MINISTRY OF EDUCATION AND TRAINING STATE BANK OFVIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY GRADUATION PAPER FACTORS AFFECTING CUSTOMER SATISFACTION WITH DIGITAL BANKING SERVICE AT
INTRODUCTION
Rationale for the Topic Selection
In the context of the digital era, digital banking services have emerged as a pivotal and indispensable transaction channel, offering customers exceptional convenience in conducting financial activities anytime and anywhere Notably, during the period from 2020 to 2023, the emergence of the COVID-19 pandemic served as a significant catalyst, prompting the public — including the elderly — to adopt digital banking services as a means of minimizing direct physical contact Recognizing this trend, joint-stock commercial banks in Vietnam have continuously invested in and advanced their digital banking platforms Among them, Asia Commercial Bank (ACB) has proactively developed its digital solution, ACB ONE, which is designed to cater to a wide range of customer segments, including individual clients, corporate clients, and priorge banking
According to ACB, digital banking refers to the services provided by the bank that allows customers to legally and validly access banking products, services, and other utilities through the ACB ONE platform While digital banking offers numerous advantages and a wide range of convenient features, customer satisfaction with the quality of these services remains a pivotal factor in ensuring long-term success and maintaining a competitive edge over other banking institutions and financial organizations According to Nguyen et al (2020), a substantial body of research has been devoted to investigating the determinants of customer satisfaction with electronic banking (E-banking) and internet banking services Studies have employed various theoretical models, such as the Information Systems Success (ISS) model developed by DeLone and McLean, and have focused on key factors including information quality, system quality, service quality, design features, security, reliability, and response time, as well as elements derived from the SERVPERF model The differences in influencing factors vary according to different subjects and locations
Study of Phan et al (2023) also utilizing various methods such as qualitative and quantitative analysis and online surveys, shows that security and ease of use have an impact on issues related to electronic banking services The study also concludes that flexibility significantly affects customer satisfaction Furthermore, the "ease of use" factor exhibits a distinct level of impact compared to other studies, playing a critical
2 role in engaging and retaining customers This suggests that satisfaction may be influenced by different factors depending on the characteristics of customers and the geographical context
However, the author recognize that there remain certain gaps in the existing literature Previous studies have not sufficiently focused on specific customer segments at the branch level While some research has explored customer satisfaction with digital banking in general, or examined specific demographics such as elderly customers in Ho Chi Minh City, there is still a lack of in-depth studies assessing customer satisfaction at a particular branch of a bank serving a defined geographical area — for instance, the Asia Commercial Bank (ACB) – Thu Duc Branch, which caters to customers residing in the Thu Duc area
The context and characteristics of customers at the Thu Duc branch may yield different results, particularly when ACB has implemented the ACB ONE solution Although entering the market relatively late compared to industry competitors, ACB has remained committed to the "slow but steady" approach, ensuring that it meets customer needs in the best possible way
Based on these observations, the author believes that studying the factors affecting customer satisfaction with digital banking services at Asia Commercial Bank – Thu Duc Branch is both necessary and meaningful This research not only helps ACB – Thu Duc Branch gain a better understanding of customer satisfaction levels and the factors influencing them but also provides valuable insights for improving and enhancing digital banking service In turn, can strengthen customer relationships and improve business performance in an increasingly competitive environment Additionally, this study can contribute to existing research on customer satisfaction with digital banking services in Vietnam, particularly at the branch level.
Research Objectives
The general objective of the study is to investigate the factors that influence customer satisfaction with digital banking services at Asia Commercial Bank – Thu Duc Branch.
- Examine the factors that influence customer satisfaction with digital banking services
- Measure the impact of these factors on customer satisfaction with digital banking services at ACB
- Propose recommendations to improve the quality of banking services in order to increase the satisfaction of potential customers in the region when transacting on ACB's platform.
Research Questions
- What factors influence customer satisfaction with of digital banking services at ACB – Thu Duc Branch?
- What is the level and direction of the impact of these factors on customer satisfaction with digital banking services at ACB – Thu Duc Branch?
- Based on the research findings, what solutions should be proposed to improve customer satisfaction with digital banking services?
Research Subjects and Research Scope
− Research Subjects: The variables affecting customers' satisfaction with digital banking services ACB-Thu Duc Branch
− Research Scope: customers who have signed up to use digital banking services ACB-Thu Duc Branch.
Research Methods
The thesis applies both qualitative and quantitative research methods to systematically and objectively collect and analyze data This approach helps to determine the level of impact of various factors on customer satisfaction with digital banking services at ACB – Thu Duc Branch
The qualitative research method is applied through the establishment of measurement scales and the development of a survey questionnaire The author will design the research model and implement the process of statistical analysis on the qualitative data that has been collected Afterward, research hypotheses will be formulated and analyzed in the quantitative study to provide empirical results regarding the factors that are correlated with customer satisfaction with the quality of digital banking services at ACB – Thu Duc Branch
Quantitative research method is applied through collecting and processing panel data using SPSS 27 The author conducts Cronbach's Alpha reliability assessment, EFA exploratory factor analysis, Pearson correlation analysis to determine the relationship between different factors and customer satisfaction with digital banking services at ACB - Thu Duc Branch
Data will be collected through an online survey using a pre-designed questionnaire The content of the questionnaire focused on factors affecting customer satisfaction with digital banking services, such as convenience, cost, security, user experience, and technological impact The questions will use a 5-point Likert scale (ranging from 1 – “Strongly Disagree” to 5 – “Strongly Agree”) to measure the level of agreement of customers with each factor
Sample Size: The research sample consisted of 300 distributed survey forms
Of these, 173 responses were collected, and after checking, 150 responses were determined to be valid and used for further research Data were collected through online surveys from 2/2025 to 3/2025 The sample was randomly selected from customers using ACB ONE
- Descriptive Statistics: Descriptive statistics will be used to analyze the demographic characteristics of customers, such as age, gender, occupation, frequency of digital banking service usage, and overall satisfaction with the services This will help provide an understanding of the customer profile and their behavior regarding digital banking services
- Multiple Regression Analysis: Multiple regression analysis will be employed to identify and measure the impact of independent variables (such as convenience, cost, security, customer service, and advertising influence) on the dependent variables, which is the decision to use digital banking services The regression results will show which factors have the strongest and weakest influence on customer decisions regarding digital banking services.This approach will allow the research to determine the key drivers of customer satisfaction and usage behavior, providing valuable insights for improving service offerings at ACB – Thu Duc
Structure of the Thesis
The proposed structure of the thesis consists of 5 chapters, as follows:
Chapter 1: Introduction: This chapter provides an overview of the thesis, including the problem statement, the significance of the research topic, and the justification for its importance It outlines the general and specific objectives aimed at identifying the relevant research questions Additionally, it describes the research subjects and defines the scope of the study in terms of both space and time The chapter also presents the research methodology and discusses the scientific and practical significance of the topic
Chapter 2: Theoretical Framework: This chapter presents the theoretical foundations of the topic and reviews both domestic and international studies related to digital banking service quality, user behavior theories, technology theories, etc In this chapter, the author will summarize the key findings of the studies referenced in the research, highlighting their significance Additionally, the author will identify gaps in these studies and provide a critical analysis of the results presented in the literature
Chapter 3: Research Methodology and data processing: This chapter outlines the research methods and data analysis techniques used in the study The author will propose a research model and present appropriate measurement scales to assess the factors that directly (or indirectly) influence customer satisfaction with the quality of digital banking services at ACB – Thu Duc Branch The methodology section will also describe how the data will be collected, processed, and analyzed to answer the research questions
Chapter 4: Research Results and Discussion: Presenting research results and discussing them In this chapter, the author summarizes and presents the survey results according to each criterion, then the author performs descriptive statistics and regresses the variables to produce test indicators
Chapter 5: Conclusion and Recommendations: The author draws conclusions and proposals solutions drawn from the results of the previous chapter
Chapter 1 laid the foundation for the entire research process on the factors influencing customer satisfaction with the quality of digital banking services at Asia Commercial Bank (ACB)—Thu Duc Branch In this chapter, the author provided an overview of the topic, clearly defined the research objectives and questions, as well as the specific research subjects and scope The selected research methodology was also presented in detail, serving as a basis for the subsequent analytical steps Moreover, this chapter discusses the scientific and practical significance of the study and outlines the structure of the thesis to give readers a comprehensive understanding of the content and research approach
THEORETICAL FRAMEWORK
Theoretical Foundations
Digital banking is the process of applying information technology to digitize various aspects of the banking industry, including processes, products, services, and customer interactions This transformation leads to significant changes in the business model and industry structure of the banking sector
Digital banking is a model developed, managed, and operated on modern technology platforms, aiming to deliver traditional financial products and services to customers in a more convenient, faster, and more efficient manner Beyond simply transforming transaction methods, digital banking comprehensively digitizes and integrates core functions of traditional banking such as risk management, capital mobilization and utilization, product development, and various other banking operations (Bui, 2024)
To fulfill these functions, digital banking extensively applies advanced technologies such as blockchain, big data analytics, artificial intelligence (AI), and process automation The integration of these technologies not only shortens transaction processing time but also enhances accuracy, strengthens security, and optimizes operational costs As a result, digital banking provides fast, convenient, and superior service experiences to all customer segments compared to traditional banking models (Phan et al., 2023)
Fundamentally, digital banking represents a profound transformation in the financial services sector driven by the widespread adoption of information technology (IT) This transformation is reflected in the extensive use of digital channels such as computers, smartphones, and other mobile devices, enabling customers to access and utilize banking services anytime and anywhere(Gasser et al., 2017)
Key aspects of digital banking include: first, digital banking initiatives, which deliver retail financial services that closely resemble those provided by traditional banks These include a wide range of activities and functions such as accepting deposits, providing loans, and offering transactions and payment accounts Second, digital banking platforms integrate innovative services and connect customers, banks, and third-party providers across multiple banking touchpoints These platforms are typically
8 open and interactive, designed to seamlessly incorporate services such as social banking, self-service onboarding, and automated advisory solutions Third, digital channels of financial intermediation reduce reliance on traditional bank branches and promote the use of digital interfaces to facilitate interactions between depositors/borrowers and the bank Finally, the advancement of digital banking is strongly driven by technological innovation and consumer behavior Consumers increase demand convenience, efficiency, and access to financial services anytime, anywhere
Digital banking is completely different from electronic banking (E-banking) and online banking (Online banking) Many people can easily confuse the concepts, digital banking, E-Banking and Online banking are not actually the same thing E- banking is considered a service that complements the daily operations of traditional banking services Online banking enables customers to access banking services via the internet, including platforms such as mobile banking and internet banking Compared to e-banking and Online banking, digital banking has a broader and more comprehensive scope
Digital banking applications advanced technologies such as blockchain, artificial intelligence (AI), big data analytics and automation to deliver fast, convenient, accurate, safe, secure transactions and lower costs than traditional banks This represents not merely the digitalization of paperwork, but a revolutionary transformation that enables customers to conduct transactions anytime and anywhere, with near-instantaneous response times Barquin and Hv in 2015 said that a study in a study in Asian countries found that more than 80% of customers are willing to transfer part of their assets to banks with modern digital platforms, of which many do not hesitate to transfer 35–40% of shares This demand is driven by the proliferation of smartphones, e-commerce and digital technology infrastructure
In short, digital banking is a process of profound digital transformation in the banking industry, not only stopping at digitizing existing products/services, but also including the application of modern technologies to restructuring operating models, under the impact of technology and the participation of FinTech companies This model is implemented over the Internet, which can take place anytime, anywhere to enhance the customer experience (towards customer satisfaction)
According to a study by Parasuraman (1985), service quality has been the subject of continuous research for many years and is continuously published by scientific journals with the goal of increasing revenue, cross-selling rates, customer retention and considering purchasing behavior when analyzing the service quality documents, it is found that it is more difficult to assess the specific quality of services than that of tangible products The assessment of digital banking service quality is not only done on the basis of service outcomes but also on the service delivery process
Service quality is also defined as the customer's appreciation of the transcendence and general excellence of an entity These authors also emphasize that service quality is a form of attitude, formed from a comparison between the customer's expectations and their actual perception of the service received This means that, when customers evaluate the quality of service, they contradict what they expect from that service with what they actually experience If actual perception exceeds expectations, service quality is considered high, and vice versa
In the context of digital banking, digital banking service quality refers to the capability of an organization or individual to deliver products and services that meet user needs, based on a set of mutually agreed-upon standards between the service provider and the customer, at a predetermined price This definition focuses on the ability to meet customer needs in a digital environment, following agreed standards and pricing Thus, it can be seen that the definition of digital banking service quality is a concretization of the concept of service quality in general in the digital banking sector Customers using digital banking services will evaluate quality based on whether the products and services provided meet their needs, compared to initial expectations and agreed standards
Factors such as tangible means, service capacity, ease of use, responsiveness, trust and empathy have been studied and identified as having an influence on the satisfaction of older customers with respect to the quality of digital banking services These factors can be considered as specific aspects that clients use to form perceptions and comparisons with their expectations regarding the quality of digital banking services
In short, service quality is the customer's assessment of the superiority and
10 general impression of an entity, which is a form of attitude and consequence from comparisons between expectations and real perceptions Digital banking service quality is the ability of an organization or individual to provide products and services according to user needs based on the set of standards agreed between the service provider and the service user based on agreed prices
2.1.3 Relationship between service quality and customer satisfaction
Since the 1980s, customer satisfaction has emerged as one of the key indicators for measuring business performance, playing a vital role in evaluating service quality and customer engagement (Bailey & Pearson, 1983; Ives et al., 1983) satisfaction is considered a combination of users’ emotions and attitudes toward the factors influencing their service experience When customers are satisfied, they tend to exhibit higher levels of loyalty and are more willing to engage in transactions involving personal and financial information via digital banking platforms Therefore, evaluating customer satisfaction becomes especially important, particularly in the context of high- tech service offerings
Several factors influence consumer perceptions of banking services, including demographic characteristics, personal motivation, behavior toward various banking technologies, and individual readiness to adopt new innovations Parasuraman et al
Models related to research topics
Measuring service quality is inherently more challenging than evaluating product quality due to the intangible, heterogeneous, and inseparable nature of service production and consumption While product quality can be assessed through tangible metrics such as durability and defect rates, service quality requires a distinct and tailored evaluation framework Model SERVQUAL was included in the study with five spacing and five service quality components, paired from two words “Service” and
Factors in the model often known as: Tangibles, Reliability, Responsiveness, Assurance, and Empathy The five factors of the SERVQUAL model are briefly explained as follows in the light of the above sources, in particular 4 and 5 which contain a detailed description of the determinants of quality of service, which is the basis for the SERVQUAL model:
+ Tangibles: Refers to deliver appearance of website/app, equipment, staff and communication materials This includes the appearance of the bank building, the comfort of digital tools and equipment, as well as the professional appearance of the staff
+ Reliability: Related to the ability to perform promised services accurately and reliably Set in condition Bank is transforming itself into a powerful number system, this includes online transactions being processed properly, systems operating stably, and information being secured
+ Responsiveness: Demonstrates the willingness and desire of employees to help customers and provide services quickly For digital banking, this can be timely support via online channels and effective problem solving
+ Assurance: Includes employee knowledge and courtesy, as well as the ability
13 to convey trust and confidence In a digital environment, this can be demonstrated through clear, accurate information and reliable security measures
+ Empathy: Expresses care and attention to each individual customer In digital banking, this can be about providing personalized services that are easily accessible and understand customer needs
The SERVQUAL model is recognized as a scale with theoretical as well as practical value However, the procedure for performing SERVQUAL measurements appears obstructive Since the model measures the quality of service based on customer expectations and real experiences (Quality of Service = Cognitive Reality – Expectations), therefore the model is quite complex because it requires the user to collect data related to both expectations and real perceptions Customer expectations are always fluctuating and difficult to accurately determine is also a big challenge when measuring with SERVQUAL To meet the need to evaluate service quality in the field of digital banking, the SERVPERF model is proposed by Cronin and Taylor (1992) determining service quality is measured by measuring only perceived service quality results without expected quality
The SERVPERF model measures service quality based on customers' perceived performance of service attributes without comparison with previous expectations Instead of calculating the difference between expectations and perceptions like the SERVQUAL model, SERVPERF focuses solely on assessing the extent to which customers believe the service provider performs well on the various attributes of the service
+ Tangibles: Demonstrate the appearance of digital bank facilities, equipment, staff and communication materials This can include the look and feel of apps and websites, the ease of view, aesthetics and modernity of digital platforms This factor is measured by asking customers about the appeal and professionalism of the interface, the update of the platform, and the intuition of the information provided An intuitive, attractive and regularly updated interface will give a positive impression of the overall quality of services of digital banking When customers perceive the tangible elements of a well-designed and modern digital bank, they tend to feel more confident in the service and more satisfied with the overall experience
+ Reliability: Demonstrates the ability to perform promised services consistently and accurately In digital banking, this includes having transactions carried out according to the correct process, correctly from the first time, and meeting customers' daily financial needs This factor is measured by asking customers about the accuracy of transactions they make, the system's ability to operate stably, and whether the bank keeps its commitments For example, customers may be asked whether they trust that transactions on digital banks are always performed correctly Reliability is a core element of service quality Customers expect services finances must be accurate and reliable When customers are confident that the digital bank is operating satisfactorily and that transactions are performed correctly, they feel secure and satisfied when using the service
+ Responsiveness: Demonstrates the willingness and desire of employees (or systems) to help customers and provide services quickly In digital banking, this includes the speed with which transactions are executed, the ability to access the service anytime, anywhere, and timely support when customers have problems Responsiveness is measured by asking customers about transaction processing speed, response time when questions arise, and ability to access service at all times The ability to respond quickly and effectively is an important indicator of high-quality service, particularly in digital environments When customers feel like digital banks are always ready to serve and solve their problems quickly, they will feel cared for and satisfied
+ Assurance: Demonstrates employee (or system) competence, courtesy, and ability to convey trust and confidence In digital banking, this may be related to the safety and security of the platform, clarity in terms and conditions, and the reputation of the bank This factor is measured by the safety and security of transactions, trust in banks' ability to protect personal information, and clarity in the information provided Assurances, especially regarding safety and security, are extremely important in the area of digital banking and finance When customers feel safe and confident using digital banks, they feel comfortable and satisfied with the service
+ Empathy: Expresses the personal care and attention that the bank (or system) gives to customers This may include providing clear, easy-to-understand instructions, interoperability and support through multiple channels, and personalizing the user experience Questionnaires for this factor can ask customers about the comfort of using the platform, the ease of finding information and receiving guidance, and whether they feel the bank cares about their personal needs or not For example, customers may be asked whether digital banking technology makes them comfortable to use Empathy shows that the bank understands and cares about customer needs, thereby improving the perceived quality of service When customers feel that digital banks are designed to be friendly and easy to use and provide the necessary support, they feel more satisfied and attached to the service
+ Service quality is directly assessed through the level of customer awareness of digital banking performance in aspects such as tangibility, reliability, responsiveness, assurance and empathy The perceived high level of performance on these aspects will lead to a higher quality of service and, consequently, a higher level of customer
16 satisfaction The author's research paper will use the SERVPERF model as the main model, combining additional service cost and security factors to comprehensively evaluate the real impacts of customer satisfaction.
Previous studies related to the research topic
Sureshchandar et al (2002) propose a model to measure service quality in the customer service process with 5 variables including: Core service products; Human factors providing services; Service delivery system; Tangible means; Social responsibility Rathee et al (2017) investigate that all dimensions of service quality have an impact on digital banking service quality The seas included in the conduct of the study included: reliability, responsiveness, empathy, assurance, system availability, privacy
Egala et al (2021) conducted a study on the interaction between quality digital banking services and customer satisfaction in the context of COVID-19 in Ghana The study combined elements from the E-S-QUAL and BSQ models, using the PLS-SEM method to analyze 395 responses The results showed that the quality of digital banking services, including ease of use, efficiency, privacy/security, and reliability, significantly
Baabdullah et al (2019) proposed an integrated research model that examined factors affecting mobile banking usage and the impact of digital banking services on customer satisfaction and loyalty in Saudi Arabia The model combines UTAUT2 and D&M IS Success Model, conducting a survey of 395 customers through a convenient sampling method The results show that factors such as performance expectations, costs, support conditions, motivation, habits, system and service quality all have a significant influence on usage behavior
Rawwash et al (2020) with the topic “Factors affecting Jordan e-banking services” focused on the following factors: usefulness, reliability, privacy, security and convenience The results returned all five factors had a positive impact on the use of E- Banking, whereas the convenience factor had a negligible influence
Zouari & Abdelhedi (2021) aimed to examine the impact of digitalization in the banking sector as a service quality factor on customer satisfaction at Islamic banks, based on the SERVQUAL model which expands on two additional factors:
17 digitalization and compliance Surveying 145 Islamic banking customers in Tunisia, the study used factor analysis and regression to assess the impact of service quality dimensions The results show that five factors influence satisfaction: reliability, compliance, digitization, tangibility and behavioral skills, of which digitization has a positive impact, tangibility factors have opposite effect
Table 2 1 Summary table of previous similar foreign studies
180 customers familiar with digital banking services in the NCR region (Delhi, Gurugram, Noida), 130 responses were identified as valid and used for further analysis
Responsiveness, reliability; assurances; empathy; system availability; privacy
(+), reliability(+); assurances(+); empathy(+); system availability(+); privacy(+)
145 customers of the Islamic Bank of Tunisia
Responsiveness; reliability; tangibles ; assurance; empathy;
(+); reliability (+); assurance (+); empathy (+); compliance (+); digitalization (+)
18 compliance; digitalization Okaily et al (2022)
A total of 187 valid responses were collected from 187 decision- makers across
Data quality; information quality; system quality; information quality; analytical decision-making culture
300 individuals were randomly selected, resulting in
Compiled from many previous studies
A total of 246 questionnaire s were collected out of 300 distributed at King
Perceived usefulness; Ease of use; Trust;
CFA Perceived usefulness (+); Ease of use (+); Trust (+); Privacy and security (+)
Service quality and its relationship with Consumer satisfaction and Purchase intentions
Service quality has a significant impact (p < 0.05) on customer satisfaction (+); Consumer satisfaction has a significant impact (p < 0.05) on purchase intention (+); Service quality has no significant impact (p < 0.05) on purchase intention
Two groups of participants in a town located in the South Central region of the United States:
Expectation, Pre- purchase attitude, Pre-purchase intention, Disconfirmation
Two-stage least squares estimation
Disconfirmation (+) both group 1 and 2; Expectation has an indirect effect on satisfaction through disconfirmation; Pre-purchase attitude has a direct and significant
202 households randomly selected from a telephone directory
281 residents who were not part of the initial inoculation group
Post-purchase intention impact on Post- purchase attitude; Pre-purchase intention has a direct and significant impact on Post-purchase intention
Qualitative research Sureshchand ar et al (2002)
Core service or service product; human element of service delivery; systematization of service delivery: non-human element; tangibles of service (servicescapes); social responsibility
Core service or service product (+); human element of service delivery (+); systematization of service delivery: non-human element (+); tangibles of service (servicescapes) (+);
Quan (2020) applied the E-SERVQUAL model and previous studies to come up with a suitable research model The study uses data from a survey of 225 opinions of customers using mobile banking services of Tien Phong Commercial Joint Stock Bank The research results show 6 factors affecting customer satisfaction including: reliability, responsiveness, electronic media, service capacity, empathy with customers, price, service cost
Long et al (2023) analyzed customer reviews of BIDV's digital banking service quality in the following aspects: security, responsiveness, convenience and incentives Data collected from 200 customers using digital services, analyzed using descriptive, comparative and ranking statistical methods The returned results show that the service quality is quite good, with security ranked lowest (3.57/5 points), and transaction accuracy and convenience highest (4.08/5 points)./5 points)
Mai (2024) with the research topic on customer satisfaction when using digital banking services of Orient Commercial Joint Stock Bank (OCB) in Ho Chi Minh City assessed the level of customer satisfaction with OCB OMNI digital banking services in the context of the 4.0 industrial revolution A total of 483 valid survey responses were collected from customers currently using the OCB OMNI digital banking platform, with data gathered between March and April 2023 The research employed the Exploratory Factor Analysis (EFA) method, and the SERVQUAL model was adapted to develop a suitable survey instrument The study identified five independent factors that influence customer satisfaction with OCB OMNI digital banking services, based on a modified SERVQUAL model: reliability, responsiveness, service competence, tangibles, and empathy Regression analysis results indicated that all five factors had a significant and positive impact on customer satisfaction Among them, service competence had the strongest effect (standardized coefficient β = 0,332), followed by tangibles (β = 0,286), reliability (β = 0,180), responsiveness (β = 0,169), and empathy, which had the weakest impact (β = 0,098)
Nhung (2020) analyzes and points out factors affecting customer satisfaction
22 in the quality of electronic banking services of commercial banks in Vietnam The article combined the e-SERVQUAL and BSQ models, taking opinions from 254 random customers using e-banking services in Ho Chi Minh City in the third and fourth quarters of 2020 The results from an objective perspective show that 7 factors have an impact on satisfaction including: reliability, responsiveness, electronic means, service capacity, empathy, cost and service innovation
Table 2.2: Synthesis table of previous analogue country studies Author Research sample
Quan (2020) 225 customers use e-banking services of Tien Phong Commercial Bank
Reliability; ability; electronic equipments; service capacity; empathy;
EFA Reliability (+); ability (+); electronic equipments (+); service capacity (+); empathy (+); Prices, costs (+)
200 individual customers use digital services of BIDV, Thanh
Security; responsiveness; convenience; incentives for customers
Descriptive statistical analysis, comparison and ranking methods
Security (+); responsiveness( +); convenience (+); incentives for customers (+)
Cloud services; banking system security; ease of use; quality of services; website content design
(+); banking system security (+); ease of use (+); quality of services (+); website content design (+)
Le et al (2023) 200 random customers
Ability (+); Convenience (+); Supported policies (+) Nhung et al
254 individual customers using e- banking services in Ho Chi Minh City
Reliability, responsiveness, empathy, service capacity, tangible means, service costs, improvement
Reliability (+), responsiveness (+), empathy (+), service capacity(+), tangible means (+), service costs (+), improvement (+)
HDbank's Mobile banking service in Dong Nai province
Efficiency; security; responsiveness; assurance; design; empathy; incentives
E-SQ, EFA Efficiency (+); security(+); responsiveness( +); assurance (+); design; empathy (+); incentives (+)
Cong (2015) Models for measuring quality banking services
24 questionnaires submitted online serve; empathy; tangible media serve (+); empathy (+); tangible media(+) Hai & Lan
Digital transformation in Vietnamese commercial banks: current situation and solutions
385 individual customers are using Internet Banking service in Ho Chi Minh City
Information quality, system quality, service quality, trust
Information quality (+); system quality (+); service quality (+); trust (+);system quality and information quality does not affect customer satisfaction Cuc et al
Vietnam - current situation and solutions
Conversion costs (+) Cuc et al
Service capacity; Ease of use;
(+); Service capacity (+); Ease of use (+); Responsiveness (+); Reliability (+); Empathy (+)
Up to the present, there have been many authors who have researched on the topic Previous studies on digital banking services still have notable gaps Firstly, many studies focus on assessing customer satisfaction at the scope of a specific bank or commercial banks in general without going into the assessment at the bank branch level, where the context and customer characteristics may be different In particular, there is still a lack of studies assessing the quality of digital banking services at ACB from the customer's perspective and the development of digital banking services based on customer opinions for ACB Secondly, although there have been many studies on satisfaction, the impact of service innovation on customer satisfaction with e-banking service quality has not been fully assessed Finally, some studies may not have covered all customer segments, for example, the proportion of young customers (students) participating in the survey is still low, while this is a potential customer group The study at BIDV Thanh Do branch also showed that security was the lowest rated aspect, indicating that more research is needed to understand and address customers' specific concerns on this issue
Therefore, identifying factors affecting digital banking services to evaluate the quality of digital banking services is still an urgent topic The author's research will
26 contribute to filling the gaps in previous research.
Factors affecting customer satisfaction with the bank's digital banking services
Based on the chosen theoretical basis (from the model SERVPERFand a review of previous studies, factors believed to potentially influence customer satisfaction with ACB's digital banking services include: Trust, Responsiveness, Empathy, Ease of use and the addition of two important factors in the digital banking context, Security and Service Cost, are mentioned from the model e-SERVQUAL has been applied in practical research This will be the basis for the model proposal in chapter 3
The factors are included in the article by the author with the following interpretation:
Reliability: This factor refers to the bank's ability to provide the exact, most important and reliable service promised In the context of digital banking, this implies that transactions on the online platform are carried out properly, no technical errors occur and customer account information is kept confidential Quan (2020) shows that trustworthiness has a positive influence on customer satisfaction They feel more secure and satisfied when using digital banking services when ACB ONE service gives them stability and accuracy in operations Cuc et al (2023) also highlights trust as an important factor for older customers to be satisfied when using digital banking services
Responsiveness: Responsiveness demonstrates the customer's willingness to provide quick and effective customer support, as well as resolve issues or questions promptly This includes online channels having clear instructions, easily contacting customer support right at home, and requests being processed quickly Positive response will greatly increase customer satisfaction Quan (2020) also confirms that response is also a factor that positively affects customer satisfaction
Empathy: Empathy represents care, understanding and attention to each customer's individual needs In the current digital context, this is even better focus on developing banks to provide personal services and information, ready to receive and solve specific customer problems enthusiastically Empathy on the part of the bank will create better relationships with customers, enhancing their satisfaction when using digital banking services Nhung (2020) points out that empathy has a positive influence on customer satisfaction
Ease of use: Ease of use refers to the extent to which customers find it easy to manipulate and use features on a digital banking platform without much difficulty Friendly, intuitive interface, streamlined functions and ease of search are important elements of ease of use When customers feel digital banking is easy to use, they will have a more positive and satisfying experience Conversely, complex and difficult-to- manipulate interfaces can cause discomfort and consider switching to another service that meets this need Zouari & Abdelhedi (2021) also showed that ease of use (digitization) has a positive effect on satisfaction
Perceived Security: Security is a key element in digital banking, related to protecting customers' personal information, accounts and transactions from cybersecurity risks, online fraud and financial fraud Banks need to have effective security measures such as multi-factor authentication and data encryption to ensure customer safety The level of safety and security of digital banking services has a great impact on customer satisfaction When customers feel secure about security, they will be more confident and satisfied when using the service Cuc et al (2023) also shows that security and safety have a positive influence on electronic banking services Long
(2023) and his colleagues has the result that security is the aspect that customers value the lowest in the quality of BIDV's digital banking services
Service costs: The cost of services includes various types of transaction fees, account maintenance fees, interest rates and other costs related to the use of digital banking services Transparency, reasonableness and competition of these costs are important factors for customers Reasonable and transparent service costs, promotions and incentives will contribute to increasing customer satisfaction Conversely, high or unclear costs can cause dissatisfaction Quan (2020) and Nhung (2020) in the same year both identified prices and service costs as a factor impacting on customer satisfaction with e-banking services
Tangible media: tangible media references to the physical appearance of digital banking services include: the appearance and attire of the service staff (although interactions with direct staff may be less at present, this still has an impact on customer perception of the professionalism of the bank); the equipment for the service, the physical conditions (atm's modernity, digital banking app/website interface), Modern and aesthetic tangible media can create a positive initial impression of the overall
28 service quality of digital banking In particular, the application's friendly, easy-to-use interface will help customers feel more comfortable and easier when making transactions Well-invested tangible media can demonstrate to customers that ACB is truly interested in providing quality service The results of Nguyet (2024) at OCB Bank and Cuc et al (2023) also show that tangible means have a direct and favorable influence on customer satisfaction with digital banking services
In chapter 2, the author pointed out how each researcher has different views on customer satisfaction with digital banking services In order to give the best overview, it is necessary to measure whether digital banking services actually impacts satisfaction Currently, there are many research models built with the same research goals Among them, measuring effectiveness mainly through the SERVQUAL and SERVPERF models has been quite popular in many studies
Together with the theoretical basis, the author provides an overview of the these models along with studies on the same topic Most studies conclude that service quality has a complete impact on customer satisfaction Following the content of chapter 2, the author will present research methods and data processing, based on the continuation and development of previous research in chapter 3
RESEARCH METHODS AND DATA PROCESSING
Research process
Source: Authors' own synthesis and recommendations
Research models and research hypotheses
Reliability is understood as a customer who believes that service matches what is promoted and promised by the bank before experiencing the service (Parasuraman et al., 1988) According to Phan et al (2023), when the service responds correctly from the first time and creates a feeling of customer friendliness, the trust that customers have in the unit is further enhanced To achieve this, ACB need to build customer trust through standardized and professional workflows; shows that trust has a significant link to customer satisfaction (Mai, 2022) Accordingly, the study proposes the following hypothesis:
Hypothesis H1: Reliability has a positive affect on customer satisfaction with
30 digital banking service at Asia Commercial Joint Stock Bank
Responsiveness describes the ability to support customers and perform services quickly as mentioned when promoting services to customers (Parasuraman et al., 1988) This is shown in the aspect of digital channels that fully display signage, hotline links to consultants, and are willing to help customers of all ages and industries, trying to provide services quickly and conveniently Cuc et al (2023) claimed that customers will be extremely satisfied and want to continue using the service when the way the digital channel operates provides a good experience like when transacting at the counter without the need for a bank So, we can say that response is linked to customer satisfaction The research hypothesis on the Responsiveness factor is presented as follows:
Hypothesis H2: Responsiveness has a positive affect on customer satisfaction with digital banking service at Asia Commercial Joint Stock Bank
Empathy in terms of using digital banking services is expressed through care and attention to each customer's individual needs (Parasuraman et al., 1988) Each customer has their own wishes when using digital banking services, all customer privacy issues require consultation and information transparency before making a decision Modern technology of digital banking services at Asia Commercial Joint Stock Bank – Thu Duc Branch needs to design a variety of functions, link customer support channels and connect employees with customers in the most convenient way, thereby understanding what customers really need Therefore, empathy is expected by the author to have a positive affect on customer satisfaction when using digital banking services at Asia Commercial Bank (ACB) – Thu Duc Branch We state the hypothesis of empathy as follows:
Hypothesis H3: Empathy has a positive affect on digital banking services at Asia Commercial Joint Stock Bank
Ease of use is said to take customers little time to operate on the system and have confidence in the technology the Bank provides If the operation is too difficult and the necessary tasks are hidden, the customer will develop a fearful mentality and
31 will not want to participate in the service experience (Mitzner et al., 2010)
Awareness and acceptance of differences when using digital banking services will vary between different ages Therefore, Zouari & Abdelhedi (2021) argued that the features need to be updated to match the vast majority of people This also says that the ease of use factor has a positive affect on customer satisfaction The research hypothesis of easy-to-use denaturation can be proposed as follows:
Hypothesis H4: Ease of use has a positive affect on digital banking services at Asia Commercial Joint Stock Bank
Perceived Security were mentioned as one of the most important factors affecting customer satisfaction when using digital platform products and services (Giao,
2024) Unlike the way traditional banks operate, the operating model of digital banks is based on digitalization This raises concerns about cybersecurity, online fraud that steals personal information, and financial fraud, making customers increasingly concerned about the security level of digital banking services (Binh, 2024) Research conducted by Ming et al (2024) and Thang et al (2022) has shown that safety factors have a positive affect customer satisfaction Therefore, the research hypothesis on safety and security can be stated as follows:
Hypothesis H5: Perceived Security has a positive affect on digital banking services at Asia Commercial Joint Stock Bank
Service Costs is an important factor for customers to consider in terms of satisfaction when using digital banks The bank fully discloses fee and interest rates as well as preferential policies such as refunds and discounts, also helping customers easily grasp and compare service costs between banks, thereby enhancing trust and attachment to ACB (Nhung et al., 2020; Quan, 2020) Besides, the service costs of operations on digital banking are closely related to customer feelings When costs are reasonable, transparent and commensurate with the value received, customers will tend to appreciate the service (Rothwell & Gardiner, 1984; Ankit, 2011) Therefore, building a reasonable, transparent and flexible pricing mechanism will make an important contribution to improving customer satisfaction with banks We can state the service cost hypothesis as follows:
Hypothesis H6: Service costs has a positive affect on digital banking services at Asia Commercial Joint Stock Bank
Source: Authors' own synthesis and recommendations
Research methods
3.3.1 Encoding the scale of variables
Table 3 1 Scale coding of observed variables
RESEARCH SCALE Variable name Scale Scale code Reference source Reliability (X 1 ) Transactions on digital banking are carried out as expected
Transactions on digital banking follow the correct procedures
Transactions via digital banking are accurate on the first attempt
Transactions made through digital banking meet daily financial needs
Transactions on digital banking are processed quickly
Transactions on digital banking can be performed at any time
Customer issues or inquiries regarding digital banking channels (App/Web) are always addressed in a timely manner
Empathy (X 3 ) Digital banking technology provides a comfortable user experience
(1992); Vietrivel et al (2020); UI Haq & Awan (2020)
I receive guidance on using Digital Banking through navigation bars, videos, etc
Digital banking channels (App/Web) have an aesthetically pleasing and easy-to-read design
Digital banking channels (App/Web) are always updated promptly and efficiently
Information about products, promotions, and special offers on digital banking channels (Website/App) is prominently displayed and easy to find
I find learning how to use digital banking simple
I find performing transactions on digital banking easier than in- person transactions at a bank branch
I believe that using digital banking can complete most banking transactions
I find that digital banking is compatible with various smart devices
Legally ensured security E1 Casaló et al (2007) Personal and account information is kept confidential by the bank
The bank prioritizes security in every transaction
The bank has mechanisms to ensure the secure transmission of customer information
The bank guarantees that customer information is not shared with third parties
Service fees are maintained at a stable level
Quan (2020) Banking service fees are highly competitive
Reward points, cashback, and consumer promotions offer significant convenience
I am satisfied with the service of digital banking
I will recommend it to my friends and family
I will continue using the digital banking services of this bank
3.3.2 Methodology of sample selection and data collection
- Survey sample: the research applied the sampling method from customers who have been using ACB ONE digital banking service at ACB - Thu Duc Branch The author can choose accessible and contactable subjects If the surveyor does not agree, the survey will be transferred to another subject to serve the analysis and provide results for the study
- Survey manner: The author carried out a direct survey using a questionnaire designed with questions (observation variables) related to factors that affect customer satisfaction with digital banking services such as trust, responsiveness, empathy, ease of use, etc safety and security, service costs The questionnaire will use a likert scale from 1 to 5 to measure the respondent's level of agreement or opposition to each item, specifically: “1
= Completely disagree, 2 = Disagree, 3 = Intermediate, 4 = Agree, 5 = Completely agree” "1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree"
- Determine sample size: For EFA discovery factor analysis, the minimum sample size needs to be 5 times the total number of observed variables (n = 5 x m, m is the number of questions in the article) (Hair et al., 2014) As noted by Comrey (1978), this is a suitable sample size for factor studies This study had 27 questions, the minimum sample size for the study was 135 (27x5) To achieve a high level of reliability when researching, the author conducted a survey with a total of 300 opinions collected, more
36 than the minimum sample size to compensate for the loss due to the survey sample being of poor quality, missing information
The data analysis method used by the author in this research paper is descriptive statistics using SPSS 27.0 statistical software, Excel; Cronbach's Alpha test, EFA discovery factor test and regression model analysis to test the quality of the questionnaire of the variable in the study, as well as assessing the scale of the impact of independent variables on dependent variables,
Descriptive statistics are divided into two small statistics: frequency statistics and average statistics using SPSS 27.0 statistical software, Excel Frequency statistics often apply to qualitative questions such as age, occupation, collection, to statistics on the structural rate of survey participants Meanwhile, average statistics often apply to questions that use the Likert scale to evaluate the survey participants' response scores on a scale of 1 to 5
3.3.3.2 Test the reliability of Cronbach's Alpha scale
Cronbach's Alpha coefficient is a coefficient that measures the reliability of the scale (Including 3 or more observed variables and does not evaluate the reliability for each observed variable) Test Cronbach's Alpha reflects the degree of correlation between observed variables in the same factor, so the results obtained from the good factor test are presented that the above observed variables are appropriate, demonstrating the characteristics distinctive of the big factor
The criteria in testing the reliability of Cronbach's Alpha scale are:
- Cronbach's Alpha coefficient has variable values ranging from [0,1], the higher this coefficient represents the higher the reliability In its nature as an exploratory study, threshold Cronbach's Alpha is said to be acceptable when it only needs to reach 0.6 or higher (although according to (Nunnally, 1978) and (Yates, 1987) a good scale should have a Cronbach's Alpha reliability of 0.7 or higher) However, when this coefficient is too large, it is noticed that the variables in the scale do not have differences, a phenomenon called scale duplication (Tho, 2011)
- The Correctead Item – Total Correlation coefficient represents the correlation of each observed variable relative to the rest of the variables in a factor The higher the
Correctead Item – Total Correlation value, the better the observation variable When performing the reliability test of Cronbach's Alpha scale, the variables observed Correctead Item – Total Correlation less than 0.3 should be considered eliminated because an observed variable is considered good when this coefficient value needs to reach a threshold of 0.3 or higher (Tavakol & Dennick, 2011a)
The EFA exploratory factor test is a tool to consider the relationships between all observed variables in all different factors to clarify observed variables classified in the correct group (factors) (different from Cronbach's Alpha is to evaluate the relationship between variables in the same group) EFA appropriate statistics to identify key factors or aspects affecting customer satisfaction with the quality of digital banking services at ACB The criteria mentioned when testing the EFA discovery factor are:
- KMO value (Kaiser – Meyer – Olkin): indicates whether the data set is consistent with factor analysis or not, the condition for factor analysis is that the KMO value must be within [0.5;1].;
- Statistical significance of the Barlett test: used to evaluate the correlation of observed variables in factor When the statistical significance of Barlett's Test (sig Barlett's Test)1, others with Eigenvalues