Mid Sweden University

Purpose – This study investigates how entrepreneurial leadership fosters market orientation, bankinnovativeness and bank performance; it also investigates how market orientation contributes to brandorientation, bank innovativeness and bank performance.

Design/methodology/approach – In total, 1500 questionnaires were distributed to 100 bank branches inIndonesia (500 to managers and 1000 to employees); 300 responses (20% response rate) were used for furtherstatistical analysis.

Findings – The results confirmed the existence of relationships among entrepreneurial leadership, marketorientation, bank innovativeness, brand orientation and bank performance. The role of entrepreneurialleadership in fostering market orientation, bank innovativeness, brand orientation and bank performancedemonstrates that leaders can motivate employees to complete their tasks.

Practical implications – The findings suggest that entrepreneurial leadership, new ideas and innovativeproducts and services can foster bank

performance.Originality/value – The emerging banking industry in Indonesia has witnessed changing market conditions.Banks will benefit from being more market-driven and diverse in their customer relationships togenerate value.

This thesis investigates young bank customer (YBC) perceptions of loyalty in the context of mobile bank applications (MBAs), including loyalty antecedents and the consequences of loyalty. A first study investigates the relationships between cognitive, affective, and conative antecedents, on one hand, and loyalty, on the other. A second study investigates the relationships between usability, responsiveness and reliability, and customer satisfaction, on one hand, and loyalty, on the other. The thesis employs a theoretical framework describing customer loyalty in the MBA context. An electronic questionnaire was sent to 500 YBCs in the Mid Sweden region (146 completed questionnaires were received), and confirmatory factor analysis and structural equation modelling were employed to test and develop a measurement model from the responses. Synthesizing the results of the studies performed suggests a model of MBA loyalty from the YBC perspective. The model indicates that cognitive and usability antecedents are significantly related to customer satisfaction, which in turn is significantly related to attitudinal and behavioural loyalty. Despite some limitations, the thesis has novel implications for theory and practice regarding YBC perceptions of MBAs. 

This thesis on financial technology (FinTech) solutions consists of twosuccessive phases, each including two articles. The first phase targets the loyalty of young bank customers (YBCs) to mobile bank applications (MBAs). One of the articles of this phase investigates the relationships between cognitive, affective, and conative antecedents, on one hand, and loyalty on the other. The other article identifies the relationships between usability, responsiveness, reliability, and customer satisfaction, on one hand, and loyalty on the other. Two electronic questionnaires were sent to 500 YBCs in Sweden, 146 responded, and covariance-based structural equation modelling was employed to analyse the data. The resulting model of YBCs’ loyalty to MBAs concludes that three attributes, i.e., memorability, confidentiality, and understandability, along with ease of use, ease of information search, and ease of navigation, determine the satisfaction of the younger generation and their loyalty to MBAs. The second phase focuses on the antecedents of building trust in financial robo-advisors (FRAs) based on the perceptions of young retail investors (YRIs). One of the two articles of this phase investigates building trust in technology through utilizing risk perspectives and the behavioural finance paradigm. The other article targets initial trust from the perspectives of the management discipline and the unified theory of acceptance and use of technology. It tests whether the cultural variable ssuggested by previous studies moderate the relationship between the seantecedents and initial trust. Two electronic questionnaires were sent to YRIs in Sweden and Malaysia, and partial least squares structural equation modelling was employed to analyse the data. The resulting model of YRIs’ initial trust in FRAs emphasizes the essential role of personal attributes (trust propensity and decision style), information, and technological features in addressing initial trust, which in turn determines the behavioural intention to use FRAs. Most findings are similar in the two countries, with some indications of cultural differences in what influences young investors’ initial trust in robo-advisors. For example, price is perceived as more important in Sweden, while social networks seem to be more important in Malaysia. Despite some limitations, the thesis has novel implications for theory and practice. Synthesizing the results suggests that ease of use and cognitive features are highly important to FinTech solutions.

The main purpose of this paper is to study the customers’ evaluation from three similar markets, aiming at finding significant differences among three types of answers. Service quality was measured by using an existing scale from the literature, thus servperf was selected to evaluate three types of answers. Customers of this study came from three similar markets: the Kingdom of Saudi Arabia, the United Arab Emirates and Kuwait. spss was used to analyze the data and one-way anova was run to investigate differences among the groups. The findings showed that there were significant differences between the three groups. Also, the results indicated that except empathy, all other four dimensions showed partial differences

The article aims to summary a method approach which is developed to test a conceptual framework in the business studies context. It starts from a conceptual level of understanding and continue to an empirical one, and finally it develops a structural model for the studied phenomenon. Thereafter, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) are utilized to empirically test the theoretical framework, and to produce a structural model for the studied phenomenon. EFA, CFA, and SEM have advantages in testing conceptual framework in the business studies context. The article give a summary for three subsequent phases (review the literature, qualitative, and quantitative methods) on using structural equation modeling in testing conceptual framework in the business studies context.

Denna studie undersöker unga bankkunders uppfattningar om relationerna mellan kognitiva, affektiva och konativa drivkrafter, å ena sidan, och attityds- och beteendelojalitet mot mobila bankapplikationer, å andra sidan. Studien utvecklade ett teoretiskt ramverk för kundlojalitet anpassat till kontexten för mobila bankapplikationer, vilket sedan testades empiriskt. Baserat på tidigare studier och fokusgruppintervjuer utvecklades ett frågeformulär och skickades ut till 500 unga bankkunder mellan 18–29 år med minst ett års erfarenhet av mobila bankapplikationer. Svaren analyserades statistiskt och enligt de resultat som Mustafa Nourallah vid CER här redovisar har kognitiva drivkrafter ett signifikant samband med kundnöjdhet, som i sin tur är kopplat till lojalitet. Forskningsresultaten har tidigare publicerats i den internationella tidskriftsartikeln “Mobile bank applications: Antecedents and consequences of young bank customer loyalty” (Nourallah, 2022).

The banking industry –as well as and the whole financial system –witness the revolution of offering financial service via mobile device (Gimpel, Rau, and Röglinger, 2018). Due to the young generation’s technological skills and early adoption of the internet, they seem to be the main actors in this context (Leon, 2018). Mobile bank applications (MBAs), has attracted a remarkable number of young bank customers (YBCs) (Tan & Leby Lau 2016). For example, In Sweden, MBAs are the second most downloaded apps (Findahl, 2014) and are used by YBCs (Davidsson & Findahl2016).It has been argued that members of this category have two-time tendency, compared to other age group, to leave their banks (Accenture, 2015), and show less loyal behaviour toward these institutions (Nicoletti, 2017). Recent studies have arson several issues related to the loyalty of YBCs on MBAs (e.g. Berraies, Ben Yahia, & Hannachi, 2017). Thakur (2014) argued for more studies to investigate the antecedents of loyalty with mobile banking sector. Literature review studies have highlighted several research gaps, concerning loyalty antecedents and consequences (Tam and Oliveira, 2017) and young generation loyalty toward mobile application (Kandampully, Zhang, and Bilgihan, 2015).Taking together, the current study aims to investigate the antecedents and consequences of loyalty of YBCs on to MBA. In order to achieve that, the study utilize Dick and Basu (1994) conceptual framework for customer loyalty. The framework is extensively employed in the literature and enabled the study to investigate antecedents and consequences of loyalty.

This study investigates young bank customer (YBC) perceptions of the relationships between cognitive, affective, and conative antecedents, on one hand, and attitudinal and behavioural loyalty to mobile bank applications (MBAs), on the other. The study develops a theoretical framework for customer loyalty to MBAs based on Dick and Basus (1994) conceptual framework of customer loyalty. Based on previous studies and focus group interviews, a questionnaire was developed and sent to 500 YBCs aged 1829 years who have at least one years experience of MBAs. The data were statistically analysed, and the results indicate that YBC loyalty to MBAs combines attitudinal and behavioural loyalty. The results also indicate that cognitive antecedents are directly and significantly related to customer satisfaction, which in turn is significantly related to loyalty. The study contributes by using and developing Dick and Basus (1994) framework in the MBA context, and by suggesting how banks can improve and customize their MBA services, in a way that enables YBCs to utilize their resources in ways that promote economic growth.

Financial robo-advisors (FRAs) are a cutting-edge financial technology offering automated services that relies on artificial intelligence. However, few studies have investigated how young retail investors (YRIs) build trust in FRAs. Another neglected area is whether FRAs’ universal (“one-size-fit-all”) model will succeed or should take account of cultural dimensions. Based on the initial trust perspective and the unified theory of acceptance and use of technology, this study develops a conceptual model of YRIs’ initial trust in FRAs, testing it in two countries from different parts of the world, i.e., Malaysia and Sweden. The results indicate that trust propensity, performance expectancy, and hedonic motivation address initial trust in FRAs, which in turn drives behavioural intention to use this technology. Although most results are similar in the two countries, there are indications of cultural differences regarding what influences YRIs’ initial trust in FRAs

Robo-financial advisors (RFAs) represent an emerging solution for retail investors, particularly for young retail investors (YRIs) who lack financial knowledge and search for reasonable-price financial advice. Yet, a limited number of studies has investigated how YRIs build trust toward RFAs and related acceptance matters. There is another neglected area, which is whether RFAs model succeeds in marketing services in a similar way universally, or should the cultural dimensions be taken into consideration. To address this, the current study borrows initial trust perspective from the management discipline and utilize it to alter a theory from information system discipline, i.e. the unified theory of acceptance and use of technology. This combination produces a conceptual model. Thereafter, the study tests this framework in two different cultures, i.e. Malaysia and Sweden. The results indicated that, in Malaysia and Sweden, trust propensity, performance expectancy, and hedonic motivation address the initial trust in RFAs, which in turn drives behavioural intention to use this technology.

Abstract:

Purpose- The study utilizes the unified theory of acceptance and use of technology (UTAUT) and the theory of behavioural finance to investigate young individuals’ initial trust in nonsovereign cryptocurrencies (NSCs). Research question- how do young individuals perceive the relationships between factors of UTAUT, behavioural finance factors, and initial trust, between initial trust and intension to use NSCs? Methodology and findings- The research process consists of four main parts as follows: (i) literature review is conducted to develop a theoretical framework, (ii) focus group interviews and previous studies are utilized to design a questionnaire. Thereafter, a sample of young individuals is selected due to various criteria. Finally, statistical is used. The findings shed light on the relationships between the studied factors, and several implications. 

The purpose is to investigate the experience of young bank customers (YBCs) with mobile bank applications (MBAs) by employing the concepts of usability, responsiveness, customer satisfaction, reliability, and loyalty. An electronic questionnaire was sent to 500 YBCs in Sweden, 146 of whom completed it. Confirmatory factor analysis was used to test the measurement model, and structural equation modelling to test the hypotheses. The results indicate that usability is a keystone of good MBA experience for YBCs. Usability is significantly and directly related to responsiveness, customer satisfaction, and reliability, and it might indirectly affect loyalty through responsiveness and customer satisfaction. 

The paper aims to study the relationship between trust and satisfaction on mobile bank applications (MBAs) based on the experience of young bank customers (YBCs). An electronic questionnaire was developed based on previous studies and was sent to YBCs. 146 complete responses were studied by utilizing, exploratory factor analysis, regression analysis, and ANOVA. The results indicate that there is a significant relationship between trust and satisfaction, as the development of the trust in MBAs will likely increase the satisfaction of YBCs

The European Union strategy concerns financial capability matters and manages many events (such as European Money Week) to increase households' awareness of financial issues. However, the immigration crises of 2015, the corona pandemic of 2019, and the recent war in Ukraine have led to economic challenges affecting households' financial matters. Based on panel data of the Global Findex Database (issued by the World Bank) and the Financial Access Survey (issued by the International Monetary Fund), the study uses three constructs (financial access, account own-ership, and financial well-being) to expand the literature on financial capability. By investigating the interrelationship between financial capability, financial technology solutions, and saving ten-dency in the European Union, the current work challenges the literature and focuses on the “action” part of financial capability (in contrast to the passive side which characterizes financial literacy).

Denna kortrapport baseras på en studie som dels mäter hushållens finansiella förmåga i 24 EU-länder, dels undersöker sambandet mellan användningen av finansiell teknologi (FinTech) och finansiell förmåga. Den data som användes är hämtad från Världsbanken för åren 2014, 2017 och 2021 samt Europeiska kommissionen. Enligt de resultat som Mustafa Nourallah och Peter Öhman vid CER redovisar här nedan har EU-länderna en stor variation när det gäller såväl medborgarnas finansiella förmåga som användningen av FinTech-tjänster. Länderna i de norra delarna av unionen får jämförelsevis höga poäng. Vidare har FinTech en positiv inverkan på finansiell förmåga. Resultaten förblir stabila även efter kompletterande tester. Studien visar även att ett lands index för mänsklig utveckling har en positiv effekt på hushållens finansiella förmåga. Dock finns inget signifikant samband mellan vare sig inkomst och finansiell förmåga eller ekonomisk frihet och finansiell förmåga. När de undersökta länderna delades in i två grupper utifrån hur väl de implementerat Europa 2020-strategin, bekräftas betydelsen av FinTech för hushållens finansiella förmåga, men det framgår också att det i synnerhet gäller för den grupp av länder som bäst följer denna strategi, däribland Sverige. Forskningsresultaten har tidigare publicerats i den internationella tidskriftsartikeln “Financial technology and financial capability: Study of the European Union” (Nourallah, Öhman och Hamati, 2024).

This chapter sheds light on two advanced technologies related to consumer finance and retail investment. The chapter discusses the importance of mobile bank applications and robo financial advisors as well as loyalty and initial trust among young bank customers and young retail investors, respectively. It also highlights some public statistics from Sweden and Malaysia, two countries representing FinTech hubs, to illustrate the development of FinTech solutions. The chapter emphasises proposals for a continued direction for research. 

Unga bankkunder visar ett stort intresse för mobila bankapplikationer, vilket ger nya aktörer (t.ex. FinTech-bolag) tillfälle att etablera sig på denna marknad. De traditionella bankerna behöver således förhålla sig till den pågående utvecklingen eftersom det är tämligen enkelt för deras kunder att i stället vända sig till FinTech-bolag. Baserat på en elektronisk enkät till 500 unga bankkunder i Mittsverigeregionen (där 146 kompletta svar erhölls) analyserades respondenternas uppfattningar om dels mobila bankapplikationer och dels deras lojalitet till banken. Enligt de resultat som Mustafa Nourallah och Peter Öhman vid CER här redovisar leder användbarhet till kundnöjdhet, vilket i sin tur har ett samband med lojalitet. Resultaten påvisar också vikten av att de mobila applikationerna är lätta att använda redan första gången, att det går smidigt att hitta relevant information och att det är enkelt att navigera i applikationerna. Forskningsresultaten har tidigare publicerats i den internationella tidskriftsartikeln “Mobile bank applications: Loyalty of young bank customers” (Nourallah, Strandberg och Öhman, 2021). 

The European Union's strategy concerns sustainable use of technology matters and attempts to increase European individuals’ awareness of these issues. However, recent studies highlighted enquires regarding the awareness of individuals and their consideration of sustainable issues when they buy or use their devices. Based on recent data, issued in 2022, this study attempts to assess the sustainable use of technology in 23 European countries, i.e. 22 members of the European Union – all European Union, but not Austria, Belgium, Czech Republic, Croatian, and Spain – and Norway. The analysis shows that European countries are diversified in terms of sustainable use of technology and conclude that Nordic countries are ranked high regarding the sustainable use of technology. The study introduces practical guidelines regarding the sustainable use of technology within European Countries and highlights countries that require more effort to address related issues.

Denna kortrapport bygger på två delstudier som undersöker vad som kan skapa förtroende för finansiella Robo-rådgivare hos unga investerare. I ett första steg utvecklades ett teoretiskt ramverk för initialt förtroende för denna typ av rådgivare utifrån risk, information, personliga attribut och funktionalitet. Med utgångspunkt från tidigare studier utformades ett elektroniskt frågeformulär som distribuerades till investerare i åldern 18 till 29 år i Sverige respektive Malaysia. Här ingick också frågor om två kulturella faktorer: individualism och undvikande av osäkerhet. Inkomna svar analyserades statistiskt. Enligt de empiriska resultat som här redovisas av Mustafa Nourallah och Peter Öhman vid CER leder inte minst mängden information, personliga attribut som beslutsstil och användarvänliga tekniska hjälpmedel till initialt förtroende för finansiella Robo-rådgivare. Forsknings-resultaten har tidigare publicerats i de två internationella tidskriftsartiklarna “No trust, no use: How young retail investors build initial trust in financial Robo-advisors” (Nourallah, Öhman och Amin, 2023) respektive “One size does not fit all: Young retail investors’ initial trust in financial Robo-advisors” (Nourallah, 2023).

Purpose: The purpose of this study is to describe and analyse the effect of a set of determinants on initial trust and behavioural intention to use financial robo-advisors (FRAs). Design/methodology/approach: The theory of perceived risk and the behavioural finance paradigm were used to develop a conceptual model of retail investors’ initial trust in FRAs. Data collected from 554 young retail investors (YRIs) from Sweden and Malaysia were analysed using structural equation modelling. Findings: The results of this study indicate that the amount of public information, social media information-seeking and a rational decision style are significantly related to initial trust in FRAs, which in turn is significantly and positively related to the behavioural intention to use this technology. However, none of the risks under study significantly affect the initial trust in FRAs. Practical implications: Information is vital to inducing YRIs to rely on FRAs, so the more public and social media information is available, the higher their intention to use this technology. However, YRIs vary in decision style, and the results suggest implementing a more sophisticated system than the current “one-size-fits-all” approach to YRI behaviour. Originality/value: The empirical-based model enhances the knowledge of the initial phase of trust-building, when YRIs lack sufficient experience of FRAs. By collecting data from two countries, the study’s novel conclusions may help in developing effective FRA services for the youth segment. 

Enhancing household financial capability is important for mitigating severe economic challenges. In the European Union (EU), financial technology (FinTech) solutions are considered critical for managing household finance, but their role in enhancing financial capability is ambiguous. Herein, we measure financial capability in the EU and investigate the effect of FinTech using three waves of panel data from Global Findex (2014, 2017, and 2021) and Eurostat Databases. According to the analyses, EU countries vary greatly in terms of FinTech and financial capability, with countries in the Union's north scoring remarkably high. Results emphasize a considerable effect of FinTech on financial capability and highlight an increase in the latter when the Human Development Index increases. Practical guidelines for measuring financial capability are also presented to assist countries that require additional efforts to effectively address financial capability challenges. 

Financial advisors play a crucial role in modern society, providing advice that can significantly enhance individuals’ and households’ financial solutions and contribute to improved financial well-being. However, little is known about financial advisors’ ability to utilize their financial capability and to ensure their own financial well-being and to mitigate financial stress. The paper aims to study the role of financial capability and financial behavior in addressing advisors’ financial well-being, considering the moderating role of lifestyles variables, i.e. lifelong learning, training, and friendship. Based on previous studies, an online survey was developed and sent to a sample of financial advisors in USA. The results are analyzed using Partial Least Squares Structural Equation Modelling

Ensuring a sound level of financial well-being and mitigating financial stress are essential aspects of life in Nordic countries. Proper knowledge of financial matters and sound financial planning are important to secure these aspects. Considering earlier research, the current study develops a questionnaire and collects over 1000 valid responses from various regions in Sweden. The study utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationships between financial capability, on the one hand, and financial well-being and stress on the other hand. Moreover, the study considers the mediation role of financial planning and financial vulnerability. In a further step, the study uses the dichotomization technique to test the moderating role of financial technology and social media usage, several saving habits, and having a low-quality borrowing profile (loan rejection and serving a loan with a high-interest rate). The study concludes with insights that help households improve financial well-being and control the negative consequences of financial stress.