The Effects of Innovative Banking: A Research Project

Description: A group project I worked on for an entire semester. Overall, I spent at least ten hours interviewing people for this project on my own and an additional 15 putting it together.

I came up with the idea for this research project when I walked by Idaho Central Credit Union in Septemeber 2018. In addtiton to coming up with the idea I wrote at least a 3rd of the final paper. I also designed the infographic using a program called Tableu.

Date: Fall 2018

The Effects of Innovative Banking

By: Samantha Johnson, Sarah Perry, Iris Aguila

Step 1: Select a problem

Idaho Central Credit Union opened an innovation center in Rexburg, Idaho. It has a virtual reality center, video conference room, and a 3D printer. This research will answer whether or not this new center will attract new members. This research could be expanded to other credit unions that may adopt ICCU’s practices. 

  1. Is the topic broad?

No, the topic focuses on the practices of one specific credit union in three major areas in the state of Idaho. The areas are Rexburg, Boise, and Coeur d’Alene.

  1. Can the problem really be investigated?

Yes. Researchers are already in contact with the ICCU in Rexburg. ICCU employees are excited to participate and grateful for the interest shown in their innovation center. Researchers have also contacted other credit unions for comparisons. 

  1. Can the data be analyzed? 

Yes. A cost-benefit analysis will determine whether these innovations bringing in new members to ICCU credit union’s innovation center.

  1. Is the problem significant?

Yes. As banking is becoming more universally mobile, are the tactics credit unions and banks use to bring customers into their stores working?

  1. Can the results of the study be generalized?

Yes. Researchers are surveying a broad enough range of ages, as well as multiple locations throughout the state.

  1. What costs and time are required in the analysis? 

The time requirement is 15 minutes a day minimum for two and a half months. The costs will include contact lists for different universities and miscellaneous research materials. 

  1. Is the planned approach appropriate to the project?

Yes. By surveying multiple locations for data comparison, researchers will be able to craft an answer to their question. 

  1. Is there any potential harm to the subjects?

No.

Step 2:Review existing research and theory

Please refer to the attached research articles.  

Step 3:Develop a research question

Are Idaho Central Credit Union’s innovations increasing their new members, which would increase their gross revenue?

Step 4: Determine an appropriate methodology/research design

  1. Explain in detail what/who constitutes your total population.

The total population for this research project is college students, aged 18 – 25, and currently enrolled in an undergraduate program in the state of Idaho. To reach this population, probability sampling will be utilized. ICCU has branches located in three main areas of the state: Boise, Coeur d’Alene, and the Pocatello to Rexburg area. Each of these areas has an Idaho Central Credit Union near a University, as well as other well-known credit unions or banks. It is believed this sampling will be able to give a good picture of the data and allow generalization to the rest of the state. The research group is reaching out to Boise State University, Northern Idaho College, Idaho State University, Brigham Young University – Idaho, University of Idaho, and Lewis & Clark to obtain contact lists for students meeting the target population. A couple of backup universities inthe same areas will also be contacted. 

      2.  Explain how you will use triangulation. 

The research group will use triangulation by utilizing both surveying and interview tactics. A survey has been created to aid in the determination of whether or not the ICCU’s innovations are increasing the amount of new members. The researchers want to know why the respondents’ bank with their current banking institutions and what may motivate them to change banking institutions. ICCU’s innovation center will be observed for2 weeksduring itshours of operation. The number of people who come to use ICCU’s innovations will be tracked, and those individuals will be interviewed about their experience. Data collected from the survey and interviews will then be analyzed to determine the effectiveness of the innovation center in increasing net revenue. 

Questions to ask the respondents:

  • What did you think of the (insert innovation)?
  • Where would you like to see more of this type of technology?
  • What are some things that have convinced you to diminish your company loyalty?
  • What ways companies have been able to market to you?
  • Are you a member?
    • If not, would you join a banking institution that had this type of technology for free? Why or why not?

      3.  Explain how you will ensure internal validity.

Internal validity will be insured by keeping interviews, and other related research focused on the correlation between new banking methods and their revenue, specifically Idaho Central Credit Union and it’sinnovation center.

      4.  Explain how you will ensure you research is externally valid.

External Validity will be insured by making sure the target group is not too specific and is common enough for data to be generalized to the rest of the state. The survey will also be set up in a way that ensures it is completed by the target audience.

      5. Will you use an experiment? 

An experiment will not be used in this research project. However, the means were available, it would be proposed that a booth would be set up in a public place with a big screen and a virtual reality headset. People would be invited to play games for a minimum of 10 minutes. They would then be given a brief survey asking them how they feel about this type of technology, and what other places they would like to see it. 

      6. Explain what measurement levels you will use. Give specific examples. 

Researchers will use nominal levels of measurement to measure what banks/credit unions people use. Ordinal levels of measurement will measure factors respondents value in their current banks/credit unions and factors they wish they had. Survey results will identify what is most and least important to respondents which will be measured ordinally. Ordinal measurement will also identify the likeliness of respondents switching their banking membership to ICCU because of the innovation center. 

Certain categories bear particular relevance to this research such as age which can be measured using ratio data. The true zero of age will will be zero. Measuring the amount of 18-25 year-olds who have an account with ICCU and measuring the ages of those using the innovation center will be particularly helpful. 

      7. Explain how you will ensure that all who participate in your research project will adhere to ethical standards. Are there any potential ethical problems? 

In order to ensure all who participate in the research project adhere to ethical standards, they will be informed that all answers and information they give will be kept confidential. The goal of this confidentiality is to deter dishonesty. There are not any other anticipated potential ethical problems. 

     8.  Will you utilize longitudinal research? Will you utilize content analysis? 

The researchers will utilize longitudinal research by repeatedly sending out The survey in hopes of getting the various responses needed, as well as in observing ICCU’s innovation center. The content and data will then be analyzed for any consistencies or irregularities.

      9.  Explain what basic statistical procedures will be complete your research. 

In order to determine if Idaho Central Credit Union’s Innovation Center is increasing itsmembership researchers will need to count the number of new accounts created in the Rexburg area with ICCU since the innovation’s opening. 

Researchers will need to predict whether or not new members will come using a survey sent to random samples of eligible persons. Researchers will need to analyze survey data and determine what prospective or current customers value in their banking institutions. 

Researchers will also need to determine how the innovation center’s tools are being used. Researchers will be able to determine this by interviewing those who come into the center to use the 3D printer, virtual reality gaming system and digital tellers. Researchers will also need to count the number of people using the innovation center’stechnology within a given time frame. 

Step 5: Collect relevant data

Survey – Please see attached documents.

  1. Explain how you will gather your survey data.

The data will be gathered by using Qualtrics, a program which specializes in collectingdata for surveys. That data will then be exported for appropriate organization and analysis relating to the research goal. 

    2.   How will you increase your response rate? 

The survey will be sent to college students aged 18-25 a total of 3 times, to increase ourresponse rate.

Step 6:Explain how you will analyze and interpret your results

For this project, the researchers will be using Qualtrics and Microsoft Excel to analyze and interpret data. Qualtrics will organize the responses from the survey through certain parameters set, which will allow for the recruited data extraction. The responses from additional in-person surveying and data collected in focus groups will be input into Excel, where that data will then be organized and analyzed.  

Step 7Explain how you will present the results in appropriate forms

  1. Indicate how you will present the results/ Will you use charts or graphs? 

In order to effectively present the results of this study, researchers plan to use posters with the findings posted on them. The number of people who have joined ICCU will be posted in a graph and the predicted number of people who will join will be posted to compare. A graph of the new member count for ICCU will also be posted to compare. The values of the customers will be posted and the values the innovation center will be posted to compare. 

    2.   Will you publish your results? If you publish, where will the report be published?

Hopefully, these results will be published in the BYU Journal of Undergraduate Research.

Step 8: Will the study need to be replicated? Why/why not? 

This research should be repeated throughout a series of six months, in order to have more precise data.

  1. Explain how this research will benefit other professionals in your field of study?

This research will benefit ICCU’s and itscompetitors by helping to understand why potential clients choose their respective banking institutions.

     2.   Could other professionals utilize your research to assist them in future research projects? 

Other professionals, such as companies who provide services for their clients, could use this research to help them understand how to market their services to the 18-25 age group.

Step 9: How much it will cost

According to ICCU’s company profile, they serve over 255,000 people across Idaho. It has 36 full-service branches and locations, but only one of which has the amenities offered in the innovation center. 

In order to truly understand if the innovation center will increase the number of members researchers would need to look at the new members who joined ICCU as a result of the innovation center in Rexburg. 

However, the innovation center only opened in September 2018 so researchers are attempting to predict its success (being measured with the amount of new members). Researchers are attempting to predict its success in all of Idaho rather than just Rexburg because ICCU may choose to open additional innovation centers alongside its existing branches. 

All the potential members for ICCU will need to be interviewed to have an accurate prediction of how many new members will result from the innovation center, but a sampling of potential members ought to provide sufficient information. 

Researchers anticipate interviewing 30 people who come to the ICCU innovation center within a certain time frame. Costs per interview are calculated based on that anticipation. 

 Hrs. NeededCost/Hr*Cost
Research Study Coordinator48$20.25$972
Survey Writer8$15.71$125.68
Data Analyst10$19.83$198.30
Case Writer8$15.71$125.68
  Total Cost$1,421.66

*All cost/hr estimates are based on entry-level positions and come from payscale.com

Gross Incidence30
Acceptance Rate75%
Actual Contacts Necessary40
Minutes per Contact8
Total Contact Minutes320
Productive Minutes per Hour20
Total Contact Hours16
Total Interview Hours20
Total Hours36
Hourly Rate$15
Total Cost$540
CPI$18
Total Cost for Interview$540
Total Cost for Employees$1421.66
Total Cost$1,961.66