Affective and cognitive factors that hinder the banking relationships of economically vulnerable consumers

González, Marta de la Cuesta; Fernández–Olit, Beatriz; Orenes, Isabel; Paredes-Gázquez, Juan Diego

doi:10.1108/ijbm-10-2021-0491

Cited by 9 publications

(18 citation statements)

References 104 publications

(196 reference statements)

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“…Therefore, banks are expected to provide vulnerable customers with an appropriate level of commercial attention (customized, flexible, accessible, and fair), which can help them manage their financial situation more effectively. To that end, they should understand the vulnerability features of their target market and their main customer base (de la Cuesta et al, 2021Cuesta et al, , 2022Le et al, 2021;Xiao and Porto, 2022). This anticipates a growing need for personal and manual intervention in automated processes and for financial institutions to be availed of reliable proof of the outcomes experienced throughout the customer journey.…”

Section: Vulnerable Customers' Perception Of Csrmentioning

confidence: 99%

Vulnerable customers' perception of corporate social responsibility in the banking sector in a post-crisis context

Monferrer

Vidal-Meliá

Cardiff

et al. 2023

IJBM

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PurposeThis research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and quality perception of the banking service. Consequently, this increases the quality of their relationship regarding satisfaction, trust and engagement.Design/methodology/approachData from 734 vulnerable banking customers were analyzed through structural equations modeling (EQS 6.2) to test the relationships of the proposed variables.FindingsVulnerable customers' emotional disposition exerts a strong influence on their perceived service quality. The antecedent effect is concentrated primarily on the CSR towards the client, with a residual secondary weight on the CSR towards society. These positive service emotions are determinants of the outcome quality perceived by vulnerable customers, directly in terms of higher satisfaction and trust and indirectly through engagement.Practical implicationsThis research contributes to understanding how financial service providers should adapt to the specific characteristics and needs of vulnerable clients by adopting a strategy of approach, personalization and humanization of the service that seems to move away from the actions implemented by the banking industry in recent years.Originality/valueThis study has adopted a theoretical and empirical perspective on the impact of CSR on service emotions and outcome quality of vulnerable banking customers. Moreover, banks can adopt a dual conception of CSR: a macro and external scope toward society and a micro and internal scope toward customers.

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Section: Vulnerable Customers' Perception Of Csrmentioning

confidence: 99%

Vulnerable customers' perception of corporate social responsibility in the banking sector in a post-crisis context

Monferrer

Vidal-Meliá

Cardiff

et al. 2023

IJBM

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“…The study mentioned above analyses the types of relationships (deposit, investment, loan accounts), the duration of relationships (age in months), and the depth of relationships (size of balances) with the specification that it deepens the loan relationship through credit cards. The collaboration with banks is complex, involving factors that show the vulnerability of the consumer [73].…”

Section: The Relationship Between Consumers and Financial Institution...mentioning

confidence: 99%

Financial and Banking Education of Consumers in the Context of Sustainable Development Society

et al. 2023

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The paper addresses the consumer’s behaviour toward banking services, outlining the need to deepen and complete a financial-banking education. The purpose of the study is to identify the opinions of consumers of banking services regarding the collaboration relationship with financial-banking institutions from the perspective of financial education and sustainable development. In this regard, the authors carried out an analysis of the content of loan agreements using: the method of evaluation grids—a specific method of diagnostic analysis supplemented with in-depth interview—a qualitative research method. Our study highlights the role of financial-banking institutions in the sustainable development of social and economic life, marking the need for primary financial education for effective consumer-bank collaboration. The research results reflect the need to develop contractual relationships based on transparency, fairness, and better financial information and education of consumers. The obtained results are useful for decision-makers in banking institutions to develop lending policies according to customer expectations and for authorities to shape various social development policies.

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“…The household costs associated with being unbanked can be measured directly and indirectly (de la Cuesta-Gonz alez et al, 2022). Direct costs include check cashing fees, money order costs and expenses associated with informal loan products.…”

Section: Introductionmentioning

confidence: 99%

“…The household costs associated with being unbanked can be measured directly and indirectly (de la Cuesta-González et al. , 2022).…”

Section: Introductionmentioning

confidence: 99%

Distrust of banks among the unbanked and banked

Grable¹,

Kwak²,

Archuleta³

2023

IJBM

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PurposeThe purpose of this study was to explore the concept of distrust of traditional banking institutions as a factor that can explain the choice to remain unbanked in a marketplace that is designed to be financially inclusive.Design/methodology/approachEarning, spending, saving and borrowing data collected between May 2021 and February 2022 from 17,819 consumers living in the United States were used to examine the factors associated with distrust of banks. Using a conceptual framework borrowed from the health services profession, the study was conducted in two stages. At the first stage, distrust among the unbanked and banked was estimated using a Boruta-random forest algorithm. At the second stage of the analysis, a logit regression model was estimated to validate the variables identified in the Boruta-random forest analysis.FindingsResults from the analyses show that distrust of banks is multi-layered where being older, believing the country is heading in the wrong direction and being less confident in one's ability to obtain a personal loan in the amount of $1 to $999 are important factors related to distrust of banks among the unbanked.Research limitations/implicationsThis study shows how an ensemble machine learning technique based on a decision-tree methodology can be used to obtain unique insights into complicated data and large datasets within the bank marketing field.Originality/valueThe paper provides a discussion about ways domains of trust and specific variables can be utilized to address the persistent problem of financial exclusion in the United States. Implications for bankers, researchers, educators and policymakers are provided.

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Affective and cognitive factors that hinder the banking relationships of economically vulnerable consumers

Cited by 9 publications

References 104 publications

Vulnerable customers' perception of corporate social responsibility in the banking sector in a post-crisis context

Vulnerable customers' perception of corporate social responsibility in the banking sector in a post-crisis context

Financial and Banking Education of Consumers in the Context of Sustainable Development Society

Distrust of banks among the unbanked and banked

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