A study on factors affecting customer’s decision to use e banking services at commercial banks in vietnam

z z STATE BANK OF VIETNAM BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES ~~~~~~*~~~~~~ GRADUATION THESIS A STUDY ON FACTORS AFFECTING CUSTOMER’S DECISION TO USE E-BANKING SERVICES AT COMMERCIAL BANKS IN VIETNAM Student: To Minh Phuong Class: K20ATCA Academic year: 2017 – 2021 Student ID: 20A7510142 Supervisor: Ms Dinh Thi Bac Binh (MA) Hanoi, May 2021 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014125837911000000 CETIFICATE OF ORIGINALITY This dissertation is my personal work, carried out under the scientific guidance of Ms Dinh Thi Bac Binh The data in the tables for analysis and evaluation are collected from different sources with clearly stated origins I am fully responsible for this guarantee Research Student To Minh Phuong i ACKNOWLEDGE The process of completing the graduation thesis is the most important stage in every student's life The thesis is the premise to equip me with valuable knowledge before starting a career First of all, I would like to express the deepest and sincerest gratitude to Ms Dinh Thi Bac Binh I’m so thankful for her enthusiastic help and guidance in scientific thinking and working which are valuable suggestions for me to be able to complete this thesis I would like to express my sincere thanks to all the teachers of the Faculty of Foreign Languages who have enthusiastically taught and equipped me with the necessary knowledge during my time in the lecture hall Due to the lack of experience as well as the limitations of knowledge, the essay will inevitably have shortcomings I look forward to receiving comment and suggestions teachers to improve the essay Finally, I respectfully wish teachers good health, success and happiness ii TABLE OF CONTENTS CETIFICATE OF ORIGINALITY i ACKNOWLEDGE ii TABLE OF CONTENTS iii LIST OF ABBREVIATION vi LIST OF TABLES viii LIST OF FIGURES ix ABSTRACT .1 CHAPTER 1: INTRODUCTION 1.1 Introduction 1.2 Background of the study 1.3 Objectives of the study 1.4 Significance of the study 1.5 Scope and limitation of the study 1.6 Definition of terms CHAPTER 2: LITERATURE REVIEW OF E-BANKING AND CONSUMER BEHAVIOR .4 2.1 Literature review .4 2.2 Theoretical and Conceptual framework 2.2.1 E-banking 2.2.2 Consumer behavior .9 2.2.3 Factors influence Customer’s decision to use E-banking .11 CHAPTER 3: RESEARCH METHODOLOGY 14 iii 3.1 Locale of the study 14 3.2 Research design 14 3.2.1 Primary data 14 3.2.2 Secondary data 14 3.3 Data gathering procedures 14 3.4 Sampling description 14 3.5 Research Instrument .15 3.5.1 Questionnaire 15 3.5.2 SPSS Statistic .16 3.6 Statistical treatment of data 18 CHAPTER 4: FINDINGS AND DISCUSSION 20 4.1 The development of E-banking at Commercial Banks in Vietnam 20 4.2 Questionnaire-based data analysis .25 4.2.1 Assessing the influence of demographic characteristics on Customer’s intention to use E-banking .26 4.2.2 The factors involving customers' perception in their choice of E banking .27 4.2.3 Evaluate the scale’s reliability and the relationship between independent variables and intention to use E-banking 32 4.3 Discussion .37 CHAPTER 5: RECOMMENDED SOLUTIONS TO DEVELOP E-BANKING 40 5.1 Recommendations for Commercial Banks 40 5.1.1 Solutions to increase the level of Social influence 40 5.1.2 Recommendation for Security reinforcement 40 iv 5.1.3 Suggested solution to improve Convenience 40 5.1.4 Suggested solution for enhancing Ease of use 41 5.2 Recommendations for State Bank (SBV) 41 CONCLUSION 43 REFERENCE LIST OF APPENDICES v LIST OF ABBREVIATION ACRONYMS WORD’S MEANING E-banking Electronic Banking IB Internet Banking MB Mobile Banking IT Information Technology ATM Automatic Teller Machine UTAUT Unified theory of acceptance and use of technology TRA Theory of reasoned action TAM Technology Acceptance Model EFA Exploratory Factor Analysis PIN Personal identification code SPSS Statistical Package for the Social Sciences Techcombank Vietnam Technological and Commercial Joint Stock Bank BIDV Bank for Investment and Development of Vietnam Agribank Vietnam Bank for Agriculture and Rural Development Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam vi SBV the State Bank of Vietnam CBs Commercial Banks KMO Kaiser-Meyer-Olkin VIF Variance inflation factor SIG Significance level vii LIST OF TABLES Table Page Table 3.1 Building and coding the scale 18 Table 4.1 Agribank statistics 25 Table 4.2 The characteristics of the sample observed by 26 demographic factors Table 4.3 Verification the scale of influencing factors according 32-33 to the Cronbach's coefficient Table 4.4 Independent variables EFA analysis result 34-35 Table 4.5 Dependent variable EFA analysis result 35 Table 4.6 Independent and dependent variables Pearson's 35 correlation index Table 4.7 Synthesis the indicators to be observed in the 36 regression analysis Table 4.8 Result of the influencing factors on the decision to use E-banking viii 37 LIST OF FIGURES Figures Page Model TAM 12 Chart 4.1 Frequency of E-banking services usage 21 Chart 4.2 Statistics on the number of internet banking users in 22 the period 2012-2019 Chart 4.3 The number of respondents using E-banking at 24 banks Chart 4.4 Ease of Use 27 Chart 4.5 Usefulness 29 Chart 4.6 Social Impact 30 Chart 4.7 Security 31 ix