CONCLUSION AND IMPLICATIONS

During the last decade the Spanish financial system has undergone a profound transformation since it has been influenced by different factors, such as increased competition, massive technologi­cal changes, greater accessibility to services by customers, higher levels of competition, reduced margins, and so on, bringing as a result that most

Figure 3.

organizations try to ensure customer loyalty by means of satisfaction and confidence. Our research comes to evidence that, apart from these two clas­sical variables reviewed by scientific literature, it is necessary to analyze socio-demographic and economic factors of the clients themselves to determine the risk of dropping out.

While some authors have defined models of loyalty for a financial institution, the novelty of this research is the approach that has been given to e-Banking customers as well as the level of accessibility to the information that has been analyzed. The model we present has confirmed that there are factors that affect the probability of customer drop-out of a bank. Although it is an ad-hoc model for each bank, the methodology can be generalized to any savings and credit institu­tion with the loyalty of its customers as one of its objectives, provided that, as specialized litera­ture suggests, there exists a binding relationship between dropping out and satisfaction, trust and other socio-demographic and economic variables of customers. According to the results, satisfaction and confidence do not necessarily lead to bank loyalty. However, they are required conditions for this loyalty to happen, having achieved a correct classification rate close to 95%. The proposed model shows the probability for a customer to be disloyal and, therefore, abandon the bank, so that the latter can concentrate their efforts towards loyalty those with higher probabilities.

After a first evaluation of the proposed model and the analyzed variables, we can conclude that the assumptions cannot be rejected, thus accepting the statements of the same.

From the perspective of the financial institu­tion management, customer loyalty will become a fundamental goal (Hypothesis 1 and 2). In particular, the products “credit card” and “debit cards” appear in our model as key variables in the financial relationship with the customer. In order to achieve this relationship, in the last decade the institutions implemented various management systems like CRM, which tries to increase cus­tomer loyalty with regular campaigns through the branch network. In addition, these campaigns are reinforced by general communication actions of the network, thus favouring up-selling and cross­selling strategies while reducing low membership and improving its products.

Besides, the qualitative aspects in establish­ing business relationship with the customer, as revealed in Hypotheses 3 and 4 -such as clarity, agility, confidence, customer service and satisfac­tion-, strengthen the loyalty of customers to the entity, for which the implementation of a CRM strategy will be essential.

Loyalty will be, therefore, the most important aim of financial institutions in the next years because it will get more compensation due to a high linkage that keeps the e-banking customer with the bank. For that, considering the low cost of transfer when facilitating the dropping out in the banking sector, managers must focus their efforts on developing loyalty activities basically for handling customer complaints.

However, the institution should not wait until there are complaints and must take actions in order to increase customer satisfaction and the quality of the service offered, as there is the risk of los­ing a large number of customers before taking appropriate action.

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KEY TERMS AND DEFINITIONS

Banking: Entities responsible for providing financial services credit and saving and other financial intermediation activities.

Confidence or Trust: The willingness of a consumer to be vulnerable to the actions of an online store based on the expectation that the online store will perform a particular action important to the consumer, irrespective of the ability to monitor or control the online store.

Drop-Out Risk: The risk exists that a customer cancels their contract with a financial institution and, subsequently, enter as a customer with an­other bank.

Logit: Parametric statistical technique of ob­taining probability of occurrence of a particular event that is used to classify a set of subjects into two groups.

Loyalty: A customer's attitude toward the e-retailer that results in repeat buying behavior.

Receiver Operating Characteristic (ROC): A graphical plot which illustrates the performance of a binary classifier system as its discrimination threshold is varied.

Satisfaction: The result of comparison be­tween a subjective experience and prior base reference.

ENDNOTES

Mayer et al. (1995).

Javalgi & Moberg (1997) in Segarra (2007) Caja Rural of Granada is a credit and sav­ings bank that is part of Caja Rural group, including a structure of 203 offices (in the provinces of Granada, Malaga, Almeria and Madrid), a network of 234 ATMs, a staff of 832 employees and a positive balance of ˆ 20.1 million by the end of 2010.

This work was previously published in Electronic Payment Systems for Competitive Advantage in E-Commerce, edited by Fran­cisco Liebana-Cabanillas, Francisco Munoz-Leiva, Juan Sanchez-Fernandez, and Myriam Martinez-Fiestas, pages 143-162, copyright 2014 by Business Science Reference (an imprint of IGI Global).

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