Promoting Bank Usage Habits in Africa’s Savings Mobilization Programs: A Strategic Marketing Perspective

Abstract

Despite widespread liberalization of savings mobilization marketing systems in African economies, consumers continue to rely more heavily on informal financial services than formal financial services, within these systems. The authors draw on habit theory and the strategic marketing framework to develop a rural, customer-centric marketing (CCM) model for promoting rural savings programs in the Sub-Saharan African (SSA) context. Results based on data from Ghana’s savings mobilization program show that under the current, liberalized policy regime, formal financial institutions generate a more significant relative advantage than informal financial arrangements. Of the four customer-centric marketing activities (i.e., service affordability, accessibility, acceptability, and awareness), consumers only viewed service affordability as generating a relative disadvantage. Relatedly, only service affordability positively influenced savings likelihood, while service accessibility negatively influenced the bank usage habit. The results confirm that the customer-centric marketing approach effectively identifies which service inducements promote the bank usage habit in Africa’s savings mobilization programs.

Nexus Employee Engagement and Human Resource Management Practices: A Mediation Study through Psychological Involvement

“…In an industry characterized by complex regulatory frameworks and continual technological progress, employees who are actively involved demonstrate greater adaptability and innovation, thereby enabling banks to maintain competitiveness and effectively respond to evolving market dynamics. In essence, a workforce that displays high levels of engagement not only guarantees the financial stability and expansion of a bank, but also enhances its standing as a reputable and customer-centric establishment in the perception of the general public (Dadzie et al, 2021). Present study tested the importance of HRMP with employee engagement through psychological involvement.…”

Harmonious homegoings: alleviating consumer vulnerability through service fluidity and compassion

“…First, service providers may need to be more integrally involved in the lives of consumers, deeply understanding their needs and situations. Second, service providers may need to develop service strategies that prioritize client needs, through a hyper-customer-centric approach (Dadzie et al , 2020). By helping CTC participate in the marketplace, providers enable CTC to become clients, while also reducing their vulnerability.…”

“…In this particular context, deeply knowing customers and desiring to help them was derived from service organizations’ long-standing history as important members of the community (Bronfenbrenner, 1979; Bronfenbrenner and Ceci, 1994). In other service contexts, providers should devise strategies for gathering and using information regarding deeply-contextualized consumer culture and circumstances (Dadzie et al , 2020). Beyond this, service providers must find balance between altruistic, intrinsic forces (such as improving CTC well-being) and extrinsic, profitability motives (such as financial success and firm well-being).…”

Fintech and banks as complements in microentrepreneurship

“…A key aspect of understanding the success of microenterprises (Bruton et al, 2013; de Mel et al, 2009; Sutter et al, 2019) is to investigate how to encourage individuals to save for microenterprises (Banerjee & Duflo, 2011; Bruton, Nuhu, & Qian, 2021; Dupas & Robinson, 2013). Traditional banks have encouraged people to save by promoting low‐cost savings accounts, simplifying banking processes, and spreading financial education among marginalized individuals (Dadzie et al, 2021; Dupas et al, 2018; Karlan et al, 2014). Although such measures are useful in lowering social and institutional barriers to saving, bank penetration remains weak in low‐ and middle‐income (LMI) countries (Burgess & Pande, 2005).…”