Relationships and individuals' bank switching behavior

Chakravarty, Sugato; Feinberg, Richard A.; Rhee, Eun-Young

doi:10.1016/s0167-4870(03)00051-5

Cited by 76 publications

(67 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Third, we confirm the positive relationship between switching experience and the propensity to switch documented in Chakravarty et al (2004). The predicted propensity of switching main savings accounts in the coming year is 20.8% for consumers with recent experience, whereas it is 9.9% for consumers who did not switch these accounts in the past year.…”

Section: Resultssupporting

confidence: 78%

“…For example, the predicted propensity to switch the current accounts is 9.1% for people aged 34 or below and 4.8% for people in the highest age bracket. 20 This negative age effect is in line with studies on switching in banking and health insurance (Chakravarty et al 2004;Inakura and Shimizutani 2010;Frank and Lamiraud 2009). 18 This finding is related to the results of Van der Cruijsen et al (2011), who show that consumers gather little information on the bank and product before choosing a savings product.…”

Section: Resultssupporting

confidence: 64%

“…As in Chakravarty et al (2004), Ek and Söderholm (2008) and Brunetti et al (2016) we do not find a gender effect. There is also no difference between people who are responsible for household finances and those who are not.…”

Section: Resultscontrasting

confidence: 57%

“…Kiser (2002) finds that geographic stability is an important factor for having a long-term relationship with the main bank, that switchers are more likely to be "shoppers" who compare prices, and that there is a cohort effect rather than an age effect involved in switching in the US. Chakravarty et al (2004) address consumers' propensity to switch and find that personal characteristics are important in explaining switching intentions. Responsiveness, empathy, reliability and relationship duration are significantly negatively related to the propensity to switch, while having experienced problems with the bank positively impacts the propensity to switch.…”

Section: Literaturementioning

confidence: 99%

“…There is little research on consumer bank switching behaviour (e.g. Kiser 2002;Chakravarty et al 2004;Brunetti et al 2016). Research has mostly focused on either the relationship between firms and banks (e.g.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Banking Products: You Can Take Them with You, So Why Don’t You?

Cruijsen

Diepstraten

2017

J Financ Serv Res

View full text Add to dashboard Cite

Policymakers around the world call for more competition in the banking sector. One prerequisite to achieving this is customer mobility. Despite its policy relevance, surprisingly little is known about consumers' bank switching behaviour. We show that the principal reasons to stay at one's bank are a good bank-customer relationship, practical barriers, and the perception that there is not much benefit in switching. Moreover, we find that the reported propensity to switch varies across banking products. For the main current and savings accounts, this propensity is most strongly related to the bank-customer relationship, while for mortgage loans it is especially linked to switching experience. These findings have important implications for antitrust policy; they provide an argument against using a cluster-based legal standard for the analysis of competition and in favour of a disaggregated approach. Regarding the effectiveness of hypothetical policy initiatives to lower switching barriers, we find that the reported switching propensity with current accounts is higher in the case of account number portability, while more knowledge of the existing switching service has no significant effect. Lastly, scenario analysis shows that a policy of allowing new foreign banks to enter the savings market is less promising for enhancing mobility than a policy that increases the number of domestic players.

show abstract

Section: Resultssupporting

confidence: 78%

Section: Resultssupporting

confidence: 64%

Section: Resultscontrasting

confidence: 57%

Section: Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Banking Products: You Can Take Them with You, So Why Don’t You?

Cruijsen

Diepstraten

2017

J Financ Serv Res

View full text Add to dashboard Cite

show abstract

An understanding of baby boomers' attitudes toward financial services products in Ghana

Owusu‐Frimpong

Omar

Mmieh

2010

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

The definitive version is available at: www3.interscience.wiley.com Copyright Wiley-Blackwell [Full text of this article is not available in the UHRA]This study employed a self-completion questionnaire to determine the financial needs and specific market characteristics of baby boomers (BBs) in Ghana. The results reveal that BBs are financially savvy and conscious of where to live after retirement. Due to low income and overreliance on families in time of sickness, life insurance is not often purchased. The respondents choose a bank that offers efficient customer services and low rates of interest on loans, and do not perceive long-term investment to be profitable. The most effective forms of communication are radio, TV, and word of mouth

show abstract