An exploration of the value creation process in bank-corporate communications

This study found that the nature of bank-corporate relationship is long-term, trust-based personal communications between banks and corporate customers. Macro conditions including the advances in technology, financial regulation, and business globalization were considered when they adopted relationship banking. Some intervening conditions including customer information and knowledge, customer needs and customer confidence also influence the development of relationship banking. The interviewees perceived that the case banks gained benefits including customer retention economy, risk management efficiency and effectiveness in maintaining sustainable profitability. The corporate customers gained benefits including fund availability, product availability, service quality, in-time help, and business platform.

This study derives concepts and categories from primary data and identifies relationships among these theoretical elements. This study provides a comprehensive picture of relationship banking and supplies some theoretical and practical implications. Moreover, a value creation theory of the banks is proposed and traditional banking theories are linked.