Title: Acquisition effects in private banking: avoiding client losses

Authors: Stefan K. Finken; Hans Ruediger Kaufmann; Gerald Robin Bown

Addresses: The Business School, University of Gloucestershire, Park Campus, Glos, GL50 2RH, UK ' School of Business, University of Nicosia, 46, Makedonitissas Avenue, 1700 Nicosia, Cyprus; International Business School at Vilnius University, Sauletekio av. 22, LT-10225 Vilnius, Lithuania ' The Business School, University of Gloucestershire, Park Campus, Gloucester, GL50 2RH, UK

Abstract: The credit crunch of 2009 has had significant impact on financial services, and the effects on customer service are only now becoming apparent. Private banks offer a custom-made and individual financial service with a close personal relationship between customer and bank. During a process of acquisition a significant percentage of an acquired private bank's client base is lost and, therefore, client retention is important in this context. This paper takes notice of this circumstance during the credit crunch when unplanned acquisitions were occurring. It uses a qualitative content analysis and interview data. Although the owners of the bank have changed, the bank is urgently advised to design sustainable client relationships based on the knowledge of their clients' perceptions. The paper proposes a new model of private banking consumer perception that identifies determinants of client migration. This model will be of use for researchers and practitioners in this area of management.

Keywords: credit crunch; unplanned acquisitions; private banks; banking industry; qualitative content analysis; determinants; client migration; client perceptions; acquisition effects; client losses; customer retention; client relationships; modelling.

DOI: 10.1504/JGBA.2016.075707

Journal for Global Business Advancement, 2016 Vol.9 No.2, pp.112 - 130

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 25 Mar 2016 *

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