It enables customers to perform banking transactions using their credit or debit cards, 24h a day (Kajuju 2016). Thus, we hypothesized how the development of these innovative channels of e-banking services can affect a banks market share. The chi-square difference tests between internet banking and market share (2 (1)=34.215, p<.001), telephone banking and market share (2 (1)=52.018, p<.001), POS banking and market share (2 (1)=58.612, p<.001), ATM banking and market share (2 (1)=39.103, p<.001), and mobile banking and market share (2 (1)=32.034, p<.001) were all statistically significant. Shahr Bank has spent a lot of money on its Telephone Bank terminal maintenance. The datasets generated and/or analyzed during the current study are available in the Figshare repository, https://figshare.com/s/ffca65d6dfd025b76716, Abor J (2005) Technological innovations and banking in Ghana: an evaluation of customers perceptions. This study has several valuable implications for bank managers and authorities. Doctoral dissertation, School of Business, University of Nairobi, Kaplan RS, Norton DP (1996) The balanced scorecard: translating strategy into action. The volume of loans provided to entrepreneurs by Shahr Bank. They identified 23 key factors affecting e-banking outsourcing decisions and they categorized those into three clusters: technological attributes, organizational attributes, and environmental attributes. In addition, future research can develop this studys theoretical framework to investigate the impact of innovative banking services on other marketing constructs such as customer loyalty, brand equity, and customers perceived value. J Money Credit Banking 28(4):622636, Doyle P, Bridgewater S (2012) Innovation in marketing. Proceedings of the 37th annual Hawaii international conference on, Prugsaapron T (2015) Success factors in developing new banking services: a case study of consumers perspectives in relation to internet banking service provided by the Bangkok Bank PCL (Bualuang iBanking service), Rabiu ID, Ladan S, Usman HA, Garba M (2019) Impact of E-banking on the Operational Efficiency of Banks in Nigeria. Tata McGraw-hill, New Delhi, Sathye M (1999) Adoption of internet banking by Australian consumers: an empirical investigation. Items of each factor had a good correlation with each other, which confirmed the convergent validity of the scale. The results further show that the development of other innovative platforms, including ATMs and mobile banking, has no significant association with increasing the banks market share. Overall, a large market share is the consequence of the prosperous accomplishment of a competitive strategy and the corollary of a companys market growth (Ghemawat 2002). To ensure that non-response bias did not affect the study, we used t-tests on the mean discrepancies between the early respondents and late ones. First, this research helps develop a better understanding of whether innovative banking services can influence marketing concepts like market share by combining Agwu (2018), Felix (2018), Abor (2005), and Kashmari et al.s (2016) e-banking channels. The main benefit of applying information technology and innovative solutions in the banking sector is the improvement of the efficiency and effectiveness of services (Mahmoodi and Naderi 2016) because traditional banking activities are all accomplished manually, and factors related to human mistakes can have a negative effect on banking transactions. There is fierce global competition within the banking industry. Development of E-banking channels and market share in developing countries. 1. Shahr Bank has spent a lot of money developing Auto Bank services. The study also provides insight into how POS terminal development may influence the fate of a bank. Shahr Bank has spent a lot of money developing Mobile Internet Bank services. First, the branches in Tehran were divided into 3 regions (according to the Shahr bank divisions), and then branches were randomly selected within each region. IFE Psychologia: Int J 13(1):170187, Article volume6, Articlenumber:12 (2020) Shahr Bank has spent a lot of money developing Internet Bank services. The results of the CFA of the scale of the bank market share are shown. Linear regression was used to test the hypotheses. We derived the second hypothesis: H2: The development of ATMs has a positive effect on increasing a banks market share. Bus Process Manag J 13(6):788797, Scornavacca E Jr, Barnes SJ (2004) M-banking services in Japan: a strategic perspective. We would like to publish this article in Financial Innovation. Kuwait Chapter Arabian J Bus Manage Rev 3(12A):240, Thakur R (2014) What keeps mobile banking customers loyal? Shahr Bank has spent a lot of time developing Telephone Bank terminals. Moreover, inferential statistics (correlation and regression) were used to determine and to explain the relationships between the independent variables and dependent variable. Rand J Econ:96115, Maymand MM, Fard RS (2015) Effect of employee branding on market share in Iranian banking industry (case study: Mellat Bank). POS terminals are accessible, and they significantly facilitate banking transactions; thus, they can lead to improvement of the banks market share (Bahrami et al. A POS terminal generally connects to the banks main server through a telephone line or other types of communication, like wireless connections, and transfers money from a buyers account to the merchants account (Hosseini and Mohammadi 2012). Based on the marketing literature, scales were developed to measure the development of new banking services and the banks market share. We analyzed the effect of developing innovative channels of presenting bank services on banks market share. Therefore, banks endeavor to grow and strive to increase their market share. Ali Nazaritehrani. SMART ATM: Technology Acceptance Modeling and Analysis. The authors declare that they have no competing interests. Harvard Business Review Press, Boston, Kashmari A, Nejad AHG, Nayebyazdi A (2016) Impact of electronic banking innovations on Bank deposit market share. Shahr Bank has benefitted from the most up-to-date technology in its wireless POS terminals. Moreover, if banks continuously improve their telephone banking service, their market share will increase. It handles banking transactions on the internet via websites (Sarlak 2010). The other channel of e-banking is the ATM. Studies have recognized that a banks market share is a key element of a banks profitability, growth, and survival (Khan, Ahmad, & Chan, 2018). The sampling methods used in this research were geographical clustering and simple random sampling. Department of Management, University of Science and Culture, Park St., Ashrafi St., Tehran, Iran, You can also search for this author in The last channel studied in this research was telephone banking (hereafter TB). Shahr Bank has spent a lot of money developing Point of Sale services. Econ Sci Ser 18(4):10931096, Mols NP (1999) The internet and the banks strategic distribution channel decisions. This outcome contradicts Schierholz and Laukkanens (2007) finding that mobile banking can improve service quality, customer convenience, and consequently, market share. 2014). 2014); it should be noted that the banking industry is not an exception (Bahrami et al. We agree with all journal ethics, and we declare that we are willing in participation with Financial Innovation. They considered ATMs, telephone banking, internet banking, and mobile banking as key channels of electronic banking. 2022 BioMed Central Ltd unless otherwise stated. Research Conceptual Model. The volume of Rial credits opened by Shahr Bank. The theoretical model is shown in Fig. Cronbachs alpha was used to measure the corresponding reliability of all scales. They suggested that, in order to improve electronic banking research, future studies should try to apply different theoretical approaches rather than the extant theories that they already covered. The study illustrated that there is a significant correlation between platforms of new banking services and the banks market share. Qual Manag J 15(1):41, Grant RM (1991) The resource-based theory of competitive advantage: implications for strategy formulation. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Int J Constr Manag 18(2):151162, Simpson J (2002) The impact of the internet in banking: observations and evidence from developed and emerging markets. TB has several positive characteristics. (2014) said that proper banking facilities, accessibility, and other physical factors can lead to an increase in market share; therefore, TB can positively influence a banks market share. In its initial form, it let customers obtain information about their accounts and transactions via SMS. TB is a service that enables clients to accomplish some banking transactions like applying for account balance information or transferring money through the telephone (Hosseini and Mohammadi 2012). Special short-term investment deposit volume at Shahr Bank. California Privacy Statement, Basic Res J Bus Manag Acc 6(1):110, Alikhani E, Azad N, Mousavi S, Mahmoudzadeh S (2013) The role of personal and social characteristics on acceptance of new telephone banking services. Then, we used Confirmative Factor Analysis (CFA) to assess the measurement validity. In other words, as a promising and already prevalent channel of delivering banking services, internet banking is very important for banks to increase their market share. As Bahrami et al. = .000; Scree plot: the direction changed by a factor of 6). The results of the correlation analysis show that the intercorrelations among the variables range from .07 to .64, which suggests that multicollinearity is not a concern in the models.
The current literature on bank marketing considers innovative banking services agents of bank growth, but it neglects the effect of developing various channels of innovative services on a banks market share. 2008). Shahr Bank has spent a lot of time developing Net Counters services. The market share of corporations has, also, a vital role in setting the equilibrium price. They asserted that instead of substitution, FinTech can be complementary to traditional banking. Fortunately, the study observed no statistically significant differences between them. Bahrami et al. Theor Appl Econ 9(9 (514)):4752, Chao X, Kou G, Peng Y, Alsaadi FE (2019) Behavior monitoring methods for trade-based money laundering integrating macro and micro prudential regulation: a case from China. Table 2 shows the results of the EFA. By the means of new technologies, to increase service quality, and consequently, increase market share, banks can present their services through innovative channels like electronic banking (hereafter e-banking) and its components (Bloemer et al. Clients have direct access to the banks information system from anywhere they have access to the internet. Google Scholar, Agwu E (2018) The role of e-banking on operational efficiency of banks in Nigeria. The results did not support the effect of mobile banking and ATM development on banks market share growth. Shahr Bank has performed a lot of research to promote its mobile banking services. Hoehle et al. Therefore, according to Gonzlez et al. Shahr Bank has spent a lot of time developing Mobile Internet Bank services. Pousttchi and Schurig (2004) defined mobile banking as a way of administering financial services via mobile technology. Financ Innov 6, 12 (2020). IJAMEE, Sunyani, Gerlach D (2000) Put your money where your mouse is. When we gathered the first and second booklets, we wrote each respondents branch number on the cover page of each booklet so we could match the first and second booklets of every respondent because we collected data from a single person at every branch. The sample of this study comprised 182 managers, deputies, and experts of Shahr bank from its branches in Tehran, Iran; the units of analysis were the individual Shahr Bank branches. A lead user study of electronic home banking services: lessons from the learning curve. Shen L, Cheung SO (2018) How forming joint ventures may affect market concentration in construction industry? Therefore, based on DeYoung and Nolle (1996) and Bahrami et al. (1996) asserted that to properly develop new products/services, companies should allocate a great amount of resources, including time and financial resources, to them. We selected an Iranian context because Iran is a developing country, and as Chen and Puttitanun (2005) asserted, people in developing countries may differ in using and welcoming innovative banking services. Today, due to the global competition among financial organizations, market share plays a vital role in banks success. The results indicated that some of these channels, including internet banking, POS, and TB, positively affect a banks market share. Recently, Li et al. Furthermore, as noted above, we collected our data in 2 segregated booklets, 1 for the independent variables and 1 for the dependent variable, and at 2 different times to minimize common method biases (Sakhdari and Burgers 2018). To test the scales validity, we used content validity as well as factor validity. Harv Bus Rev 53(1):97106, Cetina I, Mihail N (2007) Evaluation of the risk and of the opportunities in launching the new banking services. The second booklet included 17 expressions about the growth of the bank market share.
It may be the corollary of the fact that mobile banking has attained such a standard level that banks cannot differentiate their mobile phone services from those of other banks, and they cannot obtain a competitive advantage through mobile banking.
Furthermore, mobile phones have improved service quality, since customers can accomplish transactions whenever they want (Schierholz and Laukkanen 2007).
Bus Hist Rev 76(01):3774, Gomez C (2011) Banking and finance: theory, Law and Practice: PHI Learning PVT. Technological Econ Dev Econ:116, Chen Y, Puttitanun T (2005) Intellectual property rights and innovation in developing countries. This led us to derive the fifth hypothesis: H5: The development of telephone banking has a positive effect on increasing a banks market share. Developing innovative banking services seems vital, since increasing market share is essential for every financial organization, including banks. 2003). The results of the regression are given in Table5. We calculated the Pearson correlation coefficients using SPSS software to estimate the general pattern of relationships between the variables and to check the probability of multicollinearity among them. AN analyzed and interpreted all the data, and was a major contributor in writing the manuscript. It contributes to the large, but still growing literature, on bank marketing. The number of point-of-sale terminals that are being used by Shahr Banks customers. Twelve booklets of questionnaires were distributed among experts, and we asked them for their opinions about the content of the measures. The number of gift cards issued by Shahr Bank. The model shows that internet banking (unstandardized B=.26, p<.01), telephone banking (B=.58, p<.01), and POS banking (B=.56, p<.01) have significant and positive effects on the banks market share, providing support for Hypotheses 5, 4, and 1, respectively. Internet banking provides various online services, such as balance enquiries, ordering checks, instructions for various services (such as balance transfer, opening accounts, perusing account balances), making payments (Argamo 2015), paying bills, transferring cash, saving and investing money (Kajuju 2016), printing statements (Martins et al. Shahr Bank has spent a lot of money developing Net Counters services. This study used linear regression to test the hypotheses. Since we had 5 scales, the sixth factor just accounted for 2.9% of the variance in the variables, and it was related to some rationally different items, so we decided restrict the EFA to 5 factors and eliminate 3 items that were related to the sixth factor from the ATMs, internet banking, and POS scales. Several studies have discussed electronic banking and its innovative channels. The findings of this study provide further insight into whether the development of telephone banking helps banks to improve their position against their competitors. Furthermore, the results showed that the development of 3 banking channels, including internet banking, telephone banking, and POS terminals, have a significant and positive impact on increasing the banks market share. Assessment of todays mobile banking applications from the view of customer requirements. One of the fundamental factors of an organizations success, survival, and growth in a competitive market is market share. J Retail 69(2):193215, Sakhdari K, Burgers JH (2018) The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view. Shahr Bank has spent a lot of time developing Auto Bank services. To what extent do you agree with the following statements about Shahr Bank activities during the past 5years? Routledge, Dunbar CG (2000) Factors affecting investment bank initial public offering market share. Int J Inf Manag 27(5):336351, YuSheng K, Ibrahim M (2019) Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana. J Asian Sci Res 5(1):73, Miranda-Petronella V (2009) E-banking-modern banking services. Figures2 and 3 show the results of the CFA performed by AMOS. 2008). Int J Mob Commun 3(4):325338, Li Y, Spigt R, Swinkels L (2017) The impact of FinTech start-ups on incumbent retail banks share prices. Consequently, financial services are available to the majority of people (Morawczynski and Pickens 2009). (2012) reviewed 247 articles about electronic banking that had been published in the most credible journals in the last three decades. The number of debit cards issued by Shahr Bank.
Financial organizations can take advantages of most innovative technologies for a variety of activities from financial regulation (Chao et al. Shahr Bank has spent a lot of money developing Telephone Bank terminals. Mobile banking is a service provided by financial companies, and it allows customers to benefit by using their mobile phone devices to perform banking transactions such as transferring funds, saving money, and paying bills. There were 154 usable sets of booklets among 182 respondents, so the response rate was 85%. (1996), we asked respondents to determine if Shahr bank has spent a great amount money and time to develop those services and to apply the most up-to-date and cutting-edge technological innovations over the last 5years. As a case in point, the problem of inaccessibility to physical branches has vanished because of these kinds of practical and frugal services. Provided by the Springer Nature SharedIt content-sharing initiative. They assessed various theoretical grounds and methods used in those articles for researching e-banking adoption. According to the resource-based theory of competitive advantage, firms apply their resources to boost their position against their competitors to gain competitive advantages and a greater share of the market (Grant 1991). Chen and Puttitanun (2005) asserted, however, that developing countries may radically differ from developed countries when exerting and exploiting innovation. In general, absolute market share and relative market share are two different types of market share. Int J Bank Mark 16(7):276286, Brown I, Cajee Z, Davies D, Stroebel S (2003) Cell phone banking: predictors of adoption in South Africaan exploratory study. 2016). (2007) studied the effect of innovative business approaches to banking services on the attainment of a competitive advantage. New banking services are defined as services that utilize modern instruments, platforms, and channels to present banking services to customers (Tash et al. In: Proceedings of the Tenth International Conference on Information and Communication Technologies and Development. The regression model in Table 5 indicates that the development of innovative channels of banking services have a significant and positive impact on increasing the banks market share. The results illustrated that developing POS terminals would result in bank market share growth. Hanafizadeh and Zare Ravasan (2018) worked on e-banking outsourcing and found that there are several factors affecting e-banking services outsourcing. Spearman correlation ratios and linear regression analysis were applied to analyze the data. Shahr Bank has benefitted from the most up-to-date technology in its regular POS terminals. Shahr Bank has spent a lot of money on designing, launching, and developing its mobile banking app. 2014), and other information related to accounts (Miranda-Petronella 2009). The study shows a significant relationship between the development of e-banking channels and market share growth. Thereafter, financial institutions provided a wider diversity of financial services through WAP- and Java-enabled mobile phones (Mallat et al. Banks are prone to technological obsolescence, and market share is a backward-looking metric (Maymand and Fard 2015). We also ran exploratory factor analysis (EFA) for all the scales, and it suggested a six-factor solution, which accounted for 65.2% of the variance in the variables (KMO=.70; Bartletts sig. They delineated the important role of innovative solutions (especially mobile banking) in boosting the position of financial organizations in the market. J Basic Appl Sci Res 2(9):91529160, Kajuju NK (2016) The Effect of electronic banking on liquidity of commercial banks in Kenya. To check if CMB had affected our data, we used Harmans single factor test, in which we loaded all items measuring latent variables into 1 common factor. As a result, banks should respond to economic and technological changes rapidly to maintain and improve their market share in the future (Kajuju 2016). A questionnaire was developed and used to collect the data from the respondents. One of the most prevalent channels of providing new banking services is the POS terminal, which is an electronic device used for credit and/or debit cards transactions at retail locations, such as shops, restaurants, and hotels. The validity and reliability of the scales were tested by EFA, CFA, experts opinion, and Cronbachs alpha. Moreover, due to all of these advantages, and despite the trust issues in applying innovative electronic channels, there has been growth in the number of e-banking users (Laukkanen and Lauronen 2005). Springer, Cham, p 133, DeYoung R, Nolle DE (1996) Foreign-owned banks in the United States: earning market share or buying it? In a similar way, Gerlach (2000) found that internet banking can cut prices and result in a sustained competitiveness for traditional banks; however, our study assessed this relationship in a traditional developing country, which is of a great value. Int J Mob Commun 2(1):5166. EFA, CFA, and Cronbachs alpha were performed to develop the proper scales. Although it is claimed that banks should improve their services (Bloemer et al. 1994; Rust and Zahorik 1993), brand extension (Smith and Park 1992), dynamic marketing methods (Davcik and Grigoriou 2016), customer retention (Rust and Zahorik 1993), and forming joint ventures (Shen and Cheung 2018), highly influence market share. Cohen et al. Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. Short-term investment deposit volume at Shahr Bank. We hereby confirm that we did not take advantage of any funding for this research. We listed the aspects of new services of every channel of providing banking services, and, building on Cohen et al. 2007). Manage cookies/Do not sell my data we use in the preference centre. It is useful to study the relationship between the development of e-banking channels and bank market share in developing countries like Iran. We divided our questionnaire into 2 booklets, 1 for independent variables, and the other for the dependent variable. Shahr Bank has spent a lot of time developing Internet Bank services. (2014), mobile banking can significantly contribute to a banks market share. Shahr Bank has spent a lot of money its Internet Bank and Mobile Internet Bank maintenance. To verify the discriminant validity, we applied the suggestion of Anderson and Gerbing (1988), who discussed that the discriminant validity can be confirmed through calculating the chi-square difference of an unconstrained model (in which items of each factor were loaded onto their intended indicator) with a constrained model (in which the correlation between the 2 constructs is limited to 1 [perfectly correlated]).