This study investigates investing and borrowing business assigned to retail banks between ethnic groups A total sample of 692 Caucasians and Chinese in Australia, Canada and China were tested for their level of business, defined as share of wallet (SOW) in this study, assigned to their main banks through applying multivariate analyses No significant differences were found between the ethnic Chinese in comparison to their counterparts in Mainland China, or compared with the Caucasians in Australia and Canada. This finding of convergence suggests that ethnic Chinese have adapted to the local banking behaviour, although the ethnic Chinese in Australia and Canada assigned 81-88% of their assets to their main banks, in comparison to only 70% for their counterparts in China and 73% for the Caucasians.. As such, the ethnic Chinese in Australia and Canada have developed their own unique behaviour, resulting in crossvergence: an over-adaptation to local behaviour in managing their assets, and a mid-way approach between the Chinese in China and the local Caucasians when it comes to borrowing money.. For (financial) services managers, this form of cross-vergence constitutes a challenge as it suggests that gaining the trust of Chinese customers is complex since the SOW is lowest in the booming emerging market (ie., China) whereas ethnic Chinese consumers in Western markets have formed their own unique pattern of allocating business to their banks Ethnic banking is suggested to offer tailored services to ethnic groups.
|Title of host publication||ANZIBA 2010 conference proceedings|
|Subtitle of host publication||global business and sustainable development|
|Editors||Sid Gray, Catherine Welch|
|Place of Publication||Sydney|
|Publisher||University of Sydney|
|Number of pages||19|
|Publication status||Published - 2010|
|Event||Australia and New Zealand International Business Academy Conference - Sydney|
Duration: 15 Apr 2010 → 17 Apr 2010
|Conference||Australia and New Zealand International Business Academy Conference|
|Period||15/04/10 → 17/04/10|
Baumann, C., Tung, R. L., & Hamin, H. (2010). Share of wallet in retail banks: a comparison of Caucasians in Canada and Australia vis-a-vis Chinese in China and ethnic Chinese in Canada and Australia. In S. Gray, & C. Welch (Eds.), ANZIBA 2010 conference proceedings: global business and sustainable development Sydney: University of Sydney.