International Journal of Electronic Banking (4 papers in press)

Regular Issues

• Contribution of Entrepreneurship to Economic Diversification in the Arab World  
  by Amer Al-Roubaie, Muneer Al Mubarak 
  Abstract: Purpose This paper highlights the contribution of entrepreneurship to economic diversification in the Arab world. Heavy dependence on international trade has made the economies of these countries vulnerable to changes in global markets. Economic diversification increases sectoral output and reduces the risk of market volatility. Designs/methodology/approach The relationship between Small & Medium Enterprises (SMEs) and economic diversification is drawn on previous research and literature. The paper uses international data to illustrate the contribution of SMEs to knowledge creation and productivity growth. Such analysis contributes to the development of SMEs in the Arab region. Findings In the new economy, entrepreneurship plays a key role in knowledge creation and innovation. SMEs contribute to the knowledge economy through investment in new productive and creative projects which increase sectoral output and promote diversification. In the Arab world, the contribution of SMEs to the national economy remains inadequate to create linkages and foster growth. Governments in the region should encourage private enterprises to participate in the economy by providing greater financial, technical and managerial incentives. Originality/value This paper contributes to the literature by identifying some of the factors that hinder the participation of SMEs in economic development of the Arab world. Across the region, public expenditure has been the main source of investment in the economy. SMEs could increase productivity through knowledge sharing, technology transfer, innovation diffusion and collaboration. However, governments should create suitable business environment to encourage local firms taking greater role in the new economy.
  Keywords: Entrepreneurship; Economic diversification; SMEs; Knowledge; Innovation; Globalization.
  
  
• Consumer Adoption of Interactive Teller Machines: Evidence from the Arabian Gulf  
  by Mustafa Awwad, Hamed Shamma 
  Abstract: With the rise of technology, digital transformation, and automation, services organisations from all industry verticals are seeking strategies to ensure they maintain consumer loyalty towards their organisation, increase consumer wallet share, and offer a unified and seamless consumer experience throughout all their direct channel touchpoints, all while reducing operational cost and maintaining efficiencies. Banks have been actively executing branch transformation initiatives, utilising new technologies such as Interactive Teller Machines (ITMs), to offer around the clock banking services to their consumers at their time and location of convenience, eliminating the high operating costs of traditional branches. This study investigated the factors that influence banking consumers to adopt the Interactive Teller Machines (ITMs) in the Gulf region. Six variables identified from previous research and Subject Matter Expert (SME) opinions were combined to construct the proposed conceptual model. This study combined variables from research related to consumer adoption of digital e-banking services, effects of retail banking services staff on consumer adoption of services, and design of branches and how this effects consumer behaviour and attitudes toward the bank. A quantitative research was conducted where a questionnaire was distributed to banking consumers in the Gulf and responses were evaluated using Pearsons Correlation, hierarchical regression analysis, as well as other statistical analysis tools. The findings of the research suggest that convenience, security, and social influence were the factors that significantly impacted consumer intention to adopt the Interactive Teller Machine (ITM). When taking demographic moderating variables into consideration, placement of the Interactive Teller Machine (ITM) also had a significant impact on consumer intention to adopt it. Out of the above variables, social influence showed the strongest effect on the consumer intention to adopt the Interactive Teller Machine (ITM). Further analysis was conducted exploring effects of demographics on the different model variables.
  Keywords: branch transformation; interactive teller machine; consumer intention to adopt interactive teller machine; bank branch; bank branch distribution; remote teller; bank consumer migration to alternative channels; digital transformation; digital banking.
  
  
• E-banking and consumer debt  
  by Stanko Dimitrov, Brian Paul Cozzarin 
  Abstract: Canadian consumers have a debt problem and averaged a nationwide debt-to-income ratio of 1.654 in 2016. Based on current research, it is unclear whether e-banking has a positive or negative impact on this ratio. This paper hypothesises that e-banking increases consumer access to capital, and using Canadian nationwide survey data discovers that e-banking enhances the consumers ability to access debt, thus leading to an increase of the debt-to-income ratio by two dollars more for every dollar earned. We suspect that the higher willingness to pay, along with preferring to be rejected for a loan via a web portal, leads to customers using e-banking to request loans via an e-banking portal as opposed to going to the bank. Concluding, this paper recommends an increase in government monitoring of the relationship between e-banking and personal debt.
  Keywords: consumer debt; electronic banking; debt-to-income ratio; Canadian Financial Capability Survey.
  DOI: 10.1504/IJEBANK.2021.10036734
   
  
• Redefining banking: exchange traded savings and loans using cryptocurrencies  
  by Nipun Agarwal 
  Abstract: Existing financial institutions have been setup as brick and mortar companies with branches across the world. However, with the introduction of the blockchain technology, it is much easier to disintermediate the basic building blocks of banking. Most banks depend on savings accounts to support their lending activities and through financial intermediation make significant profits. This paper shows how political economy and blockchain technology can allow this banking function to be changed into a market tradable product. In effect, removing the restrictions that exist across banks. Further, interest rates across the global economy should reduce, as this market-based mechanism should reduce interest rates through better competition and it should completely remove the require for the central bank to act as a lender of last resort and as a result removing the idea of moral hazard.
  Keywords: political economy; monetary policy; cryptocurrency.
  DOI: 10.1504/IJEBANK.2021.10038370