Can trust be restored to high-street banking: A 20-year challenge?

McCo mack, Pe e ; Deacon, Jona han A icle Can us be es o ed o high-s ee banking: A 20-yea challenge? Cogen Business & Managemen P o ided in Coope a ion wi h: Taylo & F ancis G oup Sugges ed Ci a ion: McCo mack, Pe e ; Deacon, Jona han (2017) : Can us be es o ed o high-s ee banking: A 20-yea challenge?, Cogen Business & Managemen , ISSN 2331-1975, Taylo & F ancis, Abingdon, Vol. 4, h ps://doi.o g/10.1080/23311975.2017.1366284 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/206002 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 BANKING & FINANCE | REVIEW ARTICLE Can us be es o ed o high-s ee banking: A 20-yea challenge? ‡ Pe e McCo mack 1 and Jona han Deacon 2 * Abs ac :This a icle is based on a disse a ion submi ed o an MSc in Ma ke ing submi ed by he i s au ho and supe ised by he second au ho . I is a iewpoin a icle ha highligh s he complexi y o he challenge o es o ing us o high- s ee / e ail banking, and explo es some o he ela ed issues o conduc isk, e hics and cul u e. I includes a b ie his o ical analysis e lec ing s uc u al change in he mid-1980s up o oday wi h a link o some cu en hough s and esea ch, and con- cludes ha he banking sec o ’s cu en ambi ions o es o e us a e likely o be lawed and unlikely o deli e in he imelines ha he banks and egula o s expec . The a icle concludes wi h a numbe o ela ed issues/subjec s ha a e wo hy o u he esea ch and lags some pa icula ques ions in he conclusion. Subjec s: Cul u e & De elopmen ; Banking; Risk Managemen ; Co po a e Social Responsibili y & Business E hics Keywo ds: e ail banking; conduc isk; ela ionship ma ke ing; cul u e; e hics; cus ome se ice; us 1. In oduc ion In he ea ly 1980s, mos high-s ee bank b anches in he Uni ed Kingdom we e in essence a sel - con ained bank. Each had a no ional balance shee , a p o i and loss accoun , a manage , p o essional *Co esponding au ho : Jona han Deacon, Sou h Wales Business School, Uni e si y o Sou h Wales, T e o es Campus, Pon yp odd, UK E-mail: jona han.deacon@sou hwales. ac.uk Re iewing edi o : Da id McMillan, Uni e si y o S i ling, UK Addi ional in o ma ion is a ailable a he end o he a icle ABOUT THE AUTHORS Pe e McCo mack is a o me senio echnical specialis a he P uden ial Regula ion Au ho i y. He has wo ked in inancial se ices since 1981 and has wo ked in b anch ne wo ks in h ee di e en banks in h ee di e en coun ies, spending he i s i e yea s o his ca ee se ing cus ome s in b anches. He holds an MBA and a PhD in managemen , and is a ellow o bo h he Cha e ed Ins i u e o Banke s in Sco land and he In e na ional Compliance Associa ion. Jona han Deacon is a p o esso o Ma ke ing a he Uni e si y o Sou h Wales, an elec ed ellow o The Cha e ed Ins i u e o Ma ke ing (CIM), a membe o he Academy o Ma ke ing and Global Vice-Chai o CIM’s Boa d o T us ees. Wi hin he Uni e si y o Sou h Wales Business School, he leads he “Making Business Happen” p ojec and he “Re-Thinking” En ep eneu ship Managemen P og amme and is a isi ing academic a a numbe o espec ed uni e si ies in he UK, Ge many and he US. PUBLIC INTEREST STATEMENT Mos o he mis-selling scandals o he las hi y yea s ha e in ol ed banks selling a p oduc o cus ome s o whom he p oduc is no sui able. A he hea o his seems o be de eloping a p oduc ha is sui able o a segmen o he ma ke and hen selling in o a segmen o which i is no app op ia e—usually by a highly incen i ised salespe son. This ansac ion-based app oach ocuses on maximising annual income o bo h he salespe son and he bank. A e u n o a ela ionship-based app oach ha ecognises he li e ime alue o a bank cus ome would encou age mo e app op ia e p oduc p o ision ha mee s he needs o he cus ome and ensu e a s eady income/p o i abili y in pe pe ui y o he bank. Some banks ha e ecognised his bu now ace he challenge o changing a gene a ion o managemen and s a who ha e an eng ained p o i -maximising cul u e. Recei ed: 06 June 2017 Accep ed: 08 Augus 2017 Fi s Published: 24 Augus 2017 © 2017 The Au ho (s). This open access a icle is dis ibu ed unde a C ea i e Commons A ibu ion (CC-BY) 4.0 license. Page 1 o 17 Page 2 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 banking s a ha could make decisions and a local communi y o se e. This s uc u e had se ed banks and hei communi ies ai h ully om hei ea ly ounda ions when bank b anches we e designed as subs an ial buildings in good loca ions, some imes in an ecclesias ical s yle o signi y, in eg i y us and con idence (And ew, 1988a). This sys em o banking had a numbe o sel - ein o cing isk managemen mechanisms. Managemen and s a o he b anches knew hei cus ome s, knew local employe s and wages, knew local house p ices and we e highly unlikely o engage in mis-selling- ype ac i i y in a ela ionship- d i en app oach wi h he local communi y. The b anch was he e o se e he communi y. In addi ion, he gene al message o bank s a was ha o p og ess in bo h he b anch, and he bank in gene al, i was necessa y o unde ake and comple e he bank exams (p o ided by he espec i e Ins i u es o Banke s in England & Wales, and Sco land). This helped ensu e a consis ency o cus ome se ice cul u e ha pe aded bo h indi idual bank b anches and he high-s ee banking indus y as a whole. I also b ough con ol ad an ages o he bank’s senio managemen in ha i he e was a p ob- lem in a b anch, o e en a egion (some banks’ ope a ed egional head o ices), i could be isola ed and ixed. Today’s cen alised app oach means ha i he e is a p oblem i a ec s he whole bank educing i s abili y o isola e and deal wi h p oblems, and ul ima ely inc easing he magni ude o a mis-selling isk inciden and a ec ing he bank’s o e all esiliency. The co e ela ionship be ween he bank and i s cus ome was based a ound he cu en accoun , allowing he bank o ha e a deep unde s anding o he cus ome and iden i y and de elop p oduc s o mee he cus ome ’s need on a cus ome li ecycle app oach. Ma ke ing, ended o be ela ionship- o ien ed pull ma ke ing a ound he b and— he objec i e being o cap u e he cus ome ’s cu en accoun , build a ela ionship and help he cus ome wi h all hei inancial needs—helping he cus- ome , he bank and he local communi y p ospe . I is ai o say ha no e e y hing was pe ec , in pa icula he lack o echnology—sea ching o a cus ome ’s balance on a mic o- iche eade was a equen ly us a ing expe ience, and he e we e a e ins ances o inapp op ia e collusion be ween bank s a and cus ome s (usually minimised by a s a o a ion policy). Howe e , in he ound, banke s we e mo e p o essional, leade ship was mo e ocused on cus ome ela ionships, cus ome ’s had a be e expe ience and he banke –cus- ome ela ionship o us and con idence engende ed cus ome loyal y o he bank, and he bank’s loyal y o he cus ome . Today, he e is much alk in he indus y abou es o ing us in banking, wi h many banks looking o achie e his o e he nex ew yea s. Many e ail banks a e now ocusing on a numbe o in e- g a ed ac i i ies, in pa icula , conduc isk, e hics, cul u e and us p og ammes o deli e his. Howe e , i is a guable ha us has been los o e a pe iod o 25 yea s (going back o pensions mis-selling and endowmen mo gage mis-selling o he 1980s) albei ha he ecen inancial c isis has aised i s p o ile—pa icula ly in poli ical ci cles—leading o he e iews conduc ed by he Independen Commission on Banking (ICB, 2011) and he Pa liamen a y Commission on Banking S anda ds (PCBS, 2013). Bo h epo s ha e a ocus on cul u e. In highligh ing a numbe o he key issues in he 25-yea decline, i seems likely ha cu en p o- g ammes o deli e cul u e change will need o be managed o e many yea s o keep e ail banking mo ing back o a posi ion whe e cus ome s and local communi ies belie e ha hei bank suppo s hei aspi a ions on li e’s jou ney—a p ocess ha is likely o ake much longe han cu en ly ex- pec ed (Spice e al., 2014). 2. High-s ee banking s. in es men banking In he ea ly 1980s, high-s ee banking and in es men banking we e e y dis inc , wi h e y dis inc cul u es. Howe e , his was all o change as he decade p og essed. The cul u es in he ea ly 1980s we e e lec ed by he wo sec o s’ dis inc app oaches se ou in Table 1. Page 3 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 In 1981, he Conse a i e go e nmen commissioned a e iew o in es o p o ec ion which e- po ed in 1984. The epo , known as he Gowe epo (Gowe , 1984) led o wo majo changes: • de- egula ion o he inancial ma ke s in wha was known as “Big Bang”; and • he enac men o he Financial Se ices Ac 1986 (FSA 1986). 2.1. Big Bang “Big Bang” occu ed on he 27 Oc obe 1986 and deli e ed majo changes o he s uc u e o he i- nancial se ices indus y, in pa icula i allowed in es men banks o own high-s ee banks and ice e sa, c ea ing huge inancial conglome a es. P e-“Big Bang” much o he in es men banking sec o , in pa icula he b oking and ading ac i i- ies we e un as unlimi ed liabili y pa ne ships—wi h many s a being paid e y low sala ies bu big bonuses. This was no a majo conce n as bo h isk and ewa d we e in he gi o he pa ne s—who s ood o lose e e y hing i i all wen w ong. This ype o sys em had a buil in isk managemen mechanism in ha he pa ne ship had a e y s ong in e es o ewa d people app op ia ely and ensu e ha isk was being p ope ly managed. Pos -“Big-Bang” when mos o he ade s and b oke s we e bough by public limi ed companies and he ade s and b oke s we e using sha eholde ’s money a he han pa ne ’s money hese buil in isk managemen mechanisms s a ed o b eak down. As high-s ee banks saw in es men banking ac i i y as e y luc a i e, some bough an in es - men bank, e.g. Ba clays, and some a combina ion o build and acquisi ion, e.g. RBS. This appea s, wi h hindsigh , o ha e led o a cul u e shi o he dominan , mo e agg essi e, ansac ion-based cul u e o he in es men bank and away om he mo e oca ional cus ome se ice ela ionship d i en cul u e o he high-s ee bank. E en oday, he e a e s ill a numbe o high-s ee banks wi h Boa ds and Execu i e Commi ees ha a e domina ed by o me in es men banke s and consul an s—people whose o ma i e ain- ing is unlikely o ha e encompassed a oca ional cus ome se ice cul u e and mo e likely o ha e been a ansac ion-based p o i maximising cul u e. 2.2. Financial se ices Ac 1986 P o esso Gowe ’s (1984) epo no ed ha egula ion should be no g ea e han is necessa y o p e- en easonable people being made ools o (Gowe , 1984, pa a 1.16). Such an app oach, i ollowed h ough, would ha e p ese ed he “ca ea emp o ” app oach and only add essed he na u al in o - ma ion asymme y ha exis s be ween he high-s ee banke and hei cus ome . Wi h a s ong cul u e o cus ome se ice, and he exis ence o he banke –cus ome ela ionship (a ela ionship o us and con idence), a ligh ouch “so law” sel - egula ion egime would be adequa e. Table 1. P e-“Big Bang” cul u al a e ac s High-s ee bank In es men bank Banke —cus ome ela ionship My wo d is my bond T us and con idence Knowledgeable coun e pa ies Rela ionship-based T ansac ion-based Page 4 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 Howe e , he FSA 1986, in oduced a complica ed p oduc segmen ed sys em1 o egula ion, which was e en ually eplaced by he Financial Se ices and Ma ke s Ac 2000 (FSMA 2000) and he c ea ion o he Financial Se ices Au ho i y (FSA). This p e-FSMA 2000 sys em o p oduc ocused egula ion, oge he wi h he g ow h o cen alising echnology, shi ed high-s ee banking o a manu ac u ing/dis ibu ion model, mo ed adminis a ion and powe o he cen e and led o he adop ion o a sales-d i en app oach. Also in he ea ly 1980s, high-s ee banks shi ed om indi idual assessmen and decision- making in lending o c edi -sco ing lending. Following on om his, in he ea ly 1990s, he banking indus y adop ed new echnologies and cen alised much o i s p ocessing and shi ed he high- s ee b anch om being a key pa o he local communi y o a dis ibu ion ou le . This p ocess has disconnec ed he bank om i s cus ome s and led o he de elopmen o sales-d i en ap- p oaches. Aligned o his shi was a changing pa e n in ca ee de elopmen —s a in he b anch- es we e expec ed o be salespeople and a Head O ice non-high-s ee banke s we e ec ui ed—people om non-banking e ail, in es men banks, consul ancies— ew o whom had any oca ional high-s ee banking expe ience, and a guably he w ong cul u e o he public’s expec a ion o hei bank. The e was also a shi in e minology om “high s ee banking” o “ e ail banking”. Banks s a - ed o employ people in hei b anches wi h no banking expe ience, no oca ional commi men o he communi y, bu lo s o e ail “sales” expe ience, and some imes in o e y senio posi ions. I also employed ma ke e s and p oduc de elope s wi h a sales-d i en/ ansac ion- ocused ap- p oach—again in luencing he cul u e o he whole o ganisa ion o a sales-d i en cul u e. The e m “ e ail banking” is now ubiqui ous in he indus y wi h he Eu opean Union egula ion (EU 2013) on capi al equi emen s e e ing o e ail exposu es, and he Financial Conduc Au ho i y alking abou e ail banking and e ail lending in hei business plan (Financial Conduc Au ho i y [FCA], 2015). In he pe iod unde conside a ion he p o isions made by e ail banks o misconduc (much o which occu ed in he decades be o e he p o isions we e made) was £38.5bn (Table 2). Table 2. The cos o misconduc in UK e ail bank ope a ions, 2000–2014 Sou ce: Spice e al. (2014). Type o misconduc P o ision (£bn) Yea s p o isions we e made PPI mis-selling 27 2010–2014 In e es - a e hedging p oduc s mis-selling 4.1 2012–2014 Un ai unau ho ised o e d a cha ges 0.5 2006–2007 Endowmen mo gage mis-selling 1.8 2002–2006 In es men ad ice/p oduc s mis-selling 0.5 2003–2014 Pensions mis-selling 0.6 2000–2002 Consume c edi ac b eaches 0.7 2013–2014 O he (Mo gages, ID he insu ance, miscellaneous ed ess) 3.3 2000–2014 To al £38.5bn 2000–2014 Page 5 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 3. The banke –cus ome ela ionship The banke –cus ome ela ionship has always been cha ac e ised as a us and con idence ela ion- ship, albei ha in i s ea ly days i was all abou con iden iali y and du ies o collec cheques. The ela ionship has ne e been ully de ined by he Cou s o in legisla ion, and gi en he inc eased dominance o he Ombudsman se ice since he la e 1980s high-s ee banking cases e y seldom ge o he cou s anymo e lea ing a sho age o legal p eceden s on his pa icula opic. This may be a lacuna ha he Financial Ombudsman Se ice (FOS) wo king wi h he FCA and he new Banking S anda ds Boa d (BSB) could ill using mo e o hei decisions in he o m o case s udies o illus a e wha a cus ome has a igh o expec om hei banke . The eason ha he banke –cus ome ela ionship is so impo an is he in o ma ion asymme y be ween he bank and he cus ome . The a e age cus ome is no inancially sophis ica ed (unlike ma ke coun e pa ies in in es men banking) and place eliance on hei banke o look a e hei bes in e es —a iducia y ela ionship ha es ablishes a du y o ca e. The o he aspec o he banke –cus ome ela ionship is he na u e o he p oduc s. In classi ying ansac ion goods (o p oduc s), hey can be pu in o classes o o dina y, sea ch and expe ience goods (Nelson, 1970), howe e , mos impo an o banking pu poses is he in oduc ion o a ou h classi ica ion know as c edence goods (Da by & Ka ni, 1973). Many inancial se ice p oduc s a e c edence goods (Llewellyn, 2005) in ha hei quali y is la en and may no be disco e ed un il some ime a e he pu chase, o example, wi h insu ance you pay a p emium now bu you don’ know i he i m will be capable o mee ing he claim in he u u e, you in es in a pension o 20 yea s bu you will no know how good he in es men pe o mance will be—un il you d aw he pension. These ypes o ansac ions a e easie whe e he cus ome us s he bank and has con idence in he bank’s commi men o hei bes in e es as opposed o an obsession wi h sho - e m pe o - mance and he bank’s h ee-yea s a egy. This expec a ion and sense o pe manence h ough he cus ome ’s li ecycle (as opposed o he p oduc li ecycle) should be a he hea o he mode n bank- e –cus ome ela ionship. Llewellyn (1999) no es ha one a ionale o he exis ence o e ail inancial se ices egula ion is he need o us and con idence. The educ ion in ela ionship managemen ma ke ing and he cul u e o cus ome se ice in high-s ee banking has diminished he us and con idence ela ion- ship o e many yea s and an ex ension o Llewellyn’s poin may be ha us and con idence and egula ion a e on a pendulum such ha as us and con idence declines so egula o y in ensi y inc eases. The FSA, o i s c edi , did ecognise he decline in he banke –cus ome ela ionship ha had oc- cu ed in he la e 1980s and h oughou he 1990s and se abou ying o ackle i as ea ly as 2001 by in es iga ing T ea ing Cus ome ’s Fai ly (TCF) (FSA, 2001) and es ablishing a TCF p og amme, a cus ome p og amme ha domina ed conduc egula ion o mos o he i s decade o his cen u y (FSA, 2002a, 2004, 2005, 2006, 2007a). Aligned o TCF he FSA also in es iga ed e hics (FSA, 2002b) and he mo e owa ds p inciples- based egula ion (Black, Hoppe , & Band, 2007; FSA, 2007b). Cul u ally, i is much mo e di icul o implemen a p inciples-based app oach in o a i m ha has a ewa d s uc u e aligned o a ansac- ion-based p o i -maximising ocus. The FSA had hoped ha he success ul implemen a ion o he TCF p og amme, would allow o a shi owa ds p inciples based egula ion, bu as i s o me CEO no ed, i is a di icul ask: A p inciples-based app oach does no wo k wi h indi iduals who ha e no p inciples. (San s, 2009) Page 6 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 Un o una ely, in he a e ma h o he inancial c isis and he ocus on capi al and liquidi y, TCF go pushed in o he backg ound and he ocus on p inciples-based egula ion appea s o ha e allen away (Black, 2010). Howe e , he new FCA appea s o ha e a ocus on a p inciples based app oach. 4. The cus ome li ecycle One o he di icul ies wi h he TCF p og amme was ha i used he e m “P oduc Li ecycle”, a e m e y amilia o hose in he ma ke ing p o ession o new p oduc de elopmen and he iden i ica- ion o inno a o s, ea ly majo i y, la e majo i y and lagga ds—ca ego ies ha can be indica i e o p icing. This ype o p icing can be a he hea o mis-selling. F on -loading inancial se ices p od- uc s o co e de elopmen cos s a he han sp eading he cos o e he li e o he p oduc can lead o se ious de imen o cus ome s, and encou age mis-selling, o example, chu ning uni us s wi h a la ge on -end commission. The cus ome li ecycle in banking can be based on he ecogni ion o he li e ime alue o a cus- ome (Heske , Jones, Lo eman, Sasse , & Schlessinge , 1994). Cus ome s need p oduc s om when hey a e e y young (e.g. sa ings accoun s, child us unds) h oughou hei li es (e.g. s uden loans, cu en accoun s, c edi ca ds, ca loans, mo gages, insu ance, pensions and mo e) and be- yond (e.g. wills and adminis a ion). Fo a high-s ee bank he s a ing poin mus be he cus ome . The p ima y objec i es o any high-s ee bank ( aking ea ing cus ome s ai ly in o accoun ) a e: • o iden i y he cus ome segmen ha i wan s o se e—in line wi h i m capabili y (segmen a ion), • iden i y he needs o he cus ome s in he segmen , • iden i y us expec a ions in he cus ome segmen , • design p oduc s and se icing p ocesses o mee he iden i ied need—conside ing he p icing o he p oduc , p omo ion o he p oduc and how and whe e i will be sold (posi ioning) and • p o ide he cus ome s in he segmen wi h p oduc s ha a e designed o mee hei iden i ied needs ( a ge ing). W i e s on ma ke ing sugges ha i is much mo e expensi e o acqui e a new cus ome han i is o p o ide a p oduc o an exis ing one—up o 10 imes mo e expensi e (Daly, 2002), ye banks con- inue o chase ma ke sha e in single p oduc s. Th ee hund ed cus ome s wi h h ee p oduc s each is su ely a be e indica o o us han 900 cus ome s wi h one p oduc each. E en om an eco- nomic pe spec i e, o he hings emaining equal, 5% ma ke sha e and 10% e u n on capi al is su ely be e han 10% ma ke sha e and 5% e u n on capi al. In iden i ying cus ome s i would clea ly make sense o s a wi h he bank’s own cu en accoun cus ome s— he cus ome hey know he mos abou ( educed money launde ing and inancial c ime isk) and only de elop p oduc s wi hin he bank’s capabili y2. The bank could ill gaps in he cus ome li ecycle by making use o i s knowledge and buying powe o he bene i o i s cus ome s o sou ce whi e-label p oduc s ha a e no cu en ly wi hin he banks capabili y). Pu ing he cus ome i s using his well-known segmen a ion, a ge ing and posi ioning model, does no con lic wi h he Boa ds du y o i s sha eholde s (agency heo y o go e nance) bu e lec s he impo ance o he cus ome and he employees who se e he cus ome s (s akeholde heo y o go e nance) o he success o he i m. Ma ke ing plays a key ole in s a egy de elopmen and s a egy implemen a ion and in his sense selec ing he w ong s a egy and ma ke ing app oach can subs an ially inc ease he conduc isk p o ile o he i m. Page 7 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 While ma ke ing i sel is no iewed as a isk i s e ec s show up in wha is inc easingly being called conduc isk— he ela ionship be ween a i m and i s cus ome s. The ma ke ing o ien a ion selec ed also plays an inc easing ole in de e mining he cul u e o he i m, cus ome us and a less isible ac o in de e mining he egula o y in ensi y he i m aces. The ac ha ma ke ing is no a discipline ha coun s in assessing he capi al adequacy o he i m is no a good eason no o make he e o o unde s and i s implica ions o he i m’s conduc isk p o ile—conduc isk being an ope a ional isk ha does a ac capi al adequacy conside a ions. Achie ing a ma ke ing o ien a ion wi h cus ome s a he cen e o e e y hing he bank does is a majo ac o o success. This issue is one o cus ome loyal y, wi h bo h cus ome e en ion and cus ome p o i abili y being key ac o s in s able business g ow h. Reichheld and Sasse (1990) es i- ma ed ha a 5% inc ease in cus ome loyal y can p oduce p o i inc eases om 25 o 85% and concluded ha quali y o ma ke sha e measu ed in e ms o cus ome loyal y, dese es as much a en ion as quan i y o sha e. Despi e his many bank’s s ill spend as sums o money ying o cap u e ma ke sha e. In chasing ma ke sha e, some banks ha e adop ed s a egies o “buying” cus ome s wi h joining bonuses which a e unlikely o gene a e cus ome loyal y, and mo e likely o a ac cus ome s who will be looking o he nex joining bonus elsewhe e. A ocus on cus ome loyal y should lead o a shi away om a p oduc -cen ic bank o a cus om- e -cen ic bank (a ma ke ing o ien a ion), and see he cus ome as a pa ne in a long- e m ela ion- ship ha can be cha ac e ised as a win–win si ua ion o bo h pa ies. The key o achie ing his is a cus ome li ecycle app oach o managing he business. High-s ee banking cus ome s equi e inancial p oduc s h oughou hei li es om sa ings accoun s when hey a e child en h ough o he adminis a ion o hei es a es (Table 3). Table 3. Cus ome li ecycle c oss-sell oppo uni ies (no an exhaus i e lis ) Ancho accoun Cus ome ’s inancial need P oduc Cu en accoun Sa ings p oduc o child en Sa ings accoun Loan o a ca Loan accoun Insu ance o ca Ca insu ance Re ol ing c edi C edi ca d Buy a house Mo gage Su ey o house Su eyo se ice Insu ance o house House insu ance Sa ings-gene al Sa ings accoun Sa ings—cash ISA Cash ISA accoun Sa ings—equi y ISA Equi y ISA accoun Li e p o ec ion Li e assu ance Insu ance o holiday T a el insu ance Pension planning Financial ad ice Pension p oduc s Pension p oduc s Pension decumula ion Income d awdown/annui ies Financial planning Financial ad ice Es a e planning Wills Es a e adminis a ion P oba e Page 8 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 As Heske e al. (1994) no ed: • P o i and g ow h a e s imula ed p ima ily by cus ome loyal y; • Loyal y is d i en by cus ome sa is ac ion; • Sa is ac ion is la gely in luenced by he alue o se ices p o ided o cus ome s; • Value is c ea ed by sa is ied loyal and p oduc i e employees; and • Employee sa is ac ion in u n esul s p ima ily om aining and de elopmen , high-quali y sup- po se ices and policies ha enable employees o deli e esul s o cus ome s. To achie e his high-s ee banks need hei cus ome s o be ela ionship buye s. T ansac ion buye s a e gene ally ocused on p ice and ha e a low loyal y le el. Rela ionship buye s, on he o he hand, a e in e es ed in a long- e m business ela ionship based on us and gene ally exhibi a high loy- al y le el (Hughes, 2003). Howe e , as no ed abo e, a key ac o in his is he employees— hey a e he ounda ion building block o he long- e m success o a high-s ee bank, and also o c ea ing he en i onmen ha builds us (Lewicki & Tomlinson, 2003). Making an e o o uly unde s and he indi idual cus ome s need and whe e hey a e in he cus- ome li ecycle should allow banks o design and ma ke p oduc s app op ia ely in ecogni ion ha he cus ome , on he es ablishmen o a ela ionship o us and con idence is likely o come back o he bank h oughou hei li e (wi h li le acquisi ion cos and subs an ially educed ma ke ing spend). 5. Res o ing us T us is a i al elemen in all o socie y’s in e ac ions (Fukuyama, 1995) and can be desc ibed as an indi idual’s belie in, and willingness o ac on he basis o wo ds, ac ions and decisions o ano he (Lewicki, McAllis e , & Bies, 1998). I can also be linked wi h expec a ions o in en ion o beha iou (Rousseau, Si kin, Bu , & Came e , 1998). Bo h o hese app oaches ecognise he in eg i y o an indi idual, bu o es o ing us o banking, he e is a need o ensu e he collec i e in eg i y o he o ganisa ion. Howe e , in addi ion o in eg i y as a dimension o us wo hy beha iou , banks mus also demons a e abili y and bene olence (Lewicki & Tomlinson, 2003). A use ul way o classi y us has been se ou by Lewicki and Wie ho (2000) and spli in o wo ypes: • Calculus-Based T us (CBT); and • Iden i ica ion-Based T us (IBT). Thei app oach o us looks a peoples’ belie s and willingness o engage. The s eng h o he belie and willingness o engage would de e mine whe he a pe son alls in o he CBT ca ego y o he IBT ca ego y. Linking his wi h he h ee dimensions o abili y, in eg i y and bene olence may c ea e a amewo k ha will assis banks in de eloping an app oach o es o ing us . CBT is impo an in a ac ing new cus ome s as i is he ini ial s age whe e he new cus ome is making an assessmen o bo h he indi idual membe o bank s a and he bank i sel . In addi ion o he assessmen o he indi idual and he bank, he cus ome will be making an e o o unde - s and wha mo i a es he bank o look a e his/he in e es s—much o which he cus ome may judge om he indi idual hey deal wi h (hence he impo ance o cul u e). The mo i a ion o bank s a could be a nega i e mo i a ion ( he isk o losing one’s job), o a posi- i e mo i a ion in he o m o a commission and/o bonus. The inancial se ices indus y seems o ha e accep ed ha he la e o m o incen i e had gone oo a and many i ms a e now applying a o m o balanced sco eca d (Kaplan & No on, 1996) ha gi es app op ia e ep esen a ion o cus- ome se ice. In he CBT s age es ablishing abili y ( aining and de elopmen ) and in eg i y (cul u e) Page 15 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 Whe he you wish o call i high-s ee banking, e ail banking, communi y banking o RFB, u he a eas o esea ch ha may add o he deba e on he u u e o his ype o banking migh be: • Wha should he ole o he BSB be in es o ing us in banking, and should i limi i s ocus o high-s ee banking—bo h pe sonal and small businesses? • Could he FOS, he FCA (wi h he assis ance o he new BSB) do mo e o p o ide cla i y in he o m o p eceden s and in e p e a i e guidance on he meaning o he banke –cus ome ela ionship? • Is he manu ac u ing/dis ibu ion model an app op ia e model o ela ionship-d i en high- s ee banking? • Is oca ional banking educa ion cen al o c ea ing he igh cul u e in he banking indus y? • A e i ms being ealis ic in hei sho - e m plans—is es o ing us a 20 yea plus jou ney and a e sho - e m goals ele an o ela ionship managed business wi h cus ome s ha may be looking o a 50 yea plus ela ionship? • How do banks make he bes use o new digi al echnologies in way ha engages wi h cus om- e s and mee s hei needs a he han a d i e o he lowes cos ? Ul ima ely, high-s ee banking needs leade s who unde s and he se ice p o i chain in he con ex o he cus ome li ecycle, who ecognise he impo ance o hei employees, and who de elop and main ain a co po a e cul u e cen ed on se ice o cus ome s. They also need a senio managemen eam ha ecognise ha he eal success o a high-s ee bank comes om he oca ional commi - men o he employees ha se e cus ome s day-in/day-ou in he b anches and egions, on he elephone and ia digi al channels, and ha e e ybody, including he execu i e, a e me e ca e ak- e s, cha ged wi h being good cus odians o hei ins i u ions, imp o ing hem be o e passing hem on o hei successo s (Ca ney, 2013). Funding The au ho s ecei ed no di ec unding o his esea ch. Au ho de ails Pe e McCo mack 1 E-mail: jona han.deacon@sou hwales.ac.uk Jona han Deacon 2 E-mail: [email p o ec ed] 1 Independen Go e nance and Risk Ad ise , London, UK. 2 Sou h Wales Business School, Uni e si y o Sou h Wales, T e o es Campus, Pon yp odd, UK. Ci a ion in o ma ion Ci e his a icle as: Can us be es o ed o high-s ee banking: A 20-yea challenge? Pe e McCo mack & Jona han Deacon, Cogen Business & Managemen (2017), 4: 1366284. No es 1. Fo example: The Li e Assu ance and Uni T us Regula- o y O ganisa ion (LAUTRO), The Secu i ies and Fu u es Au ho i y (SFA); and he In es men Managemen Regula o y O ganisa ion (IMRO). 2. I is wo h no ing ha capabili y is made up o bo h compe ence and capaci y—some i ms employ compe- en people bu do no ha e enough o hem (capaci y) o deli e se ices p ope ly. ‡ The iewpoin con ained in his a icle ep esen s he opinions o he au ho s and does no necessa ily ep esen he iew o o me o p esen employe s. This a icle is in ended o s imula e u he deba e on a numbe o opics se ou in bo h he a icle and he conclusion. Re e ences And ew, Elizabe h, H. (1988a, Sep embe 7). Banking— Cus ome ca e and banking law: Pa 1. Law Socie y Gaze e, 32, 29–30. And ew, Elizabe h, H. (1988b, Sep embe 14). Banking— Cus ome ca e and banking law: Pa 2. Law Socie y Gaze e, 33, 26–30. Ashby, S., Pale mo, T., & Powe , M. (2012, No embe ). Risk cul u e in inancial o ganisa ions: An in e im epo . Re ie ed Decembe 14, 2016, om h ps://www2.lse.ac. uk/ esea chAndExpe ise/uni s/CARR/pd /Risk-cul u e- in e im- epo .pd Bailey, A., B eeden, S., & S e ens, G. (2012). The P uden ial egula ion au ho i y, bank o England qua e ly bulle in, Q4. Re ie ed Decembe 18, 2016, om h ps://www.banko england.co.uk/ publica ions/Documen s/qua e lybulle in/qb120405.pd Basel Commi ee on Banking Supe ision. (2011, June). P inciples o he sound managemen o ope a ional isk. Re ie ed Decembe 27, 2016, om h ps://www.bis.o g/ publ/bcbs195.pd Banking S anda ds Boa d. (2014, May). Banking s anda ds e iew. Re ie ed Decembe 17, 2016, om h ps://www. bankings anda dsboa d.o g.uk/asse s/docs/ may2014 epo .pd Black, J. (2010). The ise, all, and a e o p inciples-based egula ion (LSE Law, Socie y and Economy Wo king Pape s 17//2010). Re ie ed Decembe 27, 2016, om h ps:// www.lse.ac.uk/collec ions/law/wps/WPS2010-17_Black.pd Black, J., Hoppe , M., & Band, C. (2007). Making a success o p inciples-based egula ion. Law and Financial Ma ke s Re iew, 1, 191–204. Ca ney, M. (2013, Feb ua y 25). Rebuilding us in global banking, speech a he 7 h Annual Thomas d’Aquino Page 16 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 Lec u e on Leade ship, Law ence Na ional Cen e o Policy and Managemen . On a io: Richa d I ey School o Business, Wes e n Uni e si y. Re ie ed Decembe 27, 2016, om h ps://www.banko canada.ca/wp-con en / uploads/2013/02/ ema ks-250213.pd Ca ney, M. (2014, May 27). Inclusi e capi alism: C ea ing a sense o he sys emic, speech gi en a he Con e ence on Inclusi e Capi alism, London. Re ie ed Decembe 27, 2016, om h ps://www.banko england.co.uk/ publica ions/Documen s/speeches/2014/speech731.pd Cu all, S., & Inkpen, A. (2006). On he complexi y o o ganiza ional us : A mul i-le el co-e olu iona y pe spec i e and guidelines o u u e esea ch, in he Handbook o T us Resea ch, 235–246. Daly, J. L. (2002). P icing o p o i abili y: Ac i i y-based p icing o compe i i e ad an age. London: John Wiley & Sons. Da by, M. R., & Ka ni, E. (1973). F ee compe i ion and he op imal amoun o aud. The Jou nal o Law and Economics, 16, 67–88. h ps://doi.o g/10.1086/466756 Die z, J., Pugh, S. D., & Wiley, J. W. (2004). Se ice clima e e ec s on cus ome a i udes: An examina ion o bounda y condi ions. Academy o Managemen Jou nal, 47, 81–92. h ps://doi.o g/10.2307/20159561 Economis In elligence Uni . (2013). A c isis o cul u e: Valuing e hics and knowledge in inancial se ices. Re ie ed Decembe 17, 2016, om h ps://www.economis insigh s. com/si es/de aul / iles/LON%20-%20SM%20-%20 CFA%20WEB.pd Eu opean Union. (2013). Regula ion (EU) No 575/2013 o he eu opean pa liamen and o he council o 26 June 2013 on p uden ial equi emen s o c edi ins i u ions and in es men i ms and amending Regula ion (EU) No 648/2012, OJ L176 (p. 1). Re ie ed om h p://eu -lex. eu opa.eu/legal-con en /EN/TXT/?u i=OJ:L:2013:176:TOC Fai and E icien Ma ke s Re iew. (2014, Oc obe ). How ai and e icien a e he ixed income, o eign exchange and commodi ies ma ke s? (Consul a ion Documen ). Re ie ed Decembe 18, 2016, om h ps://www.banko england.co. uk/ma ke s/Documen s/ em /consul a ion271014.pd Fai and E icien Ma ke s Re iew. (2015, June). How ai and e icien a e he ixed income, o eign exchange and commodi ies ma ke s? (Final Repo ). Re ie ed Decembe 17, 2016, om h ps://www.banko england.co.uk/ ma ke s/Documen s/ em jun15.pd Financial Conduc Au ho i y. (2015). Business plan 2015/2016. Re ie ed Decembe 17, 2016, om www. ca.o g.uk/ s a ic/documen s/co po a e/business-plan-2015-16.pd Financial Repo ing Council. (2011). Guidance on boa d e ec i eness. Re ie ed Decembe 14, 2016, om h ps:// www. c.o g.uk/FRC-Documen s/FRC/Guidance-on-Boa d- E ec i eness.aspx Financial Se ices Au ho i y. (2001). T ea ing cus ome s ai ly a e he poin o sale—June 2001. London: Au ho . Financial Se ices Au ho i y. (2002a). T ea ing cus ome s ai ly: P og ess Repo . London: Au ho . Re ie ed Decembe 11, 2016, om h ps://www. sa.go .uk/pubs/discussion/dp7_ p og ess- epo .pd Financial Se ices Au ho i y. (2002b), An e hical amewo k o inancial se ices (Discussion Pape 18). London: Au ho . Re ie ed Decembe 11, 2016, om h ps://www. sa.go . uk/pubs/discussion/dp18.pd Financial Se ices Au ho i y. (2004). T ea ing cus ome s ai ly— P og ess and nex s eps. London: Au ho , Re ie ed Decembe 11, 2016, om h ps://www. sac.o g.uk/pubs/ o he / c _27072004.pd Financial Se ices Au ho i y. (2005). T ea ing cus ome s ai ly— Building on P og ess. London: Au ho . Re ie ed Decembe 11, 2016, om h ps://www. sa.go .uk/pubs/o he / c _06072005.pd Financial Se ices Au ho i y. (2006). T ea ing cus ome s ai ly— Towa ds ai ou comes o consume s. London: Au ho . Re ie ed Decembe 15, 2016, om h ps://www. ca.o g. uk/s a ic/ ca/documen s/ sa- c - owa ds.pd Financial Se ices Au ho i y. (2007a, May). T ea ing cus ome s ai ly ini ia i e: P og ess epo . London: Au ho . Re ie ed Decembe 11, 2016, om h ps://www. sa.go .uk/pubs/ o he / c _implemen a ion.pd Financial Se ices Au ho i y. (2007b, Ap il). P inciples-based egula ion: Focussing on he ou comes ha ma e . London: Au ho . Re ie ed Decembe 11, 2016, om h ps://www. sa.go .uk/pubs/o he /p inciples.pd F iedman, M. (1962). Capi alism and F eedom. Chicago, IL: Uni e si y o Chicago P ess. Fukuyama, F. (1995). T us : The social i ues and he c ea ion o p ospe i y. New Yo k, NY: F ee p ess, Simon & Schus e . Goodha , C., Ha mann, P., Llewellyn, D., Rojas-Sua ez, L., & Weisb od, S. (1998). Financial egula ion why, how and whe e now? London: Rou ledge. Gowe , L. C. B. (1984). Re iew o in es o p o ec ion (Repo : Pa 1, Cmnd 9125, HMSO, 1984). London: Depa men o T ade and Indus y. Heske , J. L., Jones, T. O., Lo eman, G. W., Sasse , J ., W. E., Schlessinge , L. A. (1994). Pu ing he se ice-p o i chain o wo k. Ha a d Business Re iew, 72, 164–174. HM T easu y/Depa men o Business Inno a ion and Skills. (2011, Decembe ). The go e nmen esponse o he Independen Commission on Banking. Re ie ed om h ps://www.go .uk/go e nmen /uploads/sys em/ uploads/a achmen _da a/ ile/31585/go _ esponse_ o_ icb_191211.pd HM T easu y/Depa men o Business Inno a ion and Skills. (2012, June). Banking e o m: Deli e ing s abili y and suppo ing a sus ainable economy. Re ie ed om h ps:// www.go .uk/go e nmen /publica ions/ banking- e o m-deli e ing-sus ainabili y-and-suppo ing- a-sus ainable-economy Hughes, A. M. (2003). The cus ome loyal y solu ion. New Yo k, NY: McG aw-Hill. Independen Commission on Banking. (2011, Sep embe ). Independen commission on banking ( inal epo ecommenda ions). Re ie ed Decembe 27, 2016, om h ps://weba chi e.na ionala chi es.go . uk/20131003105424/h ps:/hm -sanc ions.s3. amazonaws.com/ICB%20 inal%20 epo / ICB%2520Final%2520Repo %5B1%5D.pd Jackman, D. (2001a). Values-led egula ion. In C. Moon, & C. Bonny (Eds.), Business e hics (pp. 186–193). London: P o ile Books. Jackman, D. (2001b). Why comply? Jou nal o Financial Regula ion and Compliance, 9, 211–217. h ps://doi.o g/10.1108/eb025075 Kaplan, R. S., & No on, D. P. (1996). The balanced sco eca d. Bos on MA: Ha a d Business School P ess. Leade s Ques , Me eos. (2016). Banking on us : Engaging o ebuild a heal h banking sec o . Re ie ed Decembe 2, 2016, om h ps://www.me eos.co.uk/wp-con en / uploads/BankingFu u es-Repo -1-Feb ua y-2016.pd Le y, C., Lama e, E., & Twining, J. (2010, Feb ua y 16). Taking con ol o o ganiza ional isk cul u e (pp 1–11, McKinsey Wo king Pape s on Risk). New Yo k Ci y, NY: McKinsey & Company. Lewicki, R. J., & Tomlinson, E. C. (2003). T us and us building, beyond in ac abili y. In Bu gess, G. & Bu gess, H. (Eds.), Con lic in o ma ion conso ium (pp. 305–315). Boulde : Uni e si y o Colo ado. Re ie ed Decembe 20, 2016, om h ps://www.beyondin ac abili y.o g/essay/ us -building Lewicki, R. J., & Wie ho , C. (2000). T us , us de elopmen , and us epai . In M. Deu sch, & P. T. Coleman (Eds.), The handbook o con lic esolu ion: Theo y and p ac ice (pp. 86–107). San F ancisco, CA: Jossey-Bass. Page 17 o 17 McCo mack & Deacon, Cogen Business & Managemen (2017), 4: 1366284 h ps://doi.o g/10.1080/23311975.2017.1366284 © 2017 The Au ho (s). This open access a icle is dis ibu ed unde a C ea i e Commons A ibu ion (CC-BY) 4.0 license. You a e ee o: Sha e — copy and edis ibu e he ma e ial in any medium o o ma Adap — emix, ans o m, and build upon he ma e ial o any pu pose, e en comme cially. The licenso canno e oke hese eedoms as long as you ollow he license e ms. Unde he ollowing e ms: A ibu ion — You mus gi e app op ia e c edi , p o ide a link o he license, and indica e i changes we e made. You may do so in any easonable manne , bu no in any way ha sugges s he licenso endo ses you o you use. No addi ional es ic ions You may no apply legal e ms o echnological measu es ha legally es ic o he s om doing any hing he license pe mi s. Lewicki, R. J., McAllis e , D. J., & Bies, R. J. (1998). T us and dis us : New ela ionships and eali ies. Academy o Managemen Re iew, 23, 438–458. Llewellyn, D. (1999). The economic a ionale o inancial egula ion (Occasional Pape No. 1). London: Financial Se ices Au ho i y. Llewellyn, D. (2005). T us and con idence in inancial se ices: A s a egic challenge. Jou nal o Financial Regula ion & Compliance, 13, 333–346. h ps://doi.o g/10.1108/EUM0000000007304 McBa ne , D. (2007). En o cing e hics: New s a egies o ackling c ea i e compliance. Canbe a: Aus alian Na ional Uni e si y. Mo gan, R. M., & Hun , S. D. (1994). The commi men - us heo y o ela ionship ma ke ing. Jou nal o Ma ke ing, 53, 20–38. h ps://doi.o g/10.2307/1252308 Nelson, Philip (1970). In o ma ion and consume beha io . Jou nal o Poli ical Economy, 78, 311–329. h ps://doi.o g/10.1086/259630 New on, A. (1998). Compliance: Making e hics wo k in inancial se ices. London: Financial Times Managemen . Oli e , R. L. (1997). Loyal y and p o i : Long e m e ec s o sa is ac ion: A beha iou al pe spec i e on he Consume . New Yo k, NY: McG aw-Hill. Pa liamen a y Commission on Banking S anda ds. (2013). Changing banking o good, Repo o he Pa liamen a y Commission on Banking S anda ds, summa y, and conclusions and ecommenda ions. Re ie ed Decembe 27, 2016, om h ps://www.pa liamen .uk/documen s/ banking-commission/Banking- inal- epo - olume-i.pd P uden ial Regula ion Au ho i y. (2014). Consul a ion Pape 19/14, The implemen a ion o ing- encing: Consul a ion on legal s uc u e, go e nance and he con inui y o se ices and acili ies. Re ie ed om h p://www. banko england.co.uk/p a/Pages/publica ions/cp/2014/ cp1914.aspx and and co esponding PRA Policy S a emen 10/15. Re ie ed om h p://www. banko england.co.uk/p a/Pages/publica ions/ps/2015/ ps1015.aspx Reichheld, F. P., & Sasse , W. E. (1990). Ze o de ec ions: Quali y comes o se ices. Ha a d Business Re iew, 68, 105–111. Rousseau, D. M., Si kin, S. B., Bu , R. S., & Came e , C. (1998). No so di e en a e all: A c oss-discipline iew o us . Academy o Managemen Re iew, 23, 393–404. h ps://doi.o g/10.5465/AMR.1998.926617 Salz, A. (2013). Salz Re iew: An independen e iew o Ba clays’ business p ac ices. Re ie ed Decembe 27, 2016, om h ps://www.ba clays.com/con en /dam/ ba clayspublic/documen s/news/875-269-salz- e iew-04-2013.pd San s, H. (2009, Ma ch 12). Deli e ing in ensi e supe ision and c edible de e ence, speech by Hec o San s, Chie Execu i e, FSA a he Reu e s Newsmake s e en . Re ie ed Decembe 16, 2016, omh ps://www. sa.go .uk/pages/ Lib a y/Communica ion/Speeches/2009/0312_hs.sh ml San s, H. (2010a). “Do egula o s ha e a ole o play in judging cul u e and e hics?”–Speech by Hec o San s o he Cha e ed Ins i u e o Secu i ies and In es men s Con e ence, London, UK. Re ie ed Decembe 27, 2016, om h ps://www. sa.go .uk/pages/Lib a y/ Communica ion/Speeches/2010/0617_hs.sh ml San s, H. (2010b). “Can cul u e be egula ed?”–Speech by Hec o San s o Mansion House Con e ence on alues and us , London, UK. Re ie e Decembe 27, 2016, om h ps://www. sa.go .uk/lib a y/communica ion/ speeches/2010/1004_hs.sh ml Sapa i o, P. A., Chen, C. C., & Sapienza, H. (2004). The ole o ela ional us in bank–small i m ela ionships. Academy o Managemen Jou nal, 47, 400–410. h ps://doi.o g/10.2307/20159589 Schein, E. H. (1985). O ganisa ional cul u es and leade ship: A dynamic iew. San F ancisco, CA: Jossey-Bass. Sin, L., Tse, A., Yau, O., Lee, J., & Chow, R. (2002). The e ec o ela ionship ma ke ing on business pe o mance in a se ice o ien ed economy. Jou nal o Se ices Ma ke ing, 16, 656–676. h ps://doi.o g/10.1108/08876040210447360 Smi h, A. (1759). The heo y o mo al sen imen s. In Smi h A. (Ed.), Edinbu gh: P in ed in London o A. Milla ; and A. Kincaid and J. Bell. Smi h, A. (1776). An inqui y in o he na u e and causes o he weal h o na ions. London: S ahan, and Cadell. h ps://doi.o g/10.1093/ac ade/9780199269563.book.1 Spice , A., Gond, J. P., Pa el, K., Lindley, D., Fleming, P., Mosonyi, S., … Pa ke , S. (2014). A epo on he cul u e o B i ish e ail banking-New Ci y Agenda. London: Cass Business School. Re ie ed Decembe 20, 2016, om h ps:// newci yagenda.co.uk/wp-con en /uploads/2014/11/ Online- e sion.pd