Market Responsiveness under Customer Analytics Capabilities across Retail Banking Branches

Abstract

The contemporary retail banking sector operates in a highly dynamic environment where localized market responsiveness is critical for sustaining competitive advantage. This study investigates the impact of customer analytics capabilities on the market responsiveness of retail banking branches using a rigorous survey experiment methodology. By conceptualizing customer analytics as a dynamic organizational capability, this research explores how varying levels of analytical maturity influence branch managers strategic decision making and adaptive responses to local market fluctuations. Through a vignette based survey experiment administered to a large sample of branch managers, we manipulate the availability and sophistication of customer analytics tools. The empirical findings reveal that enhanced customer analytics capabilities significantly increase the speed and accuracy of localized market responsiveness. Furthermore, the results indicate that branch level autonomy positively moderates this relationship, suggesting that empowering local managers is essential to fully capture the value of analytical tools. The study contributes to the literature on organizational agility and information systems by providing experimental evidence on the causal mechanisms linking data analytics to responsiveness at the branch level. These insights offer valuable implications for banking executives seeking to optimize their analytics investments and organizational design to foster agile, customer centric branch networks.