Factors affecting the decision of using internet banking services of individual customers in ho chi minh city

AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY BACHELOR’S THESIS FACTORS AFFECTING THE DECISION OF USING INTERNET BANKING SERVICES OF INDIVIDUAL CUSTOMERS IN HO CHI MINH CITY

AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

BACHELOR’S THESIS

FACTORS AFFECTING THE DECISION OF

USING INTERNET BANKING SERVICES

OF INDIVIDUAL CUSTOMERS

IN HO CHI MINH CITY

Author: Nguyen Huynh Duc Class: HQ2 – GE03

Student code: 030630141727 Instructor: MSc Tran Kim Long

HO CHI MINH CITY, 01/2020

AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

BACHELOR’S THESIS

FACTORS AFFECTING THE DECISION OF

USING INTERNET BANKING SERVICES

OF INDIVIDUAL CUSTOMERS

IN HO CHI MINH CITY

Author: Nguyen Huynh Duc Class: HQ2 – GE03

Student code: 030630141727 Instructor: MSc Tran Kim Long

HO CHI MINH CITY, 01/2020

ABSTRACT

The explosion of information technology 4.0 has created a miraculous breakthrough for the global financial industry Particularly in Vietnam, the technological element is the focal point for the banking industry to move to a new site

- more flexible and modern From the traditional banking model, commercial banks have now been gradually changing to the digital banking model to better suit human civilization in each period, typically the introduction of online banking services - also known as Internet Banking

The e-payment system was born and developed in the context of e-commerce, helping to narrow the gap between banks and customers, providing more opportunities and means to make transactions and payment activities become quick and effective Individual financial services have become diverse such as money transfer, automatic withdrawal, card payment, online payment Thanks to this, banks have been able to strengthen its competitive position and strength on financial - currency market

As can be seen, in recent years, commercial banks in Vietnam have gradually developed Internet Banking services, but the main transaction channel is still system

of bank branches which only a small number of customer use In addition to the advantages and utilities of Internet Banking, the reliability of users is not high when inadequacies are still present, especially in the current period when the crime of "high-tech fraud” is increasing day by day, such as: poor information security system, poor service quality, computer viruses, hacked accounts, etc the way between customers and technology services of banks

Although internet banking services in Vietnam are not yet very popular, it has significantly changed the form and way of providing services of banks today Commercial banks are actively developing an online banking system to improve efficiency and save their operational costs And facing the challenge to survive and develop, the completion and expansion of this service are essential for Vietnamese commercial banks Modernizing banking services, applying new technologies, typically Internet Banking is the key to helping commercial banks succeed in the future

Recognizing the importance of the e-banking system and the desire to encourage more customers to pay attention and use, the author chose the topic:

“Factors affecting the decision of using Internet Banking services of individual customers in Ho Chi Minh City” The study focuses on clarifying the benefits of

using internet banking services and the factors affecting customers' use of electronic services, then giving solutions to improve the intention to accept the use of customers

in Ho Chi Minh City

The Internet Banking is also known as online banking, e-banking or virtual banking which helps people to easily get information about their bank account, check the balance provide convenient tools to make the transactions more quickly, easily and safely Additionally, it not only controls finance efficiently but also saves time, effort and cost

On the side of the banks, the increasing number of Internet users has created opportunities for the banking industry to develop Internet Banking It becomes an indispensable strategy which commercial banks need to deploy as soon as possible not only to create efficiency in business operations and satisfy diverse customer needs but

to catch up the pace of development and the trend in time as well, thereby strengthening the position of the bank in the market

It is undeniable that Internet Banking is one of utility services these days, but it also faces to many difficulties and challenges Particularly in Vietnam, although commercial banks are now making efforts to enhance and try to perfect it day by day, the number of people accepting to use Internet Banking is still limited, the frequency

is still low There are many reasons explaining why customers are not trust and unfaithful to use Internet Banking in long term such as concerns about safety, security

of online services, not believing on service quality or they just simply have no information about how to use it Thus, there should be recognition about which factors affect to the decision of using Internet Banking of an individual in order that commercial banks would make a strategy easier to reach their target customers and lead them to accept to use it There have been many studies all over the world to identify which basic factors affecting to actual customer decision, but human factors

vary from country to country and Ho Chi Minh city residents have it own characteristics

The study was conducted at banks in Ho Chi Minh City, with all surveyed people who are from 18 to 60 years old and already using the bank's Internet Banking service With the sample of 199 surveys collected to carry out the study by the method

of reliability assessment by Cronbach's Alpha test, the obtained coefficients are eligible to conduct EFA analysis to draw out the main factor, finally evaluate the hypothesis by the multiple regression model

The final results of the research shows that there are seven factors affecting the

"intention to use Internet Banking services" of people, including: Attitude, Subjective Norms, Perceived Usefulness, Perceived Ease of Use, Perceived Risk, Perceived Trust, Perceived Behavioral Control In particularly, Perceived Behavioral Control is the factor that has the highest impact on the intention to use Internet Banking in Ho Chi Minh City Next is the influence level of factors such as: Perceived Ease of Use, Perceived Risk, Subjective Norms, Perceived Trust, Perceived Usefulness and Attitude

Based on the proposed research model, the author built a scale, made hypotheses and tested the scale The research results show that the factors that have a direct impact on the decision of using Internet Banking services and influential demographic variables make the difference of the target groups

The thesis studies the factors affecting the use of Internet Banking services by individual customers at banks in Ho Chi Minh City with the goal of identifying demographic characteristics and perceived factors affecting the decision of using online banking services Thereby, the author gives some suggestions for commercial banks in the future development of Internet Banking services in Ho Chi Minh City

To accomplish the research objectives, the author implemented through 02 stages according to the following steps: Stage one overview of research, developing questionnaires, building research models, building scales; The second phase conducted hypothesis testing and analysis using the reliability coefficient tool

(Cronbach’s Alpha), exploratory factor analysis (EFA), and multivariate regression analysis

From the research results, the author proposes some suggestions for banks in

Ho Chi Minh City on the development of Internet Banking services in the coming time Theoretically, the study has built a research model, scales, research hypotheses and scales test, identify factors affecting the use of Internet Banking services by individual customers at banks in HCMC In practical terms, the author has some suggestions for banks in Ho Chi Minh City on the development of Internet Banking services in the future, such as:

Firstly, Banks should update clear and detailed user manual information to the

target customer by introducing extensive services on media such as newspapers, social

networking sites, main banks and partners' websites On the Internet Banking website, there should be specific, clear and vivid information in words and illustrations with answers to questions and difficulties of customers during the use of this online service; Website interface should be attractively designed and refined Clear and simple transaction items could bring easy and quick experiences to customers The friendly interface and the way to use it easily for the first time will make customers happy and will continue to experience the next time Banks should diversify services and products online, maximally support the diverse needs of customers There may be more promotions, attractive incentives and practical for all customers Banks should update information regularly and notice changes to customers to help banks quickly capture the interests of customers and maintain relationships Especially, for customers who have not used the services, they should have a service experience program for them to try the service for free for a certain period of time (one month) for them to approach and become familiar with manipulating the utilities of the services For customers who are already using, banks have to regularly maintain relationships, regularly notify utilities via mail or phone number to create concerns about their needs

Secondly, Banks should enhance the convenience of Internet Banking services They need to invest in building a good and modern network infrastructure such as: upgrading and expanding the transmission line, broadband, large city, high speed in

order to limit possible transaction errors, such as congestion, slow processing, no notification of information especially need to handle quickly on the occasion of high demand for payment Besides, Banks could deploy more features of batch transfer, periodical transfer for e-banking services For the periodical transfer feature, customers do not need to go to the counter directly, but the bank will actively support quick transactions according to the customers' specific spending plans For batch transfer, just one click, the transfer order can be paid to many beneficiaries at the same time, instead of making money transfers each time, it takes a lot of time for customers

Thirdly, Bank have to ensure the safety and information security for customers, which is an extremely important point for an online service that requires authenticity and high security, typically Internet Banking This means:

Banks should focus on investing in database systems so as to ensure safety and high security by accessing and learning advanced technical technologies from developed countries in the world, also take advantage of the investment support of strategic partners, invite foreign experts to consult at the same time

The bank can choose and apply many methods to solve the problems of authentication and secure transaction security such as: Two Factor Authentication; One Time Password; Use Virtual Keyboard; Hardware Token, Smart Card with Digital Signature Compared to other solutions, the security solution using electronic signatures solves 04 important issues of electronic transactions: (i) User authentication, (ii) Confidentiality of transaction information, (iii) Data integrity, (iv) Anti-disclaimer

Banks need to comply with the regulations on security and safety in Internet Banking transactions in accordance with the regulations of the State Bank, Department of Banking Information Technology

Banks should requently give recommendations and warnings to customers clearly and in detail through the bank's official website, annual meetings, social networking sites, newspapers Encourage customers to change passwords (every two months), provide free anti-virus software, always have a supervisor (24/7) of unusual transactions and quickly notify customers goods for timely handling to avoid unfortunate incidents that may occur

Fourthly, Banks should actively enhance support services for Internet banking

services for customers and promptly handle instability and create peace of mind for

users by equipping with modern switchboard system, customer support 24/7

continuously, having professional staff with solid professional knowledge, dynamic

and enthusiastic, providing contact methods diverse: phone, email, online support

and actively handling possible incidents such as: emergency card lock, temporary

account blockade, support to protect customer assets even after office hours

DECLARATION

This thesis is the author's own research, the research results are truthful, in

which there is no previously published content or the content made by others except the full citations cited in the thesis

The author

Nguyen Huynh Duc

ACKNOWLEDGEMENTS

First of all, I would like to express my sincere thanks and express my deep gratitude to the teachers of Banking University of Ho Chi Minh City for their enthusiastic teaching, as well as consolidating the solid foundation knowledge, helping me successfully complete the university curriculum

In particularly, I would like to express my sincere thanks to Mr Tran Kim Long for giving me the detailed guidance and wholehearted assistance in completing the graduation thesis Without his thoughtful support, it would be difficult for me to complete this thesis well

Due to my limited practical experience, the content of the graduation thesis cannot avoid some shortcomings, I am looking forward to receiving further advice from teachers to learn more experiences I believe these experiences are extremely valuable so that I can develop myself well in the future

I sincerely thank you!

The author

Nguyen Huynh Duc

TABLE OF CONTENT

ABSTRACT i

DECLARATION vii

ACKNOWLEDGEMENTS viii

LIST OF TABLES AND FIGURES xi

LIST OF ABBREVIATIONS xii

CHAPTER 1 INTRODUCTION 1

1.1 Reasonale for Research 1

1.2 Research Objectives 2

1.3 Research Questions 2

1.4 Research Subjects 2

1.5 Research Methods 3

1.6 Contributions 3

1.7 Structure of Research 3

SUMMARY OF CHAPTER 1 3

CHAPTER 2 LITERATURE REVIEW 4

2.1 Overview of Internet Banking services 4

2.1.1 Definition of Internet Banking 4

2.1.2 Levels of Internet Banking services 4

2.1.3 Benefits and Limitations of Internet Banking services 5

2.2 Previous studies 7

2.2.1 Theoretical models for behavioral using Internet Banking research 7

2.2.2 Related studies 11

2.2.3 Proposed research model 12

SUMMARY OF CHAPTER 2 14

CHAPTER 3 RESEARCH METHODS 15

3.1 Building a scale 15

3.2 The method of data collection and data processing 17

3.3 Data analysis method 17

3.3.1 Verify scale with Cronbach's Alpha coefficient 17

3.3.2 EFA exploratory factor analysis 19

3.3.3 Correlation analysis and regression 21

SUMMARY OF CHAPTER 3 21

CHAPTER 4 RESEARCH RESULTS 22

4.1 Overview of Internet Banking services 22

4.2 Descriptive statistical analysis 22

4.3 Evaluate the reliability of the scale with Cronbach Alpha coefficient 25

4.4 EFA exploratory factor analysis 28

4.5 Analysis of multivariate regression models and hypothesis testing 31

4.5.1 Correlation analysis 32

4.5.2 Regression analysis 32

4.4.3 Test the hypotheses 33

SUMMARY OF CHAPTER 4 35

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 36

5.1 Conclusions 36

5.2 Recommendations 37

5.3 Limitations of the topic and future research directions 40

SUMMARY OF CHAPTER 5 39

CONCLUSIONS 40

REFERENCES 43

APPENDIX 45

LIST OF TABLES AND FIGURES

LIST OF FIGURES

Figure 2 1 Theory of Reasoned Action (TRA) 8

Figure 2 2 Theory of Planned Behavior (TPB) 9

Figure 2 3 Technology Acceptance Model - TAM 10

Figure 2 4 Factors affecting individual customer behavior when using Internet Banking services 12

Figure 4 1 Types of electronic banks in Vietnam 22

Figure 4 2 Number of Vietnamese commercial banks providing Internet Banking services in the period of 2004 - 2016 23

Figure 4 3 Descriptive statistics 26

Figure 4 4 Results after running the EFA analysis 31

Figure 4 5 Correlation between independent variables and dependent variables 29

Figure 4 6 Regression results 32

Figure 4 7 VIF results 33

LIST OF TABLES Table 4 1 Summary of testing scales 25

Table 4 2 Testing hypotheses 34

CHAPTER 1 INTRODUCTION

1.1 Reasonale for research

The explosion of information technology 4.0 has created a miraculous breakthrough for the global financial industry Particularly in Vietnam, the technological element is the focal point for the banking industry to move to a new site

- more flexible and modern From the traditional banking model, commercial banks have now been gradually changing to the digital banking model to better suit human civilization in each period, typically the introduction of online banking services - also known as Internet Banking

The e-payment system was born and developed in the context of e-commerce, helping to narrow the gap between banks and customers, providing more opportunities and means to make transactions and payment activities become quick and effective Individual financial services have become diverse such as money transfer, automatic withdrawal, card payment, online payment Thanks to this, the bank has been able to strengthen its competitive position and strength on financial - currency market

As can be seen, in recent years, commercial banks in Vietnam have gradually developed Internet Banking services, but the main transaction channel is still system

of bank branches which only a small number of customer use In addition to the advantages and utilities of Internet Banking, the reliability of users is not high when inadequacies are still present, especially in the current period when the crime of "high-tech fraud” is increasing day by day, such as: poor information security system, poor service quality, computer viruses, hacked accounts, etc the way between customers and technology services of banks

Although internet banking services in Vietnam are not yet very popular, it has significantly changed the form and way of providing services of banks today Commercial banks are actively developing an online banking system to improve efficiency and save their operational costs And facing the challenge to survive and develop, the completion and expansion of this service are essential for Vietnamese commercial banks Modernizing banking services, applying new technologies,

typically Internet Banking is the key to helping commercial banks succeed in the future

Recognizing the importance of the e-banking system and the desire to encourage more customers to pay attention and use, the author chose the topic:

“Factors affecting the decision of using Internet Banking services of individual customers in Ho Chi Minh City” The study focuses on clarifying the benefits of using internet banking services and the factors affecting customers' use of electronic services, then giving solutions to improve the intention to accept the use of customers

in Ho Chi Minh City

1.2 Research questions

This topic is designed to answer the following research questions:

Which theoretical framework is related to the factors affecting individual customers' decision of using Internet Banking?

What factors influence the decision of using Internet Banking services at commercial banks in the Ho Chi Minh City?

What is the research model that influences the decision of using Internet Banking? The degree of influence of the factors in deciding to use Internet Banking services

at commercial banks in the Ho Chi Minh City?

What solutions to improve the quality of internet banking services and to encourage private customers to use at commercial banks in the Ho Chi Minh City?

Then, proposing solutions to improve the quality of customers using Internet

Banking services at commercial banks in Ho Chi Minh City

1.4 Subject and scope of the research

Research subjects: Factors affecting the decision of using Internet Banking

services at commercial banks in Ho Chi Minh City

Research scope: From November to December 2019 in Ho Chi Minh City,

Vietnam

1.5 Research methods

This study is the quantitive research to answer the quantitative research:

Through the Cronbach’s Alpha correlation coefficient model and the Exploratory Factor Analysis (EFA) method, it was used to evaluate the reliability and validity of the scale From there, interpret the data through a number of statistical and descriptive statistical tools and it is done by STATA statistics processing software

The thesis also uses other research methods, such as: sampling method, data collection method and data analysis method

1.6 Contributions

This study provides empirical evidence to confirm factors affecting the decision of using Internet Banking services of individual customers in Ho Chi Minh City

The result of this study also helps the commercial bank manager deeply understand customers' behaviors and provides suggestions for improving the activities

of department of sales or marketing

1.7 Structure of research

This study consists of five following chapters:

Chapter 1: INTRODUCTION

Chapter 2: LITERATURE REVIEW

Chapter 3: RESEARCH METHODS

Chapter 4: RESEARCH RESULTS AND DISCUSSION

Chapter 5: CONCLUSIONS AND RECOMMENDATIONS FOR THE

DEVELOPMENT OF INTERNET BANKING SERVICES BY INDIVIDUAL CUSTOMERS OF COMMERCIAL BANKS IN HO CHI MINH CITY

SUMMARY OF CHAPTER 1

In this chapter, the author introduces the overview of the research, the reasons for choosing the topic, the research objectives, the research questions, the subjects and scope of the study, the research method, the main content of the thesis

CHAPTER 2 LITERATURE REVIEW

2.1 Overview of Internet Banking services

2.1.1 Definition of Internet Banking

"Internet Banking" is a term that is not new to some technology users At first,

it seemed to be quite simple to understand Internet Banking, but usually there are some people who are confused about the nature of this service with other technology services via the Internet via the bank's Internet

Internet Banking is a service that banks provide to customers via the Internet With the help of information technology, customers can perform account inquiries by themselves, transfer money, pay bills, open online accounts, open registration cards online, and loan registration online on the bank's website

Internet Banking is different from other services ai the point it can be easily accessed in the computer with an Internet connection and at any time without the need for individuals to visit the bank's transaction counters (Bradley & Steward, 2003)

2.1.2 Levels of Internet Banking services

According to Dinz (1998), Henry (2000) and MU Yibin (2003), Internet Banking services include three main levels: Informative Level, Communicative Level and Transactional Level

2.1.2.1 Informative Level

The level of information providing is considered the lowest level of Internet Banking service Typically in this method, the bank will introduce and promote information about its products and services on the website and this data is stored on a server completely independent of data system of banks

Because there is no link between the Internet Banking server and the intranet system of the bank, the risk at this level is relatively low The bank may provide IB services by itself or hire another unit However, this type can also be risky and banking websites potentially under attack in the form of refusing transactions or changing content

2.1.2.2 Communicative level

This level began to appear some interaction between the banking system and its customers However, these interactions are limited in some form such as information queries, credit applications, electronic mail updates or fixed information file (name, address, .) At this level, customers are not allowed to make any public money transfer activities The level of risk is higher to the Informative level, because the server can be connected to the intranet system of the bank

2.1.2.3 Advanced Transactional level

This level allows customers to make electronic transactions with the bank Customers can perform a number of transactions such as: information inquiry, online shopping, bill payment, account opening and money transfer

The intranet system of the bank will be connected to the Internet Banking server (or software provider unit) so the risk to the transaction level is highest Therefore, the bank needs to have regular and strictly management and control

2.1.3 Benefits and Limitations of Internet Banking services

With the rapid development of modern technology and the current popularity of Internet users, the establishment of Internet Banking has provided certain utilities and advantages compared to traditional banking services Internet Banking not only increases the satisfaction of customers' diverse needs but the bank also receives significant benefits

2.1.3.1 Benefits of Internet Banking services

For customers:

Firstly, Internet Banking helps increase customer satisfaction and loyalty when using the facilities that the service brings (Jen-Her Wu et al., 2006; Al-Sukkar and Hasan, 2005; Nathan et al., 2001)

Secondly, ustomers can contact the bank quickly, online, continuously 24 hours per day and 7 days per week These services are not dependent on space and time, and

can meet the immediate financial needs of clients (Wang et al., 2003; Pew, 2003) Going directly to the counters at the branches is minimized

Thirdly, costs are minimized when customers do not have to pay service fees for banks at the direct transaction counters and the transaction costs through the Internet are much lower

Fourthly, Internet Banking allows customers to make and confirm transactions with high accuracy and very quickly in seconds without depending on the Attitude and qualifications of bank staff

Fifthly, all card account information and transaction history of each customer are managed in only one website Service users can access and easily control their finances, and can promptly identify threats and account attacks before the incident

Thirdly, IB helps banks operate more effectively The same steps at work are reduced, avoiding repetition that is time-consuming and labor-intensive

Fourthly, profit maximization The bank saves a significant amount of transaction costs and increases the bank's operating revenue

Fifthly, improving the quality of customer care and attracting more new customers

Ib services is attracting and retaining a large number of customers using, dealing with banks

Sixthly, Internet Banking helps provide package services through the association between banks and insurance companies, securities companies, financial companies to offer the most convenient products to meet customer’s multi-needs

2.1.3.2 Limitations of Internet Banking services

Firstly, customers cannot access online banking services without the support of

tools connected to the Internet or where there is no Internet

Secondly, it is difficult for beginners to use the Internet and few users when using

IB for the first time although there are a number of banks offering demos and how to

use the service

Thirdly, risks coming from "hackers" Customers' accounts may lose access passwords but they did not even know, and greatly affect the amount of money available in their account Most of the software system is imported from abroad, so maintenance or updating of "holes" security is not timely and thorough should viruses,

spyware has openings for penetration is inevitable and customer data will be stolen

Fourthly, having an interruption in the transaction In case the transaction hangs or

fails when the Internet connection was lost halfway and a slow connections

Fifthly,ly, there are some transactions that cannot be done via Internet Banking but through direct transactions with tellers at branches such as Travel Sec Customers also

cannot withdraw cash directly from online banking

Sixthly, customers will be charged different fees in addition to the cost of bank transfer, payment of bills, users will have to pay additional indirect fees such as annual fee, security device usage fee (smart cart, token…)

2.2 Previous studies

2.2.1 Theoretical models for behavioral using Internet Banking research

2.2.1.1 Theory of Reasoned Action - TRA

Theory of Reasoned Action was built in 1967 and has been extended over time since the early 1970s by Aijen and Fishbein (1980) The TRA model shows that

"consumption trends" are the best predictor of consumer behavior There are two main factors contributing to the "consumption trends", the Attitude and the Subjective Norms

In this model, "Attitude" are measured by awareness of the attributes of a product, so consumers will pay attention to the benefits and importance of each benefit to make the final choice "Subjective Norms" will be measured through those

related to consumers (such as family, friends, colleagues .) and impact their purchasing decisions The higher the degree of intimacy, the stronger the intention to choose to buy and the greater consumer confidence in the people involved, the more motivating the buying

The drawback of the TRA model is that the theory ignores the importance of the "social" factor that is, in fact, crucial to individual behavior (Grandon & Peter P Mykytyn, 2004; Wender, 2004)

Source: Schiffman and Kanuk, 1987

influencers will think

that I should or should

not buy the product

Motivation does the

will of influencers

Attitude

Subjective Norms

Behavioral Intention

Actual Behavior

Figure 2 1 Theory of Reasoned Action (TRA)

2.2.1.2 Theory of Planned Behavior – TPB

Source: Ajen, 2007

The Theory of Planned Behavior was developed based on the TRA model by Aijen (1991) to overcome the limitations of the TRA model in predicting human behavior The TPB theory assumes that a behavior can be predicted or explained by the "behavioral trends" in implementing that behavior The TPB model overcomes the disadvantages of the TRA model by adding the "Perceived Behavior Control" element

"Trends in behavior" is a function of three main factors, namely: Attitude, social influence and behavioral control Aijen said that "behavior control" is the most

important factor to predict behavior

Although considered more optimal than the TRA model, the TPB theory still has some limitations, such as the determinants of behavior are not limited to Attitude, Subjective Norms and Behavioral Control, an individual's intention may change over time, individuals do not always behave as predicted by the criteria

Actual Behavior

Figure 2 2 Theory of Planned Behavior (TPB)

2.2.1.3 Technology Acceptance Model – TAM

One of the useful tools in explaining the intention to accept a new technology product is the Technology Acceptance Model

The model proposed for the first time by Davis (1986) explains the general factors of computer acceptance and the behavior of computer users On the basis of TRA theory, the TAM model examines the relationship and impact of related factors:

Trust, Attitude, Decisions, and behaviors in accepting information technology of

users

The TAM model has two main elements: Perceived Usefulness and Perceived Ease of Use These two factors have a direct effect on the Attitude of using technology, including:

Perceived Usefulness (PU): The extent to which people believe that using this

particular system will increase the success of their work

Perceived Ease of Use (PEOE): The degree to which people can trust the use of specific systems without effort

Source: Davis, 1989

The drawback of this model is that although the TAM model constructs to-use variables related to controlling internal behavior such as skills, power, and willpower However, the TAM model addresses a lack of variables related to

easy-External

variable

Perceived Usefulness

Perceived Ease of Use

habits

Figure 2 3 Technology Acceptance Model - TAM

controlling external behavior such as time, opportunity, and cooperation with others The TAM model also does not have any variables explaining the social and cultural

factors that need to be explained in the behavior

The model of researching “Factors influencing consumers's decision of using electronic payment methods” developed by Vu Van Diep (2017) has been inherited from previous studies on new technology and services decision-making and accepting behaviors The research has made new discoveries about the factors affecting consumer’s decisions in Vietnam Specifically, in addition to the five main elements

of the C-TAM-TPB model, including: Attitude, Subjective Norms, Perceived Usefulness, Perceived Behavioral Control and Perceived Ease of Use that directly affect the decisions of consumers, the author also added two other factors from previous research: Perceived Risk and Trust The research found and analyzed the role

of subjects in consumers' decision of using electronic payment From there, it has contributed to supporting businesses, banks and electronic payment service providers

to build a strategy to further improve services

2.2.3 Research model and hypothesis

From previous works, my model consists of seven factors: (1) Individual Attitude, (2) Perceived Usefulness, (3) Perceived Ease of Use, (4) Perceived Risk, (5),

Perceived Trust, (6) Subjective Norms, (7) Perceived Behavioral Control affecting the behavior of individual customers when using Internet Banking services

Source: Vu Van Diep, 2017

Hypothesis 1 (H1): Attitude has a positive impact (+) on the behavior of

individual customers when using Internet Banking services

2.2.3.2 Perceived Usefulness

Perceived Usefulness is defined as "The extent to which a person believes that using a system will enhance his or her job performance" (Davis, 1989, p 320)

Based on the Technology Acceptance Model - TAM, perceived usefulness has

a direct impact on Attitude and intentions of users The author propose the hypothesis:

Hypothesis 2 (H2): Perceived Usefulness have a positive (+) effect on

individual customer behavior when using Internet Banking services

2.2.3.3 Perceived Ease of Use

Perceived Ease of Use is "The extend to which an individual believes that using a particular system will not take much effort" (Davis, 1989, p.320) Innovative technology systems that are considered easier to use and less complex will be more likely to be accepted and used by potential users (Davis et al., 1989)

Ease-to-use is an important factor that makes retail customers feel that Internet Banking is not too difficult to learn and use The author propose the hypothesis:

Hypothesis 3 (H3): Perceived Ease of Use has a positive (+) effect on

individual customer behavior when using Internet Banking

2.2.3.4 Perceived Risk

Bauer (1960) stated that Perceived Risk is related to uncertainty and consequences to consumers' actions According to the Theory of Planned Behaviour (TPB), Perceived Risk can reduce uncertain consumer behavior control and will have

a negative impact on their behavioral decisions Conversely, if the Perceived Risk associated with online transactions is reduced and consumers are able to control their

behavior more in the online environment, they are willing to trade (Pavlou, 2001) The

author propose the hypothesis:

Hypothesis 4 (H4): Perceived Risk has a negative impact (-) on the behavior of

individual customers when using Internet Banking services

2.2.3.5 Perceived Trust

Trust is defined as a function of the level of risk involved in financial

transactions and the result of trust is to reduce Perceived Risk, leading to a positive

decision on the application electronic payment (Yousafzai et al., 2003) If the Internet

Banking services do not have users’ trust, it will be extremely difficult for

development and expansion The author propose the hypothesis:

Hypothesis 5 (H5): Perceived Trust has a positive (+) impact on individual

customer behavior when using Internet Banking services

2.2.3.6 Perceived Behavioral Control

Perceived Behavioral Control is defined as an individual's perception of how

easy or difficult it is to conduct a behavior (Ajzen, 1991, p.188) Perceived Behavioral

Control denotes the degree of behavioral control rather than the result of behavior

(Ajzen, 2002) Perceived Behavioral Control describes individual customer behavior

regarding the availability of resources and the opportunity to perform Internet

Banking services The author propose the hypothesis:

Hypothesis 7 (H7): Perceived Behavioral Control has a positive (+) effect on

the behavior of individual customers when using Internet Banking services

SUMMARY OF CHAPTER 2

In this chapter, the author introduces an overview of Internet Banking services,

including the development process, legal framework, concepts, levels of service as

well as benefits and limitations of Internet Banking

The author synthesizes relevant studies at home and abroad to have a basis for

proposing a research model, building hypotheses, thereby serving as a basis for the

design of the research process and creates the questionnaire in Chapter 3

CHAPTER 3 RESEARCH METHODS

3.1 Building a scale

In this study, the variables are applied according to the 5-point Likert scale, which is conventional to the scale of the scale by score as follows: 1/ Absolutely disagree, 2/ Disagree, 3/ Normal (Neutral), 4/ Agree, 5/ Absolutely agree

ATTITUDE

TD1 IB is a technology that

helps many consumers

TD2 IB is a technology that

helps many consumers

TD3 I am very willing to use

SD2 I need a lot of time to

learn how to use IB SD3 I easily use IB on what I

want

SD4

I believe it is easy to use

IB if there is an instructor

RR4 IB seems to be a safe and

I will use the Ib services

if people around me use

my family and friends think I should use it

YD3 I will definitely continue

to use the IB service

3.2 The method of data collection and data processing

The study conducted data collection with a sample size of 199 subjects The method of collecting data by questionnaire, survey directly distributes the questionnaire and captures after completing and will encode into STATA software to perform data analysis Each question is measured based on a 5-point Likert scale based on the original research by Vu Van Diep to evaluate the level of people's agreement on the questions and comments given, specifically as follows: 1 - Absolutely disagree, 2 - Disagree, 3 - Normal, 4 - Agree, 5 - Absolutely agree

3.3 Data analysis method

The research paper is entered and processed by STATA software Using Cronbach’s Alpha reliability assessment method and EFA factor analysis Finally, multiple regression models are used to test the assumptions in the study

3.4.1 Verify measure with Cronbach's Alpha coefficient

The reliability of the scale is assessed by the method of intrinsic consistency through Cronbach's Alpha coefficient Using the Cronbach’s Alpha reliability coefficient method before analyzing the EFA factor to eliminate inappropriate variables because these garbage variables can create fake factors (Tho & Trang, 2009)

The Cronbach’s Alpha reliability coefficient only indicates whether the measurements are related to each other; but do not specify which observation variables to remove and which observation variables to retain Meanwhile, calculating the correlation coefficients between variables will help eliminate those observed variables that do not contribute significantly to the description of the concept to be measured (Trong & Ngoc, 2005)

The criteria are used when performing a scale reliability assessment: Firstly, ypes of observed variables have small variable-total correlation coefficients (less than 0.3); criteria for choosing a scale when the Alpha reliability is greater than 0.6 (the larger the Alpha, the higher the intrinsic consistency reliability) (Nunally & Burnstein, 1994; led by Tho & Trang, 2009)

Secondly, Alpha values: greater than 0.8 are good scales; from 0.7 to 0.8 is usable; 0.6 or higher can be used in case the research concept is new or new in the context of the study (Nunally, 1978; Peterson, 1994; Slater, 1995; quoted by Hoang Trong and Chu Nguyen Mong Ngoc , 2005)

Thirdly, observed variables with small-total correlation (less than 0.4) are considered as garbage variables and will be removed and the scale will be accepted when the Alpha reliability coefficient is satisfactory (greater than 0.7)

Based on the above information, the study performed assessment of scales based on criteria:

Firstly, eliminate observed variables have a variable-total correlation coefficient of less than 0.4 (these variables do not contribute much to the description

of the concept to be measured and many previous studies have used this criterion)

Secondly, choose a scale with Alpha confidence greater than 0.6 (the concepts

in this study are relatively new to the study subjects when responding)

3.4.2 EFA exploratory factor analysis

After conducting the reliability test of the scale (Cronbach's Alpha), the author will continue to analyze the discovery factor (EFA), in which, two important values in EFA analysis include: value of association capacitor and discriminant value EFA will help shorten 24 observed variables (corresponding to 24 small characteristics of each object) into seven large characteristics (corresponding to seven factors affecting the intention to use electronic payment services in Ho Chi Minh City) In each large feature, there will be convergence of small features, which will save more research time and money for implementation

Criteria in EFA analysis:

Firstly, KMO coefficient (Kaiser-Meyer-Olkin): is an indicator to consider the suitability of EFA, 0.5 ≤ KMO ≤ 1, factor analysis is appropriate (Trong & Ngoc,

2008, page 31) On the contrary, if KMO> 0.5, the analysis shows that the data set is not suitable

Secondly, the quantity Barlett’s test of spheriCity is a statistical quantity that is used to consider the hypothesis of unrelated variables in the population If this verification Sig is ≤ 0.05, the test is statistically significant, the EFA analysis results can be used (Trong & Ngoc, 2008, page 30)

Factor Loading factor ≥ 0.5 According to Hair (1998), Factor Loading is the norm

to ensure the practical significance of EFA The higher the factor load factor, the greater the correlation between the observed variable and the factor and vice versa

 Factor Loading > 0.3 is considered a minimum

 Factor Loading > 0.4 is considered important

 Factor Loading ≥ 0.5 is considered to have practical significance

At the same time, Hair et al (1998) also recommend that, if the Factor Loading criterion is selected > 0.3, the sample size should be at least 350, if the sample size is about 100, it should be selected Factor Loading > 0.55, if the sample size is about 50 then Factor Loading > 0.75 In the study, the sample size was 199, so the author selected the standard load factor > 0.5

The factor analysis results are accepted when Total Varicance Explained is > 50% and Eigenvalue > 1 (Gerbing & Anderson, 1998)

3.4.3 Correlation analysis and regression

The regression method used is the least common square OLS For the nature of this paper, the requirement of determination coefficient R^2 is greater than 0.5, which means that the model must explain at least 50% of the change of the variable

“Intention to use Internet Banking services”

Yi= β0 + β1H1 + β2H2 + β3H3 + β4H4 + β5H5 + β6H6 + β7H7 + eiWhich includes: Yi: Dependent variable Intention to use Internet Banking services, β0: Constant, βi: The regression coefficient corresponds to the ith independent variable (i > 0), ei: Error of regression equation, H1: Individual Attitude, H2: Perceived Usefulness, H3: Perceived Ease of Use, H4: Perceived Risk, H5: Perceived Trust, H6: Subjective Norms, H7: Perceived Behavioral Control

SUMMARY OF CHAPTER 3

Chapter 3 presents the formal research process for the topic, the construction and the scale code of factors, sampling methods, methods of data collection and processing

The author designed a detailed questionnaire and conducted a field survey with

a five-level Likert scale to measure the impact of the factors From the data obtained

in the survey, continue to test Cronbach’s Alpha coefficient, analyze discovery factors

and regression models and present the results in Chapter 4