SST and the Consumer Behaviour in Portuguese Financial Services

Financial services, especially commercial banking has been introducing new self-service technologies (SST), in the contact with customers, which allows the customer to accede service in an autonomous and timeless form. This paper discusses the behaviour of users and non-users of self-service technologies (namely, ATMs, call center/telephone, and internet) in Portuguese banking services. An empirical study was carried out by means of a questionnaire. Data were collected on 300 individuals, representing a sample, by region, gender and age group, of the Portuguese population, age 18 and over, and living in mainland Portugal. The results call for a user’s profile and consumer’s behaviour of SST. The SST users reveal a higher intention of repurchase, propensity to complain and higher price sensibility than the non-users. They are younger and middle-aged individuals, with a medium and high level of education. The main contribution of the paper is that banking managers that invest in SST may expect more sales (as a result of consumers with higher intention of repurchase), more opportunities of recovering the service (as a result of consumers with higher propensity to complain), but more price competitiveness (as a result of a consumer behaviour more price sensible). The paper put in evidence that SST use is not sufficient to determine consumer satisfaction and positive word-of-mouth, and it is not a barrier to bank switching.TSS (self-service technology), consumer’s behaviour, ATM, internet banking, telephone banking, Portugal

E-banking: current use and factors affecting its adoption in Portugal

The internet and Information Systems are a worldwide phenomenon that originated new solutions and business models, which can be used in innumerous activity sectors. In parallel several theories and models were developed to better understand consumers' reactions and new technologies adoption behavior, including frameworks like Theory of Planned Behavior and Technology Acceptance Model. Internet banking, mostly known as e-banking, is a general term to refer to the set of activities that can be perform electronically, without fiscally visit any bricks-and-mortar institution. E-banking is not a brand new topic starting in Portugal in 1994. Although, e-banking adoption in Portugal is by far lower than compared with the leading European countries. The present work aims to contribute to the investigation to which factors influence Portuguese customers' e-banking adoption. In order to accomplish this goal, a research model was built up, following current tested theories present in the literature. For that, was used a quantitative method associated to an online survey to collect customers' opinions. The results show that e-banking adoption in the sample is higher than the current estimations. Additionally, according to the analysis of the proposed model was possible to conclude that the lack trust and the lack of personal contact are the two main factors preventing consumers from using e-banking services.A internet e os Sistemas de Informação são fenómenos mundiais que originaram novas soluções e modelos de negócio, que podem ser aplicados a diversos setores de atividade. Paralelamente foram desenvolvidos vários modelos e teorias para explicar as reações e os comportamentos de adoção de novas tecnologias. Tal inclui estruturas modelos como Teoria do Comportamento Planeado e Modelo de Adoção da Tecnologia. A Banca "online", também muito conhecida como "e-banking", é um termo genérico usado para definir o conjunto de atividade de podem ser feitas com recurso à internet, em vez de ser necessário ir fisicamente a uma agência bancária. Este não é um tópico recente, tendo mesmo sido introduzido em Portugal em 1994. No entanto, a taxa de adoção em Portugal é bastante inferior comparada à dos principais países europeus. O presente trabalho tem como objetivo dar um contributo no que toca a entender o que influenciam os consumidores portugueses a adotar o "e-banking". Como forma de atingir o objetivo proposto, foi construído um modelo de investigação com base nas teorias atualmente presente na literatura. Para tal, foi utilizado um método quantitativo associado a um questionário, como forma de recolher as opiniões dos consumidores. Pela análise dos resultados é possível apurar que o nível de utilização da banca "online" é superior à anteriormente estimada. Adicionalmente, de acordo com a análise do modelo proposto foi possível concluir que a falta de confiança e a falta de contacto pessoal são os principais fatores que impedem o uso da banca "online" em Portugal

Technological innovation in banking services: an exploratory analysis to perceptions of the front office employee

It is widely recognized that the increased intensity of competition in the banking sector has had direct implications for financial institutions' approach to customers and how they define their business strategy. Considering that the current economic stance embraces innovation and technology as fundamental elements of strategic management and business and economic development, new approaches to the relationship between technological innovation and financial services are essential in achieving competitive advantage. Based on this premise, the purpose of this paper is to analyze the main effects of technological innovation on financial services at the bank branch level by evaluating responses from front office employees. The results show that information and communication technologies are an important lever in the modernization of the sector. Practical implications, strengths and limitations of our empirical study are also presente

Managing sustainability: the role of multinational corporations in the global south

Multinational corporations and international business practices as well as international investment are considered important elements for the diffusion of new modes of production, namely through a flow of cleaner production and new management practices such as corporate social responsibility (CSR). This view is lacking consistency and is not buttressed on strong empirical evidence. The positive driver of environmental sustainability is probably not international business and trade but strong and good institutions. The focus here is on four limitations: the context of the private firms and corporations, the workings of complex organizations, the technology and the right institutions that buttress the global, national and local contexts, taking as concrete examples some specific cases from the Global South, as Mozambique. The article concludes that these aspects have to be considered and contrasted to the technological and management solutions for sustainability.info:eu-repo/semantics/publishedVersio

A Multiple Criteria Framework to Evaluate Bank Branch Potential Attractiveness

Remarkable progress has occurred over the years in the performance evaluation of bank branches. Even though financial measures are usually considered the most important in assessing branch viability, we posit that insufficient attention has been given to other factors that affect the branches’ potential profitability and attractiveness. Based on the integrated used of cognitive maps and MCDA techniques, we propose a framework that adds value to the way that potential attractiveness criteria to assess bank branches are selected and to the way that the trade-offs between those criteria are obtained. This framework is the result of a process involving several directors from the five largest banks operating in Portugal, and follows a constructivist approach. Our findings suggest that the use of cognitive maps systematically identifies previously omitted criteria that may assess potential attractiveness. The use of MCDA techniques may clarify and add transparency to the way trade-offs are dealt with. Advantages and disadvantages of the proposed framework are also discussed.

Chatbots' impact in the relationship between young adult consumers and the Portuguese banking sector

The Portuguese banking sector are taking a stand in the digital world through the implementation of chatbots – a virtual assistant that helps customers solve their financial problems, without the need of human interaction. Research has shown that chatbots can facilitate consumers’ lives, making them happier and more satisfied with the banking institutions. This study aims to determine the chatbots’ impact on the current relationship between young adults – a growing digital market segment – and the banking entities. The research pretends to determine whether the adoption of digital features, in particular chatbots, by the young adults’ main banking service provider is an opportunity to attract and retain more customers in the beginning of their financial life; and whether or not its adoption causes a significant impact in the level of satisfaction with the banks. Based on the literature review, an online questionnaire was distributed to young adults between 17 and 35 years old that benefit from the service of at least one operating banking entity in Portugal. Random selection was applied in the choice of the 179 participants in the study. Analysis of the responses demonstrate that a chatbot implementation, at this moment, would not change the relationship between the two parties – consumers and banks. The results indicate that chatbots in banking lack of personalization, range of responses and effectiveness due to being in an embryonic phase, making customers slightly happier and more satisfied, but not more loyal. On this basis, it is recommended that there be a focus on the software development and improvement and especially in its propagation by the banking entities. Further research is needed to enhance the conclusions obtained from the present study, using a larger sample.O sector bancário Português está a assumir a sua posição no mundo digital através da implementação de chatbots – um assistente virtual que ajuda os clientes a resolver os seus problemas financeiros sem a necessidade de interação humana. Pesquisas demonstraram que os chatbots podem facilitar a vida dos consumidores, tornando-os mais felizes e satisfeitos com as instituições bancárias. Este estudo tem como objetivo determinar o impacto dos chatbots na relação atual entre jovens adultos – um crescente segmento de mercado digital – e as entidades bancárias. A pesquisa tem como finalidade determinar se a adoção de recursos digitais, em particular os chatbots, pelo principal fornecedor de serviços bancários dos jovens trata-se de uma oportunidade para atrair e reter mais clientes no início da sua vida financeira; e se a sua adoção causa ou não um impacto significativo no nível de satisfação com os bancos. Com base na revisão de literatura, um questionário online foi distribuído a jovens entre os 17 e os 35 anos que beneficiam de pelo menos um serviço de uma entidade bancária presente em Portugal. A escolha dos 179 participantes do estudo foi aleatória. A análise das respostas demonstra que a implementação de um chatbot, neste momento, não mudaria o relacionamento entre as duas partes – consumidores e bancos. Os resultados indicam que os chatbots no setor bancário estão desprovidos de personalização, gama de respostas e eficácia devido a estarem numa fase embrionária, tornando os clientes ligeiramente mais felizes e satisfeitos, mas não mais leais. Com isto, recomenda-se que o foco seja o desenvolvimento e melhoramento do software e, principalmente, a sua divulgação por parte das entidades bancárias. Mais pesquisas são necessárias para aprimorar os resultados do presente estudo, através da aplicação de uma amostra maior

The strategic motivation factors for it outsourcing decisions in the banking sector

Outsourcing is the fact of delegating the supply of a given service to an external organization. This phenomenon is a widespread strategy in the corporate business world. The outsourcing of information technology in the banking sector has particularly called our attention. Banking activity is highly dependent on the information technology (IT) process. Banks opt for an Information Technology Outsourcing (ITO) strategy to enjoy expertise from a supplier without hiring experts. Therefore, ITO gives the bank access to technological skills. Meanwhile, it allows the bank to improve the quality of services, reduce cost, provide flexibility, and focus on core activity. Our aim is to study the main factors that motivate ITO strategic decisions in the banking sector. To answer this inquiry, we develop a conceptual model consisting of four ITO factors corresponding to four hypotheses, which will be tested based on the data collected by a survey performed within a multinational bank. Inspiring by solid and contemporaneous scientific research, we apply a survey within our targeted sample and collect data through email. Our result has shown that majority of responders preconize ITO. They recognize ITO strategic motivation factors as saving cost, allowing access to new technology, and focusing on core business and quality service improvement. Besides those benefits, ITO strategy may arise some risks summarized in this paper. We conclude that a successful ITO alliance enables the bank to achieve a competitive advantage over their competitors

The expected impact of the payment services directive 2 in Portugal, at three levels: consumers, traditional banking and fintechs

The banking industry is significantly changing due to the shifting customers’ expectations, technology-driven innovations and crucial regulatory changes such as the revised Payments Services Directive (PSD2). As a result of PSD2, European banks need to share account information and payment initiations information with third-party providers, in order to increase integration, effectivity and competition on the European payment market. The purpose of this dissertation is to assess the expected impact of this regulatory change, at three different levels: consumers, banks and fintechs. Due to their distinct characteristics, each level was analysed in a different way: the consumers’ level through a quantitative analysis, with the use of questionnaires; the other two through a qualitative analysis, by conducting semi-structured interviews. Regarding consumers, it became clear that banks are highly trusted and that, although they are still unsure about the new services, the willingness to try them is considerably higher if the player is a financial institution. Banks believe that the trust consumers have in them is their major strength to cope with this change, and they are willing to go beyond the required compliance strategy and head towards an open banking approach. When compared to other European countries, they also highlighted that compliance is assured in an atypical way, due to SIBS’ intervention. Both banks and fintechs confirmed that, in order to achieve new business opportunities and overcome weaknesses, they are open to establish partnerships, reason why it is possible to state that there is a cooperation trend in the Portuguese market.A indústria bancária está a mudar significativamente devido a alterações nas expectativas dos clientes, à inovação inerente à tecnologia e a nova legislação, como a Diretiva dos Serviços de Pagamento revista (DSP2). Como resultado desta diretiva e com o objetivo de aumentar a integração, a eficiência e a competição no mercado europeu de pagamentos, os bancos passaram a ter que partilhar informação sobre contas e iniciação de pagamento com terceiros. Esta dissertação visa avaliar o impacto esperado desta diretiva a três níveis diferentes: consumidores, bancos e fintechs. Devido às suas características distintas, cada nível foi analisado de maneira diferente, nomeadamente: o nível do consumidor através de uma análise quantitativa, com questionários; os outros dois através de uma análise qualitativa, com entrevistas semiestruturadas. Em relação aos consumidores, ficou claro que existe uma grande confiança nos bancos e que, embora ainda estejam apreensivos em relação aos novos serviços, a recetividade em experimentá-los é consideravelmente maior se estes forem fornecidos por uma instituição financeira. Os bancos consideram que a confiança dos consumidores é o seu principal ponto forte para lidar com esta mudança e admitem ir além da estratégia de conformidade exigida. Comparativamente a outros países europeus, eles também destacaram que esta conformidade foi garantida de maneira atípica, devido à intervenção da SIBS. Tanto os bancos como as fintechs confirmaram que, para alcançar as oportunidades de negócios promovidas pela DSP2 e superar fragilidades atuais, estão abertos a estabelecer parcerias. Nesse sentido, é possível afirmar que há um clima de cooperação no mercado português

Internationalization strategies of companies in the wine industry in Portugal – context, forms of action and performance.

This research project aims to analyze the competitive environment of companies in the wine sector in Portugal and assess the implications in the development of contingent strategic guidelines and different performances.Proposes to apply the methodological framework the IKST – Integrated Key for Strategic Thought for international expansion. The research was carried out at two levels: at a preliminary level – a general characterisation was made of the companies as to their resources, and at a central level – the examination of the strategic aspect of the companies was carried out. The research involved the collection of primary data (survey of 164 companies in the sector) and secondary data (from documentary nature). Explores the strategic aspect, analyzing the sector in terms of global and national context, in order to design a diagnostic context of action, using the models of PEST and 5 Forces. Identifies, based on various statistical techniques, the adopted style of strategic thought and the profile in terms of contextual variables, as well as the underlying economic performance