ABSTRACT Title: A study on Factors affecting customer’s decision to use E-banking Services at Commercial Banks in Vietnam Author: To Minh Phuong – student of the Faculty of Foreign lang
INTRODUCTION
Introduction
The rapid advancement of information technology has significantly transformed economic and social life, particularly impacting the banking sector This evolution necessitates ongoing innovation in services, with E-banking emerging as a focal point Due to its remarkable benefits, including convenience, speed, and time efficiency, E-banking has gained swift acceptance among customers.
In Vietnam, where 70% of the population is online and mobile subscribers reach 145.8 million (Digital 2020 report), the demand for E-banking is on the rise This study focuses on the factors influencing customers' decisions to utilize E-banking services at commercial banks in Vietnam, aiming to better understand customer needs for this service.
Background of the study
The Covid-19 outbreak in 2020 significantly altered consumer behavior, leading to a surge in online payment services as a means to reduce direct contact and facilitate transactions during the pandemic According to a report from the Department of E-Commerce and Digital Economy (Ministry of Industry and Trade), 53% of the Vietnamese population engaged in online shopping, contributing to an 18% growth in the e-commerce market in Vietnam for that year.
2020, the number of payments via mobile phones increased compared to 2019 As a result, electronic banking services have grown significantly.
Objectives of the study
Understanding the issue of E-banking and its evolution in Vietnam
Identifying the factors that influence customer ’s decision to use E-banking
Offering some effective solutions in the development of e-banking services for the State Bank and Commercials Bank based on those influencing factors.
Significance of the study
This thesis enhances users' understanding of E-banking services by outlining their benefits and drawbacks, enabling customers to utilize E-banking more effectively.
Besides, the project’s goal is to help Banks develop E-banking services quality and attract more potential customers by offering a variety of recommendations.
Scope and limitation of the study
This study explores the perceptions of customers utilizing E-banking services in Vietnam, conducted entirely through online channels The research involves gathering information about E-banking and collecting data through questionnaires to understand customer experiences and attitudes.
Due to time constraints, the graduation thesis questionnaire targets a limited audience, primarily university students Additionally, a lack of comprehensive knowledge restricts the in-depth analysis of the issue at hand Acknowledging these limitations, the author seeks constructive feedback from lecturers and readers to enhance the quality of the thesis.
Definition of terms
E-banking is a service used by computers and telecommunications in which banking transactions are allowed to perform via telephone or computer rather than through direct person-to-person contact (Wikipedia)
Consumer behavior: is the study of the process people make purchase decisions to satisfy their needs, wants or desires (Enis,1974)
Internet Banking is a service that enables customers to make transactions via internet-connected devices
Mobile Banking is a service allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet
Technology Information is an engineering branch that uses computers and software to convert, store, protect, process, transmit, and collect information
ATM is a banking equipment for automatic transactions with customers, performing customer identification through cards
Technology Acceptance Model is a research model of factors related to technology adoption
LITERATURE REVIEW OF E-BANKING AND CONSUMER
Literature review
E-banking brings many benefits to users as well as to the banks which supply these services However, the rate of customers using the service in Vietnam is still limited for a number of reasons Therefore, some researchers focus on understanding the factors affecting the intention to use services in order to find out the causes and solutions to improve the service utilization rate in the country
“Understanding the determinants to use behavior of Mobile Banking: Extending UTAUT model with perceived risk and trust” is a research topic by Hoang Ha
In 2019, the author developed a research model based on the UTAUT framework, identifying six factors that influence usage behavior: efficiency, perceived effort, favorable conditions, reliability, social influence, and perceived risk Data analysis from a sample of 142 customers revealed that convenience, efficiency, and reliability significantly impact consumption behavior, accounting for 43.4% of the factors influencing customers' decisions to use the service.
In their 2017 research paper titled "Service Quality and Social Impact in the Acceptance of Electronic Payments," Nguyen Duy Thanh and Huynh Anh Phuc utilized theoretical frameworks such as the Technology Acceptance Model (TAM), the Theory of Reasoned Action (TRA), the Unified Theory of Acceptance and Use of Technology (UTAUT), and the E-Commerce Success Model to explore the factors influencing the acceptance of electronic payments Their findings indicate that, in Vietnam, social influence plays a significant role, exerting both direct and indirect effects on the acceptance of electronic payments, particularly through the perceived ease of use.
Additionally, TAM model (Davis et al, 1989) is also referred by Le Thi Kim Tuyet
In her 2008 research titled "Factors Influencing the Use of Internet Banking Services: A Study in the Vietnamese Market," the findings reveal a significant correlation between perceived usefulness, perceived reliability, and ease of use, all of which impact customers' intentions to utilize Internet Banking services.
Theoretical and Conceptual framework
E-banking, as defined by Daniel (2000), refers to the provision of banking information and services to customers through various delivery platforms These services can be accessed using different terminal devices, including personal computers, mobile phones with browsers or desktop software, telephones, and digital televisions.
Pikkarainen, Karjaluoto and Pahnila (2004) defines Internet banking to be the
“internet portal through which customers can use different kinds of banking services ranging from bill payment to making investment”
E-banking is a service used by computers and telecommunications in which banking transactions are allowed to perform via telephone or computer rather than through direct person-to-person contact (Wikipedia)
In general, the definitions of E-banking assume that this is a service using electronic devices such as computers, laptops, mobile phones, etc to perform non- cash transactions
Electronic banking has significantly transformed the banking industry by introducing non-branch services as alternative distribution channels for customers The concept of Internet and phone banking originated in the 1980s, coinciding with the rise of Internet usage During this period, banks and financial institutions in Europe and the USA began to adopt "home banking" as a research concept The advancements in computers and the Internet have provided greater benefits to both banks and customers compared to traditional machines and phones (Sarels & Marmorstein, 2003).
The USA’s “Netbank” was the first Internet banking service Later in 1996,
In 2001, Citibank and Wells Fargo pioneered online banking features, while DBS Bank launched its online financial services in Singapore in 1997, followed by UOB, OCBC, and other banks (Gefen & Straub, 2005; Gerrard & Cunningham, 2003).
Internet Banking services were officially launched in Vietnam in 2004, followed by the introduction of Non-Cash Payment methods approved by the State Bank in 2006 to align with economic development The emergence of Mobile Banking in 2010 marked a significant advancement in financial services Today, E-banking services continue to gain popularity and evolve to meet the growing demands of customers.
Home banking is a convenient service that enables customers to receive automatic notifications about account transactions through email or mobile phone Additionally, customers can send SMS messages to the Call Center to inquire about their account balance, check exchange and interest rates, and access various banking information and services.
An ATM is a specialized computer that simplifies the management of a bank account holder's funds It enables users to check account balances, withdraw or deposit money, and transfer funds to other accounts Modern ATMs have been enhanced with additional features, including the ability to recharge accounts and pay utility bills such as electricity and water.
SMS Banking operates through SMS messaging systems, allowing customers to receive important notifications regarding their accounts, such as OTP confirmation codes, account balance changes, and management fees This service requires customers to provide a phone number and does not necessitate an internet connection.
Mobile banking enables the distribution of banking products and services via mobile phone networks It involves a secure and encrypted exchange of information between a bank's processing center and the customer's mobile device.
Internet banking allows customers to conduct transactions using Internet-connected devices like phones, laptops, and desktops, eliminating the need for in-person interactions at bank counters Its widespread adoption is attributed to the convenience and efficiency it offers However, to protect customer information, internet banking necessitates a more complex transaction confirmation process.
2.2.1.4 Advantages and Disadvantages of E-banking a Advantages and disadvantages to banks
E-Banking is a good solution for banks to expand the scope of activities This service helps implement the strategies of globalization without opening more branches at home or abroad thence promoting the bank's reputation
E-banking services enable swift processing of customer payment and collection orders, facilitating rapid monetary capital transfers This acceleration enhances money circulation and improves the efficiency of the bank's capital.
E-Banking with a modern and multi-functional banking model will provide customers the best quality care services as well as enhance customers’ satisfaction and trust Once experiencing good service, customers will make recommendations of it to friends, relatives, colleagues that has the potential to increase the number of loyal customers
E-banking services significantly minimize the risk of errors for banks by automating transactions through technological devices This fully automated system operates over the internet, ensuring that all transactions are digitally recorded and stored, eliminating the need for manual record-keeping Consequently, the likelihood of human error is greatly reduced.
Elderly individuals often struggle to adapt to modern banking technologies, leading to a reluctance to use e-banking services As a result, banks may overlook a significant portion of their customer base who prefer traditional banking methods.
Unlike traditional banking services, e banking requires regular update and maintenance of infrastructure, for which e banking providers have to pay quite a lot And this increases the expenditure for banks
The absence of a strong and sustainable link between banks in the electronic banking system restricts interbank transactions, resulting in time-consuming and costly external transactions Additionally, customers experience both benefits and limitations when utilizing e-banking services.
RESEARCH METHODOLOGY
Locale of the study
The research will be conducted among customers who using E-banking service at Commercial banks in Vietnam.
Research design
This thesis employs a mixed-method approach, utilizing a descriptive method for data interpretation gathered through questionnaires The analytical technique applied is Exploratory Factor Analysis, focusing on four key factors: Perceived Usefulness, Perceived Ease of Use, Social Impact, and Security Data collection involved distributing questionnaires to users for non-profit sampling purposes.
The thesis refers to secondary data from professional source, reliable websites and journal articles to make an evaluation in the most objective and accurate way.
Data gathering procedures
The creator distributed a questionnaire by sharing it on social media, specifically targeting school forums and local community groups, to gather responses from customers.
Sampling description
After conducting a survey of customers using E-banking services completely by online method, 207 valid responses are collected
Exploratory factor analysis (EFA) guidelines by Hair et al (1998) state that the minimum sample size should be at least five times the number of observed variables, represented as \( n \geq 5 \times m \) With 24 observed variables in the survey, the required sample size is calculated to be \( n = 5 \times 24 = 120 \) Therefore, the survey sample meets the necessary requirements.
In multivariate regression analysis, the minimum required sample size can be determined using the formula \( n = 50 + 8 \times m \), where \( m \) represents the number of independent variables (Tabachnick and Fidell, 1996) For a study with four independent variables, the sample size is calculated as \( n = 50 + 8 \times 4 = 82 \), indicating that the survey sample meets the necessary requirements.
Based on 2 methods above to calculate the minimum sample size, the questionnaire which received 207 responses is appropriate in meeting sample requirements.
Research Instrument
The author has used Questionnaire to collect customers' information with the goal of analyzing their perception of E-banking services
The survey includes 2 main parts and an introduction part where the writer explains the purpose of conducting the survey
Part 1: Personal information with 6 multiple choice questions This section includes
This article explores four key questions regarding customers' age, gender, income, and education to classify their usage of services Additionally, it addresses two questions that assess the current state of E-banking utilization at commercial banks.
Part 2: This part includes 6 questions built following the 5-point Likert scale which are evaluated with levels from 1 to 5:
This section aims to explore customers' perceptions of E-banking by examining key influencing factors: Ease of Use, Usefulness, Social Impact, and Security The author believes that these factors significantly affect customers' decisions to utilize E-banking services The data collected will be analyzed to validate this hypothesis.
The Cronbach Alpha is used to assess the reliability of observed variables within each factor and to evaluate the correlation among these variables By utilizing Corrected Item-Total Correlation, researchers can identify and remove inconsistent variables from the research model, enhancing the overall conceptual value of the factors.
An alpha coefficient above 0.8 is considered excellent, while values between 0.7 and 0.8 are acceptable Coefficients of 0.6 or higher may be utilized if the research concept is novel or presents a new context, as noted by Nunally (1978), Peterson (1994), and Slater (1995), as referenced by Hoang Trong and Chu Nguyen Mong Ngoc (2005).
Observed variables with small corrected variable-total correlation (less than 0.3) are considered as garbage variables which are removed
A scale is considered acceptable if the Cronbach's alpha coefficient is 0.6 or higher Additionally, any variables with a Corrected variables - Total Correlation coefficient below 0.3 should be removed, as they do not meet the necessary correlation threshold (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2009).
In the thesis, Cronbach’s Alpha is used to evaluate the reliability of the Likert which is mentioned above
EFA is utilized to assess both the convergent and discriminant validity of variables, highlighting the interrelationships among variables within the factor and across the scale.
According to Nguyen Dinh Tho (2011), EFA is qualified if:
Factor loading (The indicator ensures the level of practical significance) > 0.5
0.5 ≤ KMO ≤ 1: KMO coefficient (to consider the suitability of factor analysis)
The Bartlett test indicates statistical significance with a p-value (Sig.) of less than 0.05, suggesting that the hypothesis of no correlation among the variables can be rejected This implies that the observed variables are correlated within the population.
Percentage of variance > 50%: Shows the percentage variation of the observed variables
In the thesis, the Pearson correlation coefficient is to measure the rigidity between the independent variable (Intention) and dependent variables (Ease of Use, Usefulness, Social impact and Security)
Pearson correlation coefficient (r) will take the value from +1 to -1 The condition for meaningful correlation is the sig value smaller than 0.05
This analysis assesses the strength of the independent variables' impact on the dependent variable Consequently, it enables the evaluation of which factors significantly affect customer intention to use the product, identifying both the most and least influential elements.
When performing regression, it is necessary to pay attention to 3 tables at the test results: Model Summary, ANOVA, Coefficient
At the Model Summary table, it is necessary to consider the value of Adjusted R square - showing the degree of variation of the dependent variable affected by the independent variables
In the ANOVA table, if sig < 0.05, the model is significant
In the Coefficients table, the standard regression coefficient is utilized to assess the influence of independent variables on the dependent variable A significance value (sig) of less than 0.05 indicates a meaningful impact of the independent variable on the dependent variable Additionally, the Variance Inflation Factor (VIF) coefficient is employed to evaluate the presence of multicollinearity among the independent variables.
From the above instruments, the author is able to evaluate the appropriateness of the proposed research model.
Statistical treatment of data
The author collected 207 responses from the questionnaire, translated the answers into English, and converted the data into an Excel file before encrypting it for compatibility with SPSS browsers.
Table 3.1:Building and coding the scale
Ease of Use E1 I found it easy to install apps E-banking
E2 I understand clearly about steps to perform transactions
E3 I can quickly become familiar with the service's features Usefulness U1 E-banking has many useful features
U2 Using E-banking helps users save time U3 Taking IB increases efficiency in transaction
U4 E-Banking services allow customer to perform transactions contemporaneously Social Impact S1 Recommendation by relatives, friends and colleagues
S2 Requirement from the jobs S3 Appreciation others review on E-banking
S4 The importance of Bank’s reputation Security P1 Personal information is highly confidential
P2 Technical error is reduced in making payment P3 Financial problems are quickly solved
Decision I1 I am intending to use E-banking
I2 I will continue to use E-banking
I3 I will recommend E-banking for friends, relatives to use E-banking
The data commands are validated using the specified tools, and once the results are obtained, the author synthesizes them into tables while eliminating any elements that may be deemed unnecessary.
FINDINGS AND DISCUSSION
The development of E-banking at Commercial Banks in Vietnam
In 2018, Vietnam saw 72% of its population owning smartphones, with 68% using them to access the Internet and 25% engaging in daily mobile Internet usage Many Vietnamese individuals possess multiple mobile devices, averaging 1.7 devices per person According to PwC's 2019 global consumption survey, Vietnam emerged as the fastest-growing market for mobile payments, with the percentage of consumers using mobile phones for payments rising from 37% in 2018 to 61% in 2019, the highest growth among six Southeast Asian countries surveyed In comparison, Thailand's rate increased from 19% to 67%, while Malaysia, the Philippines, Singapore, and Indonesia also experienced significant growth Vietnam's Internet payment volume grew by 19.5% in 2018, with mobile payments showing even more remarkable increases of 41.4% in transaction numbers and 169.5% in transaction amounts Statista reported a 22% rise in electronic payment transactions in 2017, totaling USD 6.14 billion, with projections to reach USD 12.33 billion by 2022, highlighting Vietnam's potential as a rapidly growing mobile payment market.
According to the data synthesized from the survey, the frequency of using E- banking services is markedly different Internet banking service has the highest number of regular customers, accounting for 64.7%
Since its introduction in Vietnam in 2004, Internet Banking has gained significant traction among banks By 2007, 18 banks offered this service, and by 2012, the number increased to 46 out of 50 banks, representing 92% By 2014, all 47 banks provided Internet Banking However, following the merger of the Mekong Housing Bank into BIDV and the Mekong Development Bank into MSB, the number of banks offering Internet Banking decreased to 45 in 2019.
As of March 31, 2019, financial transactions conducted through Internet channels exceeded 101 million, generating approximately 4,581 trillion dongs This represents a significant increase of 65.81% in transaction volume and 13.46% in revenue compared to the same period in 2018, according to the Director General of the Payment Department (2020).
MOBILE BANKING INTERNET BANKING ATMS HOME BANKING
Chart 4.1 Frequency of E-banking services usage
Chart 4.1 indicates that Mobile Banking is the second most popular service, with over 50% of respondents reporting regular usage.
By the end of 2014, 32 banks had launched mobile banking services, attracting 3 million customers with an average annual growth rate of 20-30% (Techcombank) The surge in mobile device usage, including smartphones and tablets, coupled with the expansion of wireless Internet connectivity (3G), has significantly contributed to the increasing popularity of mobile banking among consumers.
In 2020, the volume of financial transactions conducted through mobile phones exceeded 76 million, with a total transaction value surpassing 924 trillion dong This represents significant growth of 97.75% in transaction volume and 232.3% in value compared to the same period in 2018, according to the Director General of the Payment Department.
As one of the first e-banking services, ATM is used by customers regularly because of its withdrawal function Nearly 50% of respondents have frequent need to use the service
Source: DAMMIO construction, compiled from data sources such as VNNIC, Internet
Live Stars, Index Mundi and Stalista
Chart 4.2 Statistics on the number of internet banking users in the period 2012-2019
In 2015, the NAPAS card system managed over 90% of ATM switching transactions, but this dropped to around 40% by 2019 The onset of the Covid-19 pandemic in early 2020 led to a significant shift towards electronic payments, with internet payment transactions increasing by nearly 50% in value and mobile phone payments surging by over 160% compared to the same period in 2019 As of June 30, 2020, the market had 19,307 ATMs, yet the monthly cash withdrawal sales per ATM decreased by 4%, averaging VND 11.03 billion per machine, down from VND 11.47 billion in 2019.
As of 2020, the number of POS machines in Vietnam decreased to 189,389, a significant drop from 2019 However, transaction efficiency per POS improved, showing a 15% growth in the first half of 2020 International cards remain the primary payment method at POS, comprising 73% of transactions, although this figure has shifted since 2019 due to the effects of COVID-19 and border closures.
The decline in home-banking usage is largely attributed to the availability of alternative services and the unreasonable costs associated with them According to data in Table 4.1, a staggering 88% of customers report using home-banking services as "never" or "rarely."
The real status of E-banking at specific banks
A survey of 207 customers revealed that many utilize services from multiple banks simultaneously The leading banks in E-banking usage are Techcombank, BIDV, Vietcombank, and Agribank, with customer counts of 68, 43, 36, and 32, respectively.
In the first quarter of 2020, Techcombank experienced a significant increase in e-banking usage, with customer adoption rising to 79.9% from 60.4% the previous year The bank recorded 78 million electronic transactions, marking a 149% increase, and a transaction value of 1,136 trillion VND, which is up 113% compared to the same period last year This data highlights the growing preference among customers for Techcombank's convenient electronic transaction methods.
In 2017, e-banking services saw over 2 million new customer registrations, achieving an annual growth rate exceeding 35% The total number of e-banking transactions reached 44 million, with BIDV leading in both transaction volume and value, capturing 22.25% of the market through the NAPAS channel By June 2018, BIDV had processed over 14 million payment bills via electronic banking, primarily through its BIDV SmartBanking products.
By the end of 2019, Vietcombank saw its Internet Banking and Mobile Banking customer base grow to 6 million, marking a nearly 200% increase since the end of 2016 This surge aligns with the robust growth of e-commerce.
CHART 4.3 THE NUMBER OF RESPONDENTS
Vietcombank has observed a significant increase in customer demand for non-cash payment solutions, with e-banking transactions rising from 70% in 2016 to 90% in 2019 This represents a remarkable growth of over 200% in non-cash transactions during this period.
Agribank's E-banking services have seen significant growth in both volume and quality, with approximately 6 million customers utilizing these services by the end of 2017 The user base continues to expand at a robust rate.
2018 which was about 7.35 million, 23% upturn compared to 2017 By 2019, Users of E-banking in Agribank hit almost 10 million, a rise of 36% over 2018 E-banking revenue hit 646 billion VND by December 2019
Table 4.1 Agribank statistics Unit: Billion VND
(Retrieved from: https://agribank.com.vn)
In summary, according to statistics over the years, especially in the period of 2019-
Questionnaire-based data analysis
4.2.1 Assessing the influence of demographic characteristics on
Customer’s intention to use E-banking
Table 4.2 The characteristics of the sample observed by demographic factors
Age From 16 to under 23 years old 107 51.7
Income Under 6 million per month 111 53.6
From 6 to 25 million per month 82 39.6
According to collected data from the questionnaire, 207 survey participants included 68 males (accounting for 32.9 %), 131 females (accounting for 63.3%) and
The demographic distribution reveals that individuals aged 16 to 23 make up 51.7% of the population, while those aged 23 to 45 account for 42%, and those over 45 represent 6.3% Among the respondents, 68.8% hold university or college degrees, 22.2% have post-graduate qualifications, and 9.2% are currently in high school In terms of monthly income, over 50% of participants earn below 6 million, 39.6% earn between 6 to 25 million, and only 6.8% have an income exceeding 25 million.
In the scope of the survey, the majority of respondents are young people (University students and graduates), with a relatively low average monthly income (under 6 million)
4.2.2 The factors involving customers' perception in their choice of E banking
Totally agree Agree Neutral Disagree Comletely Disagree
E1: I found it easy to install apps E-banking
E2: I understand clearly about steps to perform transactions
E3: I can quickly become familiar with the service's features
The majority of customers expressed agreement regarding the criteria in this factor, with E1, E2, and E3 receiving 96, 69, and 94 responses, representing 46%, 33%, and 45% respectively Only a small number of individuals reported difficulties in using E-banking, indicating a low level of disagreement.
Previous studies have shown that the ease of use significantly impacts users' intentions to utilize the Internet (Kent Erickson, 2005; Le Thi Kim Tuyet, 2008) Kesharwani et al (2012) emphasize that this ease of use is reflected in website design, which in turn affects users' intent to engage with online platforms.
H1: Ease of Use positively impacts on Customers’ decision in using E-banking
Users can access the system and conduct transactions anytime and anywhere, thanks to continuous upgrades by banks E-banking now offers enhanced features to better serve customer needs Most banks have upgraded their ATMs to allow account recharges without needing to visit a counter Additionally, the introduction of e-wallets linked to bank accounts provides significant advantages for online shopping and bill payments.
Data indicates that over 50% of customers appreciate the convenience of E-banking Among the observed variables, the level of agreement is notably high Specifically, at U1, 85 users represent 41% of the total, while at U2, the user count continues to reflect this trend.
82 users with 40% of proportion; the rate of users at U3, U4 is 39% and 38% in turn People disagree with each criteria of the factor equivalent to a small proportion which ranges from 3% to 10%
U1: E-banking has many useful features
U2: Using E-banking helps users save time
U3: Taking IB increases efficiency in transaction
U4: E Banking services allow customer to perform transactions contemporaneously
In his research, Eastin (2002) found that convenience perception influences customers' demand to use online services In addition, Lichtenstein and Williamson
In 2006, it was asserted that convenience is the primary factor influencing banks to adopt Internet banking Additionally, research by Siu Cheung et al (2002) and Kent Eriksson (2005) indicates that customers' perceptions of the usefulness of these services significantly enhance their intention to utilize Internet banking.
H2: Usefulness positively affects customers’ decision to use E-banking
Totally agree Agree Neutral Disagree Competely disagree
In fact, recommendations from the crowd can build a reputation for banks, then create trust from customers and increase the number of loyal customers for the bank
Previous studies have consistently highlighted the positive impact of social factors on the intention to use mobile banking services (Macanese, 2017; Goh, 2014) Research conducted in various countries, including Singapore (Riquelme & Rio, 2010) and Malaysia (Tan, 2016), further acknowledges the significant influence of social factors in e-banking.
S1: Recommendation by relatives, friends and colleagues
S3: Appreciation others review on E-banking
S4: The importance of Bank’s reputation
H3: Social Impact influences the customers’ decision in using E-banking positively
Totally agree Agree Neutral Disagree Completely Disagree
The level of customer agreement regarding the impact of security factors is notably high, with 93 customers at P1, 71 at P2, and 74 at P3 expressing positive feedback In contrast, the rates of complete disagreement and disagreement remain low, each below 20% across all criteria.
P1: Personal information is highly confidential
P2: Technical error is reduced in making payment
P3: Financial problems are quickly solved
Research indicates that while security is acknowledged as a concern in e-banking, its influence on users' intent to adopt the service is less significant compared to other factors (Lichtenstein & Williamson, 2006) Conversely, Wadie Nasri (2011) emphasizes that security plays a crucial role in encouraging customer usage of e-banking Additionally, a report by The Wall (1997) reveals that many households are open to utilizing e-banking services if they are assured of security.
H4: Security has a positive effect on customers’ decision to use E-banking
Totally agree Agree Neutral Disagree Completely disagree
4.2.3 Evaluate the scale’s reliability and the relationship between independent variables and intention to use E-banking
Table 4.3 Verification the scale of influencing factors according to the Cronbach's coefficient
Cronbach’s Alpha if Item Deleted
The table indicates that the mean values of the variables exceed 3, while Cronbach’s Alpha for each factor is above 0.6, with the Social Impact and Intention factors achieving coefficients greater than 0.7 This demonstrates a strong correlation among the observed variables and confirms the reliability of the scale Most customers express agreement with the perspectives established by these variables.
4.2.3.2 Exploratory Factor Analysis EFA a Independent variable
Table 4.4 Independent variables EFA analysis result
The analysis combined 14 variables into 4 groups, yielding a KMO index of 0.716, which exceeds the threshold of 0.5 Additionally, Bartlett's Test of Sphericity resulted in a value of 1.052, greater than 1, with a significance coefficient of 0.000, indicating strong statistical significance The total variance extracted was 58.39%, surpassing the 50% benchmark These indicators confirm that the independent variables exhibit a strong correlation and ensure the reliability of the actual values.
Table 4.5 Dependent variable EFA analysis result
The KMO indexes, Eigenvalue coefficients, variance percentage, and Sig coefficient for the dependent variable all met the necessary thresholds, demonstrating that the observed variables within the population are interrelated This confirms the suitability of conducting EFA factor analysis.
The analysis of EFA factors confirms that the proposed variables align with the study's objectives Both the independent and dependent variables demonstrate reliability, making them suitable for subsequent analysis.
Table 4.6 Independent and dependent variables Pearson's correlation index
A significance coefficient below 0.05 indicates a correlation between the variables The chart results demonstrate that the independent variables are indeed correlated with the dependent variable Additionally, correlation coefficients below 0.8 suggest that there is no multicollinearity present among the variables.
Table 4.7 Synthesis the indicators to be observed in the regression analysis
Table 4.7 presents the results of the regression analysis, revealing an Adjusted R Square of 0.694, indicating that 64.9% of the variation in the dependent variable is explained by the four independent variables, while 35.1% is attributed to external factors and random error All significance values are below 0.05, confirming the significance of each variable The standardized regression coefficients (Beta) are all positive, indicating a positive influence of the independent variables on the dependent variable Notably, the variable S has the highest beta coefficient at 0.401, signifying that social impact has the strongest effect on intention, whereas the variable E has the lowest beta coefficient at 0.201, indicating that perceived ease of use has the weakest effect Additionally, with a VIF coefficient of less than 2, multicollinearity is not a concern, confirming that the variables meet the necessary requirements The regression equation is provided.
Discussion
The study surveys 207 respondent opinions related to 14 criteria of 4 factors which affect customer’s decision to use e-banking services including Ease of use,Usefulness, Social Impact and Security
Research findings indicate that the scales for independent components and customer decision factors are dependable Exploratory factor analysis revealed that all scales exhibited satisfactory factor loading coefficients and achieved strong convergence values Additionally, linear regression analysis supports the hypothesis testing results.
Table 4.8 Result of the influencing factors on the decision to use E-banking
Social impact significantly influences customers' decisions to use e-banking, with a regression coefficient of 0.401 Key elements such as customer feedback and the bank's reputation, with corrected item-total correlation coefficients of 0.737 and 0.687 respectively, play a crucial role in this influence Research by Nguyen Duy Thanh et al (2017) supports these findings, highlighting the strong effect of social influence on customer behavior Consequently, commercial banks can leverage this insight to develop effective business strategies aimed at attracting more customers to their services.
Security plays a crucial role in customers' decisions to use E-banking, with a regression coefficient of 0.355 Key aspects of reliability include the confidentiality of personal information, reduction of technical errors, and prompt problem resolution The significance of Security & Privacy in technological services like E-banking cannot be overstated, making it an essential factor in understanding customer choices Research has confirmed the importance of security, highlighting it as a top concern for users To improve E-banking service quality, commercial banks must enhance their security measures and problem-solving systems.
Ease of use and usefulness significantly influence customers' decisions to use E-banking services, with regression coefficients of 0.221 and 0.210, respectively According to the Technology Acceptance Model (TAM), these two factors are crucial in shaping users' intentions However, recent findings indicate that they have the least impact on E-banking decisions, likely due to evolving customer habits in the digital age As technology becomes ubiquitous, users find it easier to access modern devices like smartphones and laptops, shifting their focus towards service quality and features Therefore, banks should consider consumer behavior when developing E-banking solutions.
RECOMMENDED SOLUTIONS TO DEVELOP E-BANKING
Recommendations for Commercial Banks
5.1.1 Solutions to increase the level of Social influence
To build customer trust, banks must prioritize customer feedback and enhance their customer care services, swiftly addressing any points of dissatisfaction Effective customer service plays a crucial role in assessing service quality, making it easier for banks to foster positive impressions and trust among clients Commercial banks should regularly collect customer reviews, ideally on a quarterly or semi-annual basis, through automated emails or SMS This practice not only showcases the bank's professionalism but also encourages customers to recommend the bank to friends and family A strong reputation within the community significantly boosts the bank's credibility and helps increase its loyal customer base.
Commercial banks must prioritize the enhancement of security measures to protect both personal information and payment transactions Safeguarding sensitive data, including date of birth, address, identity card number, and phone number, is crucial to prevent identity theft and malicious activities Furthermore, implementing biometric authentication methods, such as fingerprint or facial recognition, for payment transactions can significantly improve security compared to traditional passwords Additionally, banks should incorporate fingerprint scanning technology at ATMs and utilize tools to prevent shoulder surfing when customers enter their PIN codes.
5.1.3 Suggested solution to improve Convenience
Commercial banks aim to enhance service quality to meet the growing demands of customers Strengthening relationships between banks is essential for providing convenience to users Interbank transactions must be efficient, straightforward, and cost-effective Given the significant number of customers engaging in transactions across different banks, the development of a robust interbank system is crucial.
Offering complementary services is an innovative strategy to attract customers By providing related services like insurance, utility bill payments, and installment options, businesses can save customers time and effort.
5.1.4 Suggested solution for enhancing Ease of use
Banks need to streamline the process of installing online applications Customers should receive clear guidance from specialized staff when registering for Internet Banking at the transaction office Furthermore, it is essential to provide login instructions and transaction payment steps in accessible formats, such as articles or videos, to enhance user experience.
Recommendations for State Bank (SBV)
The SBV must implement effective policies to incentivize commercial banks in the development of E-banking services Furthermore, it is essential to research and propose laws that align with the evolving landscape of electronic banking, while also facilitating the digital transformation of credit institutions.
To combat the spread of Covid-19, the SBV should urge institutions to enhance advertising for non-cash payment services, encouraging their use among the public This initiative aims to reduce face-to-face interactions, thereby minimizing the risk of epidemic transmission.
To effectively build and develop e-banking, significant capital investment is essential Therefore, the State Bank of Vietnam (SBV) should assist commercial banks, particularly small and medium-sized institutions, in mobilizing both financial and human resources This support will ensure they are fully prepared with the necessary facilities, technical infrastructure, and equipment.
To enhance customer information security, the State Bank of Vietnam (SBV) should implement stricter regulations for commercial banks The amended Law on Credit Institutions emphasizes the obligation of credit institutions and foreign bank branches to maintain the confidentiality of personal information (Article 14) Additionally, Government Decree No 117/2018/ND-CP outlines the procedures for handling customer information, detailing the order of provision (Article 8) and the documentation required for requests (Article 9).
The State Bank of Vietnam must enhance and stabilize electronic payment operations, ensuring swift and accurate interbank transactions Regular maintenance and repairs of the interbank system are essential to minimize payment-related issues affecting customer accounts.
Finally, The State Bank should try to change people's habits of using cash
Recent statistics indicate that cash payments still represent a significant portion of the economy, despite a gradual decline Therefore, it is crucial for the State Bank of Vietnam (SBV) to actively promote online banking services The SBV should highlight the convenience of E-banking while providing tailored instructions for various user groups, particularly the elderly and residents of rural and mountainous areas.
E-banking, which is a viral component of the cashless economy,does an improvement of the using efficiency and increases the satisfaction of banking service users in the digital era
This thesis aims to enhance E-banking services in Vietnam by surveying customer perceptions of the service Utilizing questionnaires and SPSS for analysis, the research tests the reliability of various factors The findings indicate that "Ease of Use," "Usefulness," "Social Impact," and "Security" are significant and reliable influences on customer satisfaction.
This study aims to identify the key factors influencing customer usage of E-banking The findings will provide valuable recommendations for commercial banks to enhance service quality and attract a growing number of customers to their E-banking services.
1 Daniel (2000), The provision of electronic banking services in the UK and Scandinavia,Journal of Financial Services Marketing
2 Pikkarainen, Karjaluoto and Pahnila (2004), Consumer acceptance of online banking: An extension of the Technology Acceptance Model, Emerald Group Publishing Limited
3 Enis (1974), Marketing Principles: The Management Process, Goodyear Publish company
4 Esi Oktafian Fatimah & AMA Suyanto (2016), Analysis Factors of Using Internet Banking in Indonesia,Management and Organizational Studies
6 Shaikh, A.A and Karjaluoto, H (2015), Mobile Banking Adoption: A Literature
7 Blackwell, Engel, and Mansard (1986), Consumer Behavior
8 Wadia Nasri (2011), Factors Influencing the Adoption of Internet Banking in Tunisia, International Journal of Business and Management
9 Solomon, M., Bamossy, G J., Askegaard, S., & Hogg, M K (2006) Consumer Behavior: A European Perspective (3rd Edition), Prentice Hall
10 Schiffman, G and Kanuk, L (2000) Consumer Behavior, Prentice Hall
11 Kent Eriksson (2005), Customer acceptance of Internet banking in Estonia
12 Siu Cheng & Ming Te (2002), Understanding Internet Banking Adoption and Continue-Use Behavior: A Hong Kong Perspective
13 Kotler (2004), Marketing Management: Analysis, Planning, Implementation, and
14 Hoang Ha (2019), Understanding the determinants to use behavior of Mobile Banking: Extending UTAUT Model with perceived risk and trust, Dai hoc Da Nang
15 Hoang Trong & Chu Nguyen Mong Ngoc (2008), Phan tich du lieu nghien cuu vơi SPSS, NXB Thong Ke
16 Ho Le Thu Trang & Phan Thi Phuong Thao (2018), Ung dung ly thuyet hanh vi theo ke hoach phan tich y dinh hanh vi du lich co trach nhiem ve bao ve moi truong cua du khach noi dia tai thanh pho Can Tho, Dai hoc Can Tho
17 Nguyen Dinh Tho & Nguyen Thi Mai Trang (2009), Nghien cuu khoa hoc trong quan tri kinh doanh, NXB Thong Ke
18 Nguyen Duy Thanh & Huynh Anh Phuc (2017), Chat luong dich vu va Anh huong xa hoi trong su chap nhan thanh toan dien tu, Tap chi phat trien KH&CN
19 Le Thi Kim Tuyet (2008), Mo hinh cac nhan to anh huong den y dinh su dung dich vu Internet Banking nghien cuu tai thi truong Viet Nam, Tuyen tap Bao cao
Hoi nghi Sinh vien nghien cuu khoa hoc lant hu 6, Dai hoc Da Nang
1 John Dudovskiy, Consumer Buyer Behavior Definition, Retrieved May 5 th 2021 from https://research-methodology.net/consumer-buyer-behaviour-definition/
2 Digital 2020: Vietnam, Retrieved on May 8 th 2021 from
Digihttps://datareportal.com/reports/digital-2020-vietnam
3 (2015) The Evolution And Implementation Of Internet Banking Information
I don't know!
4 Marketing Strategy of Best Buy, Retrieved on May 6 th 2021 from: https://phdessay.com/marketing-strategy-of-best-buy/
5 The Various Forms of E Banking Information Technology Essay, Retrieved on
May 6 th 2021 from https://www.ukessays.com/essays/information- technology/the-various-forms-of-e-banking-information-technology-essay.php
6 The Hoang (2021), Thương mại điện tử bùng nổ trong năm 2021, Retrieved on May 6 th 2021 from https://baodautu.vn/thuong-mai-dien-tu-bung-no-trong-nam-2021-d137452.html
7 SPSS là gì? Cách sử dụng phần mềm SPSS trong nghiên cứu khoa học, Retrieved on May 6 2021, from https://luanvan2s.com/phan-mem-spss-la-gi-bid75.html
8 Nguyen Thi Thai Hung (2020), Bảo mật thông tin khách hàng khi sử dụng dịch vụ ngân hàng số, Retrieved on May 6 th 2021 from https://thitruongtaichinhtiente.vn/bao-mat-thong-tin-khach-hang-khi-su-dung- dich-vu-ngan-hang-so-28428.html
9 Le Nha Yen (2020), E Banking là gì? Dịch vụ ngân hàng điện từ là gì? sử dụng và lưu ý, Retrieved on May 5 th 2021 from https://infofinance.vn/e-banking-la- gi/#:~:text=E%20Banking%20l%C3%A0%20vi%E1%BA%BFt%20t%E1%BA
%C3%AAn,l%C3%BD%20t%C3%A0i%20kho%E1%BA%A3n%20h%E1%BA
10 Retrieved on May 6 th 2021 from Tapchinganhang: http://tapchinganhang.gov.vn/nghien-cuu-cac-nhan-to-tac-dong-den-du-dinh- hanh-vi-su-dung-mobile-banking.htm
The article discusses the promotion of internet banking development in Vietnam, highlighting the initiatives and policies implemented by the State Bank of Vietnam It emphasizes the importance of electronic payment systems and the role of the central bank in overseeing these advancements The content is aimed at enhancing financial accessibility and efficiency in the banking sector, contributing to the overall economic growth of the country.
&_afrLoop31680316367926#%40%3F_afrLoop%3D1631680316367926%2 6centerWidth%3D80%2525%26dDocName%3DSBVWEBAPP01SBV075439% 26leftWidth%3D20%2525%26rightWidth%3D0%2525%26showFooter%3Dfals e%26showHeader%3Dfalse%26_adf.ctrl-state%3D6qluj1300_9
12 Tran Van Dung (2021), Phát triển dịch vụ ngân hàng điện tử ở Việt Nam hiện nay, Retrieved on May 9 th 2021 from https://tapchitaichinh.vn/ngan-hang/phat- trien-dich-vu-ngan-hang-dien-tu-o-viet-nam-hien-nay-331113.html
13 Retrieved on May 9 th 2021 from Omicall: https://omicall.com/yeu-to-nao-anh- huong-den-hanh-vi-nguoi-tieu-dung/
14 Retrieved on May 9 th 2021from https://tinnhanhchungkhoan.vn/doanh-so-su- dung-the-toan-thi-truong-6-thang-dau-nam-2020-giam-xuong-9-post252458.html
15 Retrieved on May 9 th 2021 from Thoibaonganhang: https://thoibaonganhang.vn/tren-toan-quoc-co-hon-18700-may-atm-88896.html
16 Retrieved on May 10 th 2021 from BIDV: https://www.bidv.com.vn/bidv/tin- tuc/thong-tin-bao-chi/ttbc+bidv+nhan+giai+tin+dung