According to the literature, despite a growing number of the mobile banking adoption studies worldwide, little attention has been paid to testing adoption models in Central and Eastern European countries. The aim of the study is to investigate the factors affecting mobile banking adoption in a country with relatively low mobile banking penetration rate. Based on an extended Technology Acceptance Model the present study aims to reveal the antecedents of the mobile banking adoption in Romania, and provide insightful conclusion for financial service institutions in mobile banking applications development. Our paper proposes and tests an extended model of the adoption intention of mobile banking applications. Besides the original perceived usefulness and perceived ease of use variables we also incorporated the social norm and some barrier factors such as perceived risk and technology anxiety. The results show, that the banks should consider seriously the consumer technology interface development challenges, including drivers and barriers of mobile banking adoption, because there are many other emerging non-bank players on financial service market fighting to fulfil the consumers’ financial needs. JEL classification: G21, O33, M3

Внедрение финансовых технологий – пример индийских ММСП

Micro, small, and medium enterprises (MSME) are the backbone of every economy. Financial inclusion of MSMEs is essential for any country aspiring to economic development. Innovative solutions offered by fintech companies can support the financial inclusion of MSMEs. Digital payments, alternative loans, insurance, investments, regulatory, and robo-advisory services are just a few of the services that fintech companies provide to MSMEs. The purpose of this studyis to examine the role of financial technology on registered micro, small, and medium enterprises in India. The objective of the study is to reveal the behaviour of MSMEs towards financial technology acceptance and show how various demographic variables of owners/managers influence the acceptance of financial technology in the case of MSMEs. The methodological basis of the study is a management survey of 117 MSMEs in India. The questionnaire had 25 questions; measurement items used in the questionnaire were derived from previous studies carried out in developing countries. The results were processed and tested for significance using modern econometric methods such as the Kruskal-Wallis H test, and the Mann-Whitney U test. The result of the study indicates that the financial technology acceptance rate among the MSME sector is high as maximum MSMEs consider themselves moderate financial technology adopters. MSMEs have a high understanding of different financial services provided by fintech companies. Prior Experience of the owner/manager, brand familiarity, government support, and behavioural variables such as perceived ease of use, perceived usefulness, trust, and satisfaction was proved to be effective while adopting financial technology services whereas, demographic variables such as gender, age, education level of owner/manager was found to be ineffective. The study concludes that fintech companies are providing quality services by acting as a single window, supporting the financial needs of MSMEs at low interest rates, simplified processes and lower transaction costs. MSMEs are using fintech products and services as a key part of their financial management, with increasing adoption there is a growing opportunity for fintech companies, incumbents, and non-financial organisations. The result of the study contributes to the novel understanding of the acceptance and preference of the MSME sector towards financial technology.Микро-, малые и средние предприятия (ММСП) являются основой экономики. Финансовая интеграция ММСП необходима для любой страны, стремящейся к экономическому развитию. Инновационные решения, предлагаемые финтех-компаниями, могут поддержать финансовую интеграцию ММСП. Цифровые платежи, альтернативные кредиты, страхование, инвестиции, регулятивные и робо-консультационные услуги – это лишь некоторые из услуг, которые финтех-компании предоставляют ММСП. Цель данного исследования – определить роль финансовых технологий для зарегистрированных микро-, малых и средних предприятий Индии. Задача исследования – выявить отношение ММСП к внедрению финансовых технологий и показать, как на это влияют различные демографические параметры владельцев/менеджеров ММСБ. Методологической основой исследования является анкетирование руководителей 117 ММСП Индии. Анкета состояла из 25 вопросов, которые были взяты из предыдущих исследований, проведенных в развивающихся странах. Результаты были обработаны и проверены на значимость с помощью современных эконометрических методов, таких как H-тест Крускала-Уоллиса и U-тест Манна-Уитни. Результаты исследования показывают, что уровень принятия финансовых технологий в секторе ММСП высок, так как большинство ММСП считают себя умеренными приверженцами финансовых технологий. ММСП обладают высоким уровнем понимания различных финансовых услуг, предоставляемых финтех-компаниями. Предыдущий опыт владельца/руководителя, знакомство с брендом, государственная поддержка и поведенческие факторы, такие как воспринимаемая простота использования, воспринимаемая полезность, доверие и удовлетворенность, оказывали наиболее эффективное влияние при внедрении услуг финансовых технологий, в то время как демографические факторы, такие как пол, возраст, уровень образования владельца/руководителя, напротив, оказались неэффективными. Исследование пришло к выводу, что финтех-компании предоставляют качественные услуги, действуя как единое окно, поддерживая финансовые потребности ММСП по низким процентным ставкам, упрощенным процессам и при более низких транзакционных издержках. ММСП используют финтех-продукты и услуги как ключевую часть своего финансового менеджмента, и с ростом их внедрения открываются новые возможности для финтех-компаний, действующих предприятий и нефинансовых организаций. Результат исследования вносит вклад в новое понимание принятия и предпочтений сектора ММСП в отношении финансовых технологий

The determinants of behavioural intention towards using mobile banking of Islamic banking institutions moderated by demographic variables

The purpose of this research is to examine the determinants of behavioural intention towards mobile banking adoption in Islamic banking institutions for Malaysian Muslim consumers. Malaysia is ranked first in the world in terms of Islamic banking assets based on the Global Islamic Economy Indicator Rank (2020). However, in comparison with Malaysian neighbours, mobile banking penetration rate is relatively low. In this case, to compete with the neighbouring countries, it is important for Malaysian Islamic banks to stay abreast with the latest technology. Besides the technology used in banking, factors such as customers’ attitudes, subjective norms and perceptions towards the latest technology are crucial. This is because no matter how advanced a technology is, it is deemed impractical if many people are not able and interested in using it. In this quantitative study, a modified version of the Decomposed Theory of Planned Behaviour was used to explain the relationship between the determinants and customer behavioural intention to adopt mobile banking by examining the following constructs, namely attitude, perceived usefulness, perceived ease of use, lifestyle, Shariah compliance, personal innovativeness, subjective norm, media influence, internal influence, influence of religious scholars, perceived behavioural control, self-efficacy and facilitating condition. This study used an e-survey questionnaire distributed through social media platforms to collect data. The data was then analysed using structural equation modelling using SmartPLS. Based on the analysis of 479 samples, the results show that the tested independent variables are significant. Perceived behavioural control was found to be the most significant construct for behavioural intention, while lifestyle was found to be the most significant construct that affects attitude. On the other hand, innovativeness is the least significant predictor of attitude. Multi Group Analysis shows that demographic variables such as gender, income, age, region, and education level are significant moderators. The significance of Shariah-compliant aspect and the influence of religious scholars have demonstrated a strong and persistent religious (Islamic) application in the Malaysian banking system, hence questioning the theory of secularization. The high significance of perceived behavioural control is suggesting the top management in the industry to emphasize on user-friendliness of the mobile banking service