Influence of internet and social media presence on small, local banks’ market power

Filip, Dariusz; Jackowicz, Krzysztof; Kozłowski, Łukasz

doi:10.1080/1406099x.2017.1376856

Cited by 16 publications

(10 citation statements)

References 62 publications

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“…cyberattack and disclosure of banking information) in Pakistan; hence, customers may prefer to select the products and services of those conventional banks which have positive views/recommendations among family, friends, relatives and opinion leaders. It is a reality that levels of information, brand engagement and purchase intentions vary from developed to developing countries, conventional to Islamic banks and culture to culture (Filip et al, 2017;Fadahunsi and Kargwell, 2015;Ha and Lee, 2018). Furthermore, levels of technology usage, skilled people, privacy and awareness and trust are different in different countries for Islamic banking products and services (Aslam et al, 2016;Al-Ajmi et al, 2009;Cheteni, 2014;Imam and Kpodar, 2016;Imran et al, 2011;Islam and Rahman, 2017).…”

Section: Marketing Manager B Had Following Viewsmentioning

confidence: 99%

Understanding the role of social networking platforms in addressing the challenges of Islamic banks

Naeem

2019

JMD

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Purpose Customers are increasingly interested in reading discussions, experiences, recommendations and reviews on social media platforms related to services and products in which they are highly interested. The purpose of this paper is to find the availability of user-generated content (UGC) in the context of Islamic banks and how it can enhance the level of brand engagement and purchase intention of customers. Design/methodology/approach The methodology for this research is designed by following the features of qualitative research methods and a social constructivism approach. Furthermore, non-directive and semi-structured in-depth interviews are constructed to accumulate research data from marketing teams and customers of Islamic banks. The respondents have been carefully chosen on the basis of purposive sampling and their level of awareness related to Islamic banks. Findings Islamic banks are more frequently using traditional marketing tools that are unable to enhance levels of information among the targeted population and prove an expensive way of marketing. The findings reveal that Islamic banks lag behind in adopting the latest information exchanging technologies compared to conventional banking systems. A lack of skilled people, reputation and trust, lack of e-marketing strategy and lower levels of investment in social media platforms are major barriers to generate UGC, brand engagement and purchase intention among the targeted market of Islamic banks. Practical implications The effective and competent use of various social networking platforms can enhance UGC related to Islamic banking products and services. UGC can generate interactive communication, services reviews, feedbacks, intention to purchase, social influence, social trust and positive customer perception among the targeted population of Islamic banks. The study has summarized and offered practical recommendations to show how Islamic banks can address challenges and enjoy a high level of profitability compared to conventional banking systems. Originality/value The present study uncovered the steps that must be taken by the top management of Islamic banks to enhance levels of awareness, online product reviews and recommendations, e-word of mouth and purchase intentions of the targeted market. The study enhanced understanding regarding how a higher level of investment in social networking platforms, safe and secure banking systems and skilled IT professionals can address the challenges of Islamic banks. Furthermore, these factors can create positive UGC, social influence, social brand engagement and purchase intention of customers in Islamic banks. These primary factors must be considered by Islamic banks to compete with conventional banking products and services.

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Section: Marketing Manager B Had Following Viewsmentioning

confidence: 99%

Understanding the role of social networking platforms in addressing the challenges of Islamic banks

Naeem

2019

JMD

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“…In the context of the banking industry, Tang et al (2016) analyze the relationship between electronic word-ofmouth and firm profitability for a sample of 68 US banks and find that both star ratings and verbalized emotions (especially negative ones) are good predictors of bank performance. It is worth stressing that in the context of SLBs, Filip et al (2017) find unappealing aspects of social media activity. Although they admit that social media presence can be a bank's valuable asset, they also highlight that SLBs must forego some of their market power to reach new customers or retain existing ones through new communication tools, especially when such tools are adopted relatively late and there is strong competition with other banks that are more advanced in social media or the Internet.…”

Section: Literature Reviewmentioning

confidence: 99%

Small Local Banks in Social Media: Converting Social Responsibility Into Consumer Attention and Economic Outcomes

Kozłowski

Kuchciak

2021

Journal of Business Economics and Management

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This study investigates the thematic content of Facebook disclosures from small local banks (SLBs) in Poland, their impact on Facebook users’ attention, and the economic repercussions for SLBs’ growth and performance. Based on the specificity of SLBs and existing empirical evidence, it hypothesizes that disclosures on socially responsible issues increase customer attention and can be converted into economic outcomes. To verify the posed hypotheses, several data sources are employed, including a hand-collected dataset describing the specificity of Facebook activities from SLBs in Poland between 2010 and 2017, and a stepwise research strategy is implemented. First, models of SLBs’ Facebook disclosures are distinguished. Second, the kinds of social media activities that ensure SLBs’ popularity among Facebook users are determined. Third, the thematic content of SLBs’ Facebook disclosures is related to their growth or performance indicators. The collected evidence shows that SLBs, as expected, can garner attention if they concentrate their social media activities mainly on socially responsible or local issues. Moreover, socially responsible activities and economic outcomes are generally not opposed, but only a careful selection of specific social disclosures can effectively exploit social media to the economic advantage of SLBs.

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“…The basic differentiating factor is the local character of the cooperative banks, which are usually limited geographically to one voivodeship. As a result, cooperative banks have a much smaller number of clients than commercial banks, and they manage the relationship with them by direct contact at a bank branch (Filip et al 2017). Compared to commercial banks, cooperative banks have a very limited budget for image campaigns and limited resources of the employees responsible for the banks' social media activity.…”

Section: Social Media In the Banking Sectormentioning

confidence: 99%

Empowering Financial Education by Banks—Social Media as a Modern Channel

Kuchciak

Wiktorowicz

2021

JRFM

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Financial literacy is extremely important, both from the perspective of the financial well-being of individuals and the stability of the financial market and the whole economy. The more financially literate a bank’s customers are, the more frequently and consciously they use financial products and services. Thus, banks are potentially significant stakeholders in the financial education process. Considering that social media have become the leading channel for communication and relationship building, especially regarding young clients, this channel should also be used by banks to increase financial literacy. The aim of this paper is to assess banks’ involvement in financial education activities through social media. We assume that banks use social media as a modern and attractive channel for improving financial education among social media users. The empirical analysis was conducted using several data sources, including non-financial statements and a unique self-collected dataset that describes the specifics of the most popular social media platforms (like Facebook, Twitter, YouTube, Instagram, GoldenLine, and LinkedIn) in the activities of commercial and cooperative banks in Poland between 2010 and 2019. Descriptive statistical methods and cluster analysis were used. The results show that educational activities provided by banks in Poland differ for each social media channel. Additionally, although financial education topics have become more popular among content published by banks, there is a huge disproportion between cooperative and commercial banks. Generally, banks that are more active on social media (mostly commercial banks) also pay more attention to the financial education context.

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Influence of internet and social media presence on small, local banks’ market power

Cited by 16 publications

References 62 publications

Understanding the role of social networking platforms in addressing the challenges of Islamic banks

Understanding the role of social networking platforms in addressing the challenges of Islamic banks

Small Local Banks in Social Media: Converting Social Responsibility Into Consumer Attention and Economic Outcomes

Empowering Financial Education by Banks—Social Media as a Modern Channel

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