CHAPTER 1: LITERATURE FRAMEWORK ABOUT MOBILE BANKING 4
1.6 Factors affect the development of mobile banking services
1.6.1.1 Technology platform
The progress of science and technology has a great impact on the development
of modern banking services. It is the technical basis for applying banking facilities, new tools in business activities, building and designing products with high technological content such as Mobile banking services.
- Core banking system of banks:
Core banking - Centralized online real-time banking or core banking environment is an integrated system of computer applications in the management of banking operations, which includes the modules of basic operations such as bank deposits , loans, customer information, accounting systems, budgeting, cash, ... used to record transactions, manage bookkeeping, calculation of interest, deposits, track record customers, ...
Core banking is the inevitable trend of banks in the modernization of banking technology and development of banking system because it is primary factor to creating competitive advantages of each bank. Due to characteristics that can integrate multiple modules and focus processing date at the same time, the core banking technology is the platform to develop banking services.
Therefore, the ability to build, design and manage product depends largely on the core banking system. The more modern and superior the core banking is, the better the ability to build, design and manage products is.
- The development of telecommunications network:
The launch of mobile banking service is the handshake between the bank and the network service provider. Therefore, the ability and development level of service not only depend on the bank but also directly are influenced by the development of telecommunications networks.
The factors to assess the level of development of telecommunications networks are represented by the figures on the number of customers using the service, the number of dealer distributing network services, data transmission technology, the stability of the system in providing network services, the number and quality of the supply network, etc.
-The development of the mobile industry
The year 2013 marks 40 years since the introduction of the first mobile phone
in the world. Over 40 years of development, today, mobile phone has become an indispensable equipment in the lives of many people.
Along with the development of mobile technology is the development of mobile banking services. Each adoption mode of Mobile banking services is compatible, consistent with the ability of the mobile phone.
1.6.1.2 Legal environment
Regarding the current specific legal framework for the development of mobile banking services in Vietnam, there is not an official document from the State Bank fully regulate clearly about the Mobile banking services concept, rights, roles and responsibilities of all stakeholders involved in the provision of services, for ensuring data security and sharing of customer information between banks and network provider. In reality, to be able to adopt Mobile banking services there should be close coordination among the parties such as banks, network operators, service providers, therefore, the legal basis lacking uniformity, transparency leads to difficulties in the construction, development and services management. For example, problems still exist when dealing with cases of disputes occurring during the provision services between banks, service providers and customers such as how to ensure the rights of the parties. When benefits are not guaranteed, the customer does not have enough confidence to use the service, the service will become increasingly difficult.
1.6.1.3 Economic environment
The economic environment affects the provision of modern banking services towards the impact on financial markets. On financial markets, the increase in the quantity and quality of bank pushes banks in an environment of increasingly fierce competition.
Mobile banking services with the advantages of attracting customers, increasing competitiveness, strengthening bank image in the eyes of clients in the technology revolution. Therefore, the introduction of mobile banking services is a matter of course from the impact of the economic environment.
1.6.1.4 Socio - cultural environment Social trends
and demographic factors such as age, income, educational level, living habits, consumption habits,... have a certain impact on the development of banking products and services, especially, these factors show a fairly profound effect on the modern banking services.
- Educational level
Due to the specific characteristics of the product, the electronic banking services, especially Mobile banking services require the user an understanding electronic payment technology in general and knowledge, understanding the use of mobile devices in particular.
Thus, educational level is one of the primary factors affecting the level of development of Mobile banking services.
- Age
The age factor affects the development of mobile banking services because it directly affects the preference and the ability to use new technologies, the willingness to accept a new thing of customers. For example, customers in the age group of 18-35 are young people, who are in favor of technology, innovation, accept to use the new service which has the ability to bring many benefits to the users. Meanwhile, the older clients are generally loyal to psychological and familiar service. Therefore, the approach to those customers will take longer and be more costly.
- Income
Income directly affects the affordability of customers, so it affects the customer decision whether to use another bank's new product or not because customers have to pay an additional expenses for the bank transaction.
1.6.2 Micro factors 1.6.2.1 Current rivals
The rapid increase in the number of banks in Vietnam makes market share competition become more and more fierce. Besides, the trend of international
integration has brought both opportunities and challenges for the economy in general and the banking and financial sector in particular.
In order to create dominance, enhance their competitiveness, banks are forced to diversify product portfolio, increase utility, to meet the needs of customers in order to attract customers. Therefore, the direct competition between the rivals will promote the development of services.
1.6.2.2 Business partners
Cooperation with partners in the provision of Mobile banking is the company providing telecommunication network services. Therefore, the development of Mobile banking services also depends on the development of the telecommunications company. Currently, in Vietnam, the asynchronous technical infrastructure of the telecommunications company leads to certain difficulties when banks supply and develop services.