Enhanced customer satisfaction in the wake of banking liberalization: the Singaporean case.
To attract more foreign financial institutions and help develop Singapore as a world-class financial hub, the Monetary Authority of Singapore (MAS) announced its decision to liberalize the country's heavily regulated commercial banking system in May 1999 (MAS, 1999). Prior to this liberalization, Singaporean banks were sheltered from foreign competition as full service bank licenses were granted only to local banks. Foreign commercial banks had formerly been required to adhere to extensive bureaucratic procedures to obtain licenses which only permitted them to operate as limited service banks, offshore banks, or merchant banks (Singapore: Banking strategy, 1999).
The three key elements of the deregulation program include the improvement of corporate governance, lifting of the 40% foreign shareholding limit, and a five-year liberalization package which would allow foreign banks to enter the local banking market. The rationale for this was that financial liberalization would result in a more open and competitive banking environment which would generate a more diverse range of banking services, encourage the development of local banks through competition, and eventually boost the flow of investment and deposit funds in the Singaporean market (Sufian & Majid, 2007).
The purpose of this study is to assess the impact of financial liberalization in Singapore in terms of how greater competition from foreign banks has impacted on consumer satisfaction with product range and service quality. It is guided by the hypothesis that financial liberalization in Singapore has led to heightened competition among financial institutions (Illescas, 1998) which will motivate Singaporean banks to enhance their product range and customer services. The availability and quality of both core value services and consumer-identified important banking services were assessed. Services offered by the three dominant local retail banks, United Overseas Bank (UOB), Development Bank of Singapore (DBS), and Overseas Chinese Banking Corporation Limited (OCBC), were compared to those offered by six foreign banks holding qualified full banking licenses (FQBs).
REVIEW OF LITERATURE
Banking has been in a state of constant change since the deregulation and liberalization of the US banking which began in the 1970s. Europe began its banking liberalization process and market integration through the 1992 Single Market Program and, of course, the 1999 Monetary Union. Internationalization, financial market integration, and international competition have curtailed practices restricting the banking sector.
The stability of the US banking system was largely maintained in the period between the 1940s and the 1970s through stringent regulation, and the issue of excessive risk assumption by financial institutions did not arise despite the existence of US deposit insurance and the Federal Reserve System's function as lender of the last resort,. Competition was essentially eliminated through regulation of interest rates, activities, and entry barriers in the banking sector. Various Asian countries followed suit with heavy-handed regulation of their banking industries (Vives, 1999).
Singapore in particular developed one of the world's safest, most profitable banking sectors. It withstood the onslaught of the Asian financial crisis that swept through the rest of southeast and north Asia in the 1990s by virtue of the compartmentalization of its banking industry whereby domestic banks were essentially protected from competition by other financial institutions (Maysami, San, & Li, 1999). Bank licensing schemes created full license banks, generally domestic banks allowed to participate in most banking activities, limited license banks which could participate in only some banking activities above a certain dollar amount and were excluded from many Singapore dollar transactions, and offshore banks with no domestic banking activities. The benefits accrued by liberalization in the United States and Europe led to the Monetary Authority of Singapore's decision to allow gradual deregulation of its own banking industry (Maysami, Ooi, & Gan, 2000).
Much research has illustrated that foreign trade restrictions are a significant determinant of the interest rate spread for banks given that such restrictions protect domestic banks enabling them to charge higher prices for their services and operate less efficiently (Bhusal, 2012). Barriers to entry imposed on foreign banks have been shown to protect existing firms from competition enabling them to continue to function at suboptimal levels (Zank et al., 1991). A substantial body of research has also revealed heightened competitive banking behavior following financial liberalization. Caminal, Gual, and Vives (1990), for example, found evidence that the slow loosening of the severe regulation environment in Spain led to the evolution of competition in banking with a resultant increase in perceived quality and range of products.
A similar situation was found to be the case in Peru (Illescas et al., 1998) where the entry of foreign competitor banks led to a reduction of the spread between lending and deposit rates. Financial liberalization in Nepal generated intensified competition that resulted in improved financial services such as longer opening hours, the provision of personalized services, and the availability of innovative new products (Pant, 2009). In the Indian context, Chandrasekhar (2001) discusses how the liberalization process resulted in the establishment of private banks which were seen as pace setters for the rest of the banking sector and brought about an improvement in the quality of the banking sector and increased the number of depositors by offering superior terms and services. Banking liberalization in Turkey has been shown to have resulted in significant productivity gains (Isik & Hassan, 2003).
The introduction of competition into banking sectors is not without problems. DemirgucKunt and Detragiache (1988) have demonstrated that banking crises are more likely to occur within liberalized financial systems. However, they have also illustrated that any adverse effects of banking liberalization are weaker in economies where the institutional environment is strong and well-established, for example, where rule of law is followed and enforcement of contractual agreements restrains corruption. Singapore is certainly one such economy, and its financial liberalization and even the introduction of limited deposit insurance have not affected its sound banking practices and the country's banking industry remains robust and stable.
One of the main goals of financial liberalization, of course, is serving the needs of consumers and providing lower prices and improved services and product range as a result of increased competition. This study contributes to the literature by assessing consumer satisfaction in the period following Singapore's banking deregulation.
To probe the population sample's perceptions of the range and quality of banking services available to them in the five-year period following Singapore's deregulation, the authors designed a questionnaire containing seven principal items (see Appendix I). The first question asked respondents to state the bank(s) at which they currently held an account, and the second, to identify any bank(s) at which they had opened a new account since the 1999 deregulations measures. These questions allowed the gathering of data on the banking habits of the population sample and the determining of whether increased consumer interest in banking services in Singapore was generated by the 1999 liberalization. The second question also permitted the researchers to assess the relative popularity of local versus foreign banks. The local, full-license consumer banks available in Singapore at the time of the research included UOB, OCBC, and DBS. The foreign, full-license banks (QFBs) included ABN Amro NV, Banque Nationale de Paris (BNP), Citibank NA, Standard Chartered Bank (SCB), Hong Kong and Shanghai Banking Corporation (HSBC), and Malayan Banking Berhad (Maybank).
The next two questions were developed on the basis of existing research into the factors that influence consumers' bank selection which can be summarized under five categories. The first of these is convenience, referring to adequate opening hours, location of branches, and the provision of wide ATM networks (Lewis & Bingham, 1991). Next is the price of products and services which refers to the bank having low borrowing rates, high deposit rates, and reasonable service charges (Gupta & Torkzadeh, 1988; Khazeh & Decker, 1992; Leonard & Spencer, 1991; Stafford, 1996). A third important consideration identified in the literature is reputation referring to the good image and prestige of the bank (Yoon, Guffey., & Kijewsky, 1993; Khazeh & Decker, 1992; Boyd et al., 1994; Stafford, 1994). A fourth criterion in selection is service quality. This includes a variety of factors which impact on ease of banking such as efficient staff, friendly staff, good credit facilities, knowledgeable staff, loan repayment flexibility, extensive international networks, availability of multiple currencies, diverse range of maturities for time deposits, and wide assortment of banking services (Gronroos, 1990; Gupta & Torkzadeh; 1988; Leonard & Spencer, 1991; Sudin, Adma., & Planisek, 1994; Zineldin, 1996). A fifth criterion found by researchers to affect choice of bank is perceived risk factors which concern the perceived financial stability of the bank (Hampton, 1977).
Banking studies have validated a distinction between two overriding dimensions of service quality (Levesque & McDougall, 1996; McDougall & Levesque, 1994). The first dimension refers to the core aspects of service such as reliability, and the second, to the relational or process aspects of the service such as tangibles (Jamal & Naser, 2002). Gronroos (1987) and Storey and Easingwood (1998) identify core services as a main component of the basic service package, corroborating the core and augmented product scheme employed by Levitt (1980). Value-added services may be defined as products and services outside a core product area that deliver added value to the total customer relationship and which would strengthen the revenue stream for both customer and supplier (Wang, 2011). To pursue this, the authors queried respondents' views on what they consider a core banking service and what they consider a value-added service (question three). The respondents were then asked to rate which criteria they were most influenced by when selecting a bank (question four). Question 5 queried respondents as to any improvement in banking services that they had experienced since deregulation, and question 6 required them to identify the services they thought needed further improvement. The final, seventh, question asked respondents about the particular banking services that they currently use or are likely to use in the future and whether they would seek these services at a local or foreign bank.
Population Sample and Data Collection
The questionnaire was administered at various locations in Singapore, including the Central Business District and several housing estates. The administrators of the survey, local Singaporeans, were trained in how to approach potential respondents, identify themselves and their affiliation, explain the purpose of the study, and ensure respondents expressed willingness to participate in the data collection. They were instructed to approach every fifth adult (that is, persons who they judged to be 20 years old or more) who passed them. In this way a convenience sample of 450 individuals were approached and a total of 414 respondents replied in full to the questionnaire providing a response rate of 92%.
To analyze the results of the survey a frequency analysis was performed to summarize the percentage of the population holding a local or QFB account. Factor analysis was then employed to determine the relative importance of a set of banking services as perceived by the population sample. While factor analysis is not valid for testing significance, the authors chose to use it given that it provides a simplified form of sensitivity analysis and allows the researcher to make some comparison of the relative importance of each factor to the situation under investigation (Gregson, 1993). This is considered an effective approach given the preliminary nature of the research question assessing consumer satisfaction in the wake of banking liberalization.
RESULTS AND DISCUSSION
Frequency analysis was performed to determine the percentage of respondents holding local bank or QFB accounts. The results indicated that before banking liberalization, 84.1% of respondents held accounts with local banks and only 16.9% had accounts with foreign banks. However, after liberalization was introduced, 35.9% had opened a new account with a QFB and 76.8% with a local bank. DBS was the most popular local bank with a 32.4% share of the new accounts, while Citibank ranked as a strong player among the QFBs with a 14.7% share of new accounts compared to BNP's 0.7% and ABN Amro's 1.4%.
As illustrated above in Table 1, the analysis of the constituent elements of a banking service as ranked by respondents reveals that the category of pricing of products and services emerges with the highest occurring KMO (Kaiser-Meyer-Olkin) value of 0.834, followed by perceived risk, service quality, and convenience-related factors. Low borrowing rates, efficient staff, financial stability, wide range of currencies, location of branches, and wide ATM network score KMO values of .07 > and hence can be identified as representing core value services for respondents.
In terms of the factors that influence respondents' choice of bank, findings indicate that the most important categories include pricing of products and services, service quality, and convenience-related factors. Table 2 shows the results also identify low borrowing rates, wide range of currencies available, wide international network, efficient staff, wide ATM network, and location of branches as influential factors in relation to consumer satisfaction given their higher KMO values.
To gain an overview of the relative quality of service as perceived by respondents, the authors identified the factor of improved service, performed a factor analysis of those banks which displayed improvement for this factor, and tabulate the findings in Table 3.
Table 4 shows the schematized version of this is outlined below and illustrates the finding that core value services were not perceived as improved in the case of Maybank, ABN Amro, or BNP Paribas. UOB only displayed perceived improvements on wide range of currencies and low borrowing rates. OCBC's services were not identified as having improved significantly. Three QFBs, on the other hand, were perceived by respondents to offer superior services across three or more important core value services.
In the case of value-added services, the authors found that Citibank and HSBC offer perceived superior service as tabulated below in table 5:
These preliminary findings suggest that the presence of foreign banks has improved consumer services. While the majority of respondents currently use the services of local banks, there is a clear willingness to try products from QFBs in the future as indicated by the sharp uptake of some QFBs services. Question 7 explored future uptake of local versus foreign bank and results indicate an upswing in demand for QFB services. Tables 6 and 7 summarize the current and projected future use of individual services from local versus foreign banks. These figures indicate a surge in consumer demand for products offered by foreign banks with a clear advantage relating to more advanced banking services such as consultancy and investment services, ACUs, and share brokerage. On the other hand, securing basic banking services such as ATM access and savings accounts does not appear to significantly motivate consumers to switch to foreign banks.
LIMITATIONS OF THIS STUDY
The present study was only able to assess the short-term impact of Singapore's banking deregulation and undoubtedly the long-term effects of this will be far more complex than the advantages the present study has been able to identify. Another limitation of the study is that the success of financial reforms may not be attributable in full to the liberalization measures. That is, there may be other factors at play which affect the banks' performance that have not been investigated in the context of the present study. Moreover, the authors did not assess the demographic factors of the population sample and research has shown that demographic factors can be critical in determining banking preferences (e.g., Rashid & Hassan, 2009).
RECOMMENDATION FOR FUTURE RESEARCH
The authors have identified an incipient advantage held by foreign banks in terms of their apparent ability to outperform local banks in relation to consumer satisfaction; further research on the reasons for opting for a foreign versus a local bank would inform individual banks' development of services. Additional research assessing overt preferences for local versus foreign banks of local Singaporeans across demographic parameters would help apprise banks of their current most natural target markets, how to capitalize on this strength, and how they might modify their services menus to reach less obvious market sectors.
The ability of foreign banks to seize a share in the market and the response of the traditionally-protected local banks ideally requires a long-term study to pinpoint how local banks can best respond to greater competition and new technological realties in order to retain and increase their market status. Further research plotting the historical shift from protectionism to a freer market and changing consumer banking priorities due to technological advances can serve to enlighten decision-making related to customer services and banking operations.
The founding of Singapore as an independent nation in 1965 led to a range of measures to protect its local banks to enable them to meet citizens' banking service needs in addition to developing the country's status as an international financial center. When the entry of foreign competition was identified by MAS as crucial to fostering further growth and banking sophistication, consumer satisfaction was set to increase. This study has made an initial contribution to plotting how greater liberalization has impacted on consumers and their willingness to take up the offerings of foreign newcomers versus established local players. While the findings highlight an embryonic advantage for the foreign banks in terms of consumer satisfaction, local banks can be expected to enhance their services as they strive to maintain market share. In terms of the robustness of the financial sector in general, the impact of liberalization has been positive with Singapore ranking within the top seven of the 148 countries surveyed in the latest Global Competitiveness Report (Schwab, 2013) across all eight factors analyzed within the category of financial market development.
Banking Products and Services Improvement after the Financial Reforms
Q1. Select the banks in which you have an account. (You may choose more than 1 bank)
ABN Amro Bank NV
Banque Nationale de Paris
Standard Chartered Bank
Malayan Banking Berhad
Q2. Please select the bank or banks in which you have opened a new account during the last four years (i.e., since 1999). (You may choose more than 1 bank)
ABN Amro Bank NV
Banque Nationale de Paris
Standard Chartered Bank
Malayan Banking Berhad
Q3. Which of the following factors do you consider as a "core consumer banking service" and which do you consider only a "value-added service"?
(Please identify based on the following scale: 1= Core Value Services... 5=Value Added Services; NA= Not Applicable)
(Please identify based on the following scale: 1=Core Value Services ... 5=Value Added Services; NA= Not Applicable) Core Value Value Added Services Services Efficient staff 1 2 3 4 5 NA Financial stability 1 2 3 4 5 NA Friendly staff 1 2 3 4 5 NA Good credit facilities 1 2 3 4 5 NA Good image 1 2 3 4 5 NA High deposit rates 1 2 3 4 5 NA Knowledgeable staff 1 2 3 4 5 NA Loan repayment 1 2 3 4 5 NA flexibility Long opening hours 1 2 3 4 5 NA Low borrowing rates 1 2 3 4 5 NA Low service charge 1 2 3 4 5 NA Prestige 1 2 3 4 5 NA Wide international 1 2 3 4 5 NA network Wide range of 1 2 3 4 5 NA currencies available Wide range of 1 2 3 4 5 NA maturities for deposits Wide range of services 1 2 3 4 5 NA Wide ATM network 1 2 3 4 5 NA Location of branches 1 2 3 4 5 NA Others (Please State) 1 2 3 4 5 NA
Q4: When selecting a bank, which of the following criteria you would be most concerned with?
(Please identify based on the following scale: 1=Very important ... 5=not important; NA=Not Applicable) Very Not Important Important Efficient staff 1 2 3 4 5 NA Financial stability 1 2 3 4 5 NA Friendly staff 1 2 3 4 5 NA Good credit facilities 1 2 3 4 5 NA Good image 1 2 3 4 5 NA High deposit rates 1 2 3 4 5 NA Knowledgeable staff 1 2 3 4 5 NA Loan repayment 1 2 3 4 5 NA flexibility Long opening hours 1 2 3 4 5 NA Low borrowing rates 1 2 3 4 5 NA Low service charge 1 2 3 4 5 NA Prestige 2 3 4 5 NA Wide international 1 2 3 4 5 NA network Wide range of 1 2 3 4 5 NA currencies available Wide range of 1 2 3 4 5 NA maturities for deposits Wide range of services 1 2 3 4 5 NA Wide ATM network 1 2 3 4 5 NA Location of branches 1 2 3 4 5 NA Others (Please State) 1 2 3 4 5 NA
Q5: Which of the following services have been improved in recent years?
(Please respond in relation to all banks at which you have accounts.) UOB OCBC DBS ABN Amro Banque Efficient staff Bank NV Nationale de Financial stability Friendly staff Good credit facilities Good Image High deposit rates Knowledgeable staff Loan repayment flexibility Long opening hours Low borrowing rates Low service charge Prestige Wide international network Wide range of currencies available Wide range of maturities for deposits Wide range of services Wide ATM network Location of branches Others (Please State) Citibank NA Standard HSBC Malayan Efficient staff Chartered Banking Financial stability Friendly staff Good credit facilities Good Image High deposit rates Knowledgeable staff Loan repayment flexibility Long opening hours Low borrowing rates Low service charge Prestige Wide international network Wide range of currencies available Wide range of maturities for deposits Wide range of services Wide ATM network Location of branches Others (Please State)
Q6: Are there any banking service, which you think should be improved?
Q7: Please indicate
(a) bank services that you are currently using or are likely to use in future,
(b) whether you are using or would use the service provided from local banks or foreign banks.
Currently Likely to Using use in future Advisory/Consultancy services Asian currency unit (ACUs) ATM Credit cards Current/checking account EFTPOS cards (e.g., NETS) Fixed deposit account Internet banking Investment services Loan facilities Payroll services Phone banking Safe deposit services Savings account Share brokerage Unit trusts Others (Please State) Use service Use service from Local from QFBs Advisory/Consultancy services Asian currency unit (ACUs) ATM Credit cards Current/checking account EFTPOS cards (e.g., NETS) Fixed deposit account Internet banking Investment services Loan facilities Payroll services Phone banking Safe deposit services Savings account Share brokerage Unit trusts Others (Please State)
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Ramin Cooper Maysami
Jackson State University
Valerie Priscilla Goby
Edwin Clifford Mensah
University of North Carolina at Pembroke
Ramin Cooper Maysami is Dean of College of Business and Professor of Economics and Finance at Jackson State University (JSU). His research interests are in regulation of financial institutions, interest-free banking and finance, and personal financial planning. He has published extensively in these areas and presented at a number of international conferences. Prior to his deanship at JSU, he was Dean of the School of Business at the University of North Carolina Pembroke. Before his arrival at UNCP, he worked as an Associate Professor of Applied Economics at Nanyang Business School, Singapore's premier School of Business, where he headed the Interest-Free Banking and Finance Research Unit of the Asian Commerce and Economics Studies Center, as well as serving as the Deputy Head of the Central Banking Policies Research Unit. He graduated from Iowa State University, USA, with a PhD in Economics (Financial and Monetary Economics concentration).
Valerie Priscilla Goby holds a PhD (JCU, Australia) and is a Professor in the College of Business, Zayed University, Dubai, UAE, where she supervises final year research projects. She is on the editorial board of four journals, Journal of Business and Technical Communication, Business Communication Quarterly, Teaching and Learning: Gulf Perspectives, and Management Convergence: An International Management Journal. She has published widely in the fields of organizational communication, cross-cultural communication and management, CSR, and entrepreneurship and has taught these disciplines at universities in Singapore, Ireland, Brunei, and the United Arab Emirates.
Edwin Clifford Mensah received his Master of Economics and Ph.D. in Economics degrees from North Carolina State University and is currently an Associate Professor of Economics in the School of Business at the University of North Carolina at Pembroke, U.S.A. He is also a visiting Professor of Economics at Valley View University-Ghana (West Africa). He has presented many papers at professional conferences and served as a chair or discussant in a number of them. He is the author of the book: Economics of Technology Adoption: A Simple Approach and a number of peer reviewed proceedings and journal article publications.
Table 1 Identification of Core Value Services by Respondents (Q. 3) Rotated Factor Matrix Pricing Perceived Service Risk Quality Low Borrowing Rates 0.834 Low Service Charge 0.680 High Deposit Rates 0.667 Loan Repayment Flexibility 0.542 Efficient Staff 0.741 Financial Stability 0.705 Good Credit Facilities 0.568 Knowledgeable Staff 0.512 Wide Range of Currencies 0.816 Available Wide Range of Maturities for 0.667 Deposits Wide International Network 0.661 Wide Range of Services 0.553 Location of Branches Wide ATM Network Prestige Good Image Rotated Factor Matrix Convenience Reputation Factors Low Borrowing Rates Low Service Charge High Deposit Rates Loan Repayment Flexibility Efficient Staff Financial Stability Good Credit Facilities Knowledgeable Staff Wide Range of Currencies Available Wide Range of Maturities for Deposits Wide International Network Wide Range of Services Location of Branches 0.800 Wide ATM Network 0.709 Prestige 0.576 Good Image 0.510 Table 2 Services Identified as Most Important in Bank Selection (Q. 4) Rotated Factor Matrix Pricing Service Range of Convenience Quality Services Factor Low Borrowing Rates 0.787 Loan Repayment 0.681 Flexibility Low Service Charge 0.630 High Deposit Rates 0.597 Good Credit Facilities 0.565 Wide Range of Currencies 0.821 Available Wide International 0.729 Network Wide Range of Maturities 0.688 for Deposits Wide Range of Services 0.565 Efficient Staff 0.765 Friendly Staff 0.678 Knowledgeable Staff 0.607 Wide ATM Network 0.834 Location of Branches 0.802 Table 3 Respondents' Perceptions of Improved Services (Q. 5) UOB Rotated Factor Matrix Friendly Staff 0.716 Low Borrowing Rates 0.709 Wide Range of Maturities for Deposits 0.762 OCBC Friendly Staff 0.738 DBS Wide Range of Currencies Available 0.823 Wide Range of Maturities for Deposits 0.748 Low Service Charge 0.737 Citibank Good Image 0.852 Friendly Staff 0.820 Efficient Staff 0.819 Low Borrowing Rates 0.778 Low Service Charge 0.764 Long Opening Hours 0.712 Wide ATM Network 0.877 Standard Chartered Financial Stability 0.908 Efficient Staff 0.738 Wide Range of Currencies Available 0.797 Location of Branches 0.834 HSBC Knowledgeable Staff 0.763 Wide Range of Currencies Available 0.821 Wide Range of Maturities for Deposits 0.759 Low Borrowing Rates 0.779 Long Opening Hours 0.708 Wide ATM Network 0.740 Table 4 Summary of Perceived Improved Core Value Services Provided by Individual Banks (Q. 5) Improved Core Value Services DBS UOB OCBC Low Borrowing Rate [check] Wide Range of Currencies Available [check] Efficient Staff Wide ATM Network Location of Branches Improved Core Value Services Citi Standard HSBC Bank Chartered Low Borrowing Rate [check] [check] Wide Range of Currencies Available [check] [check] Efficient Staff [check] [check] [check] Wide ATM Network [check] [check] Location of Branches [check] Table 5 Summary of Perceived Improved Value-Added Services Provided by Individual Banks (Q.5) Other DBS UOB OCBC Improved Services Wide Range of [check] [check] Deposit Maturities Low Service [check] Charge Friendly Staff [check] [check] Good Image Long Opening Hours Financial Stability Knowledgeable Staff Other Citi Standard HSBC Improved Bank Chartered Services Wide Range of [check] Deposit Maturities Low Service [check] Charge Friendly Staff [check] Good Image [check] [check] Long Opening [check] [check] Hours Financial [check] Stability Knowledgeable [check] Staff Table 6 Percentage Scores of Current Uptake of Banking Services (Q. 7 a) Use Service Use Service Currently Using from Local from QFB (%) Banks (%) Advisory/Consultancy Services 15.3 8.5 Asian Currency Unit (ACU) 17.1 11.8 ATM 81.0 2.8 Credit Cards 49.5 11.1 Current/Checking Account 67.0 8.3 EFTPOS Cards (e.g., NETS) 85.6 2.4 Fixed Deposit Account 53.5 10.5 Internet Banking 45.0 6.4 Investment Services 28.9 10.0 Loan Facilities 37.8 8.3 Payroll Services 61.8 6.9 Phone Banking 43.6 7.4 Safe Deposit Services 42.1 6.6 Savings Account 84.3 4.6 Share Brokerage 36.9 5.8 Unit Trusts 34.6 16.7 Use Service Currently Using from Both (%) Total (%) Advisory/Consultancy Services 6.8 30.5 Asian Currency Unit (ACU) 2.6 31.6 ATM 14.5 98.3 Credit Cards 21.4 82.0 Current/Checking Account 13.8 89.1 EFTPOS Cards (e.g., NETS) 6.8 94.8 Fixed Deposit Account 10.1 74.1 Internet Banking 14.9 66.3 Investment Services 5.6 44.4 Loan Facilities 9.0 55.1 Payroll Services 2.9 71.6 Phone Banking 15.3 66.3 Safe Deposit Services 3.3 52.1 Savings Account 9.4 98.3 Share Brokerage 7.8 50.5 Unit Trusts 9.3 60.5 Table 7 Percentage Scores of Projected Uptake of Banking Services (Q. 7 b) Likely to Use in Future Use Service Use Service from Local from QFB (%) Banks (%) Advisory/Consultancy 30.5 35.6 Services Asian Currency Unit (ACU) 19.7 42.1 ATM 1.3 0.3 Credit Cards 7.4 9.0 Current/Checking Account 4.3 5.1 EFTPOS Cards (e.g., NETS) 2.0 2.4 Fixed Deposit Account 15.8 8.3 Internet Banking 16.9 13.7 Investment Services 17.8 31.7 Loan Facilities 23.7 17.3 Payroll Services 17.6 10.8 Phone Banking 16.6 12.3 Safe Deposit Services 25.6 19.0 Savings Account 0.6 1.1 Share Brokerage 15.5 32.0 Unit Trusts 11.7 24.7 Likely to Use in Future Use Service Total (%) from Both (%) Advisory/Consultancy 3.4 69.5 Services Asian Currency Unit (ACU) 6.6 68.4 ATM 0.3 1.8 Credit Cards 1.5 18.0 Current/Checking Account 1.1 10.5 EFTPOS Cards (e.g., NETS) 0.4 4.8 Fixed Deposit Account 1.8 25.9 Internet Banking 3.2 33.7 Investment Services 6.1 55.6 Loan Facilities 3.8 44.9 Payroll Services 0.0 28.4 Phone Banking 4.9 33.7 Safe Deposit Services 3.3 47.9 Savings Account 0.0 1.7 Share Brokerage 1.9 49.5 Unit Trusts 3.1 39.5
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|Author:||Maysami, Ramin Cooper; Goby, Valerie Priscilla; Mensah, Edwin Clifford|
|Publication:||International Journal of Business, Marketing, and Decision Sciences (IJBMDS)|
|Date:||Jun 22, 2014|
|Next Article:||Are smartphones a smart marketing buy?|