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

Abstract

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.

Corporate social responsibility initiatives of banks and customers’ selection of banks in Hong Kong

“…Discussion, contributions to literature, managerial and practical implications 6.1 Discussion This study examines the influence of CSR initiatives on customers' bank selection in HK. The results of this study confirm that CSR initiatives are a pivotal factor in customers' bank choices, which aligns with the findings of Tirado et al (2023). The positive relationship between CSR initiatives and bank selection suggests that customers in HK are inclined towards banks that actively engage in CSR practices.…”

“…Customers have high expectations of banks and expect them to behave ethically because banks' actions may affect their interests (Tirado et al, 2023). However, customers may have different perceptions of CSR initiatives.…”

“…Although CSR initiatives affect customer purchase intentions (Baskentli et al, 2019), the impact of different CSR initiatives on customer purchase intentions varies (Marin and Ruiz, 2007;Nickerson et al, 2021). Specifically, Tirado et al (2023) also found that there is CSR initiatives of banks in Hong Kong a positive correlation between vulnerable customers' perception of banks' CSR practices and their satisfaction and trust in the banks. However, there is insufficient research on the impact of CSR initiatives on customers' bank selection ("purchase intention"), particularly in Hong Kong (HK).…”

Financial inclusion, financial capability and financial fragility during COVID-19 pandemic

“…These programs can aid individuals who lack trust in banks and refrain from using banking services due to their disadvantaged backgrounds. The aim would be to educate them about basic banking services and encourage the use of banking services to enhance their financial well-being (Monferrer Tirado et al ., 2023).…”

“…CSR refers to a set of business practices that benefit social welfare (Deigh and Farquhar, 2021) and has been shown to enhance trust in financial institutions (Hurley et al ., 2014). Banks with a sense of CSR would develop programs to meet the needs of consumers, including those who are financially vulnerable (Monferrer Tirado et al ., 2023). Research shows that maintaining a long-term customer base through CSR activities helps marketers achieve sustainable competitive advantage (Shah and Khan, 2020).…”