139 factors affecting the adoption to use digital banking of vietnam

BANKING ACADEMY BANKING —raffle— GRADUTATION THESIS TOPIC FACTORS AFFECTING THE ADOPTION TO USE DIGITAL BANKING OF VIETNAM Student’s name: Class: Academic year Student’s*7 ID: Supervisor: Bui Phuong Anh K20CLCB 2017 - 2021 20A4010008 Assoc Prof Dr Dao Minh Phuc Hanoi, May 2021 GRADUTATION THESIS TOPIC FACTORS AFFECTING THE ADOPTION TO USE DIGITAL BANKING OF VIETNAM Student’s name: Bui Phuong Anh Class: K20CLCB Academic year 2017 - 2021 Student’s*^ 20A4010008 ID: Assoc Prof Dr Dao Minh Phuc Supervisor: ASSUARANCE I declare that this is my own research The information relating to the data here which I used in my thesis is true and collected by myself The information and arguments belong to other authors which is not my own ideas or aggregated results are fully quoted in the references I take full responsibility if there is any fraud in this research topic Hanoi, May, 22nd, 2021 Student Bui Phuong Anh i ACKNOWLEDGEMENT During the time of researching and writing this thesis, I have received a lot of encouragement and enthusiastic help from agencies, organizations, individuals and my family They have always encouraged, facilitated, and supported me throughout the process of doing graduate thesis First of all, I would like to express my sincere thanks to the Board of Directors of Banking Academy in general and the teachers in the Banking Faculty of Banking Academy in particular for giving me the opportunity to study at the university and provide solid knowledge of expertise throughout the studying years At the same time, the teachers also gave me more motivation in studying and provided me with more relevant reference sources to perfect the best graduation thesis Secondly, I would like to express my deep gratitude to my supervisor - Mr Assoc Prof Dr Dao Minh Phuc has been very enthusiastic in guiding and supporting me during the process of doing this graduation thesis Graduation thesis was done in nearly months This is my first time doing this thesis, so this research has many limitations Therefore, it is inevitable that there will be shortcomings, I look forward to receiving your valuable comments so that I can improve my work and gain more knowledge in this field Thank you sincerely! Hanoi, May, 22nd, 2021 Student Bui Phuong Anh ii TABLE OF CONTENTS ASSUARANCE i ACKNOWLEDGEMENT ii LIST OF ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES vii ABSTRACT CHAPTER ONE: INTRODUCTION AND LITERATURE REVIEW 1.1 Introduction 1.2 Literature review 1.2.1 Literature review about digital banking .6 1.2.2 Literature review about factors affecting thecustomers’adoption 1.3 Gap, research objectives and research questions 14 1.3.1 Gap of the previous researches 14 1.3.2 Research objectives 15 1.3.3 Research questions 16 CHAPTER TWO: RESEARCH METHODOLOGYAND DATA 17 2.1 Research method 17 2.1.1 Research approach and design 17 2.1.2 Data source 17 2.1.3 Data collection method .18 2.1.4 Form of questionnaire 18 2.2 Sample data 23 2.2.1 Descriptive data 23 2.2.2 Data analysis .29 2.3 Research Hypotheses 30 CHAPTER THREE: RESEARCH RESULTS AND DISCUSSION .34 3.1 Research results 34 3.1.1 Reliability 34 3.1.2 Results of exploratory factor analysis (EFA) .35 3.1.3 Result of Confirmatory factor analysis (CFA) 38 3.1.4 Result of Structural Equation Modeling 42 3.1.5 Result of Multivariate regression analysis 44 iii 3.2 Testing hypotheses 46 LIST OF ABBREVIATIONS 3.3 Discussion 47 CHAPTER FOUR: SITUATION AND RECOMMENDATION FOR VIETNAM 51 4.1 Situation in Vietnam 51 4.1.1 Legal Policy 51 4.1.2 Technology systems 51 4.1.3 General situation of using non - cash payment in Vietnam 52 4.1.4 General situation of using digital banking in Vietnam 53 4.2 .Recommendation 59 4.2.1 For the Vietnamese government 60 4.2.2 For the State Bank of Vietnam 61 4.2.2 For the commercial banks 62 CONCLUSION 65 REFERENCES 66 APPENDIX 74 Appendix 1: Reliability Statistics 74 Perceived ease of use 74 Perceived usefulness 74 Perceived risk 74 Trust 75 Attitude towards use and intention to use 75 Appendix 2: CFA analysis 76 Appendix 3: Structural Equation Modeling analysis 76 ABBREVATION FULL NAME ACB Asia Commercial Joint Stock Bank ADT ATM Acceptance to use Automated teller machine ATTINT Attitude towards use and intention to use CDM CFA Cash Deposit Machine Confirmatory iv Factor Analysis E - banking Electronic banking EFA Exploratory Factor Analysis eKYC Electronic Know Your Customer GDP Gross Domestic Product MB Bank Military Commercial Joint Stock Bank OPBA ^PE Opening Banking Perceived Ease of use ^PU Perceived Usefulness ^PR Perceived Risk ^QR Quick Response SBV State Bank of Vietnam SEM ^τ Structure equation model Trust TAM TCB Technology Acceptance Model Techcombank - Vietnam Technology and Commercial Joint Stock Bank TP Bank Tien Phong Commercial Joint Stock Bank TRA Theory of Reasoned Action TABLE PAGE Table 2.1: Questionnaire form Table 2.2: Forecast effect of research hypotheses 18 32 Table 3.1: Overview of Cronbach Alpha 35 LIST OF TABLES Table 3.2: KMO and Bartlett’s Test 35 Table 3.3: Total Variance explained 36 Table 3.4: Pattern Matrix 37 Table 3.5: Standardized Regression Weights 39 Table 3.6: Composite Reliability 40 Table 3.7: Average Variance Extracted 40 Table 3.8: Comparation of Maximum Shared Variance and Average Variance Extracted Table 3.9: Comparation of Square Root of AVE and Inter - Construct Correlations 41 41 Table 3.10: Regression Weights of SEM 43 Table 3.11: Standardized Regression Weights of SEM 43 Table 3.12: Squared Multiple Correlations of SEM Table 3.13: Model summary and ANOVA of linear regression 44 45 Table 3.14: Coefficients ‘s result 45 Table 3.15: Result of Testing hypotheses 46 Table 4.1: The decisive factor for customers to use digital banking services v 58 FIGURES Figure 1.1: Grow rate of GDP in Vietnam from 2017 to Q1/2021 Figure 1.2: TAM model LIST OF FIGURES Figure 1.3: Research model framework for the customers adoption to PAGE 10 11 use digital banking of Vietnam Figure 2.1: Distribution of Gender 24 Figure 2.2: The respondents about age group 25 Figure 2.3: Respondents’ occupation of research 26 Figure 2.4: Respondents’ fields of operation 26 Figure 2.5: Distribution of respondents’ income Unit: VND million 27 Figure 2.6: Respondents’ time to use digital banking services Unit: Year Figure 2.7: Respondent's number of digital banking services 28 29 Figure 2.8: Research model and hypotheses 32 Figure 3.1: Research of Structural Equation Modeling framework 42 Figure 4.1: The banking features of the Internet banking service which customers use Figure 4.2: The banking features of the Mobile banking service which customers use Figure 4.3: Accessing the E - commerce platform in Q4/ 2020 of 56 57 58 Vietnam Vl 13 Fred D Davis, Richard P Bagozzi and Paul R Warshaw, 1989, “User Acceptance of Computer Technology: A Comparision of Two Theoretical Model Authors”, Management Science, Vol 35, No 8, page 982 - 1003, read on Apirl 22nd 2021 14 Hans Baumgartner & Christian Homburg, 1996, “Applications of structural equation modeling in marketing and consumer research: A review”, International Journal of Research in Marketing, Volume 13, Issued 2, pages 139 - 161, read on Apirl 28th 2021 15 Hanudin Amin, “Internet banking adoption young intellectuals”, published by Journal of Internet banking and commerce, reat on April 17 th 2021 https://www.icommercecentral.com/open-access/internet-banking-adoptionamong-young-intellectuals.php?aid=38527 16 Hoang Trong, Chu Nguyen Mong Ngoc, 2008, “Phan tich du lieu nghien cuu voi SPSS”, episode 2nd , Hong Duc publication, page 24, read on Apirl 28 th 2021 17 Jennifer Austermann, Birte Mertins, 2014, “Technology Acceptance Model Revised - An Investigation on the Managerial Attitudes towards Using Social Media in Innovation Processes”, Master Thesis, Linnaeus University Sweeden, read on Apirl 24th 2021 18 Jian Mou, Dong - Hee Shin, Jason Cohen, 2015, “Understanding trust and perceived usefulness in the consumer acceptance of an e-service: a longitudinal investigation”, Behaviour & Information Technology, Pages 125-139, published on July 22nd 2016, Taylor Francis Online, read on May 10th 2021 19 Joseph F Hair Jr., William C Black, Barr y J Babin, Rolph E Anderson, 2010, “Multivariate Data Analysis: A global perspective”, 7th Edition, Pearson Education, read on Apirl 28th 2021 68 e adoption ofdigital banking Anempirical study fromthe perspective of Omani retail banking> 20 Le Anh Dung, 2021, “Chuyen doi so tai cac Ngan hang Viet Nam”, Digital banking seminar articles, State Bank of Vietnam, read on May 1st 2021 21 Le Nhan Tam, 2018, “Tai tao so, goc nhin cua IBM”, The report presents the Workshop of Digitalization of the Bank - a breakthrough opportunity, State Bank of Vietnam, November 2018, read on May 1st 20201 22 Nena Lim, 2003, “Consumers’ perceived risk: sources versus consequences”, published by Electronic Commerce Research and application, volume 2, issue 3, page 216 - 228, read on Apirl 20th 2021 23 Nguyen Dinh Tho, 2011, “Phuong phap nghien cuu khoa hoc kinh doanh”, Financial public house, 2nd edition, page 364, read on Apirl 28th 2021 24 Nguyen Duy Thanh, Cao Hao Thi, 2011, “De xuat mo hinh chap nhạn va su dung ngan hang dien tu o Vietnam ”, published on Science and technology Development Journal, volume 4, issue 2), read on Apirl 22nd 2021 25 Nui Polatoglu, V and Ekin S, 2001, “An empirical investigation of the Turkish consumers ’ acceptance of internet banking services”, International Journal of Bank Marketing 19: 156-165, read on Apirl 15th 2021 26 Nuno Fortes and Paulo Rita, 2016, “Privacy concerns and online purchasing behaviour: Towards an integrated model”, European research on management and business economics, volume 22, issue 3, pages 167 - 176, read on Apirl 17th 2021 27 Oanh Thi Nguyen, 2020, “Factors affecting the intention to use digital banking in Vietnam”, Journal of Asian Finance, Economics and Business Vol No (2020) 303-310 28 Pham Tien Dung, 2020, “Phat trien toan khong dung tien mat: Ket qua dat duoc, kho khan va thach thuc thoi gian toi”, National workshop proceedings in 2020, read on May 1st 2021 29 S Anada, Sonal Devesh, Anis Moosa AI Lawati, 2020, “What factors drive the adoption of digital banking? An empirical study from the perspective of Omani retail banking”, published on Journal of Financial Services Marketing, read Saunders, M., on Lewis, P 20th Apirl and 69 Thornhill, A., 2009, 2021 “Research < methods for business students” Harlow, UK: Pearson Education Limited, read on April 24th 2021 10 SCN Education Business and B.V, 2001, Technology “Electronic of Online Banking: Banking”, The Ultimate Springer Guide Science & to Business Media read on May 8th 2021 11 Thanh Phuong Vietnam Nguyen Current Innovation and and Thi Situation Research Lan and in Phuong Dang, 2018, Recommendations”, Educational Sciences “Digital International Volume 5, Banking in Journal of Issue 4, ISSN (Online), page 418 - 420 12 Vietnam E business - index commerce 2021, Association Sustainable (VECOM), growth”, 2021, “Report Vietnam E- of Vietnam commerce E- Association (VECOM), published on April 20th 202, read on May 8th 2021 13 Waleed Musa, Mugaheed 2013, “Using collaborative Technology Al-Rahimi, TAM learning”, (IJETT) - Mohd model Shahizan to International Volume Othman measure the Journal of number - use and of social Engineering Nov 2013, Mahdi read Alhaji media for Trends on and 15 th Apirl 2021 14 Yi-Hsuan “The Lai, Effects Usefulness B&B Hsiu-Chin of on Sector”, Huang, Ruey-Shan Lu, Website Trust, Perceived Consumers’ Online Booking Life Science Journal 2013; and Ease Intention: 10(2), Chia-Ming of Use, and Evidence published Chang, in Perceived from 2013, 2013, Taiwan read on May 10th 2021 Articles 15 “Vietnam E - commerce map”, 2021, Iprice Insight, read on May 1st 2021 https://iprice vn/insights/mapofecommerce/ public by Iprice insight 70 30 “A brief history of IT in the banking industry”, BNP Paribas, at April th, 2021 < https://history.bnpparibas/dossier/a-brief-history-of-it-in-the-banking- industry∕> 31 “A history of ATM innovation”, published on January 12, 2021, NCR Company, read on 8th, Apirl 2021 < https://www.ncr.com/blogs/banking/history-atm-innovation 32 Pham Tien Dat, Luu Anh Nguyet, 2019, “Ngan hang so - Trien Vong vaphat trien tuong lai”, Banking Review, read on April 15 th 2021 http://tapchinganhang.gov.vn/ngan-hang-so-trien-vong-va-phat-trien-trongtuong-lai.htm 33 Darryl Proctor, 2019, “ What is Digital Banking?”, Temenos, read at April 14th 2021, https://www.temenos.com/news/2019/12/19/what-is-digital-banking/ 34 Dinh Van Chuc, 2020, “Ung dung cong nghe thong tin phat trien san pham dich vu ngan hango VietNam”, Finance Review, read on May st 2021, https://tapchitaichinh.vn/ngan-hang/ung-dung-cong-nghe-thong-tin-trongphat-trien-san-pham-dich-vu-ngan-hang-o-viet-nam-330451.html 35 “GDP growth (annual %) - Vietnam”, 2019, World Bank, read at April 13rd 2021 36 Jum Nunnally and Ira Bernstein, 1994, “Psychometric Theory”, 3rd edition, New York: McGraw - Hill, xxiv + 752 pp, read on Apirl 28 th 2021 < https://journals.sagepub.com/doi/abs/10.1177/014662169501900308?journal Code=apma> 37 Kinh Duong, 2018, “Ngan hang so khong chi la so hoa ngan hang”, Vietnamfinance.com, Financial review, read on April 15 th 2021 https://tapchitaichinh.vn/ngan-hang/ngan-hang-so-khong-chi-la-so-hoa-nganhang-145599.html 38 Le Thi Thanh, 2020, “Thanh toan khong dung tien mat tai Viet Nam: Thuc 71 https://tapchitaichinh.vn/ngan-hang/thanh-toan-khong-dung-tien-mat-taiviet-nam-thuc-trang-va-giai-phap-329639.html> 39 Nguyen Hien, 2020, “Vietnam Digital Marketing Report 2020: The market size could reach 13 billion USD!”, Statistic Report, public on Andrews University, read on May 1st 2021 https://andrews.edu.vn/bao-cao-chi-sothuong-mai-dien-tu-viet-nam-2020/ 40 Nguyen Thu Thuy, Nguyen Thi Ha Thanh, Le Thanh Tuyen, 2020, “Phat trien ngan hang so tai Vietnam va mot so kinh Nghiem quoc te n, published on Financial review, read on March 20 th 2020 https://tapchitaichinh.vn/nganhang/phat-trien-ngan-hang-so-tai-viet-nam-va-mot-so-kinh-nghiem-quoc-te329622.html 41 Pham The Hung, Tran Thi Lan Huong, Vu Thi Tuyet Nhung, 2020, “Thuc trang va giai phap phat trien ngan hang so o Viet Nam ”, Financial Review, 2nd period, December 2020, read on May 1st 2021 https://tapchitaichinh.vn/ngan-hang/thuc-trang-va-giai-phap-phat-trien-nganhang-so-o-viet-nam-331534.html 42 Quang Tuan, 2020, “Thanh toan khong dung tien mat dang tang toc”, Financial Review, read on May th 2021 < https://tapchitaichinh.vn/nganhang/thanh-toan-khong-dung-tien-mat-dang-tang-toc-328112.html> 43 “Socio-economic situation in the first quarter of2021”, 2021, published on March 29th 2021, General Statistics Office, read on April 13 rd 2021 < https://www.gso.gov.vn/en/data-and-statistics/2021/04/socio-economicsituation-in-the-fìrst-quarter-of-2021/> 44 “Socio-economic situation in the fourth quarter and the whole year 2020”, 2020, published on December 27th, 2020, General Statistics Office, read on April 13rd, 2021 < https://www.gso.gov.vn/en/data-and- statistics/2021/01/socio-economic-situation-in-the-fourth-quarter-and-thewhole-year-2020/> 45 Tran Linh, 2020, ''Phal trien cong nghe so linh vuc ngan hang, tai chinh”, Banking Review, published on October 13th 2020, read on May 8th 72 2021 < http://tapchinganhang.gov.vn/phat-trien-cong-nghe-so-trong-linhAPPENDIX Appendix vuc-ngan-hang-tai-chinh.htm 1: Reliability Statistics> Perceived ease of use N of Cronbach's Items Alpha .8 67 _ Item-Total Sca ScaStatistics Co Cr le le rre on Me Var cte bac an ian d h's Ite if ce Al P E 8.2 91 72 83 P E 8.1 89 77 79 P E Reliability 8.3 62 Statistics 75 81 N of Cronbach's Items Alpha .8 66 _ Perceived usefulness Item-Total Sca ScaStatistics Co Cr le le rre on Me Var cte bac an ian d h's Ite Al P if ce U 7.1 53 64 85 P U 6.7 15 69 84 P U 7.0 44 73 82 P U 6.9 75 71 83 P U Reliability 7.0 90 Statistics 68 83 Cronbach's Alpha Source: Results of IBM SPSS Statistics N of Items Source: Results of IBM SPSS Statistics Perceived risk 73 .8 97 _Item-Total Statistics _ Cronbach's Scale 897 Alpha if Scale Mean Variance if Corrected Item if Item Item Item-Total Deleted Deleted Deleted Correlation 8.9 .6 .8 PR1 8.74 05 91 95 8.8 .7 .8 PR2 8.74 65 60 72 7.9 .7 .8 PR3 9.06 36 89 61 7.8 .8 .8 PR4 9.20 Statistics 12 53 35 Reliability Cronbach's N of Alpha Items .8 16 _ Item-Total Statistics Sca S Co Cr Trust le cal rre on Me e cte bac an Var d h's if ian Ite Al T 1T 8.4 42 65 76 2T 8.3 52 65 75 Reliability 8.3 49 Statistics 69 72 Cronbach's N of Alpha Items .8 20 _ Item-Total Statistics S S Co Cr c cal rre on cte bac al e e Var d h's Ite Al Attitude towards use and intention to use A M ian T 8.4 43 66 78 A 20 71 70 IT 8.5 N 98 68 76 74 Source: Results of IBM SPSS Statistics Source: Results of IBM SPSS Statistics CMI CMIN/D DF Model _ NPAR P F 1.920 N 239.97 125 000 Default model 17 Saturated model 000 0_ 000 Independence _ 1676.233 153 10.95 Source: Results of IBM SPSS Statistics model 18 Appendix 2: CFA analysis Model fit summary CMIN RM Model GFI AGFI PGFI R Default model 790 038 847 619 Saturated model 1.000 Independence model 000 .254 Source: Results of IBMAMOS Graphics 211 332 297 RMR, GFI Model I NF RFI rho1 825 Delta Default model 8571.00 Saturated model Independence model 000 000 Baseline Comparisons PU PU PU PU PR PR PR PE PE ATTIN T IFI TLI Delta2 rho2 926 1.000 908 000 000 CFI 925 1.00 0.000 Estimate -.10 PR PE ATTINT 688 453 T 461 -.03 PE -.00 ATTINT T ATTINT 065 Correlations: 357 T T _ 363 758 Source: Results of IBMAMOS Graphics Source: Results of IBMAMOS Graphics 75 Model NPAR Default model 4Γ Saturated model CMIN Ĩ7T Independence model Model CMIN DF 244.86 Ĩ3 000 18^^ Ĩ676.233 RMR GFI AGFI Ĩ5 P 000 000 PGFI CMIN/D F Ĩ.884 Ĩ0.95 Default model 642 04Ĩ 845 796 Saturated model Ĩ.000 000 Source: Results of IBM AMOS Graphics Independence 2ĨĨ 297 model 332 254 RMR, GFI NF RFI IFI TLI Model I rhoĨ Delta2 rho2 CFI DeltaĨ Default model 926 9ĨĨ 854 828 925 Saturated model Ĩ.00 Ĩ.000 Ĩ.00 0 Independence 000 000 model 000 000 000 Source: Results of IBM AMOS Graphics Baseline Comparisons _Correlations _ ADT PR PU PE T ATTINT ADT Pearson 4Ĩ0** 330** 778** Ĩ 0Ĩ6 679** Correlation Sig (2-tailed) 000 000 000 000 844 Ĩ5 Ĩ5 _ N Ĩ50 Ĩ50 Ĩ50 0 Ĩ50 PR -.089 -.043 050 029 Pearson Ĩ Correlation 0Ĩ6 Source: Results of IBMAMOS Graphics Sig (2-tailed) 278 597 547 723 Appendix 4: Pearson Correlations 844 N Ĩ5 Ĩ5 Ĩ50 _ Ĩ50 Ĩ50 4Ĩ0** -.089 Ĩ50 PU 587** 38Ĩ ** Pearson Ĩ 403** Correlation Sig (2-tailed) 000 000 000 000 278 Source: Results of IBMAMOS Graphics Appendix 3: Structural Equation Modeling analysis Model fit summary 76 PE T ATTI NT N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N Pearson Correlation Sig (2-tailed) N 330** 000 15 679** 000 15 778** 000 15 Service Using for Transfer 15 150 150 336** _ 150 276 ** 000 150 403** 150 336** 000 150 001 _ 150 534 ** 547 150 029 000 150 381** 000 150 276** 723 150 000 150 001 150 150 -.043 150 587** 597 150 050 Number of users 000 150 _ 534** 150 000 150 _ 150 Frequency Internet banking 119 79% ** Correlation is significant at the 0.01 level (2-tailed). _ Source: Mobile banking 122 81% Results of IBM SPSS Statistics Saving money Appendix online Internet bankingfeatures of 78 52% 5: The banking the service the customers use Receiving salary Bill payment Registration of Mobile banking 91 61% Internet banking 106 71% Mobile banking 82 55% Internet banking 89 59% Mobile banking 101 67% Internet banking 97 65% Mobile banking Internet banking 111 74 74% 49% Mobile banking 78 52% Internet banking 67 45% Mobile banking 73 49% Internet banking 80 53% changing in balance account Open/ Close card Ticket booking Consumer shopping 77 Phone recharge Bank loan Mobile banking Internet banking 105 84 70% 56% Mobile banking 114 76% Internet banking 49 33% Mobile banking 33 22% 78 Source: Result of respondents 79 XÁC NHẬN CỦA ĐƠN VỊ THỰC TẬP ( ộng hịa xã hội chu nghía Việt Nam Độc lập -Tụ do-Hạnh phúc NHẬN XÉT VÀ XÁC NHẬN CỦA DƠN Vl THỤC TẠP Sinh viên Bùi Phương Anh MSV: 2OA4O1OOO8 - Lớp: K20CLCB đà hoàn thành trinh thực tập phòng Khách hàng Doanh nghiệp thuộc Ngân hàng TMCP Á Châu C hi nhanh Hà Nội từ ngày AA101 đến ngày Al l.0t1 Trong thời gian thực tập sinh Vicn Bui I hương Anh dà thê lực hoàn thánh cõng việc dược giao: ʃ Xuất sắc J í Tốt I Khá Dap ưng y.c Khung đáp ứng y.c Xac nhân cua đơn vị thực tập I Kv ghi rgjy⅞sten đong dâu) ≡ IiiiJMiiitfFHiiiYpy YA CHẬU ⅛J∕√X u0∖ CHI NHANH jfetfc C XJ v⅛χ HÀ NỘI /*∕J ∖⅛