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Competitive advantage through relationships in ABSA Private BankBrowne, Richard 28 June 2011 (has links)
This study investigates the dynamic and challenging affluent market of the South African banking sector. An evolution in client demands has created a need for a more exclusive banking solution known as private banking. The research project takes place in the ABSA Private Bank Gauteng Division, the population of which are private bankers and financial planners involved in the actual client facing engagements. Through a questionnaire sampling 40 client facing staff, responses were gathered followed by deeper investigation into the objectives through interviews of both the direct reporting lines in each of the suites in the province, including the provincial executive.
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Competitive advantage through relationships in ABSA Private BankBrowne, Richard 28 June 2011 (has links)
This study investigates the dynamic and challenging affluent market of the South African banking sector. An evolution in client demands has created a need for a more exclusive banking solution known as private banking. The research project takes place in the ABSA Private Bank Gauteng Division, the population of which are private bankers and financial planners involved in the actual client facing engagements. Through a questionnaire sampling 40 client facing staff, responses were gathered followed by deeper investigation into the objectives through interviews of both the direct reporting lines in each of the suites in the province, including the provincial executive.
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Relationship Lending in Syndicated Loans: a Participant’s PerspectiveLi, Xinlei January 2017 (has links)
I explore the role of participants’ relationships with borrowers and lead arrangers in syndicated lending. I predict and find that these relationships mitigate the information asymmetry problems faced by participants with both borrowers and lead arrangers, and allow participants to take a larger share in the loan. In particular, participants with a borrower relationship take, on average, a 10% larger share of the loan, with the effect being more pronounced when the borrower is informationally opaque or less conservative in its accounting. Similarly, participants with a lead arranger relationship take, on average, a 9% larger share of the loan, with the effect being more pronounced: (i) when the borrower has engaged in accounting irregularities or covenant violations in the past, (ii) when the lead arranger is a repeat lender or a large lender, and (iii) when participants have limited information acquisition capacity. Furthermore, loans with a larger total share taken by participants with a borrower or lead arranger relationship are associated with a smaller lead arranger share, less concentrated loan syndicate structure, a lower loan spread, and a lower upfront fee, consistent with these relationships mitigating information asymmetry. Overall, my study sheds light on how participant-level relationship lending shapes debt contracting.
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The effect of relationship banking on customer loyalty in the retail business banking environmentRavesteyn, Louis Johannes van January 2005 (has links)
Customer relationship management (CRM) as an academic subject and a business tool is as relevant today as ever before. As part of the CRM model banks have implemented the concept of relationship banking. The retail banking industry has been troubled with the issue of customer loyalty as both personal and commercial customers have shown the tendency to utilise different products and services from different banks or financial institutions. The problem seems to be Customer Loyalty (or is it?), which as a field of research has been exploited in recent years. The aim of the research report will be to contribute to the existing research on Customer Loyalty and the effects of Relationship Banking (as part of a CRM model) thereon. / Relationship banking, as exemplified by retail banks, is a valuable enabling
strategy that promotes competitiveness and provides sustainable success. The
utilisation of relationship banking as a business strategy to increase customer
retention, create customer loyalty and ultimately increase long-term profits is a
relative young tactic, originating in the 1980s and gathering pace during the
1990s. The correct application of relationship banking could impact on the bottomline
of banks favourably. Hence the positioning of this research to investigate the
effect of the relationship banking offering on customer loyalty, and its use in
realising customer loyalty and long-term value from relationship banking
initiatives.
The retail banking industry in South Africa is a complex and very competitive
environment, which is dominated by the big four banks (ABSA, First National
Bank, Nedbank, and Standard Bank). It is a business imperative for the
management of the banks to ensure that they establish, develop and improve
relationships with their most important asset, their customers. Operating in such a
dynamic environment requires of banks to fully understand all the factors of
relationship banking that affect their success and market share. What is the
impact of relationship banking on customer loyalty, and what are the possible
results that can flow from a close relationship between bank and customer?
The main research hypothesis states that business customers who receive the
relationship banking offering from their retail bankers are more loyal towards their
bank than those business customers who do not receive the relationship banking
offering. With this in mind the research seeks to clarify specific primary objectives
based on the hypothesis:
• To investigate the impact that relationship banking has on the loyalty of
business banking customers in the retail banks in South Africa.
ii
• To identify the critical factors of relationship banking that can influence
customer loyalty.
• To identify the benefits of relationship banking and customer loyalty.
The research composed of a field study in the retail banking industry, with a
sample of 80 business banking customers with a close business relationship with
their banker or having a personal banker looking after the relationship, and 80
business customers without a close business relationship with their banker or no
personal banker looking after their relationship. The survey focused on the attitude
or perception of business customers based on relationship and loyalty
dimensions.
The research, in combination with the literature review provided valuable insight
into the factors influencing relationship banking, its value as part of a retail
business banking proposition, as well as the effect it has on customer loyalty. It
also provided insight into the importance of customer loyalty and its impact on
customer retention and long-term profitability. It is clear from the literature review
and research that a relationship banking offering adds value with regard to
customer retention and loyalty. The results and findings from the research and
literature review represent a remarkable difference between the perceived
levels of customer loyalty of the two groups. This is an indication that
relationship banking affects customer loyalty positively.
The critical factors of relationship banking that were found to influence customer
loyalty included the value proposition, service and quality, employee competency
(relationship banker), price, reward and recognition, and communication. The
benefits of developing and building customer loyalty included: retention of
customers and staff, customer satisfaction, trust, word of mouth referrals and
growth, cost reduction, cross-sales, profitability (relationship lifetime value) and
enhancing the bank’s competitive advantage.
iii
The researcher recommends that retail banks must continue to implement
relationship banking offerings across all business customer segments. A possible
consideration will be to divide the relationship banking offering on different levels:
high-touch; medium-touch; and low-touch. These different value propositions
should represent mutual (bank and customer) requirements and financial
feasibility for banks. Banks must place customer-centricity at the core of their
relationship banking strategy.
To support the relationship strategies banks need to understand the behaviour of
their customers and their buying habits. Market segmentation is a critical aspect of
relationship marketing and the segmentation of business customers must be in
line with the different levels of relationship offerings. Segmentation should also be
in line with customer value or customer profitability, complexity of financial
demands, annual turnover and industry. This segmentation will allow banks to
provide the correct relationship banking offering to the right customer. To support
the segmentation process banks need to be able to determine the individual
customer profitability. Management information systems must be developed and
used to determine the customer’s profitability. Once the segmentation has been
concluded banks must implement and use applicable CRM strategies and CRM
systems to complement the relationship banking offering. It’s about knowing their
customers well enough to determine the kind of relationship they would like to
have. Banks must also try to extend their CRM strategy across all customers. The
support from top management and understanding of the relationship banking
offering is critical as a lack of support can derail the success.
The main recommendations for further study that transpired from the research
included:
• Research on the calculation of relationship life time value.
iv
• Research on a model for appropriate market segmentation of business
banking customers in South Africa.
• Research on the importance of reward and recognition strategies to valued
customers, plus loyalty programmes.
• Research on the key characteristics of relationship bankers.
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Relationship banking in a competitive environment with and without information sharing the importance of credit bureaus in microfinance /Pearson, Richard Scott, January 2008 (has links)
Thesis (Ph. D.)--Ohio State University, 2008. / Title from first page of PDF file. Includes bibliographical references (p. 114-118).
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The effect of relationship banking on customer loyalty in the retail business banking environmentRavesteyn, Louis Johannes van January 2005 (has links)
Customer relationship management (CRM) as an academic subject and a business tool is as relevant today as ever before. As part of the CRM model banks have implemented the concept of relationship banking. The retail banking industry has been troubled with the issue of customer loyalty as both personal and commercial customers have shown the tendency to utilise different products and services from different banks or financial institutions. The problem seems to be Customer Loyalty (or is it?), which as a field of research has been exploited in recent years. The aim of the research report will be to contribute to the existing research on Customer Loyalty and the effects of Relationship Banking (as part of a CRM model) thereon. / Relationship banking, as exemplified by retail banks, is a valuable enabling
strategy that promotes competitiveness and provides sustainable success. The
utilisation of relationship banking as a business strategy to increase customer
retention, create customer loyalty and ultimately increase long-term profits is a
relative young tactic, originating in the 1980s and gathering pace during the
1990s. The correct application of relationship banking could impact on the bottomline
of banks favourably. Hence the positioning of this research to investigate the
effect of the relationship banking offering on customer loyalty, and its use in
realising customer loyalty and long-term value from relationship banking
initiatives.
The retail banking industry in South Africa is a complex and very competitive
environment, which is dominated by the big four banks (ABSA, First National
Bank, Nedbank, and Standard Bank). It is a business imperative for the
management of the banks to ensure that they establish, develop and improve
relationships with their most important asset, their customers. Operating in such a
dynamic environment requires of banks to fully understand all the factors of
relationship banking that affect their success and market share. What is the
impact of relationship banking on customer loyalty, and what are the possible
results that can flow from a close relationship between bank and customer?
The main research hypothesis states that business customers who receive the
relationship banking offering from their retail bankers are more loyal towards their
bank than those business customers who do not receive the relationship banking
offering. With this in mind the research seeks to clarify specific primary objectives
based on the hypothesis:
• To investigate the impact that relationship banking has on the loyalty of
business banking customers in the retail banks in South Africa.
ii
• To identify the critical factors of relationship banking that can influence
customer loyalty.
• To identify the benefits of relationship banking and customer loyalty.
The research composed of a field study in the retail banking industry, with a
sample of 80 business banking customers with a close business relationship with
their banker or having a personal banker looking after the relationship, and 80
business customers without a close business relationship with their banker or no
personal banker looking after their relationship. The survey focused on the attitude
or perception of business customers based on relationship and loyalty
dimensions.
The research, in combination with the literature review provided valuable insight
into the factors influencing relationship banking, its value as part of a retail
business banking proposition, as well as the effect it has on customer loyalty. It
also provided insight into the importance of customer loyalty and its impact on
customer retention and long-term profitability. It is clear from the literature review
and research that a relationship banking offering adds value with regard to
customer retention and loyalty. The results and findings from the research and
literature review represent a remarkable difference between the perceived
levels of customer loyalty of the two groups. This is an indication that
relationship banking affects customer loyalty positively.
The critical factors of relationship banking that were found to influence customer
loyalty included the value proposition, service and quality, employee competency
(relationship banker), price, reward and recognition, and communication. The
benefits of developing and building customer loyalty included: retention of
customers and staff, customer satisfaction, trust, word of mouth referrals and
growth, cost reduction, cross-sales, profitability (relationship lifetime value) and
enhancing the bank’s competitive advantage.
iii
The researcher recommends that retail banks must continue to implement
relationship banking offerings across all business customer segments. A possible
consideration will be to divide the relationship banking offering on different levels:
high-touch; medium-touch; and low-touch. These different value propositions
should represent mutual (bank and customer) requirements and financial
feasibility for banks. Banks must place customer-centricity at the core of their
relationship banking strategy.
To support the relationship strategies banks need to understand the behaviour of
their customers and their buying habits. Market segmentation is a critical aspect of
relationship marketing and the segmentation of business customers must be in
line with the different levels of relationship offerings. Segmentation should also be
in line with customer value or customer profitability, complexity of financial
demands, annual turnover and industry. This segmentation will allow banks to
provide the correct relationship banking offering to the right customer. To support
the segmentation process banks need to be able to determine the individual
customer profitability. Management information systems must be developed and
used to determine the customer’s profitability. Once the segmentation has been
concluded banks must implement and use applicable CRM strategies and CRM
systems to complement the relationship banking offering. It’s about knowing their
customers well enough to determine the kind of relationship they would like to
have. Banks must also try to extend their CRM strategy across all customers. The
support from top management and understanding of the relationship banking
offering is critical as a lack of support can derail the success.
The main recommendations for further study that transpired from the research
included:
• Research on the calculation of relationship life time value.
iv
• Research on a model for appropriate market segmentation of business
banking customers in South Africa.
• Research on the importance of reward and recognition strategies to valued
customers, plus loyalty programmes.
• Research on the key characteristics of relationship bankers.
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The centralisation of administration in commercial relationship bankingTurton, WE January 2001 (has links)
Thesis (MTech(Business Administration)--Cape Technikon, Cape Town, 2001 / During the last decade, commercial banking competition has intensified for a variety of
reasons. With shareholders requirements to satisfY and, at the same time to provide
''value for money" to i!s clients, banks restructured themselves to serve niche market
segments, increase critical mass by growing volume business or a combination of both.
With the change in political dispensation, the urgency for banks to evolve intensified for
the following prime reasons:
I. The increased number offoreign banks ~ntering the South African market and
cherry-picking the commercial banks' best clients and employees. This was
facilitated by the foreign banks low cost of entry and low overhead cost structure
coupled with cheaper availability of offshore funding for South African
businesses.
2. Increased emigration rates reducin6 the availability ofskilled and trained bank
employees.
3. The stagnation ofthe economic emironment resulting in low organic growth of
the business client base from the traditional white o\\ned segment.
4. The largely neglected black business segment which became politically. if not
economically. attractive to the local banks.
Against this background. commercial ban:,s strategies changed involving restructuring
the internal organisation to refocus the banking industr.. efforts in achieving its profit
objectives. satisfYing and keeping its clients and attracting new clients. primarily, from
the local competitor banks.
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The value of relationship banking:empirical evidence on small business financing in Finnish credit marketsPeltoniemi, J. (Janne) 16 November 2004 (has links)
Abstract
The role of relationship banking has been the subject of intensive discussion in recent years. A large body of the literature has examined the benefits and costs related to lender-borrower relationships in small business finance. Despite the numerous studies conducted in both market-based and bank-based economies, the specific sources of the determinants of the value of relationship lending are ambiguous. However, many research results imply that a close and long-term relationship with the bank is desirable for small businesses.
In this study, we investigate the sources of value in Finnish lender-borrower relationships in small business finance. We conduct three separate empirical studies that cover the following aspects of relationship banking: determinants of the value of the bank-firm relationship, collateral requirements and borrower risk, and the comparison of the different characteristics of relationship banking in bank financing and non-bank financing. We use unique and detailed credit file data from two sources, bank data from one of the largest banks in Finland and non-bank data from a large financial institution owned by the Finnish state. Both datasets cover the period 1995 to 2001.
Our main findings are the following. First, duration and scope are important characteristics in determining the sources of value in the bank-firm relationship. We find that a longer relationship tends to lower the cost of the credit, and that wider scope tends to decrease the collateral requirements significantly. Second, a long-lasting bank-firm relationship is beneficial, especially to high-risk firms. As the relationship matures, loan premiums for high-risk firms decrease at a higher rate than for low-risk firms. Third, low-risk borrowers put up more collateral than high-risk borrowers, which implies the existence of a signaling effect. According to the signaling theory, low-risk firms are willing to pledge more collateral than high-risk firms. Fourth, when comparing bank and non-bank credit files, we find that bank-firm characteristics are not fully transferable to the relationship between a non-bank and a firm.
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Conflicts of interest in IPOs: case of investment banks - a systematic reviewNeupane, S. January 2008 (has links)
Since the burst of the internet bubble there is a great deal of interest in the way investment bank prices and allocates initial public offerings (IPOs). The additional scrutiny and spotlight is also because of the dominance of bookbuilding mechanism, which gives complete discretion in terms of allocation and pricing to underwriters, and the huge amount of money left on the table by the issuers, especially during the internet bubble period. Numerous press stories and law suit by investors and issuers alleged conflicts of interest by investment banks at the expense of issuers and investors. On the basis of scoping study we identified five areas to examine conflicts of interest: laddering, spinning, relationship banking, profit sharing allocation and allocation to affiliated funds. The findings of the systematic review show that very limited research has been done on the areas identified. Moreover, there is almost no evidence available to examine the behaviour of investment banks post internet bubble burst. Likewise, very limited evidence is available from countries other than United States. From whatever limited research has been done in these areas there does seem to be enough evidence to suggest that investment banks have been involved in activities that is in conflict with their responsibilities and duties. There is clear evidence of wrong doing by investment banks in US during the internet bubble period by being involved in spinning, laddering and profit sharing allocations. There is not much evidence available at the moment to charge the underwriters of exploiting issuers and investors through the use of affiliated banks, venture capitalists and mutual funds. There is a great need to examine the behaviour of investment banks not only for the sake of the stability of the financial markets but also for the financial intermediaries themselves as unnecessary regulations undermine the efficient operations of financial markets.
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Recent Development of Information Technology in Japanese BanksYamori, Nobuyoshi, Harimaya, Kozo, Asai, Yoshihiro 04 1900 (has links)
No description available.
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