Topic improve the quality of internet banking services atjoint stock commercial bank for foreign trade of vietnam(vietcombank)

NATIONAL ECONOMICS UNIVERSITYFACULTY OF BUSINESS MANAGEMENT ---***---BUSINESS RESEARCH METHODS REPORT Topic: Improve the quality of internet banking services at joint stock commercial b

NATIONAL ECONOMICS UNIVERSITY

FACULTY OF BUSINESS MANAGEMENT

-*** -BUSINESS RESEARCH METHODS REPORT

Topic: Improve the quality of internet banking services at joint stock commercial bank for foreign trade of Vietnam

(Vietcombank)

Instructor: Mrs Nguyen Thi Hong Van

Group member : 4

Student full name : 1 Vu Nguyen Khuong – DSU06038

2 Thai Ba Quang – DSU06055

3 Tran Khoi Nguyen – DSU06050

4 Nguyen Anh Kiet – DSU06037

Hanoi - 2022

TABLE OF CONTENTS

1: THE REASON FOR CHOOSING THE TOPIC 2

2: RESEARCH PURPOSE AND RESEARCH QUESTIONS 3

2.1: General purpose of research 3

2.2: Research questions 3

3: RESEARCH OVERVIEW 3

Previous studies 4

4: THEORETICAL FRAMEWORKS AND DESIGN TO CHOOSE SAMPLES 5

5: RESEARCH METHODS 17

5.1: The method of data collection 17

5.2: Statistical methods 17

5.3: Methods of analysis and synthesis 17

6: EXPECTED RESULTS TO BE ACHIEVED 17

7: PLAN/SCHEDULE OF RESEARCH IMPLEMENTATION 18

LIST OF REFERENCES 20

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1: THE REASON FOR CHOOSING THE TOPIC

Nowadays, the demand for banking services is increasing, especially with thestrong impact of the 4.0 technology revolution, e-banking services have emerged as

an essential requirement, in which Internet Banking service is available Thisactivity has increasingly contributed significantly to the profits of commercialbanks Vietcombank is one of the pioneer banks in developing Internet Bankingservices and has achieved many successes However, the problem here is whetherVCB has properly invested in the quality of the service or not Today, servicequality is an important factor determining the success of a bank Customers usingthe service are not only interested in the cost but also the service quality

2: RESEARCH PURPOSE AND RESEARCH QUESTIONS

2.1: General purpose of research

The thesis focuses on studying the current situation of internet banking servicequality of VCB, thereby proposing some solutions to develop and improve thequality of e-banking services for VCB

2.2: Research questions

On the basis of theoretical research and actual situation of Internet Bankingservice business at Joint Stock Commercial Bank for Foreign Trade of Vietnam,pointing out the causes of service limitations and proposing measures andrecommendations to contribute completing and improving the quality of InternetBanking services at Vietcombank

This article aims to answer the following research questions:

- What is the status of Vietcombank's Internet Banking?

- What are the shortcomings and limitations?

- What solutions and policies can be improved and improved?

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3: RESEARCH OVERVIEW

The article is based on the essay "Improving the quality of mobile banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam" by MSc NGUYEN THI MY Diem - Dr TRINH XUAN HOANG (Faculty of Finance and Accounting, Nguyen Tat Thanh University)

Internet Banking service started appearing in Vietnam since 2004 until now, it

is increasingly popular, the number of banks providing and customers using theservice is increasing Internet Banking was initially deployed in Vietnam with only

3 banks participating in providing services, then gradually increased in 2008, thisnumber has increased to 20 banks and as of June 30, 2015, most of Internet BankingCommercial banks all provide internet banking services Vietnamese commercialbanks effectively deploy towards the most convenience for customers intransactions with banks Accordingly, Internet banking services of banks providecustomers with the following features: Online personal financial management;Online savings; Borrowing Online; Using payment, collection and online services;Online shopping with a variety of goods and services at major payment gateways inVietnam: eBay, TVshopping, muaban.net, VietnamAirline, AirMekong, Jetstar,megastar, vinagame; Register for Online service

On May 15, 2002, Joint Stock Commercial Bank for Foreign Trade of Vietnamopened VCB-online, removing barriers of time and space, meeting customers'needs, implementing one-stop deposit and multi-door withdrawal

In January 2008, the bank implemented internet banking to be able to providethe best service, perform all transactions for customers wherever they are.According to the survey data in August 2010 of Vietcombank over 9,000 customers,the satisfaction rate with Internet Banking service is 70% With a strict automatedexecution process that has conquered a large number of customers, that is, everytransaction that a customer makes will be sent to the server for order scanning,immediate processing of standard orders , for wrong orders, the machine willresend and the payer will consider and resolve it within 24 hours from the time theorder is entered, ensuring the fastest resolution, saving time for customers

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Previous studies

C K Sunith, 2018, “Customer Satisfaction in E-Banking Services” Theauthor's research aims to determine the level of customer satisfaction when using e-banking services By identifying factors affecting customer satisfaction, the authorproposes solutions to develop e-banking services: creating many new products inbusiness strategy, focusing on introducing new products and services newtechnologies and new strategies to customers to change customer preferences andbehavior while retaining existing customers

Perkins, Ed-Zilla and Annan, Jonathan, 2013, “Factors affecting the adoption

of online banking in Ghana: Impliacations for bank managers” International journal

of Business and Social Research (IJBSR) On the basis of analysis from the researchmodel of technology acceptance TAM (Technology Acceptance Moldel) withindependent variables research has pointed out the factors that have a greatinfluence on the acceptance of using internet banking services in Ghana such aspeople, technology, safety and security

Vu Hong Thanh, Vu Duy Linh (Banking Magazine No 11-2016) with thearticle "Development direction of Mobile Banking services for Vietnamese banks"stated the basic services, types of , benefits as well as risks when using MobileBanking service as well as the trend of this type of service in the world However,this article still omits a form of this type of service that is to use services based onother internet platforms such as computers, high popularity and security

4: THEORETICAL FRAMEWORKS AND DESIGN TO

CHOOSE SAMPLES

To evaluate the actual quality of Internet Banking services provided byVietcombank to customers, whether to bring satisfaction to customers or not At thesame time, based on Parasuraman's Servqual model theory and other studies on thetopic of service quality, the author conducted a survey to collect customerevaluations of IB services through emailing and handing out the survey directly at

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the bank (Survey sheet attached in the Appendix) The target customers to conductthe survey are customers who have a transaction account at Vietcombank

Survey results: a total of 200 survey questionnaires were sent to customers,obtained 178 valid votes, 22 votes did not respond (mainly from email) or did notmeet the requirements for the survey

Out of 178 valid receipts, the majority of customers used VCB's Internet Banking service, accounting for 93.3% The remaining customers do not use the service because they have

no need and do not know the service

Based on the collected survey data, the author has made statistics by specificmodel as follows:

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- Gender of customers participating in the survey: 52% male, 48% female.

- The gender structure does not have a big difference, so it is acceptable

- Age: customers who participated in the survey and used the serviceaccounted for 37.95% with age from 30-39 years old followed by 18-29 years oldaccounting for 34.94%

- Professional qualifications: the highest rate of 74.09% of customers havecollege or university degrees

- Occupation: 66% are officers and employees

- In the survey on service access, 48.2% of customers know about InternetBanking service through the introduction of friends, relatives and colleagues This isunderstandable, because VCB has a large number of account opening customers andlarge transaction needs, so the bank's customers themselves are also an effectivechannel for promoting and introducing products Followed by survey data, there are39.1% customers know about the service through staff at the bank when customerscome to make transactions, the remaining 12.7% of customers know about theservice through the Internet, newspapers this is also a fairly high rate, proving thatthe group Customers who want to use the service still have to actively search forinformation from the mass media and banks There are also no good methods toreach these target customers

- In order to assess the level of customer satisfaction about Vietcombank'sInternet Banking service, we have designed an evaluation survey with a scale of 1 to

5 for each criterion

Very Dissatisfied Dissatisfied Natural Satisfied

Very Satisfied

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handle the problem

when the system

Are you satisfied

with the quality of

1 Does VCB provide useful services as committed? 4.3

2 VCB quickly processes transactions, less exit processing 3.9

3 VCB staff actively resolve customer complaints in a timely manner 2.5

5 Full transaction documents, clearly and accurately identified 3.1

6 VCB homepage is always stable and continuous 2.7

7 The IB system processing the transaction encountered an error 3.3

8 VCB staff is always ready to help customers 3.5

9 Reasonable transaction limit (limit / day) 3.6

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10 Procedures and procedures for service registration at VCB are

12 Account information is covered by VCB for safety and security 4.1

13 Customers feel safe when using Internet Banking for transactions 4

14 VCB staff is expected to have professional knowledge to handle

customer complaints and inquiries quickly and satisfactorily 3.5

15 Private VCB staff is still enthusiastic and convincing 3.2

16 VCB has many customers care programs (promotions, gifts.) 2.7

17 Customers sympathetically wait for VCB to handle the problem

18 The utility and features of Internet Banking are diverse, meeting the

19 The service is provided quickly, accurately, and easy to use 4.3

20 Spacious facilities, wide transaction network, convenient for

21 Are you satisfied with the quality of Internet Banking service of

22 VCB's Internet Banking service meets your needs well 4

23 VCB's Internet Banking service is better than other banks 3.3

=> General comments about the quality of Internet Banking services atVietcombank that customers evaluate as follows:

Reliability: In terms of reputation, it can be affirmed that Vietcombank is themost prestigious state-owned bank today, as evidenced by the constantly growingbanking system and the number of customers' choice Vietcombank is more andmore The bank also provides services as promised to customers, working clearly toprovide complete transaction documents It can be seen that customer evaluation ofVCB is one of the banks with high reliability

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Responsiveness: VCB – IB@nking old web version guaranteed ensuring thesimple and easy-to-understand elements for customers, but not yet reaching theattractiveness, friendliness, and not paying attention to customer experience Thenewly released version has tried to overcome this drawback and began to receivegood feedback from customers The transaction processing speed is fast, especiallythe transaction with the same system and the fast money transfer from the othersystem However, the customer's complaints about the error condition are stillrecorded, there is a case that after the customer enters all the information to conductthe transaction, the transaction is not performed while the customer accountHowever, customers still have to deduct money, leading to customers having tocontact the bank many times to check the transaction, while the time to check foronline transactions is quite long (from 5-7 working days) The reason to explain this

is that the transmission line is often overloaded due to the amount of bankingtransactions great Besides, the customer service fee rate is not high, customers alsocomplained that the bank has collected many unreasonable fees compared to otherbanks since VCB's fee schedule changed on March 1, 2018 reduce customersatisfaction with the service

Assurance: in terms of security, the service is customer reviews are quite good,proving that customers are assured of using the bank's internet banking service fortransactions Customers after registering to use the service at the counter will beprovided with registration information including username and activation passwordsent by email to the registered email address of the customer The username is thecustomer's account cif number, and this sequence is known only to the customer andthe bank The password management system is guaranteed by the system according

to the safe and secure procedures according to the PCI DSS standard (PCI DSS Payment Card Industry Data Security Standard, which is a mandatory standard forany relevant organizations and businesses to the processing of payment card data)

-To increase user authentication system When logging in, in addition to therequirement to use username and password like other systems, Internet Bankingsystem provides each customer with a solution to generate a password that isautomatically used once when transacting called OTP (One Time Password) and

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that password is sent on an SMS message to the customer or VCB's OTP collectiondevice Particularly for the data transmitted and received between the device and thebank, it is encrypted with a secure transmission certificate (SSL certificate), whichhelps the data on the transmission line to be encrypted, avoiding revealinginformation about the customer's account when the data is transmitted data is sentfrom the web side or mobile device to the system server and vice versa For thetransactional staff, the consultant is evaluated as enthusiastic and thoughtful, but theconsultation only stops at stating the benefits for the customer, but not directingthem Provide specific instructions on how to conduct transactions as well as safetyprecautions when customers use e-banking services Bank staff handled theoperation competently, however, at the time of crowded customers, they alsorevealed confusion when conducting transactions At the same time, the handling ofcustomer service or transaction problems is only supported through the customersupport center or directly at the transaction counter without online technical supporttools to help quickly solve customer inquiries, save time, effectively increaseservice quality.

Empathy: Internet Banking does not have many separate attractivepromotions, mainly belonging to the promotions of e-banking in general, the form

of promotion is just free money transfer and payment bill, discount phone billpayment For error transactions, the bank needs to check and reconcile, but the time

is quite long leading to interruption and inconvenience to customers, so the criterion

of waiting for the bank to resolve is not evaluated high

Tangibles: Internet Banking of VCB has been met basic transaction needs ofcustomers, which is highly appreciated by customers Service is improved thanbefore with many built-in utilities, easy to use In addition to the basic functions forfinancial transactions, VCB - IBanking also has additional utilities such as:registration/cancellation, password re-issuance for the accompanying Mobile -Banking service; activate/deactivate active SMS –Banking function; register/cancelthe service of automatically deducting the account to pay the fixed monthly bill;lock/unlock/register/cancel online payment for VCB card To meet the diverseneeds of customers, Vietcombank now also introduces customers to VCB -

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