Relationship banking in practice: perspectives from retired ands current bank managers

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Technological advances in retail banking have led to improved knowledge about customers and search-buy behaviours can now be tracked in more sophisticated and predictive ways. The challenge appears to be how to leverage this new knowledge in ways that deliver value to customers and the Bank when customers are interacting less frequently with staff members in-branch. While it would never be feasible to return to the highly personalised and intimate relationships between bank branch managers and their customers in former generations something of the personal appears to have been lost in the increasingly automated banking environment.
LanguageEnglish
Pages27-43
JournalStrategic Change
Volume25
Issue number1
DOIs
Publication statusPublished - 20 Jan 2016

Fingerprint

Managers
Relationship banking
Banking
Customer knowledge
Bank branches
Retail banking
Staff
Leverage
Technological advances

Keywords

  • banking
  • relationships
  • technology

Cite this

@article{f92372701e9c4cbc92188b4139957f69,
title = "Relationship banking in practice: perspectives from retired ands current bank managers",
abstract = "Technological advances in retail banking have led to improved knowledge about customers and search-buy behaviours can now be tracked in more sophisticated and predictive ways. The challenge appears to be how to leverage this new knowledge in ways that deliver value to customers and the Bank when customers are interacting less frequently with staff members in-branch. While it would never be feasible to return to the highly personalised and intimate relationships between bank branch managers and their customers in former generations something of the personal appears to have been lost in the increasingly automated banking environment.",
keywords = "banking, relationships, technology",
author = "MARK DURKIN",
note = "Reference text: Abram, H. (1995), ‘Relationship Marketing in the Financial Services Industry’, London, Abram, Hawke. Aiken A. 2012. Time for a return to old-style banking. EADT24, September 5. Available at: www.eadt.co.uk/business/features/analysis_time_for_a_return_to_old_style_banking_1_1506190. Al-Hawari A , Ward T , Newby L. 2009. The relationship between service quality and retention within the automated and traditional contexts of retail banking. Journal of Service Management 30(4): 455–472. CrossRef,Web of Science{\circledR} Times Cited: 11 Ames BC. 1970. Industrial marketing: Trappings versus substance. Harvard Business Review 48(4): 93–102. Web of Science{\circledR} Times Cited: 3 Baker MJ. 1993. Bank marketing – myth or reality? The International Journal of Bank Marketing 11(6): 5–12. CrossRef Barbour R. 2007. Doing Focus Groups. Sage: London. Bon RW , Alt H , Rainer L , Geun H , Weber B. 2012. Banking in the internet and mobile era. Electronic Markets 22(4): 197–202. CrossRef,Web of Science{\circledR} Times Cited: 3 Caruana A , Calleya P. 1998. The effect of internal marketing on organisational commitment among retail bank managers. International Journal of Bank Marketing 16(3): 22–30. CrossRef Chase RB. 1978. Where does the customer fit in a service operation. Harvard Business Review Nov/Dec: 137–142. PubMed,Web of Science{\circledR} Times Cited: 292 Cho YK , Menor LJ. 2009. Toward a provider-based view on the design and delivery of quality E-service encounters. Journal of Service Research 13(1): 83–95. Web of Science{\circledR} Times Cited: 13 Competition Commission Report. 2002. The supply of banking services to SMEs. HM Treasury. Available at: www.hm-treasury.gov.uk. Czepiel JA. 1990. Service encounters and service relationships: Implications for research. Journal of Business Research 20: 13–21. CrossRef,Web of Science{\circledR} Times Cited: 202 Dabholkar PA , Bagozzi RP. 2002. An attitudinal model of technology-based self-service: Moderating effects of consumer traits and situational factors. Journal of the Academy of Marketing Science 30(3): 184–201. CrossRef,Web of Science{\circledR} Times Cited: 337 Dibb S , Meadows M. 2001. The application of a relationship marketing perspective in retail banking. Service Industries Journal Jan: 169–194. CrossRef,Web of Science{\circledR} Times Cited: 20 Durkin M , Bennett H. 1999. Employee commitment in retail banking: Identifying and exploring hidden dangers. International Journal of Bank Marketing 17(3): 24–34. CrossRef Durkin MG , Howcroft JB. 2003. Relationship marketing in the banking sector: The impact of new technologies. Marketing Intelligence and Planning 21(1): 61–71. CrossRef Durkin MG , McGowan P , Babb C. 2013. Banking support for entrepreneurial new venturers: Toward greater mutual understanding. Journal of Small Business and Enterprise Development 20(2): 420–433. CrossRef Dwyer F , Schurr P , Oh S. 1987. Developing buyer–seller relationships. Journal of Marketing 51(Apr): 11–27. CrossRef,Web of Science{\circledR} Times Cited: 1789 EFMA. 2013. The Global Retail Banking Digital Marketing Report 2013. Available at: www.efma.com. Ernst and Young (2011), Financial Services: Bringing the Broader Perspective, http://www.ey.com/UK/en/Industries/Financial-Services{"}, citied 9th August 2011. Farshid M. 2011. The social media faces of global financial services brands. Journal of Financial Services Marketing 16: 220–229. CrossRef FSB. 2013. A Report on SME–Bank Relationships. Federation of Small Businesses, Belfast Office. Goss JD , Linbach TR. 1996. Focus groups as alternative research practice. Area 22(2): 115–123. Gray D , Amos D , Currie C. 1997. Decoding the image – consumption, young people magazines and smoking. Health Education Research 12(4): 507–517. CrossRef,Web of Science{\circledR} Times Cited: 27 Gronroos C. 2004. Taking a customer focus back to the boardroom: Can relationship marketing do it? Marketing Theory 3(1): 171–173. CrossRef Hollander S. 1985. A historical perspective on the service encounter. In Czepiel JA , Solomon MR , Suprenant CF (eds), The Service Encounter: Managing Employee/Customer Interaction in Service Businesses. Lexington Books: Lexington, MA. House of Commons Treasury Committee. 2011. Competition and Choice in Retail Banking, 9th Report 2010–11. Available at: www.publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/612/612i.pdf. Howcroft JB , Durkin M. 2000. Reflections on bank–customer interactions in the new millennium. Journal of Financial Services Marketing 5(1): 9–20. CrossRef Howcroft JB , Hewer P , Durkin M. 2003. Banker–customer interactions in financial services. Journal of Marketing Management 19: 1001–1020. CrossRef Howcroft B , Durkin MG , Armstrong G , Emerson E. 2007. Small business–bank relationships and the role of Internet banking. Service Industries Journal 27(7): 947–961. CrossRef,Web of Science{\circledR} Times Cited: 2 Ibbotson P , Moran L. 2003. E-banking and the SME/bank relationship in Northern Ireland. International Journal of Bank Marketing 21(2): 94–103. CrossRef Jennings B. 2007. Qualitative analysis: A case of software or ‘peopleware?’ Research in Nursing and Health 30: 483–484. Direct Link: AbstractPDF(63K)ReferencesWeb of Science{\circledR} Times Cited: 5 Kelly SW. 1989. Efficiency in service delivery: Technological or humanistic approaches. Journal of Services Marketing 3(3): 43–50. CrossRef Kitzinger J , Barbour RS. 1999. The challenge and promise of focus groups. In Barbour RS , Kitzinger J (eds), Developing Focus Group Research: Politics, Theory and Practice. Sage: London; 1–20. CrossRef Krueger RA. 1994. Focus Groups: A practical guide for applied research. Sage: London. Lee J. 2002. A key to marketing financial services: The right mix of products, services, channels and customers. Journal of Services Marketing 16(3): 238–258. CrossRef Lee J , Allaway A. 2002. Effects of personal control on adoption of self-service technology innovations. Journal of Services Marketing 16(6): 553–572. CrossRef Lewis B , Speyrakopoulos S. 2001. Service failures and recovery in retail banking: The customers’ perspective. International Journal of Bank Marketing 19(1): 37–48. CrossRef Mazur M. 2011. Banks take to social media. ABA Banking Journal Jan: 46. Morgan DL. 1998. The Focus Group Guidebook. Sage: London. CrossRef Moriarty RT , Kimball RC , Gay JH. 1983. The management of corporate banking relationships. Sloan Management Review Spring: 3–15. PubMed,Web of Science{\circledR} Times Cited: 18 Meuter ML , Ostrom AL , Roundtree RI , Bitner MJ. 2000. Self-service technologies: Understanding customer satisfaction with technology based encounters. Journal of Marketing 64(3): 50–64. CrossRef,Web of Science{\circledR} Times Cited: 521 Moutinho L , Meidan A. 1989. Bank customers’ perceptions, innovations and new technology. International Journal of Bank Marketing 7(2): 52–60. CrossRef Murphy JA. 1996. Retail banking. In Buttle F (ed.), Relationship Marketing: Theory and Practice. Chapman: London; 74–90. Narver CJ , Slater SF. 1990. The effect of a market orientation on business profitability. Journal of Marketing 54(Oct): 20–35. CrossRef,Web of Science{\circledR} Times Cited: 1779 O'Donnell A , Durkin MG , McCartan-Quinn D. 2002. Corporate banking in the UK: Personal vs remote interaction. International Journal of Bank Marketing 20(6): 273–285. CrossRef Persson A. 2011. The management of customer relationships as assets in the retail banking sector. Journal of Strategic Marketing 19(1): 105–119. CrossRef Pine BJ II , Peppers D , Rogers M. 1995. Do you want to keep your customers forever? Harvard Business Review 73(2): 103–114. Web of Science{\circledR} Times Cited: 95 PricewaterhouseCoopers. 2011. The new digital tipping point. Available at: www.pwc.com/digitaltippingpoint. Proenca J , Silva MM , Fernandos T. 2010. The impact of the internet upon bank marketing. Journal of Financial Services Marketing 15(2): 160–175. CrossRef Project Merlin. 2010. Data for lending to UK businesses, including ‘Project Merlin’ data. Bank of England. Available at: www.bankofengland.co.uk/publications/Pages/other/monetary/additionaldata.aspx. Rexha N , Kingshott RPJ , Aw ASS. 2003. The impact of the relational plan on the adoption of electronic banking. Journal of Services Marketing 17(1): 53–67. CrossRef Ricard L , Prefontaine L , Sioufi M. 2001. New technologies and their impact on French consumer behaviour: An investigation in the banking sector. International Journal of Bank Marketing 19(7): 299–311. CrossRef Rohrer F. 2008. Back to ye olden days banking. BBC Magazine. Available at: news.bbc.co.uk/1/hi/magazine/7681842.stm. Selnes F , Hansen H. 2001. The potential hazard of self-service in developing customer loyalty. Journal of Service Research 4(2): 79–90. CrossRef Smith AD. 2008. Internet retail banking. Information Management and Computer Security 17(2): 127–150. CrossRef Storbacka K , Strandvik T , Gronroos C. 1994. Managing customer relationships for profit: The dynamics of relationship quality. International Journal of Service Industry Management 5(5): 21–38. CrossRef,Web of Science{\circledR} Times Cited: 196 Tyler R. 2011. RBS admits failing small business relationships. Daily Telegraph, May 31. Vickers J. 2011. Independent Commission on Banking – Final Report. Available at: bankingcommission.s3.amazonaws.com/wp-content/uploads/2010/07/ICB-Final-Report.pdf. Walker RH , Johnson LW. 2004. Managing technology-enabled service innovations. International Journal of Entrepreneurship and Innovation Management 4(6): 561–574. CrossRef Walker RH , Johnson LW. 2005. Managing the customer–service provider relationship with technology-enabled services. Mt Eliza Business Review Summer/Autumn: 56–65. Yaklef A. 2001. Does the Internet compete with or complement bricks-and-mortar branches? International Journal of Retail and Distribution Management 29(6): 272–281. CrossRef Zeithaml VA , Gilly MC. 1987. Characteristics affecting the acceptance of retailing technologies: A comparison of elderly and non-elderly consumers. Journal of Retail Banking 63(1): 49–68. Web of Science{\circledR} Times Cited: 66 Zeithaml VA , Berry LL , Parasuraman A. 1996. The behavioural consequences of service quality. Journal of Marketing 60(2): 31–42. CrossRef,Web of Science{\circledR} Times Cited: 1761",
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language = "English",
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Relationship banking in practice: perspectives from retired ands current bank managers. / DURKIN, MARK.

Vol. 25, No. 1, 20.01.2016, p. 27-43.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Relationship banking in practice: perspectives from retired ands current bank managers

AU - DURKIN, MARK

N1 - Reference text: Abram, H. (1995), ‘Relationship Marketing in the Financial Services Industry’, London, Abram, Hawke. Aiken A. 2012. Time for a return to old-style banking. EADT24, September 5. Available at: www.eadt.co.uk/business/features/analysis_time_for_a_return_to_old_style_banking_1_1506190. Al-Hawari A , Ward T , Newby L. 2009. The relationship between service quality and retention within the automated and traditional contexts of retail banking. Journal of Service Management 30(4): 455–472. CrossRef,Web of Science® Times Cited: 11 Ames BC. 1970. Industrial marketing: Trappings versus substance. Harvard Business Review 48(4): 93–102. Web of Science® Times Cited: 3 Baker MJ. 1993. Bank marketing – myth or reality? The International Journal of Bank Marketing 11(6): 5–12. CrossRef Barbour R. 2007. Doing Focus Groups. Sage: London. Bon RW , Alt H , Rainer L , Geun H , Weber B. 2012. Banking in the internet and mobile era. Electronic Markets 22(4): 197–202. CrossRef,Web of Science® Times Cited: 3 Caruana A , Calleya P. 1998. The effect of internal marketing on organisational commitment among retail bank managers. International Journal of Bank Marketing 16(3): 22–30. CrossRef Chase RB. 1978. Where does the customer fit in a service operation. Harvard Business Review Nov/Dec: 137–142. PubMed,Web of Science® Times Cited: 292 Cho YK , Menor LJ. 2009. Toward a provider-based view on the design and delivery of quality E-service encounters. Journal of Service Research 13(1): 83–95. Web of Science® Times Cited: 13 Competition Commission Report. 2002. The supply of banking services to SMEs. HM Treasury. Available at: www.hm-treasury.gov.uk. Czepiel JA. 1990. Service encounters and service relationships: Implications for research. Journal of Business Research 20: 13–21. CrossRef,Web of Science® Times Cited: 202 Dabholkar PA , Bagozzi RP. 2002. An attitudinal model of technology-based self-service: Moderating effects of consumer traits and situational factors. Journal of the Academy of Marketing Science 30(3): 184–201. CrossRef,Web of Science® Times Cited: 337 Dibb S , Meadows M. 2001. The application of a relationship marketing perspective in retail banking. Service Industries Journal Jan: 169–194. CrossRef,Web of Science® Times Cited: 20 Durkin M , Bennett H. 1999. Employee commitment in retail banking: Identifying and exploring hidden dangers. International Journal of Bank Marketing 17(3): 24–34. CrossRef Durkin MG , Howcroft JB. 2003. Relationship marketing in the banking sector: The impact of new technologies. Marketing Intelligence and Planning 21(1): 61–71. CrossRef Durkin MG , McGowan P , Babb C. 2013. Banking support for entrepreneurial new venturers: Toward greater mutual understanding. Journal of Small Business and Enterprise Development 20(2): 420–433. CrossRef Dwyer F , Schurr P , Oh S. 1987. Developing buyer–seller relationships. Journal of Marketing 51(Apr): 11–27. CrossRef,Web of Science® Times Cited: 1789 EFMA. 2013. The Global Retail Banking Digital Marketing Report 2013. Available at: www.efma.com. Ernst and Young (2011), Financial Services: Bringing the Broader Perspective, http://www.ey.com/UK/en/Industries/Financial-Services", citied 9th August 2011. Farshid M. 2011. The social media faces of global financial services brands. Journal of Financial Services Marketing 16: 220–229. CrossRef FSB. 2013. A Report on SME–Bank Relationships. Federation of Small Businesses, Belfast Office. Goss JD , Linbach TR. 1996. Focus groups as alternative research practice. Area 22(2): 115–123. Gray D , Amos D , Currie C. 1997. Decoding the image – consumption, young people magazines and smoking. Health Education Research 12(4): 507–517. CrossRef,Web of Science® Times Cited: 27 Gronroos C. 2004. Taking a customer focus back to the boardroom: Can relationship marketing do it? Marketing Theory 3(1): 171–173. CrossRef Hollander S. 1985. A historical perspective on the service encounter. In Czepiel JA , Solomon MR , Suprenant CF (eds), The Service Encounter: Managing Employee/Customer Interaction in Service Businesses. Lexington Books: Lexington, MA. House of Commons Treasury Committee. 2011. Competition and Choice in Retail Banking, 9th Report 2010–11. Available at: www.publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/612/612i.pdf. Howcroft JB , Durkin M. 2000. Reflections on bank–customer interactions in the new millennium. Journal of Financial Services Marketing 5(1): 9–20. CrossRef Howcroft JB , Hewer P , Durkin M. 2003. Banker–customer interactions in financial services. Journal of Marketing Management 19: 1001–1020. CrossRef Howcroft B , Durkin MG , Armstrong G , Emerson E. 2007. Small business–bank relationships and the role of Internet banking. Service Industries Journal 27(7): 947–961. CrossRef,Web of Science® Times Cited: 2 Ibbotson P , Moran L. 2003. E-banking and the SME/bank relationship in Northern Ireland. International Journal of Bank Marketing 21(2): 94–103. CrossRef Jennings B. 2007. Qualitative analysis: A case of software or ‘peopleware?’ Research in Nursing and Health 30: 483–484. Direct Link: AbstractPDF(63K)ReferencesWeb of Science® Times Cited: 5 Kelly SW. 1989. Efficiency in service delivery: Technological or humanistic approaches. Journal of Services Marketing 3(3): 43–50. CrossRef Kitzinger J , Barbour RS. 1999. The challenge and promise of focus groups. In Barbour RS , Kitzinger J (eds), Developing Focus Group Research: Politics, Theory and Practice. Sage: London; 1–20. CrossRef Krueger RA. 1994. Focus Groups: A practical guide for applied research. Sage: London. Lee J. 2002. A key to marketing financial services: The right mix of products, services, channels and customers. Journal of Services Marketing 16(3): 238–258. CrossRef Lee J , Allaway A. 2002. Effects of personal control on adoption of self-service technology innovations. Journal of Services Marketing 16(6): 553–572. CrossRef Lewis B , Speyrakopoulos S. 2001. Service failures and recovery in retail banking: The customers’ perspective. International Journal of Bank Marketing 19(1): 37–48. CrossRef Mazur M. 2011. Banks take to social media. ABA Banking Journal Jan: 46. Morgan DL. 1998. The Focus Group Guidebook. Sage: London. CrossRef Moriarty RT , Kimball RC , Gay JH. 1983. The management of corporate banking relationships. Sloan Management Review Spring: 3–15. PubMed,Web of Science® Times Cited: 18 Meuter ML , Ostrom AL , Roundtree RI , Bitner MJ. 2000. Self-service technologies: Understanding customer satisfaction with technology based encounters. Journal of Marketing 64(3): 50–64. CrossRef,Web of Science® Times Cited: 521 Moutinho L , Meidan A. 1989. Bank customers’ perceptions, innovations and new technology. International Journal of Bank Marketing 7(2): 52–60. CrossRef Murphy JA. 1996. Retail banking. In Buttle F (ed.), Relationship Marketing: Theory and Practice. Chapman: London; 74–90. Narver CJ , Slater SF. 1990. The effect of a market orientation on business profitability. Journal of Marketing 54(Oct): 20–35. CrossRef,Web of Science® Times Cited: 1779 O'Donnell A , Durkin MG , McCartan-Quinn D. 2002. Corporate banking in the UK: Personal vs remote interaction. International Journal of Bank Marketing 20(6): 273–285. CrossRef Persson A. 2011. The management of customer relationships as assets in the retail banking sector. Journal of Strategic Marketing 19(1): 105–119. CrossRef Pine BJ II , Peppers D , Rogers M. 1995. Do you want to keep your customers forever? Harvard Business Review 73(2): 103–114. Web of Science® Times Cited: 95 PricewaterhouseCoopers. 2011. The new digital tipping point. Available at: www.pwc.com/digitaltippingpoint. Proenca J , Silva MM , Fernandos T. 2010. The impact of the internet upon bank marketing. Journal of Financial Services Marketing 15(2): 160–175. CrossRef Project Merlin. 2010. Data for lending to UK businesses, including ‘Project Merlin’ data. Bank of England. Available at: www.bankofengland.co.uk/publications/Pages/other/monetary/additionaldata.aspx. Rexha N , Kingshott RPJ , Aw ASS. 2003. The impact of the relational plan on the adoption of electronic banking. Journal of Services Marketing 17(1): 53–67. CrossRef Ricard L , Prefontaine L , Sioufi M. 2001. New technologies and their impact on French consumer behaviour: An investigation in the banking sector. International Journal of Bank Marketing 19(7): 299–311. CrossRef Rohrer F. 2008. Back to ye olden days banking. BBC Magazine. Available at: news.bbc.co.uk/1/hi/magazine/7681842.stm. Selnes F , Hansen H. 2001. The potential hazard of self-service in developing customer loyalty. Journal of Service Research 4(2): 79–90. CrossRef Smith AD. 2008. Internet retail banking. Information Management and Computer Security 17(2): 127–150. CrossRef Storbacka K , Strandvik T , Gronroos C. 1994. Managing customer relationships for profit: The dynamics of relationship quality. International Journal of Service Industry Management 5(5): 21–38. CrossRef,Web of Science® Times Cited: 196 Tyler R. 2011. RBS admits failing small business relationships. Daily Telegraph, May 31. Vickers J. 2011. Independent Commission on Banking – Final Report. Available at: bankingcommission.s3.amazonaws.com/wp-content/uploads/2010/07/ICB-Final-Report.pdf. Walker RH , Johnson LW. 2004. Managing technology-enabled service innovations. International Journal of Entrepreneurship and Innovation Management 4(6): 561–574. CrossRef Walker RH , Johnson LW. 2005. Managing the customer–service provider relationship with technology-enabled services. Mt Eliza Business Review Summer/Autumn: 56–65. Yaklef A. 2001. Does the Internet compete with or complement bricks-and-mortar branches? International Journal of Retail and Distribution Management 29(6): 272–281. CrossRef Zeithaml VA , Gilly MC. 1987. Characteristics affecting the acceptance of retailing technologies: A comparison of elderly and non-elderly consumers. Journal of Retail Banking 63(1): 49–68. Web of Science® Times Cited: 66 Zeithaml VA , Berry LL , Parasuraman A. 1996. The behavioural consequences of service quality. Journal of Marketing 60(2): 31–42. CrossRef,Web of Science® Times Cited: 1761

PY - 2016/1/20

Y1 - 2016/1/20

N2 - Technological advances in retail banking have led to improved knowledge about customers and search-buy behaviours can now be tracked in more sophisticated and predictive ways. The challenge appears to be how to leverage this new knowledge in ways that deliver value to customers and the Bank when customers are interacting less frequently with staff members in-branch. While it would never be feasible to return to the highly personalised and intimate relationships between bank branch managers and their customers in former generations something of the personal appears to have been lost in the increasingly automated banking environment.

AB - Technological advances in retail banking have led to improved knowledge about customers and search-buy behaviours can now be tracked in more sophisticated and predictive ways. The challenge appears to be how to leverage this new knowledge in ways that deliver value to customers and the Bank when customers are interacting less frequently with staff members in-branch. While it would never be feasible to return to the highly personalised and intimate relationships between bank branch managers and their customers in former generations something of the personal appears to have been lost in the increasingly automated banking environment.

KW - banking

KW - relationships

KW - technology

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DO - 10.1002/jsc.2045

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VL - 25

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