Shaping the digital transformation of the retail banking industry. Empirical evidence from Italy

Although numerous studies have investigated the determinants of users’ acceptance of online channels, little attention has been paid to the continuous usage of a direct bank. To address this research gap, we analysed data collected via semi-structured interviews and a survey questionnaire distributed in 2017 to a sample of Italian bank customers. Responses were evaluated using a different statistical methodology based on the Shapley Value regression analysis. In brief, user-friendliness and economic advantages appear to be more decisive at an early stage of adoption. Moreover, structural assurance mechanisms (e.g. clarifying security policies and guarantees) have a robust impact on keeping customers online and loyal to electronic channels. Surprisingly, accessibility and compatibility do not seem to be determinant factors.     

Competition in retail banking

This article analyses the reasons for increased competition in retail banking. The author emphasizes the willingness of his and other banks to respond to the changing requirements of customers and describes innovations in the banking industry. The conclusion suggests how the banks' range of products and services may develop in the future.     

Aligning operations,marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry

The close linkage between competitive strategy and functional strategic activities is asserted to be a precondition to the achievement of optimal business performance. This study explores how the relationship between (and among) operations, marketing, and competitive strategies affects organizational performance in the banking industry. Our findings show that: (a) competitive strategy moderates the relationship between operations and marketing strategic activities, and organizational performance, (b) certain integrated strategic decisions of operations and marketing functions have a significant impact on organizational performance, and (c) the performance of retail banks within a strategic group differs depending on the quality of the strategic fit.     

Branch banking in the year 2000

The topic of branch banking in the United States in the year 2000 is obviously one that has been in the minds of California bankers for some time because California is the largest state in the United States to permit virtually unlimited statewide branch banking. It is a topic that must also be in the minds of a large number of European and Asian bankers as well because several non-U.S. banking systems have already established large branch networks in the United States. It is a difficult topic because no one knows precisely what will be the status of branch banking in the year 1990, let alone the year 2000. This article makes some predictions.     

Rationalizing branch banking

Large organizations and particularly organizations with the complex structure of branch banking, require time to change. The author does not suggest that there are any clear answers to the strategic planning problems facing branch banking. Today's advanced technology provides new tools to respond to change and progress. To do this accurate assessment of market segments, an effective internal management structure, efficient management and a level and quality of staff to use the new technology are required. This, in turn, will demand new recruitment and training methods.     

Scheduling professionals in the retail pharmacy chain

To control operating costs, a zero-one integer programming model is developed to assist pharmacy staff scheduling decisions. Variable scheduling needs are met by the assignment of relief (mobile) pharmacists to help or temporarily replace full-time pharmacists. Assignments of relief pharmacists over a two-week planning horizon are determined with consideration given to variations in wage rates and travel costs together with the underlying corporate, contractual and operating constraints. The developed model has been applied with considerable success using data collected from a business district in the US located in northern Louisiana related to a national retail chain pharmacy. Forecasting the number of chain retail outlets in the near future has been also performed and the results obtained argue in favor of adopting the model by the entire chain.     

Concentration of the retail sector and trapped brands

This article explores how the growth in concentration of the retail trade has influenced both the strategies and performances of brands within the FMCG industry. Three mature markets within the FMCG industry—tea, toothpaste and dishwashing liquid—are examined over a 13-year period (1982–1993). The study compares the strategies of dominant brands in these markets against those of second tier brands. Four key brand strategies—advertising, distribution, number of brand variants and pricing—are closely examined. The study illustrates the increasing divergence in the strategic profile of dominant and second tier brands and the emergence of a group of brands, termed ‘trapped’ brands, which are particularly vulnerable as a consequence of consolidation of the retail trade.     

Information technology in banking

This paper argues that since the use of information is a fundamental part of all forms of activities, both corporate and private, throughout society the introduction of a new technology for using information inevitably has widespread effects. These effects are particularly far reaching in those service industries, such as banking, the very heart and essence of whose business is the handling of information.A review of the developments so far in the use of the new information technology in payment systems brings out the essential nature of its effects and shows the all-pervasive influence of the form and capability of the technology itself. It tries to illustrate where the benefits are derived and the nature of illusory gains and undesirable effects. An attempt is then made to derive an historical perspective.To try to anticipate future events, current trends in the technology and in the ways in which its use might change, are identified. The change in the technical means by which financial and other information-based services are delivered is seen to be salient feature of these developments and the important influence upon institutional relationships is discussed under the heading of the politics of the technology. Parallels in the introduction of other new technologies are drawn by way of illustration.The final part of the paper tries to develop a broader perspective and sketches out a longer scenario of the development of information technology indicating the major influence which this is likely to exert upon the development of society throughout the world.     

Embedded Diasporas: Shaping the Geopolitical Landscape

This research argues that the capitalistic world-economy, advantageous to the core nations of World Systems Theory, is simultaneously rebalancing inequalities for semi-peripheral nations through a diasporic mechanism that builds reciprocal embeddedness. This is a challenge to world systems theorists' predominant view that the state class structure is fixed. This research adds to international networks research, extending World Systems Theory by building on and integrating the concept of reciprocal embeddedness at the interorganizational and international levels. A diaspora, explicated as one that is organized toward political action, becomes embedded in a core host, uses the host's influence to reduce state class differences, builds a status-equalizing intercultural channel, and induces an agenda for its homeland.     

Scale versus specialization: banking strategies after the euro

The euro will transform the competitive landscape of European banking. This paper discusses some of the strategic effects of the euro on banks. In particular, it explores two questions: the rationale behind mergers and acquisitions and the universal banking model. The strategic analysis of the forces for change in banking leads to some conclusions: scale will not be the key success factor in European banking, the euro will increase the role of financial specialists in Europe and the universal banking model will face numerous challenges in the new context.     

Models of the future

Existing world models are criticized for the omission of feedback effects. Modifications to existing models are considered implausible, and a very simple structure representing the system by stocks and flows of energy is proposed. The planning implications of such simple models are explored in terms of risk evaluation. The analysis of a possible risk situation yields a dimensionless quantity relating capital investment, depletion rate, investment fraction and efficiency. This quantity is shown to be critical in determining the existence of discontinuities in the growth curve, independent of the desired level of growth.     

A model of retail outlet selection for beef

Multinomial logit models were used to explain consumer outlet selection when buying beef, specifically roasts, steaks, ground beef, and other types of beef. Outlets were grouped into supermarkets, butchers, warehouses, supercenters, and others, and the probability of selecting each outlet type over a range of demographic and other variables was tested. The models were estimated from household data, with 198,682 observations used in the estimation. Empirical results showed that the type of beef purchased and the size of the purchase played an important role in the choice of outlet. Furthermore, the increase in mobility seen when consumers buy larger unit cuts could not be fully explained by price discounting. Implications for the potential growth of each outlet type are discussed.     

Competitive conditions in the Central and Eastern European banking systems

The aim of this study is to conduct an empirical analysis of the competitive conditions in the banking systems of Central and Eastern European countries. The well-known model of Panzar and Rosse [1] is implemented on bank-level data over the period 1999–2006. The estimates based on the separate country panels suggest a wide variation in the competitive conditions of the banking systems examined, with some being characterized as (monopolistically) competitive and other as non-competitive. Finally, the results from the full sample indicate that bank revenue is substantially influenced by structural and macroeconomic conditions.     

Foreign Competition for the U.S. banking world

A study of 66 New York branches, agencies and subsidiaries of foreign banks was undertaken to evaluate marketing planning strategies. Opinions and perceptions towards planning and promotional options of key officials of foreign banks were examined. Using canonical statistical techniques the analysis differentiated between the various types of strategies by organizational form as well as by regional affiliation. The survey concluded that while promotional philosophies may be somewhat similar, the planning process differs significantly between branches and agencies.     

Spinning the future

You may not be able to predict the future, but you can create scenarios to help you think about the future proactively. Instead of attempting to tell the future, tell stories about it. Here are eight steps to help you zero in on the future--they are designed to take you through the process of spinning scenarios in order to make decision-making, long-term planning, and thinking about the future more fruitful. Spinning scenarios is a highly sophisticated, singularly useful, and imminently practical way to think about the future. Yet, it is simple enough that you can do it yourself.     

Personnel policy and manpower planning in banking

Forces of rapid change and strong competition are now operating in the world. Banking with its rapidly changing technology must keep pace with these forces but it must at the same time provide secure and continuous employment for staff. Personnel policy now encompasses manpower planning which is defined as ‘A strategy to acquire, utilize, retain and develop people by formulating and implementing sound manpower policies agreed with employees and their unions’.     

On-line banking: Strategic and management challenges

On-line or electronic delivery is the newest delivery channel to be offered by the retail banks, and there is wide agreement in the industry that this channel will have a significant impact. This article identifies the approaches being adopted by UK retail banks and the strategies underlying those approaches. The management problems and concerns in implementing these services are identified and discussed.     

Investigating a long tail in retail vehicle sales

The concept of the long tail in demand distributions has generated significant research interest because of its potential importance for producers, distributors and retailers. Studies to date have focused on information goods sold through internet channels. Here we study long tail effects in vehicle sales sold through conventional car dealerships. The willingness of customers to compromise on, and/or wait for their requested vehicle specifications are identified as critical factors in vehicle purchases. An extensive empirically based simulation study is conducted to investigate these demand-side factors. The results show how the characteristics of the customer population affect the observed pattern in vehicle sales. The interaction effects of supply-side factors are also highlighted, in particular the effect of the replenishment policy used in the fulfillment system. The study also analyzes the distortion of the underlying demand signal in the sales distribution and the lead time and degree of compromise experienced by different customer populations. Significant managerial implications are highlighted, including the dangers of using the sales distribution as a definitive indicator of demand, the need for the order fulfillment process to align with the characteristics of the market, and the negative effects of focusing replenishment on a small subset of the most popular variants.