INTRODUCTION
Introduction
The rapid advancement of science and technology, particularly through the Internet and smart mobile devices, has significantly transformed digital banking, presenting both opportunities and challenges for banks due to evolving customer behaviors The impact of digital services on corporate operations is evident, with 52% of Fortune 500 companies facing bankruptcy or acquisition since 2000 (State Bank, 2019) Moreover, the adoption of digital banking systems can lead to increased income, estimated at 43% to 48% (State Bank, 2019) As an effective alternative to traditional distribution channels, digital banking addresses the limitations imposed by physical transaction networks and regulatory constraints While some banks in Vietnam have successfully established digital banking, many still only offer Internet and Mobile Banking, which primarily fulfill transaction needs, leaving significant gaps in the digitization of business processes, particularly in sales and product creation.
Digital banking plays a crucial role in enhancing customer loyalty among bank clients A study indicates that around 20% of consumers would consider switching to another financial institution if their current bank lacks online banking services (Guru, Shanmugam, Alam, & Perera, 2003) Consequently, digital banking presents both an opportunity and a challenge for banks to innovate technologically, boost market competition, and improve customer experiences.
Background of the study
The current economic boom and the significant impact of the banking system have provided numerous advantages to nations; however, economic integration poses challenges for banks in developing effective marketing campaigns for their products and services.
The banking sector in Vietnam comprises seven state-owned commercial banks, including joint-stock banks where the state maintains a majority stake, alongside 37 joint-stock commercial banks and five fully foreign-owned banks.
5 Vietnam - foreign joint-venture banks, and 48 foreign bank branches This is why
3 the competition is always currently fierce; banks that want to develop steadily must have a competitive position in the banking system
The 4.0 technology revolution has pushed the economy to develop in the direction of digitalization More and more products and services have been applied with new technologies so that the banking industry is not out of trend Due to the extraordinary development of technology, banks improve their operating systems and process customer transactions quickly In addition, it also increases employee productivity, minimizes operating costs, and accesses a large number of customers, thereby increasing the bank's income However, with the changes in customer behavior, this is both an opportunity and a challenge for banks Therefore, Digital banking is a long-term strategy and core values
Established in 2008, Tien Phong Commercial Bank (TP Bank) aims to become a leading advanced commercial bank Despite being a smaller institution, TP Bank recognizes the need for restructuring to adapt to the digital banking landscape The bank has faced several challenges, including low transaction volumes, a limited customer base, and system failures However, the State Bank reports that TP Bank's total operating income shows potential for growth.
In 2020, TP Bank achieved a remarkable revenue of VND 10.368 billion, reflecting a 22.4% increase from 2019, despite the challenges posed by the Covid-19 pandemic This growth underscores the effectiveness of TP Bank's digital banking strategy, which is aligned with the global trend towards digitalization in the banking sector.
The author explores the topic of "Developing Digital Banking Products at Tien Phong Commercial Joint Stock Bank" to identify key factors influencing the growth of banking products This analysis aims to propose effective solutions that will enhance product development in the digital banking sector.
TP Bank build better digital banking services and develop more sustainably.
Objective of the study
The first thing this research provides overall knowledge about digital banking services
This thesis focuses on assessing the current state of digital banking services at TP Bank and analyzing key performance indicators related to these services Additionally, it proposes effective solutions to enhance the promotion of digital banking offerings at TP Bank.
Signification of the study
This study provides bank managers with valuable insights into digital banking services, enabling them to diversify their clientele and implement more effective service policies With the growth of the Internet, it is crucial for managers to enhance their brand positioning to attract and retain customers.
From this study, it is easy for clients to approach up-to-date services and promotions
This finding serves as a helpful resource for subsequent researchers wanting to explore this topic.
Scope and Limitation of the study
The research concentrates on researching how TP Banks develop digital banking services Additionally, it also takes measures to improve and potential digital banking services more effectively
This article explores the utilization of digital banking services at TP Bank, highlighting its current advantages and future directions The research is limited due to a lack of existing materials, posing challenges in examining various aspects of the topic Additionally, insufficient financial resources hinder a deeper investigation into this subject matter.
Definition of term
Digital Banking transforms traditional financial activities by shifting them to online platforms, encompassing processes such as cash deposits, withdrawals, transfers, account management, loan applications, bill payments, and various account services This shift moves these functions away from conventional financial institutions like banks, marking a significant operational change in the banking landscape.
Structural organization of the study
Chapter 2: A literature review of digital banking services in the banking sector
Chapter 5: Solutions and recommendations for enhancing digital banking services at
A LITERATURE REVIEW OF DIGITAL BANKING SERVICES
Literature review
In today's technologically advanced world, digital banking has become essential, offering significant advantages over traditional banking methods Key components such as automation and online services, facilitated by APIs, enhance customer convenience and efficiency As noted by Kelman (2016), digital banking serves as a comprehensive platform that integrates user interfaces for both customers and banks, streamlining customer requests and data management Furthermore, implementing digital banking is crucial for optimizing all banking functions, ensuring seamless service delivery.
In the thesis "The Reality and Solution for Developing Digital Banking Services at BIDV" by Phạm Thị Hải Yến (2018), the author conducts a comprehensive analysis of BIDV's digital banking activities through various analytical methods, including scale, trend, and structural analysis The study assesses the outcomes of BIDV's digital banking service development, highlighting strengths, limitations, opportunities, and challenges faced in establishing these services and implementing business strategies Additionally, the research employs the SWOT model to evaluate operational results and propose solutions for enhancing digital banking development However, the author does not provide empirical evidence to support the claims made, as the SWOT analysis is utilized for qualitative research purposes.
In her 2019 thesis, "The Impact of Digital Banking on the Efficiency of BIDV's Branch Channel," Lê Thị Thanh Yên explores the effects of digital banking on BIDV using well-defined hypotheses and methodologies This research not only employs an appropriate methodology but also offers comprehensive insights into digital banking To achieve her objectives, the author seeks to address critical questions regarding the influence of digital banking on branch channel performance, the integration of digital banking applications within traditional branches, and strategies to enhance the positive impacts of digital banking.
The study on the performance of the bank's branch channel presents a limitation, as the author did not address all the questions raised This reliance on hypotheses can make it challenging for readers to fully comprehend and engage with the thesis.
Digital banking is a critical strategic challenge for banks, presenting both threats and opportunities It significantly affects public policy, influencing the profitability and solvency of financial institutions Additionally, it raises concerns regarding the protection of borrowers and investors, while highlighting the systemic importance of emerging fintech startups that specialize in financial services.
Overview of digital banking services
Digital banking is a form of banking that digitizes all traditional banking services
Digital banking enables customers to perform various banking activities through a single application, similar to traditional bank branches It also allows for the digitization of essential bank operations, including risk management, capital resources, product development, and marketing This modern banking model relies on advanced technologies and innovations in financial services, incorporating elements such as AI, payment solutions, digital strategies, RegTech, data analytics, blockchain, APIs, and diverse distribution channels.
("Digital Banking - Meaning, Types, Products, And Services," 2020)
Figure 2.1: Main contents of Digital Banking
Source: Digital Banking in Asia - Winning approaches in a new generation of financial services,2014
(1) Diversify channels connect with customers
To meet clients' needs, Banks must modernize to have various channels such as
To deliver high-quality banking services across various platforms such as branches, transaction points, internet banking, mobile banking, kiosks, customer care centers, and social networks, banks must establish a robust technological foundation The vision for digital banking focuses on enhancing digital distribution channels, integrating them with traditional counter services, and digitizing these counter channels to optimize customer experience It is essential for digital banks to ensure seamless connectivity and consistent service across all customer interaction points Currently, leading core banking solution providers have introduced "Omni-Channel" features to help banks deliver multi-channel services and a uniform user experience.
Digital banking mandates maximum automation in service production and banking operations, minimizing human intervention Information technology solutions, such as Workflow and Business Process Management (BPM), enhance regulatory compliance Banks implement support solutions for automating product delivery processes, integrating them with digital distribution channels For instance, when customers apply for loans through Internet Banking without human assistance, banks must ensure they have adequate customer information, and that loan products are secure and easy to apply for via software systems.
To enhance efficiency in delivering appropriate and rapid products to customers across various channels, banks must implement application systems capable of processing substantial internal and external data for informed decision-making Consequently, digital banking systems should leverage data analysis to facilitate more precise, swift, and improved decisions aligned with customer preferences and risk management strategies A greater reliance on automated business decisions derived from data analysis signifies a higher level of digitization in banking operations.
Building digital banks necessitates extensive research and development to leverage advancements in science and technology, ensuring competitiveness against Fintech companies A key focus for digital banking solutions is the enhancement of mobile payment services Therefore, alongside product innovation, banks must also transform their business management strategies to thrive in the evolving financial landscape.
Digital banking integrates innovative technology with the digitization of traditional banking activities, enhancing distribution channels This evolution modernizes business and decision-making processes, ultimately improving customer experiences and enabling adaptability to changes in both the internal and external business environments.
Benefits and Costs of digital banking
Compared to traditional banks, Digital banks play an essential role in bringing benefits for both banks and customers
According to the McKinsey report (McKinsey's Global Banking Annual Review |
According to McKinsey (2019), banks can boost their EBITDA margins by up to 40% through digital transformation Modern technology eliminates the need for direct customer transactions, streamlining processes and reducing repetitive steps Additionally, automating functions and eliminating redundancies enables banks to achieve significant cost savings.
The automation process is progressively replacing counter staff, as advanced technology minimizes operational risks and enhances accuracy compared to human performance This shift not only decreases operational errors and boosts safety but also alleviates the burdens of administrative and operational tasks Consequently, it leads to increased transaction speed and overall productivity.
As a result, commercial banks will form partnerships with securities firms,
11 insurance firms, and other finance firms to provide synchronous utility products to meet customers' needs for investment, insurance, and banking services
Commercial banks, for example, may use digital banking to provide consumers with all required banking information and quickly update new products and services introduction programs or promotions
Expand the market share and increase competitiveness
Digital banking enhances service quality and operational efficiency for commercial banks, boosting their competitiveness It allows banks to execute globalization strategies without the need for overseas branches, enabling them to connect with a larger, tech-savvy clientele For consumers, the benefits of digital banking are clear, as they are already familiar with online shopping and would welcome the digitization and automation of more banking tasks.
Customers can conveniently contact the bank anytime and from anywhere to access various banking services, making it an ideal solution for busy individuals and small to medium-sized businesses with limited transaction needs This service not only enhances accessibility but also ensures high accuracy and speed in executing and confirming transactions.
Customers can efficiently manage all their bank accounts from a single website, thanks to digital banking services These platforms offer additional features like stock quotes, interest rate alerts, and portfolio management By adhering to standardized protocols, customers receive consistent service, eliminating reliance on varying attitudes from bank staff.
With the traditional transaction method, customers may have to bring a certain amount of cash to the counter If this amount is large, the transportation on the road
Digital banks offer enhanced safety compared to traditional banks, as they minimize the risks associated with cash handling at counters, which can lead to errors and potential losses for customers.
Cash consumption faces several limitations, including high printing costs and challenges in accurately assessing the cash supply in the market These difficulties hinder governments in formulating effective fiscal policies aimed at stabilizing financial markets As digital transformation progresses, it becomes essential for states to address these issues by reducing cash circulation in the economy.
To enhance tax compliance and efficiency, the state requires comprehensive information on timely tax payments As Vietnam integrates into the global economy and connects with developed nations, adopting modern banking models becomes essential Consequently, Vietnamese commercial banks must rapidly transition to digital banking solutions to capitalize on these advantages.
Indicators reflect the development of digital banking services
Market share reflects the portion of the market that banks capture, serving as a key indicator of their success in digital banking services A larger market share signifies effective marketing and advertising strategies, demonstrating the bank's ability to attract customers To enhance their market presence, banks must focus on delivering high-quality services, offering a diverse range of products, and understanding customer psychology.
Sales of products and services
Sales serve as a vital metric for evaluating the advancement of digital banking services, with increased operating sales indicating a higher number of consumers utilizing these products and services This trend leads to an expanded market share, driven by ongoing product and service enhancements and growth initiatives.
Objects and number of customers
To begin with, banks must meet the needs of a wide variety of customers to grow digital banking services Customers will use digital banking services more if they
13 have a higher degree of response to their needs
Profit maximization is the primary goal for all companies, including banks, and serves as a key metric for evaluating the success of digital banking services The effective development of these services requires that revenue and profit align with the capital invested, ensuring a sustainable growth model.
The growth rate of digital banking indicators serves as a crucial measure of operational efficiency for commercial banks, influencing decisions on the continuation or suspension of underperforming services This data enables the Board of Directors to make informed decisions regarding operating strategies, IT initiatives, and customer service policies, ultimately enhancing the competitiveness and profitability of commercial banks.
(The Impact of Digital Banking on the Efficiency of banking sectorl, 2018)
2.4.2 The quality of digital banking services
Digital banking products and services are highly valued by customers for their practicality, and satisfaction ratings play a crucial role in helping banks create policies that effectively meet customer needs.
Diversification and usefulness of services
To stay competitive in the market, banks must consistently diversify and improve their services Expanding digital banking offerings is essential for attracting and retaining customers.
Once a bank establishes its brand and credibility in the market, customers can confidently trust and utilize its services A reputable bank boasts strong financial potential, a stable IT infrastructure, and dedicated employees who deliver knowledgeable service Additionally, it offers a diverse range of services to meet various customer needs.
14 added values, modern delivery networks, and so on, to completely satisfy the service needs of all customers
Capable of competitiveness in the market
To remain competitive, banks must continually innovate to address their customers' diverse needs Key metrics for evaluating the competitiveness of commercial banks include equity capital, mobilized capital, personnel skills, and operating networks.
2.4.3 Safety and risk control in the digital banking business
Money trading, particularly in digital banking, poses significant risks due to potential unauthorized access by skilled hackers and the transmission of malicious code This can compromise the confidentiality of personal and account information, customer deposits, and banking data systems Consequently, banks must enhance their security measures and risk management strategies to safeguard their data systems and information processing Customers are more likely to trust and choose banks that offer digital banking products and services with robust security features and stringent payment risk management.
Factors affecting the development of Digital Banking
The legal framework for Digital Banking
The legal framework is a crucial factor shaping digital banking services at commercial banks To support the development of e-banking, various laws and decrees have been enacted by the Government, the State Bank, and relevant ministries Key regulations include Decree No 35/2007/ND-CP on electronic transactions in banking, issued on March 8, 2007, and Decree No 52/2013/ND-CP on electronic trade, dated May 16, 2013 Additionally, Circular No 59/2015/TT-BCT, released on December 31, 2015, regulates e-commerce activities via mobile applications, while non-cash payments are governed by Decree No 101/2012/ND-CP, dated November 22, 2012.
The Law on Electronic Transactions and its accompanying regulations address many facets of e-commerce; however, gaps in the legal framework hinder the expansion of digital banking services Notably, the current regulations primarily focus on online transactions, leaving significant areas of digital banking unregulated.
Mobile banking and internet banking platforms are evolving, yet they may not fully capture the latest trends in the digital banking transformation Additionally, user authentication presents both a technological challenge and a legal framework that aids banks in addressing disputes regarding ownership rights between the bank and its customers.
Digital banking has emerged as a result of advancements in information technology and communication science, necessitating a robust IT infrastructure for effective implementation The significant growth of national technology infrastructure, coupled with enhanced broadband connectivity, has facilitated the digital delivery networks within the banking sector.
In 2016, the International Telecommunication Union ranked Vietnam 105th out of 175 countries globally, 5th in Southeast Asia, and 12th out of 17 in the region Despite this progress, the development of IT in Vietnam remains uneven across different economic regions and organizations, leading to instability in the country's IT and communication infrastructure Frequent network congestion and connection losses continue to disrupt the continuity and stability of digital banking services.
Competitive pressure from foreign commercial banks
Vietnamese commercial banks are poised to benefit from international economic integration and financial liberalization by gaining access to advanced technology applications, management expertise, and substantial financial resources However, they face intense competition from international banks, which heightens the pressure on capital and financial resources, technological capabilities, and risk management expertise Additionally, the competition for attracting skilled human resources remains a critical challenge for domestic banks.
Financial resources are crucial for the advancement of digital banking services in Vietnamese commercial banks The growth of these services relies on not just initial IT investments but also ongoing maintenance, upgrades, and research and development However, many banks are currently undergoing mergers or restructuring, resulting in insufficient capital to invest in digital transaction platforms, which restricts their capabilities to primarily issuing cards.
Vietnamese commercial banks are encountering financial challenges in maintaining and upgrading their IT infrastructures, which are essential for integrating domestic and international electronic transaction networks through automated teller machine (ATM) systems.
The expertise and capabilities of employees play a crucial role in the expansion of digital banking services in commercial banks To deliver high-quality digital banking, banks need staff who are not only technologically savvy but also possess a professional work ethic Currently, Vietnamese commercial banks face challenges in attracting skilled professionals necessary for leveraging new technologies to enhance their digital banking offerings.
Vietnam is emerging as a significant retail market, with a population of approximately 98 million people as of 2020, characterized by a youthful demographic where over 65% are aged between 15 and 64 With an average income ranging from $3,200 to $3,500 per person per year, consumer behavior in Vietnam is rapidly evolving due to increased regional market integration and technological advancements Vietnamese consumers are increasingly adopting modern consumption habits, favoring digital payment methods over cash, and seeking convenient goods and services that align with their busy lifestyles Notably, young consumers show a strong preference for high-tech products and services, which is driving the growth of digital banking services in the country.
The reality of digital banking services in VietNam
As the market economy evolves, banking services continuously improve, driven by heightened competition among financial institutions and the growing demands of users, particularly due to rapid advancements in information technology Banks are now introducing innovative services or enhancing existing ones with high-tech features Digital banking services are characterized as traditional banking offerings that have been significantly upgraded and refined through the use of modern technology.
Digital banking services offer consumers enhanced convenience through 17 innovative features These modern financial services leverage advanced technology, setting them apart from traditional banking They often come as bundled products, requiring banks to continuously upgrade and enhance service quality to meet evolving consumer needs.
In the past year, the emergence of numerous digital banks, including UBank, Cake, and TNEX, has transformed the financial landscape Established banks are also entering the digital arena, with offerings like VCB Digibank from Vietcombank, OCB OMNI from OCB, SeAMobile from SeABank, and BIDV iBank A recent survey by Vietnam Report reveals that 93 percent of banks are actively investing in technological innovation to enhance their services.
Eighty percent of banks are currently digitizing their core operations to attract talent in high technology and information technology sectors Without a strategic and clear long-term digitalization roadmap, these banks risk being forced out of the industry in the near future.
A KPMG report predicts that the banking industry will undergo more rapid changes in the next decade than in the past century Banks are set to capitalize on opportunities in adjacent sectors such as shopping, education, tourism, dining, and entertainment, creating a cohesive ecosystem that integrates finance and banking with various industries to foster overall development.
Mr Nguyen Bao Hoang, General Director of Timo Digital Bank, predicts that the future of digital banking will see no significant differences between traditional and digital banks within the next year, as the digitization process accelerates He emphasizes that continuous innovation is essential for leading in this evolving landscape, with a focus on delivering groundbreaking customer experiences Furthermore, he highlights the importance of technologies such as Big Data and Machine Learning in shaping the future of banking.
Artificial intelligence (AI) is set to play a crucial role in enhancing consumer experience, particularly in digital banking, by enabling businesses to achieve maximum personalization This technology allows financial services to be tailored to meet the immediate needs of customers effectively.
Digital banking is rapidly emerging as a significant trend in Vietnam, with many banks prioritizing its development as a core component of their business strategies A survey by the State Bank of Vietnam revealed that by April 2018, 94% of domestic banks had initiated digital transformation, and 42% of credit institutions viewed digital banking as a strategic focus Additionally, mobile banking payments have surged at an impressive rate of 144% annually over the past five years, while traditional payment systems have only experienced a 40% increase.
Several banks are modernizing their business models through digital banking services, with VPBank leading the way by creating a comprehensive ecosystem that includes fashion, cuisine, shopping, and entertainment tailored for Generation Z The VPBank Yolo app caters specifically to Gen Z, who are immersed in social networks, and has garnered positive user feedback shortly after its launch Yolo marks VPBank's second venture into digital banking, following the introduction of Timo banking.
Several banks are increasing their investments in digital banking, with MB enabling customers to transfer money through Facebook and interact via AI-powered chatbots for efficiency Vietcombank's Digital Lab allows customers to initiate deposits, withdrawals, and transfers in a dedicated transaction space Additionally, CIMB, a fully foreign-owned bank from Malaysia, has recently entered the Vietnamese market, launching the OCTO by CIMB and selecting Vietnam as the first Southeast Asian country to implement this innovative system.
Digital business models are being evaluated through initiatives like Vietcombank's Digital Lab and Orient Bank's Omni Channel platform The concept of "e-banking branches" is being promoted, alongside the development of Live Chat channels for online customer support, as seen with banks like Vietinbank, Vietcombank, VIB, and Sacombank.
The global and Vietnamese banking systems are undergoing unprecedented growth, necessitating significant changes in banking operations To enhance customer service experiences in the digital age, banks must embrace digitization and adapt to evolving market demands.
19 era and creates a breakthrough development of the new generation of the banking and financial industry
The rise of Fintech companies has transformed the distribution channels for traditional banking products and services, enhancing online transactions via Internet Banking, Mobile Banking, social networks, and digital platforms Consequently, collaboration with Fintech firms is essential for delivering high-quality products and services, aligning with the inevitable shift towards digital banking.
2.6.1 Opportunities of digital banking services in Vietnam banking system
Digital banking is evolving alongside global banking technology, driven by the digital revolution and Industry 4.0 This progress enables Vietnamese banks to attract investment and access international markets To stay competitive, banks must innovate their technology and develop digital banking services that broaden their market reach.
Enhancing and implementing technology in management significantly lowers management and traditional branch investment costs This not only fosters the creation of innovative products and services on the 4.0 technology platform, thereby reaching a wider customer base, but also leverages economies of scale for further growth.
RESEARCH METHODOLOGY
Locale of the study
This research: "Developing digital banking services at Tien Phong commercial joint stock bank" is carried out at Tien Phong commercial joint-stock bank.
Research design
This thesis employs both quantitative and qualitative research methods The quantitative approach utilizes data collected from surveys conducted via Google Forms, while the qualitative methodology draws insights from various sources, including books, journals, websites, and reports By synthesizing these diverse information sources, the author develops a comprehensive and profound new theoretical framework on the subject and its related issues.
Data
Data is classified into primary and secondary sources, with primary data being the most reliable as it comes directly from original sources like interviews, surveys, and studies (Formplus, 2019) To ensure objectivity, the author employs a questionnaire via Google Forms to gather insights from customers.
This thesis utilizes secondary research, drawing on data from TP Bank reports and credible external sources It emphasizes the importance of accurate information gathered from reputable websites of Central Banks, academic journals, articles, and prior studies To enhance clarity, the study incorporates various visual aids, including pie charts, bar charts, and other graphs.
Population and Sample description
A Google Form was utilized to conduct a study, gathering valid responses from 211 individuals using TPBank's digital banking services The survey targeted social media users of all ages, genders, and occupations, ensuring a diverse participant pool The questionnaire was systematically distributed across four age groups: "under 25," "25 to 35," "36 to 50," and "over 50," allowing for a comprehensive analysis of user demographics.
The study included a diverse sample of participants, comprising 131 students, 6 housewives or freelance workers, 39 business owners, and 35 office workers, totaling 211 individuals This variety in occupations enhances the generalization and reliability of the survey results To maintain objectivity, all participants were selected randomly.
Table 3.1: Basic anthropological information of the participant
Due to the reality of this survey, the author can evaluate objectively and comprehensively the opinion of customers with TPBank's digital banking services.
Research instrument
Questionnaires are a more accurate research method compared to interviews or data mining, as they can reach a larger population quickly, especially across vast geographic areas While personal interviews can introduce errors due to individual interpretation and are time-consuming, questionnaires facilitate anonymous responses, resulting in a higher response rate Additionally, electronic questionnaires allow for direct data submission to researchers, streamlining the data collection process.
The thesis employed a blend of multiple-choice and scaling questions to gather data Specifically, the author designed eight clear and concise multiple-choice questions aimed at conducting a survey on social media, facilitating an accessible method for reaching a varied consumer audience.
Scaling questionnaires, also referred to as ranking questions, allow respondents to rate their answers on a scale of one to five, ranging from "Very satisfied" to "Very dissatisfied." This method was utilized in this thesis to assess customer satisfaction with TPBank's digital banking services, with statements evaluated from very dissatisfied to very satisfied.
This study employs both primary and secondary data, utilizing Microsoft Excel as the primary research tool for data analysis Once the data is collected, it is organized into tables within Excel, where it can be sorted, filtered, and analyzed using various formulas to compute essential indicators Following the calculations, the data is presented in visually appealing formats, such as graphs and charts, to enhance understanding and interpretation.
Data collection procedure
Source: Author Step 1: Identifying the research topic
The author, guided by valuable advice from the supervisor, identifies the research topic and objectives After reviewing related subjects, the author selects questionnaire research as the most suitable method for the chosen topic.
To collect data, the researcher designed and reviewed the survey carefully It also was highly recommended by the supervisor to pilot the questionnaire before
24 officially distributing it to the survey's participants
The pilot phase of the questionnaire involved participants of various ages utilizing TPBank's digital banking services The author expresses gratitude to those who completed the questionnaire, as their feedback provides valuable insights Additionally, constructive comments will aid in enhancing the author's thesis development.
The survey utilized straightforward language and paraphrased questions to ensure clarity for various age groups In response to the COVID-19 pandemic, the survey was conducted online to reach target customers effectively The researcher collected responses over the last two weeks of April until a satisfactory number of participants was achieved.
Data will be gathered from the Google form following a two-week distribution of the poll on social media This information will be carefully selected, processed, and filtered to ensure the accuracy and usefulness of the data, aligning with the research objectives.
Data analysis procedure
After meticulously refining the collected data, the analysis was performed using Microsoft Excel 2016, resulting in visual representations such as bar charts and maps The researcher assessed the research objectives by evaluating the facts, effectiveness, and management activities based on the analyzed results In addition to survey findings, this research incorporated business reports to validate the effectiveness of TPBank's digital banking services.
Reliability and validity
With the guidance of the testing supervisor, the research instruments will undergo a thorough review to ensure their suitability and clarity, which is essential for completing the thesis effectively Prior to data collection, these instruments will be pre-tested to assess and enhance their validity and reliability The supervisor, drawing on her extensive experience, has provided valuable feedback, affirming that the questionnaire is both accurate and valid for distribution to research subjects Additionally, enthusiastic encouragement from a friend has led to further insights regarding the questionnaire's consistency and clarity, prompting the author to implement several suggested changes.
FINDINGS AND DISCUSSION
The reality of digital banking services in TPBank
4.1.1 Brief history and development of Tp Bank
Tien Phong Commercial Joint Stock Bank (TPBank) was established on May 5, 2008, under the Establishment License No 123/GP-NGNH issued by the Governor of the State Bank of Vietnam As of October 4, 2016, TPBank had registered for a replacement for the 23rd time Celebrating a decade in the banking sector, TPBank's total assets have surpassed VND 206 trillion In 2020, the bank reported a pre-tax profit of nearly VND 4,300 billion, marking an 11% increase from the previous year and exceeding its planned targets by 8%, despite the challenges posed by the COVID-19 pandemic.
In 2020, primary banking operations focused on capital mobilization and credit extension, offering short, medium, and long-term financing to both organizations and individuals Additionally, banks facilitated foreign currency transactions, provided international trade finance services, and engaged in commercial discounting of papers, bonds, and various other banking activities.
TPBank aspires to be a leading transparent financial organization, prioritizing the best benefits for shareholders and customers Leveraging modern technology and the financial strengths of strategic partners like DOJI Jewelry Group, FPT Technology Group, and the International Finance Corporation (IFC), TPBank is positioned to excel in digital banking The bank has introduced innovative products such as LiveBank, a 24/7 automated banking model, TP Bank Savy, a universal savings application, and QuickPay, a QR code payment system Additionally, TPBank has successfully implemented T' Aio, an AI-powered virtual assistant, along with advanced voice and fingerprint recognition technologies These unique offerings establish TPBank as a pioneer in diversified digital banking in Vietnam With the brand promise "Because we understand you," TPBank aims to build top-quality banking services based on a deep understanding of customer needs, focusing on sustainable development by delivering the best products and services that provide maximum value to customers.
In 2020, the global economy experienced unprecedented fluctuations due to the impact of the Covid-19 pandemic, leading to a severe recession In response, central banks worldwide implemented continuous interest rate cuts and introduced support packages to mitigate the crisis.
The Covid-19 pandemic has led to complex and unpredictable changes in domestic social and economic activities As a crucial component of the economy, the banking system has been significantly impacted by these developments, particularly in areas such as monetary policy management, credit structuring, and the resolution of bad debts.
TPBank has effectively navigated the challenges posed by the epidemic by implementing flexible strategies, ensuring sustained growth, and successfully meeting the targets established by the General Meeting of Shareholders.
As of December 31, 2020, TPBank's total assets amounted to VND 206.3 trillion, reflecting a significant growth of nearly 26% from the previous year The bank's total mobilization reached approximately VND 184.9 trillion, showcasing a qualitative shift in capital utilization, with market one mobilization increasing by 34% to VND 143.8 trillion compared to 2019.
27 continued to grow well, using up the limit Credit growth was allowed by the State Bank, with total outstanding loans reaching 132.3 trillion dongs
TPBank maintains a strong credit quality with non-performing loans (NPLs) at 1.17%, an improvement from 2019 In 2020, the bank's total net operating income reached VND 10,369 billion, with net interest income contributing VND 7,619 billion, or 73.5%, while net non-interest income accounted for VND 2,750 billion, or 26.5% The pre-provision profit for credit losses was VND 6,172 billion, and the bank set aside provisions totaling VND 1,783 billion, including a general provision of VND 153 billion and a specific provision of VND 1,630 billion.
Capital is a crucial factor in a commercial bank's performance, serving as the foundation for its operations as a financial intermediary To effectively "borrow to lend," banks like TPBank prioritize capital mobilization, ensuring they have sufficient resources to meet the borrowing needs of various economic sectors and generate revenue In recent years, TPBank has actively focused on mobilizing idle capital from individuals and businesses through diverse channels, positioning capital mobilization as a key goal to support investment demand and drive economic growth.
Figure 4.2 TPBank's capital mobilization from 2016 to 2020
As of June 30, 2020, the bank's total assets surpassed VND 181,000 billion, marking a significant increase of over 24% compared to the previous year and exceeding its 2020 targets Total deposits rose to over VND 162 trillion, reflecting a 25% year-on-year growth despite a decline in deposit rates This growth in mobilized capital highlights TPBank's strengthening reputation and role in the market, as evidenced by positive trends in capital mobilization amidst recent economic fluctuations The bank's effective marketing strategies and favorable consumer policies have successfully encouraged customer deposits, contributing to a steady increase in mobilized capital from 2016 to 2019.
The bank has demonstrated effective capital mobilization, with a steady increase in mobilized capital over the years, ensuring a reliable source to meet customer needs This reflects the bank's commitment to building a positive public image and the dedication of its staff to promptly address customer requirements.
4.1.3 TP Bank's digital banking services
Since its restructuring in 2012, TPBank has launched a diverse range of products and services tailored to various customer segments, while also innovating traditional offerings through the integration of modern technology Currently, TPBank provides a selection of digital banking products designed to enhance customer experience and meet evolving financial needs.
Live Bank is a 24/7 automated online banking service that allows users to perform various transactions, including opening payment accounts, saving money, and making deposits or withdrawals, all without the need to visit a physical branch.
Livebank offers innovative solutions that not only create new business opportunities but also significantly reduce costs for banks According to TPBank's annual report, Livebank's operating expenses are just 28% of those of traditional branches, with transaction costs slashed by 75% Customers can open a new bank account in approximately 5 minutes with the assistance of an online teller via video call Additionally, the savings deposit service provides higher interest rates compared to traditional counter deposits and internet banking, showcasing the advantages brought by technological advancements in banking.
29 guarantee security with fingerprint unlock biometric technology
TP Bank Quick Pay is a mobile application that facilitates quick and easy payments through QR code scanning, keeping pace with the growing trend of QR code payments This innovative app transforms your smartphone into a digital wallet, allowing users to manage daily expenses effortlessly QuickPay supports various payment methods, including ATM cards from any bank, Mastercard, Visa, and TP Bank accounts, while enhancing security by eliminating the need to physically present cards to merchants With its fast and user-friendly payment process, QuickPay is widely accepted at numerous domestic and international merchants affiliated with TP Bank, Visa, and Masterpass.
Analysis of the development of digital banking services at TPBank
4.2.1 TPBank's digital banking services scale
Category 1:TP Bank's market share
Mr Nguyen Hung, General Director of TPBank, highlights the bank's remarkable growth, transforming from the smallest institution in the system to a sizeable average bank within just eight years, surpassing several banks established for over 20 years Despite this achievement, TPBank's customer base of over 4 million individuals remains relatively low compared to the entire industry, indicating that there is still significant room for growth and expansion.
TPBank is actively working to increase its market share, which currently lags behind that of other banks in Vietnam The challenges posed by the Covid-19 pandemic in 2020 have negatively impacted growth prospects; however, these difficulties have also sparked necessary industry reforms A key component of TPBank's strategy is the implementation of eKYC, which is essential for high-tech banks like TPBank and Techcombank to enhance their market presence during the pandemic In the first month of eKYC implementation, over 30,000 new TPBank accounts were opened, representing 85% of the customers who typically open accounts through traditional methods This success illustrates TPBank's ability to efficiently reach and serve a significant number of new customers globally without the need to expand its physical branch network Overall, digital banking is playing a crucial role in boosting market share within the banking sector.
Source: Author's calculation Category 2:TPBank's customers
The ultimate aim of banking digitization is to prepare the next wave of bank customers - a generation of young customers who can't survive without technology and have higher
TPBank is focusing on Generation Z as its primary target audience due to their affinity for technology and modern conveniences This younger demographic, characterized by their tech-savviness, is crucial for the bank's future growth Additionally, TPBank recognizes the importance of engaging with Generation Y, those born between 1980 and 1994, as they also represent a significant segment of the evolving customer base.
From 1995 to 2015, Generation Z has emerged as a key growth driver for banks, characterized by their tech-savviness, innovation, and demand for highly customized financial products This shift compels banks to adapt and transform to meet the needs of this new customer base TPBank, targeting millennials, lacks a traditional extensive branch network but boasts 300 advanced LiveBank automated transaction systems worldwide These systems allow customers to open bank accounts and deposit savings anytime, enhancing convenience and accessibility without the need for in-person visits.
25, accounting for 62,1% It means that TPBank's digital banking services have not reached many customers (TPBank, 2020)
4.2.2 The quality of digital banking services
Category 1:Level of satisfaction of customer when using digital banking services Figure 4.4: Barriers when using TPBank's digital banking services
Barriers when using TPBank's digital banking services
Having no problem Error application Do not know how to use
High cost Having network congestion
A recent datasheet reveals that 19.8% of customers reported issues with internet traffic congestion, causing interruptions in their work, while 28% expressed frustration over frequent failures in digital banking apps Specific app-related problems, such as unexpected logouts, login issues, and automatic fund transfers, contribute to negative user experiences with TPBank's digital banking services, resulting in low ratings on platforms like CHPlay and the App Store These customer complaints significantly impact TPBank's reputation and accountability Furthermore, many users remain uncomfortable with TPBank's digital banking system due to its cumbersome interface.
The current connection system between TPBank's database and applications is prone to errors, resulting in unsynchronized information that frustrates customers and wastes their time To enhance customer satisfaction, it is crucial for TPBank to urgently upgrade and improve its applications to better meet client needs.
Simple and fast registration procedure 14,78% 53.3% 31.02% 0,9% 0
High security and safety 5.94% 63,6% 20.49% 9.8% 0 Time to make and use quickly 5,82% 40,7% 43,68% 9.7% 0
It is simple to use 7,84% 49.02% 32,15% 10.96% 0
Staff with professional knowledge and enthusiastic support
( 1: Very satisfied, 2: Satisfied, 3: Neutral, 4:Dissatisfied, 5: Very dissatisfied)
Category 2: Fast and straightforward registration procedure
The data indicates that a significant majority of customers are satisfied with digital banking services, primarily due to their fast and straightforward processes Most registration procedures are now automated through innovative technology, minimizing the need for human involvement The advancement of eKYC technology enables customers to verify their identities using electronic devices, allowing them to open accounts without in-person meetings This digital approach leverages biometrics and artificial intelligence to match personal information with a centralized database efficiently However, a small percentage (0.9%) of customers expressed dissatisfaction, citing issues such as internet congestion and machinery maintenance that hinder their digital banking experience.
Category 3: It is simple to use
TPBank provides video tutorials for each digital banking service to enhance customer engagement and usage The bank prioritizes user-friendly interface design and the integration of new technologies to deliver unique experiences in digital banking According to survey results, 49.5% of customers express satisfaction with the services, while 10.96% report frustration due to slow application processing and occasional database connectivity issues These synchronization problems can result in delays, contributing to customer dissatisfaction.
Category 4:Staff with professional knowledge and enthusiastic support
TPBank demonstrates a strong service capacity, with 50% of customers expressing satisfaction due to the professional knowledge and enthusiastic support of its staff However, during peak times, the influx of customers can lead to mistakes by the staff Additionally, some feedback indicates inconsistencies in the professional qualifications of consultants, resulting in the dissemination of inaccurate information to customers.
36 why TPBank should supplement and improve the quality of Live Bank staff to avoid affecting the image of TPBank
Customers are highly satisfied with TPBank's "reasonable service fee" as the bank has announced the elimination of online money transfer fees to all banks in Vietnam and most ATM withdrawal fees nationwide TPBank offers all its digital banking services through free applications, enhancing customer confidence in its products Additionally, the TPBank Savy app incurs no running costs, although early payments may attract a deposit management fee.
Figure 4.5: Utilities that customer usually use
TPBank provides a diverse range of services, including account inquiries, planned savings, and smart travel planning However, customers using the digital banking service often find limited functionality, as they primarily access exchange rates, account balances, and transaction statements, while features like bill payments, savings deposits, and QR payments are not yet operational.
Payment or electricity bill or water bill
Saving deposit Query account information
Book a hotel or buy tickets
Which ultility(s) do you usually use for this service?
Figure 4.6: TPBank's digital banking services
The top three digital banking applications, "Live Bank," "SMS Banking," and "Mobile Banking," are the most widely used, while TP Bank offers a range of practical applications like TP Bank QuickPay and TPBank My Go However, these services have not gained significant popularity, indicating that TP Bank's marketing strategy may need improvement to better attract customers.
Category 7: The reason why customers use TPBank's digital banking services
TPBank's digital banking services that you know
Figure 4.7: The reason why customers use TPBank's digital banking services
A recent survey investigating the factors influencing customers to utilize TPBank's digital banking services revealed that the top three reasons are "convenient and fast transactions," "high security and safety," and "free service fees." Despite being recognized as one of the top 500 strongest banks in Asia and among Vietnam's ten most prestigious banks, TPBank ranks 7th in performance, safety, and health according to The Asian Banker However, only 23.6% of respondents cited the "reputation of the bank" as a significant factor, indicating that TPBank has room for improvement in establishing consumer confidence and expanding its customer base to attract a more diverse range of users.
4.2.3 Security safety and risk control
Respondents express high satisfaction with TPBank's security services, which utilize advanced technologies like Machine Learning, artificial intelligence (AI), Optical Character Recognition (OCR), Face Recognition, Liveness Check, and Fraud Detection These innovations significantly enhance the safety and security of their digital banking services.
Convenient and fast transaction Meet the need of paying lots of money continously
High sercurity and safety Reputation of bank Free service fee
The reason why using TPBank's digital banking service are
Customer satisfaction with TPBank's security level stands at 64.6%, yet concerns about information disclosure persist Customers report that employees from insurance companies, real estate firms, and even other banks have access to their transaction details, leading to confusion and diminished trust in TPBank's information security While these incidents are relatively few, it is crucial for TPBank to enhance its security measures to ensure the protection of customer accounts and personal information.
4 3 Evaluation of digital banking development at TP Bank
4.3.1 Achievement of digital banking services at TP Bank
SOLUTIONS AND RECOMMENDATIONS FOR ENHANCING
Strategy and development orientation of TP bank in the period 2021-2025
To achieve the set roadmap and strategic goals towards 2022, TPBank plans to strengthen its position as a reputable, efficient, and quality bank in 2021
In 2021, TPBank aims for a 25% profit growth by enhancing efficiency and quality, expanding its management and sales teams, and developing a diversified customer base The bank plans to increase cross-selling of products and services, focus on non-interest income, and implement personalized customer policies for all segments Additionally, TPBank will leverage modern technology and digital innovation across its operations while maintaining a well-managed balance sheet that aligns short-term and long-term goals The strategy includes raising the CASA ratio to lower capital costs, improving the net interest margin (NIM) for better business efficiency, and effectively managing bad debts The Board of Management proposes a detailed business plan with specific financial objectives to support these initiatives.
Source: TPBank's Annual Report | TPBank Digital, 2020
Outstanding loans and corporate bond investments are projected to reach VND 156,178 billion, in accordance with the maximum limit set by the State Bank of Vietnam for 2021.
TPBank aims to reach total assets exceeding VND 250 trillion, achieve an unconsolidated pre-tax profit of over VND 5.5 trillion, and maintain a non-performing loan ratio below 2% The bank is committed to ensuring safety ratios in its banking operations while maintaining a high liquidity rate (TPBank's Annual Report, 2020).
Solutions to enhance the importance of social media marketing in TP Bank
According to TPBank's target orientation and assessment based on the current situation of TPBank, the author proposes the following solutions:
5.2.1 Upgrading transmission lines and building automatic operating systems
TPBank aims to be the leading digital bank in Vietnam, prioritizing the digitization of banking services To achieve this, the bank must allocate resources for both infrastructure development and the creation of innovative products utilizing new technologies Synchronizing the technology system with product offerings is essential for maximizing efficiency, enabling rapid deployment of new products that leverage real-time data to engage customers effectively This strategic approach provides TPBank with a competitive edge over other banks in the industry.
TPBank should collaborate with technology partners to enhance and expand its transmission lines, focusing on broadband, high capacity, and high-speed connectivity With FPT Company, an experienced software development firm and existing shareholder, TPBank can swiftly upgrade its core banking systems Furthermore, establishing a dedicated division for research, development, and application of new technologies will enable TPBank to create superior digital banking products and boost its competitiveness in the market.
To improve customer experience and enhance its reputation, TPBank should upgrade its server system to boost processing capabilities, facilitating smoother data transmission between branches and transaction points while minimizing congestion during peak times Additionally, investing in expanded storage facilities and implementing robust security solutions for digital banking products is essential for ensuring stable and secure operations.
TPBank should prioritize the development and implementation of software solutions to enhance operational efficiency, particularly by digitizing counter documents and optimizing transmission lines The current reliance on traditional paper documents is time-consuming and prone to errors To address this, TPBank needs to upgrade its document recognition system and enable direct approvals through specialized software Additionally, improving data processing capabilities is essential for facilitating faster inter-departmental information exchange while minimizing human interference.
Fourthly, The most crucial thing is to upgrade the core banking system and store data to withstand cyber attacks, ensure the safety of customers' information and the bank's data
TPBank is enhancing its digital banking products by integrating advanced technologies to improve transaction automation and security The implementation of artificial intelligence, such as chatbots, streamlines simple tasks like customer data retrieval and CIC information access from government agencies Additionally, the rapid development of blockchain technology is transforming various operations, including trade finance and letter of credit (L/C) issuance.
5.2.2 Building an ecosystem of digital banking services linked together
Banks are currently developing products in isolation, with departments like personal banking and international payments operating independently This fragmentation leads to a dilution of resources and limits customers to using only a few services from TPBank, often prompting them to seek additional offerings from other banks To enhance customer loyalty and attract more clients, it is essential to create integrated digital banking applications that cater to the evolving needs of customers.
To enhance product offerings, it is essential to assemble a team from various departments to research and develop a comprehensive list of innovative financial solutions These solutions may include an automatic deposit and cash machine featuring fingerprint authentication, mobile banking applications, online savings deposits, zero-touch payment cards, and three-factor authentication apps for secure online transactions Additionally, the development of features for receiving documents, calculating loans, and obtaining approval results directly within the app, as well as providing payment and instant information updates via QR codes and facilitating online cash advances, will significantly improve user experience and security in financial transactions.
48 savings book, all these products should be integrated into 1 TPBank application for customers to easily manage and use
Digital banking applications continuously enhance their features to provide customers with time-saving conveniences By analyzing global competitors, TPBank can develop innovative products that cater to user needs Furthermore, it is essential for TPBank to upgrade both domestic and international card offerings while enhancing security measures, as current magnetic card technology falls short of high-security standards Therefore, alongside introducing new card options, TPBank must prioritize security to prevent financial losses and protect customer information.
Establishing a reward system that fosters a culture of continuous innovation is essential for effectively addressing emerging challenges It is crucial for relevant departments to propose and test new products, with a focus on recognizing and rewarding breakthrough innovations that demonstrate high applicability, thereby encouraging employee creativity.
5.2.3 Developing a team of technology experts
To ensure the delivery of professional digital banking services, TPBank must recruit a highly skilled team of technology experts responsible for implementing and operating its systems Additionally, it is crucial for TPBank to establish competitive policies and adequate remuneration to prevent talent loss, especially as the number of banks continues to rise.
To enhance recruitment at TPBank, it is essential to standardize hiring criteria by focusing on key elements such as technical qualifications, communication skills, problem-solving abilities, and the capacity to work under pressure This approach necessitates the development of comprehensive test materials that blend theoretical knowledge with practical experience, ensuring the selection of the most suitable candidates for each unique situation.
When selecting candidates during the recruitment process, it is essential to prioritize professional credentials and ethics over personal relationships or emotional biases Additionally, the bank should implement more frequent domestic short-term training courses to enhance staff knowledge in information technology.
The rapidly evolving landscape of information technology necessitates that current staff possess a deep understanding of their professional processes This knowledge is crucial for mitigating technological risks associated with modern banking services, such as data checking and collation, to prevent errors that could harm the banking system, the institution itself, and its customers.
TPBank prioritizes continuous employee development by offering centrally coordinated courses and access to its Elearning system for ongoing training and retraining The bank encourages participation in external courses, seminars, and forums to foster learning from other organizations Additionally, employees can enhance their knowledge of modern banking products and emerging technologies through practical experiences, testing, and surveys at foreign banks, facilitating the swift application of banking innovations to strengthen competitiveness.
To enhance customer service efficiency, staff must possess not only the necessary technical expertise but also skills in customer engagement, problem-solving, and negotiation Additionally, employees with relevant experience can significantly contribute to the bank's reorganization efforts.
Recommendations
Developing digital banking is a long-term endeavor that necessitates coordinated efforts across various departments Each bank has its unique approach and priorities for effective implementation At TPBank, the transition to a new Corebanking system and an integrated multi-channel platform will require significant time and effort To ensure successful preparation and execution of TPBank's digital banking development plan, the thesis offers several recommendations for the Government and the State Bank of Vietnam (SBV) to support this strategic roadmap.
51 a safe, legal corridor, favorable environment for digital banking services to develop and ensure safety for both customers and banks
To foster the growth of digital banking and e-commerce services, the Government must establish a comprehensive legal framework Enhancing the legal system and mechanisms will promote consistency and clarity, ultimately safeguarding the interests of both customers and banks.
The government must prioritize investments in infrastructure and technology to establish a modern technical environment that facilitates the transfer of advanced technologies from developed nations This approach will lay a strong foundation for the development of innovative technology applications Additionally, implementing a strategic plan to train technical experts, particularly in the IT sector, is essential for fostering a skilled workforce.
The government must establish legal frameworks that enable banks to effectively identify and authenticate customers, enhancing confidence and security in digital banking services This initiative also provides a structured approach for resolving disputes between banks and customers.
5.3.2 Recommendation for the State Bank
To enhance banking operations, the State Bank must prioritize the integration of science and technology This includes allocating sufficient capital to the banking modernization fund, which is essential for comprehensive innovation in areas such as management information systems, interbank payment processes, electronic transaction systems, and remote monitoring capabilities.
The State Bank of Vietnam should capitalize on international cooperation opportunities to attract investment and technology from developed nations Implementing targeted policies to encourage non-cash payments, such as waiving withdrawal fees and reducing consumption taxes on high-value and luxury goods, will further promote this initiative.
The State Bank of Vietnam should conduct seminars and training courses for leaders and managers within the banking system, aimed at enhancing their understanding of theoretical concepts and international best practices in digital business operations.
The author has analyzed TPBank's operational status and survey findings to identify challenges in developing digital banking products By integrating relevant theories and prior research, several influencing factors have been uncovered Consequently, the author proposes strategic solutions aimed at enhancing TPBank's digital banking offerings, serving as a valuable reference for management to evaluate and implement effective strategies.
Developing digital banking offers a cost-effective alternative to traditional distribution channels by integrating various methods to lower distribution, administration, and operating costs However, successful implementation necessitates careful preparation and significant investment in technology infrastructure, as well as enhancing the quality of TPBank's staff to gradually shift customer transaction habits The analysis, assessments, solutions, and recommendations outlined in this thesis aim to provide TPBank with feasible strategies to strengthen its brand and reputation in the market.
While the study yielded some valuable insights, it is limited by a small participant group due to time constraints, which may not fully represent the broader customer experiences in Vietnam Future research will aim to include a larger sample size to provide a more comprehensive understanding of customer perspectives.
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Questionaire
Survey form for Digital banking services at Tien Phong Commercial Joint Stock Bank
I am Luong Ho Yen Thanh, a fourth-year student at the Faculty of Foreign
Language, Banking Academy I am currently doing my thesis on the subject:
Tien Phong Commercial Joint-Stock Bank is advancing its digital banking services to enhance customer experience and operational efficiency To support this initiative, a survey has been created to gather valuable data for research purposes Participation in this questionnaire is appreciated, and all responses will remain confidential, ensuring that the information collected is solely for research use.
3 Current job o Student o Household/ Freelance labor o Business o Office o Other:…
1.Do you use TPBank's Digital Banking services? o Yes o No
2 TPBank's Digital Banking services that you know: o Live bank o TPBank Savy o TPBank QuickPay o TPBank Mi-Go o SMS banking o Mobile banking
When it comes to financial services, individuals typically rely on various utilities for essential tasks Commonly used services include transferring or withdrawing money, managing savings deposits, and facilitating international payments Additionally, many people utilize these utilities for paying utility bills, such as electricity and water, querying account information, and booking hotels or purchasing tickets.
4 How do you know TPBank TPBank's digital banking? o Social media, the Internet, newspapers o Introduced by friends or relatives o When conducting a transaction at a bank
Using TPBank's digital banking service offers numerous advantages, including convenient and fast transactions, the ability to handle large payments seamlessly, and high security to ensure safety Additionally, TPBank is known for its strong reputation, and users benefit from free service fees, making it an attractive option for modern banking needs.
The level of satisfaction with the diversity of Digital Banking services at TPBank reflects a range of customer experiences, with options from very satisfied to very dissatisfied Customers appreciate the diverse offerings of Digital Banking services, which are designed to meet their varying needs Additionally, the wide array of utilities provided enhances the overall user experience, contributing to customer satisfaction.
When evaluating the level of satisfaction with digital banking services at TPBank, customers can choose from five options: very satisfied, satisfied, neutral, dissatisfied, or very dissatisfied Key factors influencing satisfaction include a fast and straightforward registration process, high security and safety measures, and the ability to make and use services quickly Additionally, the platform is user-friendly, supported by knowledgeable and enthusiastic staff, and offers reasonable service fees Furthermore, customer complaints are addressed promptly and satisfactorily, contributing to an overall positive experience.
8 Barriers when using TPBank's digital banking service: o Having no problem o App o Do not know how to use o Having network congestion o Another idea
9 Which scale do you rate TPBank's digital banking service? o 0-4 o 5-7 o 8-10
To enhance TP Bank's digital banking services and make them more user-friendly, several key improvements are necessary Upgrading information technology applications, enhancing the communication skills of bankers, and boosting the professional qualifications of staff are essential steps Additionally, reducing service charges, improving facilities, and upgrading transmission lines will contribute to a better user experience Expanding and diversifying banking products and services, along with strengthening the bank's reputation, will further attract and retain customers.