Annotated Bibliography on Financial Services

This annotated bibliography focuses on financial services and includes articles on relationship marketing, spillover effects, consumer satisfaction, and retirement financial services advertising. The research methodologies include primary and secondary data, qualitative and quantitative data, and content analysis. The articles provide insights on the alignment between relationship marketing and human resource management, the impact of financial services on informal economic activity, the inclusion of vulnerable groups in financial services, and the communication strategies and judgmental heuristic cues used in retirement financial services advertising.

Running head: ANNOTATED BIBLIOGRAPHY
Annotated Bibliography
Name of the Student
Name of the University
Author Note

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Topic: Financial Service
Introduction
The term financial services was developed in year of 1990, more prevalent in the parts of
USA. It started because of the Gramm-Leach-Bliley Act that enabled different types of
companies operating in the U.S. financial services industry at that time to merge. The financial
services are the economic activities that are provided by the financial industry that incorporates a
broad range of businesses that helps to manage the money that includes banks, credit cards,
credit unions, insurance, accountancy enterprises, individual managers, investment fund, stock
brokerage and government sponsored financial enterprises (Clifton, Fernández-Gutiérrez &
García-Olalla, 2017).
Article 1
Damianos Giannakis & Michael J. Harker (2014) Strategic alignment between relationship
marketing and human resource management in financial services organizations, Journal of
Strategic Marketing, 22:5, 396-419, DOI: 10.1080/0965254X.2013.876082
Key words: Relationship marketing, Strategic alignment, financial services, human resource
management, human capital chief enabling officer, financial services, Greece
In this article, Damianos & Michael (2014) identifies the critical importance of the
financial services firms being able to implement services successfully and also points out the
various relationships orientated strategies of marketing. According to the purpose of the article,
Relationship marketing is a process of customer relationship management or CRM that stresses

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on the customer loyalty and long-term customer engagement rather than shorter-term goals like
customer acquisition and individual sales. As the research methodology, in this article both
primary and secondary data is taken by reviewing the various articles and journals of renowned
authors. Moreover, in this article qualitative dada is taken to conduct the research. In this article
through summarizing the various related recent literatures and researching on the strategic
practice of the various financial service companies, the necessity of aligning human resource
management (HRM) policies with relationship marketing (RM) to achieve and sustain corporate
goals is demonstrated.
According to the authors, human resources management is designed to maximize
employee performance in service of an employer's strategic objectives. The financial service
sector is facing issues in the management of human resource and strategic marketing, this article
highlights on the same. The results of a set of case studies and managerial interviews with senior
retail banking executives from the Greek financial services sector are used to develop a
framework by which this might be done. Specifically, the role of the strategically significant
Human Capital Chief Enabling Officer as a link between HRM and RM is proposed and defined.
However, as a drawback in the research it can be said that it is based on five empirical case
studies including 20 interviewees, despite of the efforts of the investigators, only some
information about the RM and HRM had been found out. There is a lack in generalizability in
accordance with the Greek banks. Moreover, other studies may be carried out with a number of
organizations to confirm these qualitative findings and a quantitative study will be utilized to
confirm generalizability in due time. In the research numerous constraints during the data
collection process has been considered as a consequent the data accessibility was a constraint for
confidentiality reasons, while considering the competing banks.

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Article 2
Hatice Imamoğlu, Salih Katircioğlu & Cem Payaslioğlu (2018) Financial services spillover
effects on informal economic activity: evidence from a panel of 20 European countries, The
Service Industries Journal, DOI: 10.1080/02642069.2017.1423056
Key words: Financial services, spillover effects, European Union, informal economy; European
countries, Service Industries
The article by Hatice Imamoğlu, Salih Katircioğlu & Cem Payaslioğlu (2018) critically
examines financial spillovers. According to the purpose of the research it is to analyze the
spillover, that is the effect of the unrelated events in one nation on the economies of other
nations. Although there are positive spillover effects, the term is most commonly applied to the
negative impact a domestic event has on other parts of the world. In the article, an example is
given of consumer spending in the United States declines. It has spillover effects on the
economies that depend on the U.S. as their largest export market. This study aims to investigate
the spillover effects of the financial services sector development on the size of informal
economic activity in the case of the European Union countries. The research methodology is
taking in consideration of both primary and secondary data that is both quantitative and
qualitative in nature. The analysis has been made by selecting nine Europeans countries and
conducting a market research. After the analysis and finding, it can be concluded from the
evidences that there is a negative correlation between the international trade openness and the
economy size and a positive correlation between the rate of interest and the size of the informal
economy.

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In the article Hatice, Salih & Cem has found out the results from panel data analysis that
there exists an inverted U-shaped relationship between financial services and informal economic
activity in the countries of Europe. After the research, the authors have stated that at the initial
levels of the financial development, the reaction of informal economic activity is positive while
it becomes negative at the further stages of the financial development in the EU. Thus, this study
finds that financial services sector is a major contributor to changes in the volume of informal
economic activity in the EU countries.
Article 3
Joanna Gray, (2011) "Judicial review of Financial Services Compensation Scheme's
exercise of power to impose compensation costs levy", Journal of Financial Regulation and
Compliance, Vol. 19 Issue: 2, pp.195-
204, https://doi-org.ezproxy.cqu.edu.au/10.1108/13581981111123889
Keywords: Financial planning, savings and investments, personal finance, financial services,
legal decisions
In the article by Joana Gray purposes to discuss the judicial review of Financial Services
Compensation Scheme's (FSCS) exercise of power to impose compensation costs levy. The
discussion illustrates the increasing in the difficulty of drawing a clear line between discretionary
management and agency broking, for the claimants made a strong argument that Keydata
Investment Services Ltd (Keydata) should be considered to have been much more than a passive
distribution conduit or channel. As the research methodology the paper describes the judicial

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review action. The paper gives details of the decision that arose out of the FSCS imposition of an
interim levy of some £32 million to defray compensation costs arising from the default of
Keydata Investment Services Ltd and the claimants impugned. As wrong in law and procedurally
incorrect, the decision taken in March 2010 to allocate the costs of that levy to be borne by those
firms that the FSCS classified as “investment intermediaries”.
According to the research it has been found that the claimants argued that the error in law
or irrationality were constituted by the FSCS's determination. They say at first, the costs of the
Keydata claims arose or could be expected to arise out of one or more of the four regulated
activities in the D2 sub‐class to which FSCS referred in its reasoning behind its decision. Rather,
the claimants argued, the true position was that the claims did not arise out of any of these
activities but arose out of Keydata's marketing of its plans; and secondly, the costs did not arise
and could not be expected to arise out of any D1 sub‐class activity of “managing investments”.
Article 4
Clifton, J., Fernández-Gutiérrez, M., & García-Olalla, M. (2017). Including vulnerable
groups in financial services: Insights from consumer satisfaction. Journal of Economic
Policy Reform,20(3), 214-237.
key words: financial services, consumers, satisfaction
The Clifton, Fernández-Gutiérrez, & García-Olalla, (2017) has focuses on the impact of
the gobal financial crisis that brought into relief problems within the financial sector which
seriously affected consumer trust. This purpose of the article is to provide new evidence on the
experiences of two socio-economic groups associated with potential vulnerability. The two

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economic groups consists of the less educated crowd and the elderly group of people within the
financial service markets across Europe. The research methodology includes a primary research
and obtaining both quantitative and qualitative data by examining and investigating the sectors of
the two economic groups that have been focused upon. They examine the use of covered bonds
and mortgage-backed securities in the US and Europe, finding that the two often seem to be used
for different purposes. The article concluded that the less educated and the elderly are less
satisfied and experience more difficulties than other consumers as regards complaining,
comparing offers, or switching, in the mortgage, and investment product and bank account
markets, respectively. This evidence is of use to policy-makers seeking ways of improving
financial regulation from a perspective of a consumer.
According to the authors customer satisfaction in the financial sector is a term that
measures how the financial services supplied by a company surpass their expectation. It an
important criteria as it provides the marketers and business owners with a metric that they can
use to manage and improve their businesses. In the research they have found out that it is
relevant for financial advising and investor protection policy to make a stronger control for the
products that are more complex investors to understand. There should be clear information on
investment by intermediaries in order to reduce the ambiguity. Regulation on access to
information for investors should be thus enhanced by obliging both target and bidder firms to
provide advertisements containing standardized and pre-contractual information. Finally, they
have found out that there are contextual variables that impact differently on investment decisions
depending on investors’ traits. Financial advisors should therefore, be knowledgeable about these
client traits and should measure these with appropriateness and suitability tests.

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Article 5
LEE, T., HALEY, E., YUN, T. W., & CHUNG, W. (2011). US Retirement Financial
Services Advertising's Financial Information Provisions, Communication Strategies and
Judgmental Heuristic Cues. Journal of Consumer Affairs, 45(3), 391-418.
doi:10.1111/j.1745-6606.2011.01210.x
In the article LEE, et al., (2011) highlights that in recent years the investments and
retirement savings have been two of the most important financial service vehicles for American
consumers' futures. The purpose of the article is to prove that the consumer educators and
policymakers need retirement financial service providers to play the crucial role of helping
consumers make economic decisions with regard to retirement plans. This also helps them to
build retirement assets. This research is to show how retirement financial services advertising
attempted to inform, communicate and persuade investors during the past four years (2006–
2009). It had been shown by the authors by the example that includes two crucial events in the
US retirement marketplace—the 2007/2008 US financial crisis and the Pension Protection Act of
2006. As the research methodology a content analysis has been conducted to examine the type of
information, the communication strategies and the judgmental heuristic cues presented in a total
of 1,430 retirements financial service advertisements in six national US business‐finance
magazines from 2006 to 2009.
The article critically points out that along with the growth and importance of the market
of retirement, retirement financial services providers (RFSPs) have increasingly used advertising
as a communication tool to reach inform and persuade customers. An direct indication has been
made in the research that financial services advertising can increase the likelihood of an

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individual to choose an appropriate financial plan by informing consumers of the consequences
of inappropriate retirement management However, they have also argued that that financial
services advertising provides insufficient financial information and employs communication
approaches which can lead to biased perceptions of financial offerings as well as oversimplified
decision making among consumers. Finally the research has concluded that bit would be useful
to exclude advertising cues that can lead to default bias and to instead enable consumers to
consider and select other financial offerings by clearly designating the default option as an
interest plan in RFSAs. Furthermore, greater caution should be exerted to emphasize
diversification strategies in RFSAs without sufficient information disclosure of what funds are
sensible to combine.
Bibiloography
Clifton, J., Fernández-Gutiérrez, M., & García-Olalla, M. (2017). Including vulnerable groups in
financial services: Insights from consumer satisfaction. Journal of Economic Policy
Reform,20(3), 214-237.
Damianos Giannakis & Michael J. Harker (2014) Strategic alignment between relationship
marketing and human resource management in financial services organizations, Journal
of Strategic Marketing, 22:5, 396-419, DOI: 10.1080/0965254X.2013.876082
Hatice Imamoğlu, Salih Katircioğlu & Cem Payaslioğlu (2018) Financial services spillover
effects on informal economic activity: evidence from a panel of 20 European countries,
The Service Industries Journal, DOI: 10.1080/02642069.2017.1423056

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ANNOTATED BIBLIOGRAPHY
LEE, T., HALEY, E., YUN, T. W., & CHUNG, W. (2011). US Retirement Financial Services
Advertising's Financial Information Provisions, Communication Strategies and
Judgmental Heuristic Cues. Journal of Consumer Affairs, 45(3), 391-418.
doi:10.1111/j.1745-6606.2011.01210.x
Joanna Gray, (2011) "Judicial review of Financial Services Compensation Scheme's
exercise of power to impose compensation costs levy", Journal of Financial Regulation
and Compliance, Vol. 19 Issue: 2, pp.195-
204, https://doi-org.ezproxy.cqu.edu.au/10.1108/13581981111123889