International Journal of Financial Innovation in Banking (7 papers in press)
Analyzing UTAUT with trust toward mobile banking adoption in China and Pakistan: Extending with the effect of power distance and uncertainty avoidance
by Sadia Akhtar, Muhammad Irfan, Shamsa Kanwal, Abdul Hameed Pitafi
Abstract: Banking technology supports financial systems through emerging a solid connection between local population and financial intuitions. Technology acceptance studies with innovative models are considering the key research in Asian countries specifically China and Pakistan. The current study used unified theory of acceptance and use of technology (UTAUT) model with trust factor by moderating two cultural dimensions namely power distance and uncertainty avoidance. In addition, novel ideas were incorporated in determinants to investigate the national cultural effects on individuals behavioral intentions toward mobile banking adoption in China and Pakistan. Empirical study was performed to test the proposed cross-cultural model using the data obtained from both countries. The model was analyzed through multiple and moderated regression analyses using IBM SPSS software. Results proved that performance expectancy, effort expectancy, social influence and trust were important predictors of behavioral intentions to adopt m-banking in Pakistan. On the other hand, performance expectancy and trust have significant effect on individuals behavioral intentions to adopt m-banking in China. Moreover, power distance and uncertainty avoidance were significant moderators in analyzing the behavioral intention to use m-banking.
Keywords: cross-culture; mobile banking; power distance; trust; unified theory of acceptance and use of technology; uncertainty avoidance.
DISRUPTIVE INNOVATIONS AND THE CHALLENGES FOR BANKING
by Anders Kjellman, Tom Björkroth, Taisto Kangas, Risto Tainio, Thomas Westerholm
Abstract: In this article we analyse the concepts of disruptive innovations, innovation platforms and potential ways forward for the banking industry in Europe. The choice of platform and place in the eco-system are strategic choices under a high degree of uncertainty. There is no quick fix, nor one size fits all banks, however we find that banks need capable teams, that are able to come up with viable solutions for the future, and the banks platform.
Keywords: Disruptive innovation; bank platforms; fintech; bank management.
A Century of Strategic Management and Corporate Sustainability: How May Bank-Owned Projects Avoid Bankruptcies
by Aly Mansour, Subhra Chakrabarty
Abstract: This study analyzed sustainable corporate projects as a means of lifting consequences of financial and economic crises on affected societies, with applications pertaining to rural societies that have suffered the most in certain areas. Unemployment, for example, contributed to the rise in crime rate, divorce, drug problems, and other social problems within several societies. The study hypothesized that bank-owned projects pool may continue on its growth despite financial and economic upheavals. The methodology followed was a case study analysis of existing bank-owned projects pool of Banque- Misr with over 60 sustainable projects for almost a century. The findings have presented classic bank-owned projects pool with a higher growth rate. In conclusion, the study recommended bank-owned projects pool as an alternative to face default on loan payments, corruption, bankruptcies, unemployment, poor healthcare services, and low standards of education due to the financial and economic global upheavals in recent years.
Keywords: Bank-Owned Projects; Banque Misr; Corporate Social Responsibility; Strategic Management.
Special Issue on: 6th TSFS Conference of Finance Market Efficiency and Risk Management
Islamic Finance: Multicreteria Analysis and Application
by Nesrine JMILI
Abstract: Several studies and researches are interested in Islamic finance; these studies seek to understand the concept, to identify the principles, the operations and to join the experiments. The purpose of this paper is to determine a comparative study between Islamic banks and conventional banks in terms of performance. This article deals with multicriteria analysis in order to offer a model that makes it possible to clearly explain the ranking randomness of banks, how to take into account actors' behaviors from inter-criteria and intra-criteria information. In addition, we make a strong impression on a robustness review of our empirical analysis.
Keywords: Islamic finance; multicriteria decision support; multicriteria ranking approach; sensitivity and robustness.
The role of financial exclusion in weakening the performance of banks: dynamic panel data analysis in Algeria and Tunisia
by Hasnia Douma, Nesrine Bettioui, Ali Bendob
Abstract: In the East and North Africa region, nearly 70 percent of adults (168 million) do not report any ownership of the account in the Arab world, which is lagging behind other regions. The importance of financial inclusion lies in its impact on the economy of countries, economic growth, financial sector development, improving financial sector stability. This study aims to diagnose the relationship between financial inclusion and performance of banks in Algeria and Tunisia during 2004-2012 by using the panel data and the GMM method. Our results under static or dynamic panel data analysis show the negative impact of financial inclusion on profitability indicators (ROA, ROE, and NIM). We conclude that financial inclusion decreases the profitability of banks. This result reinforces the role of lack of financial inclusion or financial exclusion in the non-development of the banking sector and the non-promotion of economic growth in Algeria and Tunisia during the study period.
Keywords: financial inclusion; exclusion; the performance of banks; CAMEL; Algeria; Tunisia; GMM.
Installing Islamic banking windows in conventional bank: effect on performance
by Mohamed Bechir Chenguel, Abdelkader Derbali
Abstract: Islamic finance products have become very common in financial transactions, and thus offer new business opportunities. The objective of our study was to investigate the effect of distributing Islamic banking products on the financial performance of commercial banks, over a period of seven years (2010 to 2017). We used a Correlation analysis to carry out the strength of the relationship between our dependent variable : bank performance variable : return on assets, and independent variables wich are islamic products. studying the variables collected, we found an evidence that there was a significant positive relationship between bank performance : return on asset and Murabaha, Mudaraba , although Ijara had a positive relationship with return on assets but not significant. We notice that all the available Islamic products in commercial banks used, had a positive significant relation with the exclusion of Ijara which had positive insignificant relationship. This implies that an increase in using Islamic banking products in commercial banks will lead to increase in conventionnal Banks performance.
Keywords: islamic bank; financial performance; conventionnal banks.
Impact of religious experiences on Islamic Stock Market Return
by Marwa Jawada, Siwar Ellouz
Abstract: This paper aims to examine the Islamic stock market behavior in different periods of the Islamic calendar. It focuses on how the mechanisms underlying a religious occasion can influence the stock market return. This research uses daily price index data for a wide range of Islamic stock index market around the world with an event study methodology, to detect the existence of Islamic calendar anomalies. For a total of 724 events examined, the results confirm that religiosity influences investor behavior, by reporting stock return anomalies on the pre and post-holidays periods. The rationalizations proposed for the existence of these anomalies were essentially of a behavioral nature. The collective experience of Islamic occasions can affect the mood of its observers, strengthen their sense of belonging and promote solidarity in the Muslim world, leading to optimistic beliefs that extend to investment decisions. Sentiment related to religious event is generally used to explain the results found in the research.
Keywords: Religion; Islamic occasions; Calendar anomalies; abnormal return; pre-event; post-event; investor sentiment and mood.