International Journal of Electronic Banking (14 papers in press)
Recent Trend in Mobile Banking in Indian Markets
by Rashmi Bansal
Abstract: The invention of mobile phone has brought about revolution not only in the mode of communications, but it has also opened the path of financial inclusion. India is one of the two Asian giants with huge population. However, a significant part of its population lives in rural areas deprived of access to the formal banking facilities. The use of mobile phones for mobile financial services has turned out to be a means of financial inclusion of these segments of the population also. In the context of India, various drivers and barriers for the growth of mobile money industry (MMI) have been analyzed. In recent years, certain developments such as "Demonetisation" have pushed up the mobile financial services in India dramatically. The growth of the usage of smart phones is expected to push up mobile financial services (MFS) in the coming years significantly. The projects like ASHA are making mobile banking (MB) in India much popular. It is expected that in the coming years, mobile banking in India would register an impressive growth.
Keywords: Keywords: mobile money; mobile financial services; mobile wallet; financial inclusion; ASHA.
Impact of demographic variables on factors of customer satisfaction in banking industry using Confirmatory Factor Analysis
by Ruchika Gupta, Siddharth Varma
Abstract: Emergence of technology and competitive pressures led by financial liberalization are driving fundamental shifts in the way Indian banks operate and deliver services to their customers. Banks are progressively moving towards an age of high-technology banking in order to ensure operational excellence and higher customer satisfaction. Use of technology for providing banking services requires investment of money and time and it becomes imperative to understand whether technological innovations really boost the level of customer satisfaction. This paper attempts to measure the impact of demographic variables on various determinants of customer satisfaction in the Indian Banking Industry, e.g. .security, reliability, privacy.Confirmatory Factor Analysis (CFA) using AMOS 18 was utilized to examine the validity and reliability of the measurement model. The study is based on a survey of banking customers particularly in the National Capital Region of Delhi. The study is limited to two innovations in the banking industry: Credit/Debit Card and Internet Banking.
Keywords: Technology; innovation; customer satisfaction; CFA; Credit/ Debit Card; internet banking.
Electronic Resources in Islamic Economics: The Case of Islamic Economic and Finance Pedia (IEFPEDIA)
by Bishr Lutfi
Abstract: This study aims to shed lights on the concept and characteristics of electronic resources and challenges they face. Electronic resources have number of advantages for researchers and students, including the ease of use, storing and restoring, as well they provide a permanent availability with low cost and less effort. This study also highlights Islamic Economics and Finance Pedia (IEFPEDIA) as one of websites that provide electronic resources in the field of Islamic economic and finance, which occupies advanced places according to number of statistics, such as the level of browsing, the global website ranking and file downloads level, according to which it is considered as one of the leading websites in the field of Islamic economics and finance. However, IEFPEDIA faces number of challenges such as the lack of cooperation, shortage of financial support and hacking risks.
Keywords: Electronic resources; Islamic Economics and Finance Pedia; Islamic finance; Islamic economics.
The impact of blockchain on risk mitigation in Islamic finance: A new Mechanism To Mitigate Gharar Risks.
by Omer Hag Hamid
Abstract: Purpose: The purpose of this paper is twofold: to explain the Islamic modes of finance nature-related features of risk, and investigate the use of blockchain technology in managing risk in Islamic finance. Findings: The major result is that the nature of manageable risks in Islamic and traditional finance exhibits similarities in many aspects. Nevertheless, the Islamic joint ventures and sales-based modes of finance are facing special type of risks. The most outstanding and unmanageable risk is related to Gharar . The paper emphasized that the traditional risk mitigation tools are unable to manage the special risk in the form of Gharar. Finally, the paper summarizes the potential contribution of blockchain technology in mitigating risks in the Islamic mode of finance (especially Gharar risk) and highlights its efficiency. Originality/value: The content of this paper is my own work. This paper has not been submitted for any degree or other purposes, it is valuable in currently strong tension to Islamic fin-tech, and how current modern technology can utilize to Islamic banking and finance industry.
Keywords: blockchain; risk management; Gharar; Sharia rule.
Impact of Social Media Use on Brand Awareness: An Applied Study on Jordanian banks that Uses Facebook
by Muhammed Alnsour, Zafaf Abu Tayeh
Abstract: The study aimed to identify and examine the impact of the social media use on brand awareness, the importance of this research stems from the importance of branding and brand awareness in today ever-changing world. The research focuses on the effectiveness of using social media to build brand awareness in Jordanian banks. rnrnA descriptive analytical methodology approach was adopted in this research. For the purpose of data collection; a questionnaire was developed and administered for collecting data from the sample.420 questionnaires were distributed to consumers using Facebook bank page, (305) retrieved and (300) were accepted for analysis. After that, data analysis took place to examine the study variables and test its hypothesis using the Statistical Package of Social Science (SPSS). After conducting the analysis of study data and hypotheses it has been found that the use of social media has a positive impact on brand awareness, brand recognition, brand recall, brand top of mind and brand dominance.rnrnBased on the findings of the research the researcher presented several recommendations including: Marketing department in Jordanian banks sector should build social media marketing strategy that allows more interaction with customer, they should enhance the knowledge about social media, assign employee to update or to be in touch with the clients and member through bank page, responds to their clients and satisfy their wants.rn
Keywords: social media; brand awarneess; facebook; banks; Jordan.
Multicultural teaching-learning model for Western Higher Education Institutions
by Anjum Razzaque
Abstract: This study investigates the role of students national culture (NC) and learning styles (LSs) on learning outcomes (LOs), at New York Institute of Technologys (NYITs) College of Arts, Sciences and Communication (CASC). Past research highlights unmet internationalstudents expectations in multicultural classrooms, similar as NYITs undergrad-students, and claims how LOs benefits curriculum designs with culturally-sensitive LSs, that can meet international students expectations; a claim lacking empirical evidence: thus our research motivation. This deductive approach critiques reviewed-literature to identify research gaps investigated thru a conceptual framework, built on NC, LSs and LOs; and assessed thru a Google Forms survey, receiving 134/150 respondents with clean data. Multi-regression analysis revealed a positive significance between individualism/collectivism and power-distance NC and LOs, and activist and reflector LS and LOs, a negative significance between pragmatic LS, and LOs, and (3) gender moderation between reflector LS and LOs. Theoretical, practical and social implications are also discussed.
Keywords: Higher education; National culture; Teaching-Learning; Learning Outcomes; Learning styles; Multicultural classrooms; International Students.
Corporate governance disclosure compliance: A comparison between conventional and Islamic banks
by Abdul Quddoos AbdulBasith, Zaki Khalid Abu-Shawish, A.A. Ousama
Abstract: The paper examines the extent and trend of corporate governance (CG) disclosure compliance by listed conventional and Islamic banks in Qatar, the UAE (Dubai) and KSA. The data was collected from the annual and CG reports of sampled conventional and Islamic banks from 2010-2012. The study used a disclosure index to measure CG disclosure compliance. The study found that conventional banks had more compliance compared to Islamic banks. The findings are considered interesting for banks, stakeholders and the relevant authorities in the GCC countries. It helps banks, both conventional and Islamic; better understand their current compliance of CG disclosure practices, so that they could be able to identify the current challenges, hence reduce the gap of none-compliance. The extent of the disclosure has increased in the banks for the sample period overall. The CBs had a better DI score over the two categories for both Qatar and the UAE, while the KSA samples of IBs had a better overall score. Also, the findings are essential for the authorities in Qatar, UAE and KSA to identify the strength and weakness of compliance with the CG code, thereby providing a platform to make the necessary actions to improve it. Moreover, the findings are considered beneficial for the other stakeholders (e.g. shareholders, investors) to understand current CG practices by conventional and Islamic banks in Qatar. Thus, they may better evaluate their performance and governance for decision making. The paper can be considered among the pioneer studies that examine the compliance of CG disclosure and compare it between conventional and Islamic financial institutions in the GCC region.
Keywords: Corporate governance; code; compliance; conventional banks; Islamic banks; Qatar; Saudi Arabia; UAE.
Capital Adequacy Norms: Banks Compliance with BASEL-III Norms
by Sahil Singh Jasrotia, Hari Govind Mishra, Roop Lal Sharma
Abstract: The worldwide financial crisis of 2008-09 had unfavorably affected the banking sector and impelled the Basel Committee on Banking Supervision (BCBS) on amending its existing capital adequacy guidelines in December 2010, termed as Basel III guidelines, to reduce the chances of happening of any such crisis in the future. In this paper I empirically analyse whether after complying Capital Adequacy Ratio as per RBI Basel- III Norms, the banks are able to take gain investors confidence into them. This Paper analyses whether Risk Perception of CAR compliant banks has increased or decreased or stagnant in terms of change in advances and profitability for the fiscal years 2015 & 2016. The data being used for the analysis are Financial Reports (Balance Sheets & Income Statement) of the banks and their Capital Adequacy Ratios for the fiscal year 2014-2015 & 2015-2016.
Keywords: Capital Adequacy Norms; Basel III Compliance; Basel Committee on Banking Services; Content Analysis.
Customers Operational Risk towards Electronic banking products and its Mitigation: a Covariance Based Structural Equation Modeling Approach
by Aravind M, Vinith Kumar Nair
Abstract: The e-banking operations can cause loss or damage to the customers in the form of processing errors, fraud, or via external events. The purpose of this work is to analyze the major risk factors influencing the customers in their e-banking operations. Based on the classic stimulus- response approach we have identified fifteen risk stimuli that can cause some encumbrance in e-banking operations. Based on the stimulus we have identified four major risk constructs at operational level viz Debit Card usage Risk (DCR), Internet Banking usage Risk (IBR), Mobile Banking usage Risk (MBR) and Credit Card usage Risk (CCR). We have also identified some risk mitigation strategies based on the review of literature and focus group discussions. In this work a stimulus response model was constructed by linking the operational risk in e-banking with the risk mitigation strategies. Further we used data from 742 respondents for empirically validating the proposed model. The results of covariance structural equation model (CB-SEM) revealed that the strategies identified have a positive effect on mitigating the Internet Banking Risk (IBR) only. Whereas the obtained negative coefficients between the other risk constructs and suggested strategies indicates that present approaches employed are not sufficient in extenuating mobile banking risk and card banking risk.
Keywords: E-banking; Operational Risk; Stimulus-Response model; Risk mitigation; CB-SEM.
Development of conceptual framework for Internet Banking Customer Satisfaction Index (IBCSI)
by Mugdha Y. Keskar, Neeraj Pandey, Avadhut A. Patwardhan
Abstract: Previous researchers have extensively studied the application of customer satisfaction index (CSI) models. The American customer satisfaction index (ACSI) was one of early customer satisfaction scale launched in the early 1990s. After the success of ACSI, various researchers came up with country-specific CSI. However, there are hardly any industry-specific CSI. This paper attempts to review the various CSI models and build a conceptual framework for internet banking customer satisfaction index (IBCSI). The IBCSI, a new index proposed for the banking industry, would measure CSI for internet banking customers. This study is pertinent due to the exponential growth in e-banking. The study also highlights the emerging areas of research in internet banking domain.
Keywords: customer satisfaction index; CSI; internet banking; conceptual model; customer satisfaction.
Virtual learning enriched by social capital and shared knowledge, when moderated by positive emotions
by Anjum Razzaque
Abstract: The higher education sector has reported degrading teaching-learning quality. In parallel, Middle Eastern countries strive to improve education systems and face similar global challenges. The education system transforms its teaching-learning quality via e-learning strategies, where student interact while sharing social capital of resources within a virtual environment during participating to share knowledge. Past research assessed the role of social capital on knowledge sharing behavior in virtual communities but in sectors other than the higher education. Also, past education-research made proclamations with improper evidence. Henceforth, this study assesses the role of students social capital (using social capital theory) on knowledge sharing behavior while e-learning, and the moderation of positive emotion. This deductive approachs reviewed-literature proposed five hypotheses, which when tested using multi-correlation analysis, on undergrad business students of Ahlia University, Bahrain; support all hypotheses. Also, implications to theory and practice and proposed in this article.
Keywords: Social Capital Theory; Knowledge Sharing quality; Positive Emotions; Higher education sector.
The Factors Influencing the Adoption of Internet Banking in Yemen
by Wail Alhakimi, Jameel Esmail
Abstract: The purpose of this study is to analyze the factors that has an influence over the customers intention to adopt internet banking in Yemen. A questionnaire was developed and distributed to the customers of most of active banks in Yemen. By using exploratory and quantitative methods, 384 questionnaires were distributed, and 301 were successfully retrieved. The collected data was examined using descriptive, correlation, and regression analyses. The findings reveal that while relative advantage, perceived risk, perceived security have no significant impact, technology readiness along with prior internet knowledge have significant impact on the intention of customers to adopt the internet banking in Yemen. This study implicitly provides a background for the hypotheses that were tested in order to validate a model for the purpose of accepting the internet banking services. Banks in Yemen are in dire need to invest heavily in internet banking and its IT infrastructure, expand services into remote areas, and build trust to attract more customers in order to increase the percentage of internet banking adopters. The study is highly crucial to the emerging financial institutions in Yemen, as it provides answers to the factors that affect the customers intention to adopt internet banking in Yemen.
Keywords: Internet banking; Relative advantage; Perceived risk; Perceived security; Technology readiness; Prior internet knowledge.
An Empirical Analysis of the Sustainability of Meeting the Convergence Criteria for Turkeys Accession to the European Monetary System
by Samar Akhtar, Subhadra Ganguli
Abstract: Abstract: rnThis paper compares Turkey against three other European Union countries, namely Germany, France and Italy in terms of the convergence criteria of the Maastricht Treaty and the Stability and Growth Pact for the potential acceptance of Turkey into the European Monetary System with single currency Euro. The paper uses quantitative empirical analysis using macroeconomic data for the period 1999-2016 for all the three countries to compare and analyse the conditions of convergence between them. Results show convergence of EU countries in most criteria of the Maastricht Treaty and the Growth and Stability Pact during 1995-99, prior to the creation of the European Union. During 19992005 Turkey exhibited convergence in all criteria except exchange rates, inflation rates and interest rates; during 2005-16 it lacked convergence in areas of exchange rates, inflation rates and interest rates, again demonstrating that the country was not ready for economic integration with EU. This study attempts to consider the sustainability of Turkeys accession into the single currency European Monetary System using economic and monetary criteria only. The results from this research could throw insights into the macro-economic and financial viability of the potential entry of Turkey into the single currency Euro zone from policy perspective. rn
Keywords: European Monetary Union; Turkey; Convergence Criteria; single currency euro.
Proposed mobile trade application:A new approach for sharia compliant credit card
by Mohammad ALLAYMOUN, Omer Hag Hamid
Abstract: This paper presents a proposed mobile application system that hopes to offer a Shariah-compliant credit facility. To be the ideal solution for customers seeking technical solutions to help them effectively complete their credit operations under Islamic law. The proposed scenario suggests the use of an electronic application instead of a plastic card. The electronic application implements the required contracts that are necessary to make the processes fully Shariah-compliant , the application execute a punch of contracts that approved by Sharia such as agency (Wakalah) and sales (Murabaha) , using a couple of tools also approved by Sharia such as constructive Possession, moreover there is a certain permissibility in debt particularly to debtor that there is allowance to deduct part of agreed profit this mean if a client accelerates payment of one or more installments prior to the date specified for such payment , the Islamic bank may deduct part of the profit agreed upon between the Islamic bank and the client at the time of settlement this permissibility approved by AAIOFI standard .
Keywords: Mobile Application; Credit card; Islamic banks; E-bank; Investments; Murabaha; Mobile Banking.