Senior project 8000 words

LITERATURE REVIEW BRIEF

Senior seminar I

Sara Chetin

000055930

The History Spanish banking

Trend in the Digital Banking in the World and Spain

Kirakosyan, K. (2014) purports that social media is trending in the global world, hence making the social aspect inevitable in work. Prodanova et al. (2015) opine that with the emergence of new technologies, there has been continuous development and e-commerce, among which m-commerce stands out. Banks utilize smartphones, internet, automated teller machines, and telephone. The social media illustrates, advances, and transforms that interaction, collective co-existence, engages people who have collective objectives, for they manage to share ideas, cooperate, collaborate in innovating, participation, dialogues, and networking (Kirakosyan, 2014).

Conversely, Cafral thinks that proliferation of technology gadgets has intensified communication among people cafral (P. 5). Social media has also inspired direct engagement with clients. In the social trend, at least fifty-four users do read online reviews prior to making purchases, enhance purchase decision, posts that influence purchases, and enhance following of brands. There is needs to assess their opportunities, target audience, current environment, the impact of brand, gauge client’s sentiments, interests, demographics, and competitors. Also, listening to the clients enhances improvement of the brand, learning and understanding the competitors better through complaints, emotional sentiments, customer’s perspectives, and planned campaigns.

In Spain, about twenty-two percent of the online buyers buy more than sixty percent of their products online, thirty-three percent of mobile users do bank through mobiles (Pradonova, et al., 2014). Due to the popular utilization of mobiles, the banks are increasingly adopting multi-channel active to satisfy clients, increase profits, and have channel mix. Moreover, the adaption enhances usage of a variety of media, open marketing, choices of buying of goods from diverse channels that fulfills the customer needs (Pradonova, et al., 2015). It has helped m-banking which is time and money saving, easy to use, convenient, and compatible with several channels. Still, online channels localize, offer location free access, the immediacy of reaction, instant connectivity, the continuous interaction of a bank and the clients, as well as ubiquity.

With mobile-banking banks have a chance to keep innovating the way they serve customers and manage financial transactions. The real data bank database of the customers could show their dislikes, perceptions, motivations, hence affording personalized services for the customers (Prodanova et al., 2015). The technologies emerging day after day brings about change in interaction as they create virtual communities and networks who compute mediated social actions through social media (Kirokasyan, 2014). People share pictures, videos, content, collaborative projects, virtual games, that are both personal and business-based.

Recommendable Sites and Significance

According to Kirakosyan, the platforms explored are Facebook, YouTube, Google plus, Hi5, Pinterest, Instagram, Twitter, Netlog, trilulilu, and LinkedIn (p.226). These platforms recommend products, guide purchasing decisions, offer promotions, discounts, and incentives. Kirakosyan (2014) says that Wikipedia is internal and the workers can have updates on project status, and trade ideas as long as they embrace and use it maximally (p. 227).

Furthermore, blogs allow recording of views, information by the user. In the banking management, they enhance updating workers, customers and target clients on the advancement within the bank. Likewise, they help the bank receive protests and improve their services (Kirakosyan, 2014). Besides, content texts are shared among people globally.

Additionally, virtual worlds platforms, a self-presentation approach to the real-life situation, therefore banks can use it in reaching out players in areas of operation. According to Kirakosyan (2014) e-communication, social networking Worldwide, about two billion, four hundred and eighty-four million, nine hundred and fifteen thousand and one hundred and fifty-two people were internet users by 2014 (p.230). In the Romania context, out of about ten million nine hundred and twenty-four thousand four hundred and seventy-eight use the internet with about thirty to hundred and twenty minutes.

Moreover, the fee interchange makes the area quite profitable while en vogue innovations enhanced competitive pressure among banks. The charismatic gifted leaders were happy that they had fulfilled personal mission while Mastercard and VISA viewed Poland as a testing ground for innovative solutions (Miklaszewska, 2017, p. 275). Technology and innovations are essential factors that manifest the development of banks. Some of the innovative solutions are e-banking, payment cards, mobile banking, and contactless technologies.

Most utilized information on Facebook.

Romania was similar mobile-banking component, the managerial view on social media utilization in the banks in Romania is that Facebook and LinkedIn are the highly used. Additionally, banks restrain from using it because of lacking strategic know-how of application, senior management understanding, techniques and competencies within banks, and the dedication of the social media manager (Miklaszewska, 2017,p.7). However, customer care, customer demand and behavior recognition, advanced crowdsourcing, innovativeness in marketing tasks, and latent customer attainability encourage usage, similar to Spain.

Social media helps people converse with the audience, build relation with prevalent and potential clients, reaching banking visibility, and transparency. In Romanian banks, like in Spain they monitor public awareness, enhance distribution of information as well as create customer retention through retention programs (Torres-Toukoumidis, 2017, n.p.). Other purposes include; brand strengthening, creating customer relationships and managing it, cross-selling, reduction of the promotion of expense as well as the HR purposes.

Miranda et al (2013) note that social media has become popular in major international banks. Facebook serves clients who examine commercial possibilities while the banks identify principal competitors and the social network positioning. The network disseminates information and audience love it because they have a room of offering an opinion. The fact that Facebook has a great popularity among audiences and greater interactivity makes it attractive for users. That interaction offers brand awareness, recommendation testimonials, complaints management, viral marketing, outbound communication, positive feedback publications, business development, and fan club connection.

Items Valued by Clients

Among the content items on Facebook are video bank information, photo product information, career contact form, downloads’ e-mail data as well as gamification and contests on phone. Other items are an S-commerce application in external links, website polls, coupon or specific offers in location, charity events in events, and finally claims and suggestions in the marketing messages.

According to Miklaszewska (2017) Spanish la Caixa bank scored 74 out of 82 while Spanish BBVA is 63 out of 82 in the online banking (p.271). The basic IT system implementation is a recent concept that is coming with the new generations who value e-banking. Banks did not struggle with old versus new systems at all especially because of the full-range accompanying solutions.

The digital Banking in BBVA Spanish Bank

BBVA (2015) mentions that the bank is architecturally developed, hence their working environment is more innovative with collective intelligence. The company has pioneered the bank efforts, in the radical change of its platforms, which serve the needs of the clients.

Consider the data in diagram 1 in the Appendix

In Spain, 14.4 million people use online, 75 percent on who view telecommuters are productive, 89 % consider it because it allows them to stay at work, while 85 % consider it less stressful as it does not have any unnecessary traveling. The bank cooperates culture has evolved by having a collaborative working environment that offers cloud-based co-editing of office processes (BBVA, 2015). The company now hires individuals that are innovative, technologically advanced to enhance the reality of social media in the cloud, analytics, social, and mobile technologies. BBVA believes in the knowledge and skills of the team that builds a broad, complete vision. Therefore, the bank ran pilot tests on new spaces,

The bank has changed its business operation and now has an Internet of Things with support voice and data communications, improved service, collaborative spaces, remote co-editing, digital signage Interior location-based services, a cloud-bound desktop for technical functionality (BBVA, 2015). The need for portability and mobility has been assured through Bring Your Own Device trend and personal gadgets like tablets and smartphones. Furthermore, cloud computing, smart devices, Big Data, and artificial intelligence offers personalized services, diversification, and predictive models that distribute y the emotional needs of the clients. With Apúntate, an internal job posting app, the company has managed to hire people of talent, train people with varied courses (BBVA, 2015, p.324). Therefore, the bank has utilized technology in the highest ways that are both innovative and focusing more on internal development before the external consideration in a manner that is similar to Santander and Ciaxa but with a unique touch and prioritization.

The digital banking in Santander Bank of Spain

Santander applies social media through utilization of google plus, twitter, SlideShare, website, as well as Pinterest that permit customers to see their products, policies, new ideas, service provision as well as like, follow and make comments. The platforms, similar to BBVA, show rival companies, photos and videos of organizational operation, statistics about their performance (Santander Bank, n.d.). Furthermore, the bank has blogs that allow the management deliver content to the workers, clients, as well as the followers and familiarise with the organization as well as their operations. The presentations, videos, and documents on their site sell Santander’s image and products. Due to these platforms, the bank accesses a lot of clients some of whom are banking with them.

The digital banking in Caixa bank of Spain

Miklaszewska mentions that (2017) Spanish la Caixa bank scored 74 out of 82 (p.271). Caixabank, which is the first bank in Spain is known for installing the digital focus through electronic transactions, and about 55 percent internet and mobile channels. The bank offers crowdsourcing platforms through which they receive client ideas, online banking since 2009 with an active mobile and online base (CaixaBank, 2014,p.32). At the moment banks like Caixabank initiated digital platforms like Blackberry’s Apple World, Android Market, and AppleStore for financial service distribution in transfers (CIAXABANK, 2017 p. 10). Other services are: management of accounts, checking of balance sheets, customer service, and agency location in 2009. Ciaxabank (2016) has a sixteen percent yearly growth of m-banking clients a broad network in Spain due to its 5,027 branches and 9, 479 ATMs.

CIAXABANK (2017) notes that it’s the most innovative bank based on EFMA rating and the best private bank in digital communication because of imaginBank technology of 2016, and Omnichannel approach of banking usage (p.4). It leads to the national and global online banking market penetration with 5.3 million clients. With the internet and digital usage, they have managed to increase loan and advances, reduction of risky loans, as well as profits. The platforms have maintained clients and given a high rating reputation to the bank.

The demographics who consider Mobile-banking

Prodanova et al. (2015) indicate that in Spanish banking, men of about 25-34 are the highest in the usage of m-banking because they are interested in it and have the financial ability because at least the thirty-one percent have a salary of 100 € per month. In addition, ninety percent of m-banking users have social network profiles hence are comfortable with networking with banks at home and work. The typical Spanish internet banking demographics are people of ages 35-44, with a job, high education, high income that is beyond 1600€ (Prodanova et al., 2015). The crosstab and Chi2 users indicate users of the internet as frequent or infrequent users.

Therefore, the frequent users are you employed men that have high education and use new technology. On the other hand, infrequent users are mature people without job women with a university education, less propensity for new technology and have a high income. p. 102 Refer to picture 1 in the Appendix. The clients in the m-banking channel are almost 11.8 percent with five to ten years of banking services hence they use it at least twice a week. M-banking allows deposits, application of personal loans, the hiring of insurance, and consideration of credit conditions. At least fifty percent of the m-banking are highly satisfied. (table 1)

Recommendations for digital usage of banks

Nevertheless, the banks have to be aware of the complexities, lack of information, skills, unsuitability of some devices used in the technological operations, as well as perceived risks by the customers (Prodanova et al., 2014). Only if m-baking is convenient, practical, non-stop service type, fast, and free of charge does clients consider using it. Consider Table 2 of the Appendix. The suggestion is that banks should up the applications in terms of disclosure, information levels, security, interface improvement, and supplementary applications. The m-banking tasks include alert systems, transfers, buying of tickets, payment of bills, checking of balances. In future, the clients will use it in paying taxes, and bills, top up phones, acquire product or service information from the commercial supplier.

The other step that will follow is investment and engagement of the agencies that the bank hires and the internal training of the teams who understand complex issues in the banking and technology industry (Cafral, n.d., p.6). Similarly, customers must be trained in the way to generate content and benefit from it. As soon as people are made participants the social media will have been leveraging and the brand campaigns will be successful.

Besides, there is an organization of the process of comprehending the brand, the bank should set an objective for the workforce with every department within the bank participating in the social media and collaboratively plan the brand strategies, amend brand guidelines, as well as the tonal policies (Cafral, n.d. p. 8). Through social media brand guidelines should be clear on the internet and traffic’s capacity, people’s trust is important and the challenge following the processes that enhance the personal communication. Later, there should be experimentation where the bank has to have few campaigns or projects that develop a comprehensive understanding, traffic response and the volume of interest about the social media. The fitting social media for the bank is essential,

Following it should be the measurement of the impact of the social media and the campaigns to establish how successful and creative it is. The failure is determined in the process to enhance the building of the other strategies and facilitation of its engagement. Engagement of the adult education in gamification applications, community-oriented initiatives, charities, and donations.

Further provisions include the staging of live product launches and meet, marketing of products, analysis of data and modeling of predictive. The microblogs like Twitter and Tumblr enhance supervision of sentiments, staging of public meetings, real-time online solving, and regulation of brand reputation while determining the brand loyalty. Moreover, there is customer acquisition and interaction, pushing of real-time messages and data, real-time international broadcasting and integration of the traditional medium with the modern ones. Then there are visual content communities through the Flickr, Pinterest, YouTube, and Instagram

Gaps in literature

There is lack of cohesive, information about digital banking, particularly on the major banks in Spain, Furthermore, a comparative analysis of these banks is so scanty with more focus on the types of social media they have and what they use it for rather than the difference among organizations. Besides, there limited peer reviews available on the Spanish digital banking and for those that are there they lack a quantitative and qualitative analysis of the banking systems and the history about them.

References

BBVA. (2015). Reinventing the company for a digital age. 1-468. Retrieved from https://www.bbvaopenmind.com/wp-content/uploads/2015/02/BBVA-OpenMind-book-Reinventing-the-Company-in-the-Digital-Age-business-innovation1.pdf

Cafral. (2014). Uses of social media by banks. 1-9. Retrieved from http://www.cafral.org.in/sfControl/content/LearningTakeaWays/1216201531637PM-CAFRAL-LT-Uses-of-Social-Media-by-Banks.pdf

Ciaxabank. (2014). Integrated corporate report. 1-223. Retrieved from https://www.caixabank.com/deployedfiles/caixabank/Estaticos/PDFs/Informacion_accionistas_inversores/Informacion_Economica_Financiera/CaixaBank_Memoria13_en.pdf

CAIXA BANK. (2017). Business activity and results. 1-51. Retrieved from https://www.caixabank.com/StaticFiles/pdfs/170202_HR_IPP4T16v_%20ENG.pdf

CaixaBank. (2014). CaixaBank - the leading force in Spanish retail banking. 1-85. Retrieved from https://www.caixabank.com/deployedfiles/caixabank/Estaticos/PDFs/Inversores_institucionales/20140423_Caixabank_corporate_presentation_en.pdf

Kirakosyan, K. (2014). The managerial view of social media usage in banking industry: case study for Romanian Banking System. Proceedings of the 8th International Management Conference, (pp. 225-232). Romania. Retrieved from http://conferinta.management.ase.ro/archives/2014/pdf/21.pdf

Miklaszewska, E. (2017). Institutional diversity in banking: Small Country, Small Bank Perspectives. Cracow, Polland: Palgrave Macmillan.

Miranda, F. (2013). Evaluation of social networks sites in the banking sector: An analysis of top 200 International Banks. Journal of Internet Banking and Commerce, 18(2), 1-17. Retrieved from https://pdfs.semanticscholar.org/73bf/cf007ce0ca90ea792e93f8bf002e4dcfd6f3.pdf

Prodanova J., San-Martín S. & Jiménez, N. (2015). The present and the future of m-banking according to Spanish bank customers. Business Review, 1-24.

Santander Bank. (n.d.). Sustainability. Retrieved from https://www.santander.com/csgs/Satellite?appID=santander.wc.CFWCSancomQP01&c=GSAgrupAsset&canal=CSCORP&cid=1278689260115&empr=CFWCSancomQP01&leng=en_GB&pagename=CFWCSancomQP01/GSAgrupAsset/CFQP01_GSAgrupAssetInformacion_PT10

Wamba, S. F., Akter, S., Kang, H., Bhattacharya, M., & Upal, M. 2016. The primer of social media analytics. Journal of Organizational and End User Computing, 28(2), 1-12. doi:10.4018/JOEUC.2016040101

Appendix

Source: Prodanova J., San-Martín S. & Jiménez, N. (2015). The present and the future of m-banking according to Spanish bank customers. p. 104

Picture 1:p. Frequent Users 102

Source: Prodanova J., San-Martín S. & Jiménez, N. (2015). The present and the future of m-banking according to Spanish bank customers. p. 104

Table 1: Tasks that are executed through the m-banking channel p 103

Table 2 Prodanova J., San-Martín S. & Jiménez, N. (2015). The present and the future of m-banking according to Spanish bank customers. p. 104

Table 3 Prodanova J., San-Martín S. & Jiménez, N. (2015). The present and the future of m-banking according to Spanish bank customers. p. 104 p. 105

Diagram 1: BBVA (2015). Organizations Which Have Invested, or Intend to Do So in the Next 24 Months, in Facing the Challenge of Big Data.

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