Local banks in social media

Determinants and consequences

Bibliographic Data

ID15066331
AuthorsKrzysztof Jackowicz (0000-0002-9891-530X, Kozminski University, corresponding author), Łukasz Kozłowski (0000-0002-2887-9067, Kozminski University), Iwa Kuchciak (0000-0002-2577-776X, University of Lodz), Monika Marcinkowska (0000-0002-3494-9834, University of Lodz)
Year2020
Volume33
Issue1
Pages3356-3384
Publication date2020-01-01
Open AccessYes
TypeARTICLE
VenueEconomic Research-Ekonomska Istraživanja (JOURNAL)
Journal identifiersISSN: 1331-677X • E-ISSN: 1848-9664
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/1331677x.2020.1773892
OpenAlexW3081421617
LanguageEN
References cited64

In this study, we examine the determinants of social media adoption by local banks and its consequences. We use a unique dataset covering almost 600 local banks in Poland during the 2010–2016 period. This dataset contains information on the activity of local banks in social media, their financial performance and branch locations as well as the information on bank customers obtained from sociological surveys. We find the likelihood of social media adoption positively related to bank size and the technological and financial sophistication of clients. We show also that the impact of factors related to local competition is conditional on the performance of neighboring banks already present in social media. Finally, we establish that social media adoption helps local banks to defend their interest margins in the environment of low interest rates and intensifying competition. Therefore, our study suggests that social media can be used as a tool to develop a business model based on frequent interactions with clients and close relationships

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