An exploration of the value creation process in bank-corporate communications

Abstract

Purpose – Banks and corporate customers have realized that bank-corporate relationship is important but little is known about why and how banks establish and exploit relationships. No comprehensive theory has explained relationship banking and in order to get a better understanding the purpose of this paper is to investigate why and how banks and companies communicate in order to create value. Design/methodology/approach – This study adopts a qualitative methodology and a grounded theory approach was adopted. In total, 34 in-depth interviews were conducted with banks and 15 with corporate managers. Grounded theory models are developed based on interview data. Findings – It was found that the nature of bank-corporate relationship is long term. The relationship is based on trust-based personal communications between banks and corporate customers. Macro conditions including the advances in technology, financial regulation and business globalization were considered when the case banks adopted relationship banking. Some intervening conditions including customer information and knowledge, customer needs and customer confidence also influence the development of relationship banking. The interviewees perceived that the case banks gained benefits including better customer retention economy, risk management efficiency and greater effectiveness in maintaining sustainable profitability. The corporate customers gained benefits including fund availability, product availability, service quality, help in-time and business platform. Originality/value – This study derives concepts and categories from primary data and identifies relationships among these theoretical elements. This investigation provides a comprehensive picture of relationship banking and supplies some theoretical and practical implications. Moreover, a value creation and allocation theory of the bank is developed.

Changing the Banking Model of Service for Corporate Clients

“…Теория relationship banking предполагает, что многоуровневые личные контакты менеджеров банка и компании (помимо использования плодов информационной и технологической революций, позволяющих узнать многое об интересующем объекте и без личного общения) заполнят информационный вакуум обеих сторон по текущей ситуации, создадут базу для обслуживания клиента и продажи ему различных банковских продуктов, а также помогут клиенту в период экономических кризисов или в реализации долгосрочных перспективных проектов [14,15]. При этом никаких формальных документов по условиям такого сотрудничества стороны не подписывают, оставляя возможность каждой их них изменить данную привязанность в силу разных обстоятельств, что, наряду с потенциальными выгодами одной стороне при смене партнера, несет другой стороне угрозу потери бизнеса и возможностей вместе с опасностью раскрытия полученной в ходе сотрудничества конфиденциальной информации.…”

Salas de comunicación online de las entidades bancarias en España. Entre el branded content informativo y el repositorio de notas de prensa

“…Las relaciones con los públicos suponen un camino necesario para que la sociedad recupere la confianza en los bancos, comprenda y valore cuál es su misión y entienda cuestiones fundamentales relacionadas con el mercado y sus ahorros (Guo;Holland;Kreander, 2014). Se ha corroborado que la respuesta del público aumenta cuanto más se alejan las publicaciones de los temas empresariales (Ruiz-Iniesta, 2012).…”

Implementing Relationship Banking Strategies and Techniques and Improving Customer Value

“…This study defines bank-corporate relationship as a set of cross-hierarchical trust-based personal communications between banks and corporate customers [11] . This definition emphasizes that the nature of bank-corporate relationships is trust-based personal communications and the structure of bank-corporate relationships is multi-level and multi-channel exchange of information.…”

“…Banks cooperate with customers to co-create value and allocated value among shareholders, customers and employees [11] .…”