Bank selection and share of wallet among SMEs: apparent differences between Hong Kong and Australia

Regan Lam, Suzan Burton

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the factors that small-to medium-sized enterprises (SMEs) in Hong Kong consider when selecting a banking partner, and the extent to which they use different banks (share of wallet). The findings are contrasted with those from another study of Australian business. The results show that firms in both countries view a bank's willingness to accommodate their banking and credit needs as being important. Hong Kong firms appear to give this factor higher priority when making their bank selection, while Australian firms appear to place higher emphasis on long-term relationships. Australian firms appear to have a more stable relationship with their primary bank as compared to the firms in Hong Kong where switching behaviours are found to be common. While 'guanxi' is often seen as critical in maintaining a business relationship in the Asian context, this study suggests it has limited impact for SMEs in Hong Kong in increasing share of wallet. The findings offer marketing implications for banks that are operating, or are planning to operate, business banking in both places.
Original languageEnglish
Pages (from-to)204-213
Number of pages10
JournalJournal of Financial Services Marketing
Volume9
Issue number3
DOIs
Publication statusPublished - 2005
Externally publishedYes

Keywords

  • bank selection
  • SMEs
  • share of wallet
  • relationship marketing
  • content analysis

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