ArticlePublisher preview available

Consumers’ changing financial behavior during the COVID-19 lockdown: the case of Internet banking use in Greece

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

Abstract and Figures

This paper studies the impact of the 1st COVID-19 lockdown in Greece on the internet banking. Our study relies on a survey conducted, during the first lockdown period between April 13th and May 3rd, 2020 in Greece, among respondents between 18 and 64-years-old. The sample was appropriately weighted with the raking method to accurately reflect the distribution of the real population. The main result is straightforward: more days in a lockdown may be associated with an increased possibility for further i-banking use. We provide important insights to financial services’ providers by pointing out female gender, increasing age, living in a metropolitan area and job security status as the most crucial predictors for shaping changing financial behavior.
This content is subject to copyright. Terms and conditions apply.
Vol.:(0123456789)
Journal of Financial Services Marketing
https://doi.org/10.1057/s41264-022-00159-8
ORIGINAL ARTICLE
Consumers’ changing financial behavior duringtheCOVID‑19
lockdown: thecase ofInternet banking use inGreece
AlexandrosP.Bechlioulis1· DimitriosKaramanis1,2
Received: 21 September 2021 / Revised: 8 March 2022 / Accepted: 9 April 2022
© The Author(s), under exclusive licence to Springer Nature Limited 2022
Abstract
This paper studies the impact of the 1st COVID-19 lockdown in Greece on the internet banking. Our study relies on a survey
conducted, during the first lockdown period between April 13th and May 3rd, 2020 in Greece, among respondents between
18 and 64-years-old. The sample was appropriately weighted with the raking method to accurately reflect the distribution
of the real population. The main result is straightforward: more days in a lockdown may be associated with an increased
possibility for further i-banking use. We provide important insights to financial services’ providers by pointing out female
gender, increasing age, living in a metropolitan area and job security status as the most crucial predictors for shaping chang-
ing financial behavior.
Keywords Financial behavior· Consumer sentiments· Financial services· Internet banking· COVID-19 lockdown period
JEL Classification C83· G41· G59
Introduction
Nowadays, when countries are working to strengthen their
health systems to fight against Coronavirus disease 2019
(COVID-19), the economy is suffering from restrictions and
lockdowns. The Guardian’s economics editor Larry Elliot
wrote that the coronavirus crisis may lead to a new way of
economic thinking.1 The post-digital-revolution economy
that we live, encourages this new way of thinking through
the use of digital skills that are an integral part of the mod-
ern behavioral finance toolkit. Such skills enhance individu-
als’ capacity to interact with financial institutions and accel-
erate internet financial activity. The latter is obvious when
one considers that, in 2020, seven out of ten most valuable
companies by market capitalization worldwide were digital
platforms (Kitsing 2021).
In this regard, we are interested to investigate the impact
of COVID-19 lockdown in the financial behavior of Greek
consumers concerning the internet banking (i-banking) use.
In this regard, a question arises: Why should we choose a
country like Greece to apply this research? In this respect,
in the last 10years Greece has experienced a sovereign
debt crisis, a bank-run and currently the pandemic (Feath-
erstone 2011; Mink and De Haan 2013; Konstantakis etal.
2021). The debt crisis led to a fiscal consolidation for almost
8years, the banking crisis called for the imposition of capital
controls in domestic and international capital flows, and the
health crisis imposed a lockdown in almost all sectors in the
Greek economy. Even though the debt crisis might not affect
the consumers’ behavior concerning digital financial trans-
actions, the restrictions on capital flows, lasted for 4years
beginning in 2015, had an unprecedented effect in i-banking
use.2 In 2020, Greece implemented one of the most success-
ful lockdown policies in the Europe against the pandemic
which lasted for almost two months. Briefly, on February
26th 2020, the first patient infected by COVID-19 was
officially confirmed, and the Greek government gradually
adopted a variety of restrictive measures, for instance school
* Dimitrios Karamanis
karamanis@unipi.gr
1 Department ofEconomics, University ofPiraeus, 80 Karaoli
and Dimitriou St., 18534Piraeus, Greece
2 Department ofHealth Informatics, Rutgers School ofHealth
Professions, Newark, NJ, USA
1 The article can be found here: https:// www. thegu ardian. com/ busin
ess/ 2020/ mar/ 22/ the- coron avirus- is- leadi ng- to-a- whole- new- way- of-
econo mic- think ing.
2 Eurostat report states that, in Greece, i-banking use have been dou-
bled during the capital controls’ period. See https:// ec. europa. eu/
euros tat/ web/ produ cts- euros tat- news/-/ DDN- 20180 115-1.
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
Article
The COVID-19 pandemic has had a profound impact on the global economy, and the financial services sector has been no exception. The way in which consumers interact with financial institutions and products has changed significantly in the past year, and these changes are likely to continue in the post-pandemic period. In particular, the rise of digital banking and payments has accelerated dramatically, as has the move towards contactless transactions. At the same time, concerns about data security and fraud have increased, as criminals have sought to take advantage of the upheaval caused by the pandemic. As a result, the behaviour of the consumer of financial services is likely to change significantly in the post-pandemic period. Financial institutions must be prepared to adapt their products and services to meet the needs of their customers in this new environment. Research shows that the behaviour of the consumer of financial services has changed in the post-pandemic period. The increase in awareness of the importance of financial planning and saving has led to a change in spending habits. Consumers are now more likely to research comparison shop and make decisions based on value, rather than price. They are also more likely to use online resources to research and compare products and services. These changes in behaviour are likely to continue in the post-pandemic period, as consumers become more mindful of their finances.
Article
Full-text available
Motivation: The digitization of financial services has brought a noticeable decline in the importance of branch banking for customers wanting to contact their bank or receive financial services. The lack of personal contact with bank employees has become particularly significant during the pandemic, with remote modes of communication reducing the risk of contracting SARS-CoV-2. Aim: The present study applies the Spearman’s rank correlation coefficient and binomial logit model to determine the impact of the digitization of bank services and the COVID-19 pandemic on retail customers’ needs for branch banking. Results: The empirical research conducted demonstrated that the factors significantly positively influencing the need to use financial services provided by staff in bank branches were respondent experience in using bank advisory services and fear of interpersonal contact in the pandemic context. Meanwhile, variables with a negative effect were the use of the electronic banking platform, attitudes towards the use of the artificial intelligence technology in the banking sector, and perceptions of the advantages of remote communication with institutions in the pandemic context.
Article
Full-text available
This study defines and measures the key factors driving consumers’ adoption of internet banking in Vietnam, and comprises both qualitative and quantitative research. Qualitative research was carried out through focus group discussions with 12 consumers, while quantitative research was conducted through interviews with 475 bank customers in Vietnam. The results indicate the following: (i) the adoption of internet banking in Vietnam is directly affected by perceived usefulness, attitude, perceived risk, innate innovativeness, domain-specific innovativeness, and internet experience; (ii) perceived risk is directly affected by innate and domain-specific innovativeness; (iii) perceived ease of use is directly affected by innate and domain-specific innovativeness; (iv) consumers’ attitudes are directly affected by perceived usefulness and perceived ease of use; and (v) perceived usefulness is directly affected by perceived ease of use. However, this study had certain limitations. First, owing to limited resources in conducting the research, the sample size consisted of only 475 consumers. Second, this study employed the sampling technique of direct and email interview methods.
Article
Full-text available
Although numerous reports predict huge growth potential for online shopping under COVID-19 pandemic, many do not know about determinants of user intention to continue using online shopping under such a pandemic. Given that how to motivate continuousness and retain consumers under a pandemic is critical to the online retailers and relevant stakeholders' success, research on the determinants of intention to continuance using online shopping has attracted widespread attentiveness. The determinants of intention to continue using online shopping under COVID-19 pandemic, especially in India, have not yet been researched. Therefore, this study proposes a model combining the expectation-confirmation model (ECM) with task-technology fit (TTF) model and the trust factor to examine intention to continue using online shopping under COVID-19. Based on data gathered from 222 online participants during the period of social distancing due to COVID-19, the findings revealed that perceived TTF is much significant factor; satisfaction, perceived usefulness, and trust have positive impacts on consumers' intention to continue usage of online shopping under COVID-19. Additionally, confirmation directly affects satisfaction, perceived usefulness, and indirectly affects consumers' intention to continuance usage. The study's findings provide online retailers and related stakeholders with significant managerial implications.
Article
Full-text available
Due to the COVID-19 pandemic originating in China in December 2019, apart from the grave concerns on the exponentially increasing casualties, the affected countries are called to deal with severe repercussions in all aspects of everyday life, from economic recession to national and international movement restrictions. Several regions managed to handle the pandemic more successfully than others in terms of life loss, while ongoing heated debates as to the right course of action for battling COVID-19 have divided the academic community as well as public opinion. To this direction, in this paper, an autoregressive COVID-19 prediction model with heterogeneous explanatory variables for Greece is proposed, taking past COVID-19 data, non-pharmaceutical interventions (NPIs), and Google query data as independent variables, from the day of the first confirmed case-February 26th-to the day before the announcement for the quarantine measures' softening-April 24th. The analysis indicates that the early measures taken by the Greek officials positively affected the flattening of the epidemic curve, with Greece having recorded significantly decreased COVID-19 casualties per million population and managing to stay on the low side of the deaths over cases spectrum. In specific, the prediction model identifies the 7-day lag that is needed in order for the measures' results to actually show, i.e., the optimal time-intervention framework for managing the disease's spread, while our analysis also indicates an appropriate point during the disease spread where restrictive measures should be applied. Present results have significant implications for effective policy making and in the designing of the NPIs, as the second wave of COVID-19 is expected in fall 2020, and such multidisciplinary analyses are crucial in order to understand the evolution of the Daily Deaths to Daily Cases ratio along with its determinants as soon as possible, for the assessment of the respective domestic health authorities' policy interventions as well as for the timely health resources allocation.
Article
Full-text available
Indian banks have paid sufficient attention to recent innovations in banking services delivery such as e-banking, mobile banking, mobile payment, e-wallet, and e-money services, still the acceptance of these services among consumers is sluggish. Therefore, the present study aims to identify the intention of consumers to adopt various e-banking services. The study adopted the UTAUT2 model (Unified Theory of Acceptance and Use of Technology) and extended it with constructs such as consumer innovativeness, perceived risk, and security information availability. The extended research model was tested using a questionnaire-based response collected from 721 consumers. CB-SEM (Covariance-based structural equation modeling) was used to examine the hypotheses. An empirical examination of the model helped explain the impact of the UTAUT2 model's constructs in predicting adoption intention toward e-banking services. The study also revealed the importance and impact of newly incorporated variables in explaining consumers' adoption intention toward e-banking services. The study has provided some useful insight into the factors influencing consumers' intention to adopt e-banking services to shed new light.
Article
Full-text available
Through a survey of the literature on the economics of the coronavirus (COVID-19) pandemic, this study explores the effects of the pandemic and proposes potential policy directions to mitigate its effects. Our survey reveals that adverse economic effects have been observed due to the COVID-19 pandemic in addition to fatalities. Furthermore, the survey indicates the need for greater coordination at national and international levels. This study concludes by suggesting coordination among monetary, macroprudential, and fiscal policies (trio) to mitigate the adverse economic effects of COVID-19. Finally, this study explores potential directions for future research.
Article
Full-text available
It is necessary to understand the customers' perceptions of internet banking because it helps determining the direction and patterns of intention to continue using internet banking. This could also help bank policymakers to develop appropriate strategies to increase internet banking usage. The study aims to examine the determinants of user's intention to continue using internet banking since there have been no systematic attempts to understand this aspect, especially in the Indian context. This research suggests and tests an extended model to predict the intention to continue using internet banking in India. The suggested study model was examined using survey data from 206 internet banking users. PLS-SEM was employed for data analysis. The findings imply that the most significant determinants of intention to continue using internet banking are service quality, trust, and user satisfaction. On the other hand, the study finds that intention to continue using internet banking is not impacted by system quality and information quality.
Article
Full-text available
This research article overviewed briefly the new re-emerged Corona Virus (COVID-19) and the role of International Law (IL) along with State Law (SL) in 2020’s pandemic to control the spread of Corona Virus (COVID-19). Since the declaration of Public Health Emergency of International Concern (PHEIC), the number of COVID-19’s confirmed cases jumped so fast to reach by today to 2074529. The virus’s fatalities until the moment are 139378. At first, however, the Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2) had a high rate of mortality in percentage 22% on the 28th March, 2020. On the contrary, today the mortality rate has decreased to 15% dated 17th April, 2020. This proves the effectiveness of the international preventive measures of the World Health Organization (WHO) to stop the spread of COVID-19. The study also discussed the conceptual framework of COVID-19 and its history. A short introduction was given about the previous two Coronaviruses (SARS and MERS). The deadliest pandemic of 1918 (Spanish Flu) was debated as part of pandemic history. The explosion of COVID-19 to the world was explained in detail. Symptoms of COVID-19 were elaborated in order to understand the virus’s impact on its victims. This study also showed the easy method to prevent the spread of the COVID-19. The treatment of the COVID-19, which the patients of the virus can offer currently, was explained. International Health Regulations (2005) (IHR) was analyzed in respect of the current pandemic.
Article
This article explores the impact of the COVID-19 lockdown in Belgium on the financial behavior of individual investors. Specifically, the article is the first to examine whether exceptional market circumstances have induced individual investors to increase their equity positions. Using a proprietary database of almost 6.5 million individual investor transactions, this article shows that most individuals increased their equity positions during the pandemic, suggesting a contrarian strategy. Especially investors between 18 and 35 years old and those being less active are found to increase their equity positions compared to other age and activity level categories. Male investors seem to dominate equity markets in Belgium, even during the COVID-19 confinement period, and they increased their equity positions more in comparison to women. The patterns documented in this article are robust for the shares being constituents of the main Belgian equity index (i.e., Bel 20), for all listed shares on Euronext Brussels, and for small caps.
Article
This paper documents the negative effect of the COVID-19 pandemic on financial risk attitudes across a broad sample of financial decision makers (N = 18,913). Findings show that the risk tolerance of financial decision makers can be altered when an extreme economic, social, or environmental shock occurs. A general shift away from be willing to take financial risk was noted after the COVID-19 pandemic emergency declaration. The COVID-19 pandemic shifted risk preference downward for the majority of financial decision makers in this study.
Article
Due to a variety of reasons, the Greek economy faced a severe crisis being a member of EMU. Nonetheless, the country's banking system experienced a dramatic outflow of deposits, in the period 2009–2015. The present paper attempts to shed light on the possibility of forecasting bank deposits, based on the keyword “Grexit” of Google searches. In this context, apart from standard forecasting models like AR (p) and ARDL (p, q) we estimate a novel Neural Network ARDL (p, q, G) model and its respective Bayesian modification. We show that extending standard autoregressive models with the information provided by Internet Searches leads to significant improvement in the forecasting accuracy of the Bank Deposits, compared with other standard models. Furthermore, the forecasting performance of the models, which are extended with Google searches, is shown to be better than models containing only the well‐known indicators. Our findings are robust and econometrically sound.