The Impact of Internet-Based Services on Credit Unions: A Propensity Score Matching Approach

Pana, Elisabeta; Vitzthum, Sascha; Willis, D. M.

doi:10.2139/ssrn.2291548

Cited by 5 publications

(9 citation statements)

References 38 publications

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“…In this study, we use propensity scoring matching approach as an alternative method to estimate causal treatment effects. There has been a number of studies employed the propensity scoring methods in financial industry, including equity offerings [44], spin-offs [45], internet-based credit unions [46], mergers and acquisitions [47] but there was limited study on banking channel choice behavior, especially, customer's channel choice behavior change analysis from the branch closure treatment effect can't be found.…”

Section: Literature Reviewmentioning

confidence: 99%

Remote Login Authentication Scheme based on Bilinear Pairing and Fingerprint

Nam

Lee

2016

KSII TIIS

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The changes new technologies have brought to banking over the past decade are enormous in their impact on the ways of doing business and providing customer services, most notably in the areas of customer service channels. Banks have been trying to move away from the traditional, branch-based and costly staff-assisted channels toward self-assisted channels, i.e. internet banking and mobile banking, to drive down costs and improve customer loyalty. How internet and mobile have reshaped the user experience of banking service channel? To provide valuable insights for this question, this research investigates and compares customer's channel choice behavior and profit changes from bank's branch closure. Applying the propensity scoring matching method, the results of analysis demonstrates that the mobile channel can be a realistic alternative to conventional branches. Also, the reserch result shows banks can reduce conventional branches while experiencing a positive implications on their profits from the customers. Another significant implication from the research is, to accelerate the shift to digital channels, banks need to put more efforts on developing functions in the mobile channel that will allow friendly interaction with customers and consultation, such as video consultation, interactive chat, and location-based product recommendation.

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Section: Literature Reviewmentioning

confidence: 99%

Remote Login Authentication Scheme based on Bilinear Pairing and Fingerprint

Nam

Lee

2016

KSII TIIS

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“…They conclude that organizational form as well as size may be critical in the adoption of new technology. Pana et al () investigate the changes in benefits to credit union members via the interest‐rate spread around the adoptions of internet‐based services and show that adopters offer a less favourable interest‐rate spread to their members than non‐adopters…”

Section: Literature Reviewmentioning

confidence: 99%

“…Pana et al () also find evidence that early adopters have a lower degree of market power in dealing with their members than late adopters and offer interest‐rate spreads comparable to those of non‐adopters over a three‐year period following the adoption year.…”

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confidence: 97%

“…US studies concentrated on different facets of the technology adoption process, for example Ono and Stango (), and Borzekowski and Cohen () examine decisions to outsource technology; Dow () and Damar and Hunnicutt () study the determinants of technology adoption; while Dandapani et al () and Pana et al () investigate changes in benefits to credit union members after adoption.…”

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confidence: 99%

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Web Adoption by Irish Credit Unions: Performance Implications

McKillop¹,

Quinn²

2015

Annals of Public and Cooperative Economics

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The purpose of this paper is to examine website adoption and its resultant effects on credit union performance in Ireland over the period 2002 to 2010. While there has been a steady increase in web adoption over the period a sizeable proportion (53%) of credit unions did not have a web-based facility in 2010. To gauge web functionality the researchers accessed all websites in 2010/2011 and it transpired that most sites were classified as informational with limited transactional options. Panel data techniques are then used to capture the dynamic nature of website diffusion and to investigate the effect of website adoption on cost and performance. The empirical analysis reveals that credit unions that have web-based functionality have a reduced spread between the loan and pay-out rate with this primarily caused by reduced loan rates. This reduced spread, although small, is found to both persist and increase over time. Adopción de la utilización de la web por las cooperativas de crédito irlandesas: implicaciones sobre los resultadosEl objetivo de este artículo es examinar la adopción de la utilización de los sitios web y de los efectos que de ello se derivan sobre los resultados de las cooperativas de crédito en Irlanda durante el período 2002-2010. Aunque haya habido un apreciable aumento de la utilización de la web durante este período, una parte considerable (53%) de las cooperativas de crédito no disponían de conexión a Internet en 2010. Con la finalidad de evaluar la funcionalidad de la web, los investigadores han tenido acceso a los sitios web en 2010-2011 y resulta que la mayor parte de los sitios estaban clasificados como informativos con limitadas opciones para las transacciones. Se han utilizado técnicas de datos de panel con el fin de comprender la naturaleza dinámica de la difusión del sitio web y examinar sus efectos sobre los costes y los resultados. El análisis empírico revela que las cooperativas de crédito que tienen actividad en la web tienen una dispersión reducida entre los tipos de interés de los préstamos y los correspondientes a la remuneración de los préstamos restringidos. Esta dispersión reducida, aunque pequeña, tiende simultáneamente a prolongarse y aumentar con el tiempo. Adoption du l'utilisation du web par les coopératives de crédit irlandaises: implications sur les performancesL'objet de cet article est d'examiner l'adoption de l'utilisation des sites web et des effets qui en résultent sur la performance de la coopérative de crédit en Irlande durant la période 2002à 2010. Bien qu'il y ait eu une constante augmentation de l'utilisation du web durant cette période, une partie considérable (53%) de coopératives de crédit ne disposait pas d'installation internet en 2010. Afin d'évaluer la fonctionnalité du web, les chercheurs ont eu accès aux sites web en 2010/2011 et il est apparu que la plupart des sitesétaient classés comme sites de renseignements avec des options transactionnelles limitées. Les techniques des données en panel sont alors utilisées afin de saisir la nature dynamique de ...

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“…Thirdly, the analysis offers insights into both adoption determination and the performance and cost implications of adoption. Prior US studies concentrated on a particular facet of the process, for example Ono and Stango (2005), and Borzekowski and Cohen (2005) examine decisions to outsource technology; Dow (2007) and Damar and Hunnicutt (2010) study the determinants of technology adoption; while Dandapani et al (2008) and Pana et al (2012) investigate changes in benefits to credit union members after adoption.…”

Section: Section 1: Introductionmentioning

confidence: 99%