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Financial services marketing research: Retrospect and prospect

Article  in  Journal of Financial Services Marketing · December 2015

DOI: 10.1057/fsm.2015.22

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 Editorial

Financial services marketing

research: Retrospect and prospect
Journal of Financial Services Marketing (2015) 20, 231–233. doi:10.1057/fsm.2015.22

Throughout 2015 the Journal of Financial Services Sanjit K. Roy, the authors reflect on the body
Marketing has been celebrating its 20th of research on trust in financial services and
Anniversary year. To mark this anniversary, this consider the prospects for trust into the future.
final issue of Volume 20 has been designated The authors argue that fostering and
the 20th Anniversary Special Issue. The theme maintaining high levels of trust in the financial
of the Special Issue is reflecting on the past and services sector is crucial due to the specific
looking to the future. nature of many financial services. Following a
Much has changed in the global landscape of discussion of trust concepts, the paper reports
financial services over the last 20 years, on evidence from a substantial body of work
including changes to regulation, technological undertaken over the last 10 years by the Centre
innovation and, not least, a major financial for Risk, Banking and Financial Services. The
crisis, to name but a few key impacts. These Centre has amassed a large amount of
changes have had a profound effect on the longitudinal data which provide important
structure of the industry and the nature of insights into the nature of trust, consumer
competition within it and the ways in which perceptions of trust, trends in levels of trust both
financial services providers and customers within the financial services sector and in
interact with one another. Consequently, it has comparison with other sectors.
been suggested that: ‘The field of financial Overall, the findings reveal that, contrary to
services marketing is in need of new popular belief, the financial services sector as a
perspectives and paradigms that can explain the whole is trusted more than some comparator
financial behavior of consumers and markets institutions, and that aggregate levels of trust in
today. This need has grown over the past the sector have remained relatively stable over
decade and has become more pronounced since time, showing only minor fluctuations
the global financial crisis’ (Harrison and following the financial crisis. Most noteworthy
Estelami, 2014). though are the important differences between
Set against this context, the papers in this provider types, and these differences have
Special Issue consider various trends and become more profound in the recent past. The
developments in financial services marketing data reveals that the most trusted type of
research. They reflect on the body of provider is clearly the broker/advisor, whereas
knowledge that has been built up over this banks are the least trusted. Over time, trust in
time, and outline agendas for future research to brokers/advisors has remained relatively stable.
take financial services marketing research into However, trust in banks has declined in recent
the next 20 years. years, compared with rising levels of trust in
In the first paper, Trust in Financial Services: credit card providers. The authors provide
Retrospect and Prospect by James F. Devlin, suggestions as to how trust in the sector may be
Christine T. Ennew, Harjit S. Sekhon and improved and provide an analysis of current

© 2015 Macmillan Publishers Ltd. 1363-0539 Journal of Financial Services Marketing Vol. 20, 4, 231–233
www.palgrave-journals.com/fsm/
 Editorial

initiatives to improve trust levels in the sector in continuing issue for financial services marketing
general and in banking in particular. researchers. Despite a substantial volume of
Still on the theme of trust, the second paper, empirical research over the last decade or more,
Cognitive Catalysts for Distrust in Financial Services the challenge of influencing innovation
Markets: An Integrative Review by Hooman adoption persists. Moreover, as digital channels
Estelami, offers a partial explanation for the trust continue to evolve there is a need to integrate
picture set out in the previous paper. Estelami and re-evaluate extant streams of evidence to
argues that whilst some of the depletion of identify where avenues of enquiry are
public trust in financial institutions can be exhausted and where there are areas that
linked to the misbehaviour of individual warrant attention. Set against this context, in
financial services providers, consumers the third paper, Online Banking Adoption: We
themselves often serve as a catalyst for trust Should Know Better 20 Years On, Kathryn Waite
dilution. For example, Estelami suggests that and Tina Harrison reflect on the accumulated
much of the distrust can be attributed to a knowledge of online banking adoption research
general lack of consumer understanding of over the history of the Journal and consider
financial matters, undisciplined actions of what we have learnt and where research can be
consumers and poor preparedness in engaging usefully directed moving forward.
in financial decisions that carry significant On the basis of an audit of published research
consequences. He suggests that there are over a 10-year period that captures the rise and
abundant opportunities for exploring the maturity of research in this area, the authors
‘catalysts for trust depletion’ attributable to identify the core theories and approaches that
consumers’ cognitive limitations and this may have been used to study online banking
call for a paradigm shift in our understanding of adoption. The study finds a widespread
the ownership of relational trust in financial application of the Technology Adoption Model
services exchanges. (TAM), including variations and extensions to
The paper thus provides a comprehensive the core model. The paper provides an
review of four cognitive phenomena that informed critique of the over-reliance on TAM
inhibit consumers’ information processing and TAM plus models drawing on current
abilities and contribute to the depletion of trust debate within the Information Systems (IS)
in financial services: Poor estimation of risks; domain. The authors question the relevance of
laze in information search; poor appreciation the ongoing application of TAM to banking
for the time value of money; effects of short- innovation adoption studies and also cast doubt
term memory limitations. On the basis of a on the contribution of the application of TAM
comprehensive integrative review, the paper in many previous studies. The paper concludes
discusses what research has taught us and with a call for research to formulate,
highlights gaps in our understanding. The paper operationalise and test fresh theory and suggests
also provides key pointers for where further that there is scope to introduce and examine
research, industry action and government adoption drivers using alternative lenses
intervention could contribute to equipping including, but not limited to: task-technology
consumers with the means to overcome these fit theory, engagement theory, empowerment
cognitive limitations in order to improve their theory, liminality theory, domestication theory,
financial decision quality. addiction theory, hedonic theory, identity
Over the 20 year history of the Journal, few signalling theory and resistance theory.
developments have had such a dramatic wide- Continuing with the theme of technology,
scale impact on the operation of financial the fourth paper, Technology and Financial
institutions or the behaviour of customers as Services: Marketing in Times of U-Commerce by
innovations in technology. In particular, the Stacey Morrison, Leyland Pitt and Jan
adoption and use of banking innovation is a Kietzmann, takes a more forward-looking

232 © 2015 Macmillan Publishers Ltd. 1363-0539 Journal of Financial Services Marketing Vol. 20, 4, 231–233
 Editorial

approach to formulating digital marketing focusing our research efforts narrowly on banking
objectives and strategy for financial services. services potentially limits both the application and
It uses the U-Commerce framework to development of theory that may be of wider
challenge financial services marketing decision relevance. Not only that, the insurance industry
makers to consider reformulating marketing represents a sizeable proportion of the global
objectives in an age of ubiquitous technological financial services industry. Thus, theoretically
networks. The paper outlines the four U’s of relevant research potentially can have wide-
U-Commerce: ubiquity, universality, uniqueness ranging practical impact.
and unison. Using the dichotomies of uniqueness Robson argues that insurance is both
and ubiquity on one hand, and ultra-conscious theoretically and practically different, giving rise
and unconscious on the other, the authors create to different interactions between providers and
a 2×2 framework that financial services consumers (both individuals and organisations)
marketing scholars can use to explore and that are worthy of study. For example, insurance
position research, and for practitioners to guide is essentially a risk transfer mechanism and
strategic direction. The framework gives rise to comprises one of the more intangible financial
four broad marketing objectives that financial services offerings. Insurance is often
services marketers can strive for: amplification, misunderstood by consumers; some believe it is
attenuation, contextualization and transcension. an investment which in turn affects their
The authors identify and discuss four broad behaviour towards the product. For some types
marketing strategies that map on to the of insurance there is a legal obligation to have it
objectives, including: nexus marketing, sync (that is, car insurance), or at least a strong link to
marketing, immersion marketing and other types of products (that is, buildings
transcension marketing. The strategies revolve insurance linked to a mortgage). Most general
around attenuating or amplifying marketing insurance is renewed on an annual basis. All of
communication, and either enhancing time- these affect the consumer search and decision-
place specificity or overcoming it. making process and ongoing interactions with
The authors contend that in the age of providers thereafter, yet there has been virtually
U-Commerce a useful question to guide a no research that has focused on, for example,
financial services marketer’s technology consumer decision-making processes in non-
application is whether the consumer can do voluntary situations. Based on a review of
something ‘useful’ with the technologies research published to-date on general insurance
utilized by financial services firms. Using the in the Journal, Robson assesses where research
U-Commerce framework, financial services attention has been focused and identifies where
marketers can not only understand the there is an urgent need for future research. In
technologies that become part of ubiquitous setting out a future research agenda for research
networks, but can also specify specific on the general insurance industry, the paper
marketing objectives and can then formulate outlines five key themes: trust, transparency and
appropriate marketing strategies to achieve simplification, technology, High Net Worth
these objectives. Individuals, and Takaful (Islamic insurance). The
The final paper in this Special Issue, General paper outlines key areas and research questions
Insurance Marketing: A Review and Future Research that future research can usefully explore in each
Agenda by Julie Robson, highlights the lack of of these themes and serves to provide a firm
attention that the Journal has paid to the general foundation for future researchers to build on.
insurance industry and calls for research to address
this important area. The paper reminds us that in
talking about financial services we are addressing a Tina Harrison
diverse industry comprising many different forms Editor-in-Chief
of organisations and product offerings, and that E-mail: Tina.Harrison@ed.ac.uk

© 2015 Macmillan Publishers Ltd. 1363-0539 Journal of Financial Services Marketing Vol. 20, 4, 231–233 233

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