The urgency of the subject
As we transition into Industry 4.0, the e-commerce sector continues to expand rapidly, prompting banks to leverage advanced technology in their products and services to enhance competitiveness The surge in smartphone usage and internet access has enabled banks to reach and grow a vast customer base, driving them to invest significantly in the development of mobile banking services.
Mobile banking services aim to reduce transaction times, cut costs, and lower risks for both banks and customers, ultimately enhancing the customer experience The Military Commercial Joint Stock Bank (MBBank) is a leader in the investment and development of mobile banking, offering innovative mobile application products to meet customer needs.
In today's competitive banking landscape, numerous banks with robust financial and technological capabilities are actively investing in the domestic market This surge in investment from both established and emerging banking brands has intensified competition within the banking service sector To stay ahead, banks prioritize customer experience as a key metric for measuring satisfaction, which is essential for attracting new clients and enhancing relationships with existing ones Consequently, many banks are implementing business strategies focused on maximizing customer satisfaction, allowing them to identify and evaluate the factors that contribute to an optimal service experience.
The author, drawing from prior studies and an internship at the MB Long Bien Branch, has chosen to explore the topic: "Factors Influencing Customer Satisfaction with Mobile Banking Services at Military Commercial Joint Stock Bank." This research aims to assess the experiences of customers using the MBBank app, ultimately providing recommendations and solutions to enhance customer satisfaction.
The outcome of this study is expected to contribute to the benefit of the following parties:
- The bank: The result of this study would help the bank understand truly
Customer satisfaction is influenced by various factors that help evaluate the quality of mobile banking services By assessing these services based on customer feedback, banks can identify their strengths and weaknesses, enabling them to enhance their offerings and attract more customers effectively.
- The next researchers: The study can contribute to the research literature review in the field of customer satisfaction of service for the next researchers, especially in the banking industry.
Research objectives
This article aims to identify key factors influencing customer satisfaction with Mobile Banking services and assess their impact By analyzing these factors, the study seeks to provide actionable solutions to enhance customer satisfaction at Military Commercial Joint Stock Bank.
The specific objectives of the topic:
- Measure customer satisfaction when experiencing the MBBank App service
- Discovering factors affecting customer experience when using MBBank App service and conducting analysis of customer satisfaction
- From research results, proposing solutions to improve customer satisfaction when experiencing the App MBBank service of Military Commercial Joint Stock Bank in the coming time.
Research subjects and research scope
Research subjects: Factors affecting customer experience when using App MBBank
Research scope: This research collect information, data about MBBank’s performance in the period of 2019-2021, and a customer survey conducted in April
Methodology
This thesis employs both qualitative and quantitative research methods to analyze the factors influencing customer experience with the MBBank app Data was gathered through an online survey conducted via Google Forms, and the results were visually represented through charts The analysis utilized SPSS to process the survey responses, providing insights into customer perceptions and experiences.
3 software to produce data processing results, then evaluate the results and propose solutions to help the bank improve its mobile banking service
Overview of previous studies
Foreign research
- Research by Safeena et al (2011)
Safeena et al (2011) studied the factors affecting the customer's perception of using Mobile banking of banks in India The author has studied and surveyed over
A study involving 700 mobile banking users across various banks in India utilized the SERVQUAL model, introduced by Parasuraman in 1988, to assess service quality satisfaction This model focuses on four key factors: Reliability, Responsiveness, Service Capacity, and Tangibles Safeena adapted these factors to create a survey system for the Indian market, employing the Likert scale to gather insights on user experiences.
Reliability - The bank ensures the safety of account information for customers.
- The bank ensures high financial stability, with no possibility of bankruptcy.
- When there is a problem, the bank quickly solves it.
Responsiveness - Banking Mobile Banking service provides convenience, and ease of use.
-Transactions made via MobileBanking are fast and low cost
Service capabilities -The banking system is spread out, easy to access
-The bank answers customers' questions well
Tangibles -The bank continuously updates the modern App platform technology suitable for mobile devices
The study reveals that the Reliability factor significantly impacts perceived customer satisfaction in India Safeena's research highlights that, in a populous nation and IT powerhouse like India, concerns over security issues, account information theft, and the insolvency of service-providing banks are paramount for customers These findings underscore the influence of the financial environment and the unique developmental context of the country on customer perceptions.
-Research by Rangsan Nochai and Titida Nochai (2013)
In 2013, authors Rangsan Nochai and Titida Nochai conducted research on the topic: "The Impact of Internet Banking Service on Customer Satisfaction in Thailand:
A case study conducted in Bangkok examined customer satisfaction across three major banks: Bangkok Bank, Kasikorn Bank, and Siam Bank Utilizing the SERVQUAL model, the study assessed five key factors that influence customer perceptions of service quality.
By collecting 450 samples from customers who are using the services of these
The analysis of three banks reveals that all five factors significantly enhance customer satisfaction Among these, reliability emerges as the most influential factor, while responsiveness has the least effect on overall customer contentment.
-Research by Asadpoor and Abolfazli (2017)
In their 2017 study on customer loyalty and satisfaction with e-banking services at Saderat Bank, Asadpoor and Abolfazli adapted the SERVQUAL service quality scale to better fit the unique characteristics of e-banking They modified the original five factors of the SERVQUAL model, ultimately focusing their research on four key factors.
Research indicates that transaction completion significantly influences customers' perceptions of e-bank service quality and their overall satisfaction, whereas availability has a minimal effect.
- Research by Moinuddin in Germany (2013)
This study surveyed over 500 customers of banks in Germany, employing Cronbach’s Alpha reliability coefficient to ensure the reliability of the findings Additionally, it utilized the European ECSI satisfaction index model to identify the key factors influencing customer satisfaction.
- The speed of making transactions through the App is fast.
-When using financial services via the App, customers can easily manage their balances and accounts.
-App technology develops accordingly and improves regularly.
-Using the App is appropriate and convenient -Banking App products make customers feel secure
Brand image -Simple and easy to remember brand logo
-Banking and App brands have great influence in the market -Designing a beautiful App interface, with changes suitable for users.
This study reveals a direct correlation between the perceived value of mobile banking products in Germany and customer satisfaction; as customers' perceived value increases, so does their satisfaction The research identified six key factors, with brand image—encompassing elements such as the brand logo—emerging as the most influential factor affecting customers' perceived value.
The research highlights six key influences on the market, particularly focusing on the design of the app interface Unlike Sefeena's earlier studies conducted in India, this research is tailored to the German market, known for its high standards of intelligence and security Consequently, the visual appeal of the app emerges as the primary concern for customers, exhibiting the highest coefficient β in the research model.
Domestic researches
- Research by Tran Hong Hai (2014)
Using a modified SERVPERF model that includes 5 common factors, adding
2 new factors, the author conducted this research with 7 factors, which are:
A survey conducted by Tran Hong Hai in 2014 involving 800 customers examined the factors influencing customer satisfaction with ATM card services at the Foreign Trade Commercial Joint Stock Bank's Vinh Long branch The findings highlight the primary elements that contribute to customer satisfaction in utilizing Vietcombank's ATM services.
The Vinh Long branch emphasizes four key factors that significantly enhance customer satisfaction: Price, Network, Empathy, and Reliability In contrast, the author notes that Assurance, Service Efficiency, and Tangibles do not contribute to customer satisfaction.
- Research by Do Thi Nhu Ngan (2015)
Do Thi Nhu Ngan (2015) conducted a study titled “Research on factors affecting the quality of BIDV E-Banking services for individual customers at the Joint Stock Commercial Bank for Investment and Development of Vietnam – Da Nang Branch.” This research utilized the retail quality model of Etail Q, which identifies key factors influencing the quality of e-banking services.
A study involving 250 samples analyzed using SPSS software revealed that four key factors—Reliability, Product Page Design, Safety, and Customer Service—positively impact service quality Specifically, as the elements of reliability, responsiveness, service capacity, empathy, and tangible aspects improve, customers' perceptions of BIDV's E-Banking service quality also enhance Notably, the research conducted by Do Thi Nhu Ngan identified Product Page Design as the most influential factor affecting the evaluation of E-Banking service quality at the BIDV Da Nang branch.
- Research by Vo Thanh Hai et al(2017)
A study published in the Industry and Trade Magazine by Vo Thanh Hai et al (2017) examined customer satisfaction with e-banking services at the Da Nang branch of Saigon Commercial Joint Stock Bank in Vietnam The findings revealed that customer satisfaction is significantly affected by the quality of the services provided Utilizing an adapted SERVQUAL model, the researchers identified six key factors that contribute to this relationship.
Empathy, superiority, and responsiveness are the key factors that significantly influence customer satisfaction, while tangibles, assurance, and reliability have a lesser impact.
CONCLUSION: Overall, the author finds that the number of studies evaluating and analyzing the impact of factors affecting customer satisfaction when
The adoption of mobile banking services in Vietnam remains relatively low, with research primarily utilizing established models like SERVQUAL and SERVPERF to assess customer satisfaction While these models demonstrate high reliability and relevance in major markets such as Europe and the US, their applicability in Vietnam raises questions due to the country's unique market dynamics and consumer habits Many Vietnamese customers still prefer cash transactions, and the use of modern payment technologies, including banking apps, is predominantly seen in urban areas Furthermore, internet trading in Vietnam is perceived as less risky compared to developed markets, highlighting the distinct challenges faced in promoting mobile banking in this region.
There is a notable scarcity of research articles by domestic authors addressing customer satisfaction with Mobile Banking services, particularly regarding private joint-stock commercial banks that are rapidly evolving with modern technology Most existing studies have concentrated on large state-owned joint-stock banks, leaving a gap in understanding how customers perceive the innovative electronic banking services and non-cash payment options offered by these private institutions Furthermore, the dynamic nature of Mobile Banking services, which continuously adapt to technological advancements, renders previous studies potentially outdated and unable to accurately assess current levels of customer satisfaction.
This is the motivation for the author to choose the topic: “Factors affecting customers’ satisfaction in using MBBank’s Mobile banking App” for my graduation thesis.
Key structure
This thesis is presented in 4 chapters:
- Chapter II: Introduction About Military Comercial Joint Stock Bank (Mbbank) And Mbbank’s Mobile Banking Service
- Chapter III: Research On Factors Affecting Customer Satisfaction On Mbbank’s Mobile Banking Service
- Chapter IV: Conclusion And Recommendations
THEORETICAL BASIS
Banking service
There are many different concepts of banking services used in domestic and foreign studies.
The General Agreement on Trade in Services (GATS) defines banking services to include a range of financial activities such as deposit receipt, lending, financial leasing, money transfer, card and check payments, guarantees, securities issuance, currency brokerage, wealth management, clearing and settlement services, financial information provision, advisory services, intermediation, and financial assistance.
Banking services, as defined by David Cox (1997), encompass a range of offerings related to capital, money, and payments that banks provide to fulfill customer needs for business, profitability, and daily life Banks generate profit through the differential in interest rates, exchange rates, and service charges Today, banks are increasingly viewed as "service supermarkets," akin to financial department stores that offer hundreds or even thousands of diverse services, tailored to their classification and level of development.
In Vietnam, there are two different points of view on banking services as follows:
Banking services are often considered outside the realm of monetary business and professional activities, as they primarily function as financial intermediaries through lending and deposit mobilization Only activities that do not align with these core functions are classified as banking services.
Commercial banks are primarily engaged in service activities, as they focus on managing money and offering various financial services to customers This perspective aligns with international standards, and according to the General Statistics Office of Vietnam, banking is classified within the service sector of the economy.
In this research, to fit with the reality of providing banking services at Vietnamese commercial banks, the author chose the understanding of banking
Banking services encompass a wide range of monetary activities, including credit, payment processing, and foreign exchange, all designed to meet customer needs while generating profit for the banking system.
Under the Law on Credit Institutions 2010, banks are professional organizations that provide essential management services to the public and play various roles within the banking system Their functions include fiduciary services, credit provision, investment planning, payment processing, savings management, cash management, investment banking, brokerage, and insurance A bank's success hinges on its ability to identify customer financial needs, deliver services efficiently, and offer competitive pricing The primary services offered by commercial banks can be categorized accordingly.
Banks view lending as a lucrative venture, prompting them to seek effective methods for capital mobilization A key source of this capital is customer savings deposits, which represent a valuable financial resource that individuals entrust to banks for varying durations, including weeks, months, or even years.
The introduction of transaction deposit accounts marks a significant advancement in banking services, enabling depositors to write checks for purchasing goods and services directly from their accounts This new offering enhances the convenience of managing finances while facilitating seamless transactions.
Foreign currency exchange is one of the primary banking services offered, allowing banks to buy and sell different currencies This service enables customers to exchange one currency for another while the bank earns service fees.
Commercial paper discounting and commercial lending involve providing financial support to local businesses by allowing them to sell their receivables to banks for immediate cash This process facilitates a shift from merely discounting commercial paper to offering direct loans to customers, enabling them to acquire inventory or invest in office and production equipment.
+ Providing fiduciary services: for many years now, banks have been performing asset management and financial operations management for individuals
Banks provide fiduciary services, charging fees according to the value of assets or the scale of management They typically offer two types of trust services: general trust services for individuals and commercial trust services for businesses.
Since ancient times, banks have played a crucial role in preserving valuables, such as gold, for their customers in secure storage facilities A significant development was the issuance of certificates by banks, which documented the assets held and could be used as a form of currency—early versions of checks and credit cards In modern banking, the "treasury" department is responsible for safeguarding customers' valuables.
To finance government activities, banks are typically required to obtain a license that mandates them to purchase government bonds This obligation is based on a specific percentage of the total deposits mobilized by the bank.
Cash management services involve banks managing the income and expenses of trading companies while investing temporary cash surpluses in profitable short-term securities Although banks have traditionally focused on institutional cash management, there is an increasing trend to extend these services to individual consumers as well.
Banks are increasingly engaged in providing loans to finance the construction of new factories, particularly in high-tech sectors and industries that fulfill essential market needs.
Mobile banking service
E-banking, or electronic banking, has emerged in Vietnam over the past decade, offering customers the convenience of managing their bank accounts and conducting transactions online without the need to visit a physical branch or use an ATM card By simply accessing e-banking services through the internet or a telecommunications network on devices like mobile phones, laptops, or tablets, users can easily perform banking activities E-banking encompasses four main services: Internet banking, Mobile banking, SMS banking, and Phone banking, providing a comprehensive solution for modern banking needs.
Mobile Banking and Internet Banking are the two most popular services today, offering unparalleled convenience and extensive accessibility through mobile devices like smartphones, tablets, and personal computers.
Mobile banking is an online banking service accessible via a bank's mobile application, enabling customers to conduct transactions from anywhere With just a mobile phone and an internet connection, users can effortlessly perform various banking activities.
Query account information, balance in the account
Look up banking transaction history
Pay the bill, top up phone charges
Use other utilities (depending on the bank): book movie tickets, book hotels, recharge services, send congratulatory money, shop online, receive remittances,
1.2.2.Distinguish Mobile Banking from Internet Banking
Although there are many similarities, mobile banking and internet banking are still two separate services with basic differences, as shown in the table below
This service is available only when there is Internet and by downloading the application using a phone or tablet
You only need devices with an Internet connection to access the Internet Banking page of the bank you are using
Since it is an app, Mobile Banking will work on a smartphone or tablet capable of downloading the app
Internet Banking allows you to comfortably use electronic devices you have such as laptops, desktop computers,
With Mobile Banking, you can go directly to the application on your device to log in
Internet Banking requires you to visit the website and log in on it to conduct the desired transactions
- Open/Finish an online savings account
- Use other facilities provided by the bank
- Open/Finish an online savings account
1.2.3 Advantages and disadvantages of mobile banking
Mobile banking has many outstanding advantages compared to traditional forms of transactions at branches and transaction points such as:
The primary benefit of e-banking is the convenience it offers, allowing customers to conduct transactions online without the need to visit a physical bank branch This eliminates waiting times at bank counters, enabling quicker and more efficient payments and transactions.
17 anywhere and at any time Also, with mobile banking, as long as you have a smartphone with internet connection, you can make transaction 24/7.
Mobile banking simplifies transactions like paying electricity and water bills, topping up phone cards, and shopping, all achievable with just a few clicks on your smartphone This convenience significantly reduces travel time and effort for users.
Mobile banking significantly reduces operational and service costs, benefiting both customers and banks Customers save time and effort by avoiding trips to transaction counters, enjoy lower service fees, and may even access free account packages based on individual bank policies Meanwhile, banks experience substantial savings in operating costs and human resources, ultimately boosting their revenue.
- Expand the scope of activities and competitiveness
To enhance their business reach, banks can increase their customer base by promoting mobile banking services, which is largely influenced by Internet coverage Improved Internet accessibility directly boosts customers' ability to utilize mobile banking, leading to greater engagement and growth for financial institutions.
Enhancing the quality and operational efficiency of mobile banking significantly boosts a bank's competitiveness in the market By focusing on the stability and security of mobile banking services, banks can provide a better customer experience, ultimately leading to increased customer satisfaction and loyalty.
- Improve efficiency of capital use
Mobile banking enhances the speed and convenience of payment and collection processes, allowing customers to complete transactions more quickly This efficiency accelerates the circulation of monetary capital, ultimately promoting the flow of goods and currency in the economy.
Along with many outstanding advantages, Mobile Banking service still has limitations that need to be overcome such as:
- Safety and security are not really guaranteed
- The operations are still a bit complicated for first-time users
- The application will still have errors, causing inconvenience to users
Customer satisfaction
Customer satisfaction refers to the fulfillment of customer expectations and requirements, resulting from their experiences and interactions with a business's products and services This satisfaction is built over time through repeated purchases and usage, highlighting the importance of meeting customer needs effectively.
Currently, there are many opinions regarding the definition of "customer satisfaction", famous researchers also have their own statements:
Satisfaction, as defined by Kotler (2000), is the emotional response a person experiences when comparing the actual product received to their expectations The degree of satisfaction hinges on this comparison: if the actual results fall short of expectations, the customer feels disappointed; conversely, if the results meet or exceed expectations, the customer experiences satisfaction or even high satisfaction.
Customer satisfaction is defined as a customer's overall attitude towards a service provider, reflecting their emotional response to the disparity between their expectations and the actual service received, aimed at fulfilling specific needs, goals, or desires (Hansemark & Albinsson, 2004).
After purchasing and using specific products and services, customers evaluate their experiences by comparing their expectations with reality, which ultimately influences their level of satisfaction.
1.3.2 The importance of customer satisfaction to a business
Customer satisfaction is a crucial objective for businesses, as customers are invaluable assets In a competitive market, companies must excel not only in product quality but also in customer service throughout the buying process Satisfied customers enhance brand promotion effectively, as their positive experiences lead to loyalty Achieving customer loyalty brings numerous benefits to your business.
Every new business must identify potential customer sources to thrive Selecting the right customers and ensuring their satisfaction is crucial for building a loyal customer base Customer loyalty not only aids in retention but also fosters strong relationships, allowing businesses to maintain stability during challenging times Loyal customers are more likely to support a business through various situations due to their strong trust in the brand, highlighting the importance of prioritizing customer satisfaction.
Word of mouth is the most powerful form of advertising, particularly through personal connections like friends and colleagues When customers are satisfied with your product, they naturally share their experiences, effectively promoting your brand without any formal advertising This organic marketing approach not only accelerates customer acquisition but also transforms loyal customers into brand ambassadors, driving further growth and success.
- Continue to buy more products
Transforming a new customer into a loyal one allows you to confidently outshine your competitors in any market Satisfied customers tend to stick with their preferred products and are more likely to explore and utilize your additional offerings.
Carl Sewell, the head of Sewell Automotive Group - a famous auto brand in the US, has based on the basic philosophy of CSR to build a business strategy of
According to Carl Sewell, the long-term value of a loyal customer can be quantified financially, with a lifetime car buyer potentially worth an average of $332,000 to a business This is due to the tendency of loyal customers to consistently purchase additional products and services from the same company, highlighting the significant impact of customer loyalty on overall business profitability.
Building a strong brand loyalty among customers makes it easier to maintain their preference, as they have already experienced and been satisfied with your products or services.
Once customers develop a liking for your clothing store, they often purchase items out of habit and trust, leading to quicker buying decisions This tendency is especially pronounced in a market saturated with numerous options, as familiar stores foster confidence and encourage repeat purchases.
Satisfying customers is crucial for reducing costs, as studies show that attracting new customers can be 5-10 times more expensive than retaining existing ones Loyal customers significantly lower marketing expenses and help businesses save money on brand development and acquiring new clientele.
Loyal customers serve as powerful advocates for your business, promoting your products to a wider audience According to a Gartner Group study, just 20% of customers can account for 80% of a company's profits, highlighting the significant impact of retaining loyal customers on overall business success.
Building a strong brand fosters customer loyalty and ensures product quality and service excellence Research indicates that 55% of consumers are willing to pay a premium for an enhanced experience Therefore, leveraging this loyalty allows you to raise your product or service prices, ultimately boosting your brand value.
Loyal customers then are those who do not mind high prices because they are satisfied and willing to spend to get the quality service they desire.
1.3.3 Customer satisfaction levels and Models related to customer satisfaction
The level of satisfaction and satisfaction of customers can be based on a 5- point scale and divided into 3 main levels: Unsatisfied (1-2 points), satisfied (3-4 points) to extremely satisfied (5 points).
Customer dissatisfaction can stem from various issues, including delayed shipping and product quality not meeting expectations While many of these concerns are subjective and related to the business itself, they rarely arise from external factors Consequently, unhappy customers are unlikely to return and may share negative feedback with others, ultimately harming your business reputation.
Factors afecting customer satisfaction
Service quality varies in definition based on the study's focus, but it is generally assessed through customers' perceptions and feelings regarding their needs.
Service quality is an important factor that greatly affects customer satisfaction
High-quality products that meet customer needs are essential for achieving customer satisfaction To enhance satisfaction, service providers must focus on improving service quality, as it directly influences customer perceptions The relationship between service quality and customer satisfaction is critical in customer satisfaction studies However, improvements in quality must align with customer needs to be effective; otherwise, satisfaction may not be achieved Ultimately, when customers perceive a service as high quality, their satisfaction levels increase, and the opposite holds true as well.
Base on the SERVQUAL model, there are 5 factors of service quality affecting customer satisfaction, which are:
Reliability is a component of the Servqual model that helps verify the ability to provide accurate, on-time, and reliable service the first time a service is used.
Consistency is a crucial factor in delivering services or products to customers accurately and punctually Service providers must be dedicated to meeting their commitments and ensuring timely delivery as promised to maintain customer satisfaction.
Responsiveness is crucial in customer service, emphasizing the importance of assisting customers respectfully and promptly It hinges on two key factors: readiness and quickness Service providers must ensure that customers receive assistance without unnecessary delays The effectiveness of responsiveness is measured by the time customers wait for answers or solutions Ultimately, the quicker a customer's issue is resolved, the better the service response will be.
Assurance involves building trust and credibility with customers through technical expertise and strong communication skills This essential component enables service organizations to earn the confidence of their clients, ultimately reflecting a commitment to reliability and quality in service delivery.
Does employee behavior make customers feel confident?
Are employees polite and welcoming to customers?
Do the staffs have enough expertise to help answer questions?
The tangible element is a fundamental component of the Servqual model, encompassing the organization's facilities, employee appearance, equipment, machines, and information systems This factor emphasizes the importance of enhancing development through improved materials and facilities.
Examples of tangible factors: cleanliness in service locations and appropriate dress code of service staff.
Empathy plays a crucial role in customer service by prioritizing the needs and feelings of customers, leading to enhanced care and differentiation Effective customer service not only satisfies customers psychologically but also fosters trust, loyalty, and reliability A lack of empathy from service providers can result in the loss of valuable customers.
Price serves as a monetary reflection of the exchange value of goods, influenced by customer perceptions and the utility derived from products and services As noted by Cronin and Taylor (1992), customers often opt for offerings that provide the greatest satisfaction rather than the highest quality Consequently, while service quality remains essential, customer perceptions of price significantly impact overall satisfaction Research by Varki and Colgate (2001) highlights the interplay between price sensitivity and the customer-service provider relationship Furthermore, Maythew and Winer (1982) emphasize the need to evaluate price's influence on satisfaction through three lenses: price relative to quality, competition, and customer expectations When customers engage with a service, they incur a trade-off price for the value they seek; satisfaction arises when they perceive the service quality exceeds its cost Conversely, dissatisfaction occurs when perceived costs outweigh perceived benefits Ultimately, perceived price is pivotal in shaping customer satisfaction, as customers may feel content even if the actual price exceeds the value received, provided their perceived price remains favorable.
Chapter 1 of the thesis has systematic theoretical basis related to mobile banking services, customer satisfaction and factors affecting customer satisfaction From the above theoretical basis, the author will expand to learn and study the actual development of MB bank and practice using the mobile banking app of MB bank
INTRODUCTION ABOUT MILITARY COMERCIAL JOINT
Overview of MBBank
Military Commercial Joint Stock Bank, commonly known as Military Bank or MB, is a joint-stock commercial bank in Vietnam It operates as an enterprise of the Vietnam People's Army, under the Ministry of National Defense.
As of 2019, Military Bank boasts a charter capital exceeding VND 25 trillion and total assets surpassing VND 400 trillion Its primary shareholders include Vietcombank, Viettel, and the Vietnam Helicopter Corporation The bank operates a comprehensive nationwide network with over 100 branches and 180 transaction points across 48 provinces and cities, along with international branches in Laos and Cambodia, and a representative office in Russia.
⦁ Name of unit: Military joint stock commercial bank
⦁ Head office: 21 Cat Linh, Dong Da District, Hanoi City
⦁ Email: mb247@mbbank.com.vn
⦁ Website: https://www.mbbank.com.vn
MB's current head office is located at 21 Cat Linh - Dong Da - Hanoi After
For 25 years, MB has established itself as a prominent name in Vietnam's finance and banking sector, consistently ranking among the leading joint stock commercial banks in the country With a vision to become the most convenient bank for customers, MBBank is dedicated to fulfilling its mission of delivering exceptional financial services.
For the development of the country, for the benefit of customers Core values are encapsulated in 6 phrases: Solidarity - Discipline - Dedication - Execution - Trust - Efficiency.
MB has established a comprehensive network of member companies to create a multi-functional financial group This includes MBS Securities Joint Stock Company, MBCapital (Investment Fund Management Joint Stock Company), MB AMC (Military Asset Exploitation and Debt Management Company), MS Finance (MB Shinsei Finance Company Limited), Military Insurance Corporation (MIC), and MB Ageas Life Insurance Company Limited (MBAL).
2.1.2 Development trend in business activities of MBBank
- Accelerating the digital transformation process, affirming the pioneering position in digital transformation activities, towards the goal of becoming a leading digital enterprise.
In 2017, MB embarked on a transformative journey by shifting its operations to a digital platform, positioning itself as a pioneer in Vietnam's banking sector At a time when digital banking was still a novel concept, MB's representatives assured shareholders of their commitment to becoming the country's first "paperless" bank.
In 2018, MB formed a strategic partnership with IBM, the leading technology corporation, to enhance its digital transformation IBM provides ongoing advice on the latest technology trends and supports MB in transitioning to a digital platform, leveraging a team of top experts The rapid impact of the fourth industrial revolution has led to the integration of advanced technologies like big data, artificial intelligence, and the Internet of Things across all banking operations This collaboration has transformed the banking landscape, giving rise to innovative models such as digital banks, branchless banks, internet banking, and mobile banking.
MBBank has experienced significant growth in its digital customer base, driven by key digital products like App MBBank, Biz MBBank, the SmartBank automatic transaction model, Smart RM, and Creative Digital Hub This expansion has resulted in an impressive total of 260 million electronic transactions, reflecting a substantial increase in transaction value across its digital channels.
In 2021, digital channel revenue surged by 1.7 times, with MB Bank reporting nearly 92 million transactions valued at over VND 800,000 billion by the end of March Remarkably, nearly 90% of these transactions were conducted through digital channels, highlighting MB's strong performance in digital banking and its capacity to meet growing customer demand effectively.
In 2020, MB experienced significant growth in its digital banking ecosystem, with the CASA (Current Account Savings Account) deposits from individual customers doubling compared to 2019 This surge raised MB's CASA rate to 36%, positioning it as the second highest in the entire banking system and surpassing the "Big 4" banks By the end of Q1 2021, MB's retail segment CASA further increased by 150% compared to 2020, indicating that this growth momentum is sustainable.
- Putting customers as the center, aiming to become "the most convenient bank" for customers
In line with technological advancements, the Bank prioritizes customer experience, ensuring that any new technology adopted enhances this aspect Emphasizing a "Customer is the core" philosophy, MB develops its products and services based on the genuine needs and desires expressed by customers at every interaction.
MBBank's digital transformation strategy, centered around the motto "Set customers as the center," has led to significant early successes in becoming "the most convenient bank" for its clientele By leveraging market research and customer insights, MBBank develops tailored digital solutions that effectively address the growing needs of each customer segment.
In recent years, MBBank has significantly enhanced its operational efficiency by implementing automation solutions, enabling the digitization of customer information in just 3 seconds with over 96% accuracy, a marked improvement from the previous 4-minute process By 2020, these advancements have positioned MBBank as a leader in digital banking innovation.
MBBank is dedicated to enhancing the online service experience by prioritizing Customer Insight, Smart Channel, and Customer Onboarding By leveraging advanced technologies like eKYC for online customer identification and a robust 3-layer security system with Digital OTP, MBBank ensures secure transactions, protecting customers from fraud and hacker attacks on the MBBank App.
The continuous enhancement of customer experience is evident through the ongoing development of features in the MBBank and Biz MBBank applications Notably, in June 2020, the MBBank App outperformed popular global applications like Facebook, TikTok, and Google, becoming the most downloaded free financial app on the Vietnam App Store Additionally, MBBank has received several prestigious accolades, including the Sao Khue title in 2020 for the Biz MBBank digital platform and recognition from The Asian Banker Magazine for having the "Best Digital Loan Product" and "Best Automated Loan Product."
- Focus on investing in people and platforms, mastering technology, ensuring speed and competitive advantage in the market
Colonel Luu Trung Thai, General Director of MB, emphasized the bank's commitment to becoming a leading digital enterprise by prioritizing investments in talent and technology This strategic focus aims to enhance operational speed and maintain a competitive edge in the market.
Current situation of MBBank’s mobile banking service
This section will evaluate the current performance of the MB app by highlighting key data and recent achievements of MBBank's mobile banking services.
2.2.1.1 Some outstanding achievements of MBBank app
App MBBank is Vietnam's only digital banking application to win the title of
The "Sao Khue 2019" award recognizes outstanding products in Vietnam's software and IT services sector, highlighting the excellence of digital banking solutions Notably, it is the sole digital banking product to receive the "National Brand 2018" designation and was honored with the "Typical Digital Bank 2018" award by the International Data Group and the Banks Association IDG.
MB Bank has emerged as a leader in digital banking, significantly impacting the market with innovations like the MBBank App and a new account setup via phone number In 2021, the value and volume of transactions conducted through digital channels surged threefold compared to 2020, with digital transactions now representing approximately 93% of the bank's total transactions.
Data from apple store shows that MBBank App has many times ranked at No
1 in terms of number of downloads in Vietnam, not only in the financial sector, but in all fields, surpassing Facebook, Messeger or Tiktok.
2.2.1.2 Main function of MBBank application
Customers of the MBBank app enjoy free lifetime money transfers, which include transactions with MB Bank, 24/7 interbank transfers, domestic ATM card transactions, and transfers via phone number With the MBBank app, all transfer transactions are processed instantly, ensuring convenience on weekdays, weekends, and holidays.
The MB Bank application offers essential features, including account and card management, balance checks, and detailed transaction history Users can efficiently manage loans and quickly locate the nearest ATMs or branches Additionally, the app allows for online opening and closing of high-interest savings accounts, eliminating the need for physical bank visits and traditional paper books.
High security, safe for users
MBBank enhances security and convenience for customers by utilizing Digital OTP technology, allowing for instant transaction verification without waiting for OTP messages, whether in Vietnam or internationally Additionally, MB Bank offers quick app access through fingerprint and Face ID login, eliminating the need to remember passwords.
Save points to redeem gifts
Customers can easily accumulate points by regularly using the MB Bank app for credit card transactions, savings deposits, and bill payments These reward points can be redeemed for appealing gifts and incentives across various sectors, including tourism, dining, services, shopping, Golden Lotus miles, or can even be refunded to their accounts.
The MB Bank app simplifies your financial management by allowing automatic bill renewals for services like electricity, water, internet, and television with just one payment Additionally, users can conveniently recharge their phones, purchase plane tickets, movie tickets, and pay periodic taxes directly through the app.
Withdraw money at ATM without card
The MB Bank app allows customers to withdraw cash from 760 ATMs across the country without the need for a physical bank card This innovative feature enhances the user experience by eliminating the traditional requirement of carrying a card for ATM transactions, providing a convenient solution for those who may forget their card at home.
MB Bank's "My Beloved Family" service package helps families build a financial foundation for future generations by allowing parents to save 1 million VND or more each month for their children Upon reaching the age of 15, the child will gain full access to the accumulated funds The registration process is straightforward, requiring only the couple's identity cards, marriage certificate, and the child's birth certificate.
MB Bank enhances customer engagement by offering a customizable interface, allowing users to choose between a modern blue or youthful white design This innovative feature aims to improve user experience, encouraging more frequent and extended usage of the banking app.
As mobile banking services gain popularity, banks are increasingly focusing on product personalization in addition to facilitating convenient and cost-effective transactions According to MSc Luu Anh Nguyet from the Institute of Financial Strategy & Policy, organizations offering digital financial services face the challenge of meeting customers' heightened expectations for personalized and faster services This shift towards customization is essential for staying competitive in the evolving digital landscape.
MB to focus on customer personal experience to bring the MBBank app closer to customers and increase customer satisfaction using the service.
2.2.2 Current situation of mobile banking implementation
MB aims to be "the most convenient bank" by leveraging a modern and highly automated operating platform, making its banking services accessible to all customers Recently, the bank has prioritized the development and integration of technology into its operations, with a key focus on enhancing the quality of its mobile banking services.
Table 2.4 Number of user active on MBBank application in period 2019-2021
As can be seen in the table above, in the 2019-2021 period, the number of customers using MBBank application has grown amazingly Only after 2 year from
Between 2019 and 2021, the number of active users surged from 1.34 million to 9.5 million, marking a remarkable sevenfold increase This growth reflects successful business strategies aimed at enhancing digital banking services and expanding the MB banking brand and MBBank application Additionally, MB's investment in a robust technology platform has led to the development of user-friendly applications, complemented by appealing incentive programs for customers.
The Covid-19 pandemic has significantly impacted the global economy, affecting Vietnamese businesses profoundly However, banks have emerged as a notable bright spot during this challenging period For MB, this time has been pivotal, allowing the bank to enhance its digital transformation and improve customer experiences through its MBBank application.
RESEARCH ON FACTORS AFFECTING CUSTOMER
Build up research model
3.1.1 Conceptual framework and Development of Hypotheses
The author has adapted the SERVQUAL model, originally comprising Reliability, Responsiveness, Empathy, Assurance, and Tangible factors, to better fit mobile banking services Unlike traditional banking, customers can transact independently through smartphone applications, prompting the replacement of the Tangible element with Technology Additionally, as digital transformation becomes a priority in the banking sector, banks are implementing preferential fee policies to attract customers to their mobile services In this competitive landscape, the author has introduced the Price factor into the customer satisfaction research model.
Therefore, after making adjustments, the author will conduct research on customer satisfaction on MBBank mobile banking service with 6 factors as follows:
From the above research model, the author make the following research hypotheses:
H1: Reliability has a positive correlation with customer satisfaction
H2: Responsiveness has a positive correlation with customer satisfaction H3: Empathy has a positive correlation with customer satisfaction
H4: Technology has a positive correlation with customer satisfaction
H5: Assurance has a positive correlation with customer satisfaction
H6: Price has a positive correlation with customer satisfaction
3.1.2 Description of variables in the model
To analyze the qualitative data effectively, it is essential to encode the dataset, which comprises six independent variables: Reliability (RL), Responsiveness (RP), Empathy (EM), Technology (TE), Assurance (AS), and Price (PR), alongside one dependent variable.
Each factor includes many different observed variables Each variable has 5 answers: (based on Likert scale)
“Strongly disagree” assign the value number 1
“Disagree” assign the value number2
“Normal” assign the value number 3
“Agree” assign the value number 4
“Strongly agree” assign the value number 5
RL1: MBBank brand is reputable
RL2: Transactions on the app are accurate and fast, no mistakes
RL3: Transaction documents and statements are complete and accurate
RL4: MB quickly solves and fixes problems when something goes wrong
RP1: MBBank app has full utilities to meet the needs of customers
RP2: Customers always receive quick feedback from MB staff about questions and problems encountered when using the app
RP3: Customers always receive notifications about transactions and changes on the MBBank app
EM1: MB understands the needs of customers about utilities on the app
EM2: Customers are always MB's priority
EM3: MB always cares about customers' personal experience when using the app
EM4: MB's staff is dedicated to taking care of and solving individual customer problems
TE1: App interface design is easy to use
TE2: App maintenance time is quick, does not affect the use of customers
TE3: MB regularly updates services and utilities on the app to meet customer needs
AS1: Transactional information and customer information are confidential
AS2: Customers feel safe when registering and using MB's app
AS3: MB bank staff have enough skills and expertise to solve customer problems and complaints when using MB app
PR1: Fees when registering and using the app are applied reasonably
PR2: Service fees are specified clearly and in detail
PR3: Fees change flexibly in line with market movements
CS1: Customer are satisfied with quality of MBBank app
CS2: Customer will continue using MBBank app
CS3: Customer will introduce MBBank app to their friends and family
CS4: MBBank app quality is better than mobile banking service of other banks
Table 3.1 Factors and observed variables of research model
3.1.3 Description of the survey form
Firstly, the author created the draft of the questionnaire base on the research model with information needed to conduct the survey
Consulting with instructors and other experts to adjust the questionnaire accordingly
The author distributed the questionnaire to select customers to evaluate its clarity and coherence, making final adjustments before officially sending it to all participants in the survey.
- Step 2: Determine the number of samples needed and the scale for questions
Hair et al (2014) suggest that a minimum sample size of 50 is essential, with a preference for over 100 participants, advocating for a ratio of observations to variables of 5:1 or 10:1 However, other researchers contend that this ratio should ideally be 20:1 for more robust results.
As with the limited time and ability to get access to customers, the author decided to choose 5:1 ratio This questionnaire includes 26 questions (equivalent to
26 observed variables of different factors) Apply the ratio 5:1, the sample size should be 26*5 = 130 This is larger than the minimum sample size required (50 or 100), so this sample size is acceptable
Considering that in the survey progress, there might be some inappropriate answers, the author chose the sample size of 200 customers to be able to collect enough data for analysis
- Step 3: Send questionnaire to customers
This research was conducted in April 2022 The questionnaire was send to customer by 2 way:
+Directly send questionnaires to customers who come to make transactions at Military Bank branch (50 customers)
+Indirectly send the questionnaire (in the form of a google form link) through customers’ email address or other contact information (150 customers)
- Step 4: Contact customers again to track survey results
One week after sending the questionnaire to customers, the author follows up with those who have not yet responded, offering reminders and assistance for any difficulties they may be experiencing with the survey form.
- Step 5: Collect, process data and conduct analysis
Descriptive statistics are coefficients that succinctly describe or summarize a given data set, which may be representative of the whole or a sample of a population
Descriptive statistics provide concise summaries that help to understand the characteristics of a specific data set Key concentration trend parameters, such as the mean, median, and mode, are widely utilized across various levels of mathematics and statistics By simplifying complex quantitative information from large data sets, descriptive statistics enable clearer insights and interpretations.
Cronbach's Alpha test is essential for assessing the reliability of a scale and the relationships between observed variables It calculates the correlation coefficient of a composite variable by excluding one observed variable at a time, revealing the strength of correlations within the combination Implementing Cronbach's Alpha prior to exploratory factor analysis (EFA) is crucial for identifying and eliminating unsuitable variables that could introduce noise and undermine the model's reliability According to Nunnally & Bernstein (1994), a Cronbach's Alpha coefficient of 0.6 or higher is deemed acceptable, and any observed variable with a composite variable correlation coefficient of 0.3 or above should be retained.
- Step 3: EFA exploratory factor analysis
The scale validity test or factor analysis is to test the convergent and discriminant value of each concept and between concepts through EFA exploratory factor analysis
Following the assessment of the scale's reliability using Cronbach's Alpha coefficient, factor analysis was conducted to condense the variables into a more coherent set of factors To ensure effective exploratory factor analysis (EFA), specific conditions must be met.
0.5 ≤ KMO ≤ 1: KMO is an indicator used to consider the appropriateness of EFA (Hoang Trong and Chu Mong Ngoc, 2008)
Barllet test is statistically significant when Sig < 0.05 (Hoang Trong and Chu Mong Ngoc, 2008)
Total variance extracted > 50% and Eigenvalue greater than 1 (Gerbing and Anderson, 1998)
Running a Pearson correlation test is essential for assessing the linear relationship between dependent and independent variables, as correlation is a prerequisite for regression analysis Additionally, it is crucial to address multicollinearity issues when independent variables exhibit strong intercorrelation A significant correlation is indicated when the significance value (sig) is less than the predetermined threshold.
0.05, the new correlation coefficient r has statistical significance, the sig value greater than 0.05 means r is not significant, or in other words, there is no correlation between these two variables
The F test in analysis of variance evaluates the overall suitability of a linear regression model, determining if the dependent variable is linearly related to all independent variables.
To assess multicollinearity, it is essential to evaluate the Variance Inflation Factor (VIF), with a threshold of VIF < 3 indicating acceptable levels Additionally, a higher standardized Beta coefficient for any variable signifies a more significant influence on overall satisfaction.
The multivariate regression analysis model plays a crucial role in assessing the impact of various factors on the relationship between dependent and independent variables To evaluate model fit, researchers utilize the coefficient of determination, R², which remains stable regardless of the number of independent variables included However, to obtain a more accurate representation of the multivariable linear model's fit, the adjusted R² is employed, as it mitigates the inflation of R² and provides a safer assessment of model fit.
Survey result
Out of a total of 200 surveys sent to customers, the author received 178 responses, 50 direct responses (from customers to transactions at a bank branch) and
After distributing a Google Form link to customers, the author received 128 indirect responses Following the removal of inappropriate entries and thorough data cleaning, a finalized survey dataset was achieved, comprising 167 observations—surpassing the initially estimated minimum sample size of 130 customers.
Diagram 3.1 Age structure of customers participating in the survey
Customers aged 22-35 represent the largest demographic using the MBBank app, accounting for 49% of users, followed by those under 22 at 35% This indicates that MBBank's primary user base is a young, dynamic generation that is highly attuned to digital advancements and frequently utilizes modern technology such as smartphones and tablets for online transactions, particularly during the ongoing pandemic MBBank targets this demographic with its “zero fee” policy In contrast, customers aged 35-55 make up 14% of users, while those over 55 constitute only 2%.
Diagram 3.2 Gender structure of customers participating in the survey
The difference between the male and female sexes of the survey participants was not significant, thus completely ensuring the objectivity of the research data
Diagram 3.3 Job structure of customers participating in the survey
A recent study involving 172 customers revealed that student and officer customers represent the largest segments, comprising 39% and 31% respectively This trend is attributed to their familiarity with the MBBank application and a higher demand for mobile banking services due to their lifestyle and work requirements Civil servant customers, including military personnel, rank third, as many receive their monthly salaries through MBBank, fostering loyalty to the bank and its mobile services Business customers, while only 7% of the total, tend to engage in larger transactions compared to other groups Lastly, retired individuals constitute a mere 2% of the customer base, highlighting a significant disparity in mobile banking usage among different demographics.
Diagram 3.4 Income structure of customers participating in the survey
Customers earning between 10-20 million VND per month make up the largest segment at 43%, followed by those earning under 3 million VND at 25% The third largest group consists of individuals with incomes between 3-5 million VND, while those earning 20-50 million VND account for 12% Both the 5-10 million VND and over 50 million VND income groups represent the smallest portions, each comprising only 3% of the total.
Time customers have used MBBank app
Diagram 3.5 Usage time structure of customers participating in the survey
In term of usage time, loyal customers who have use MBBank app for more than 3 years accounts for the largest amount with 43% This is a positive sign as
MBBank has successfully attracted and retained a substantial number of loyal customers, with account longevity showing minimal variation among different groups Specifically, customers with accounts for less than one year make up 18%, those with accounts between one to two years account for 21%, and customers with accounts between two to three years represent a similar proportion.
Services on MBBank app customers often use
Diagram 3.6 Services customers use on MBBank application
A recent survey of MBBank app users revealed that the primary services utilized include money transfers, balance checks, and account statements, which are fundamental features of mobile banking Following these, bill payments and phone top-ups are also popular, with 98 out of 172 customers engaging in these functions Additionally, digital savings and online loans were used by 40 and 31 customers, respectively Furthermore, a small number of users, specifically four, reported using alternative features such as cardless ATM withdrawals and referral rewards for inviting friends to join the MBBank app.
Table 3.1 Descriptive statistic of Reliability variable
The reliability factor consists of four observed variables, with satisfaction levels ranging from 1 (dissatisfaction) to 5 (satisfaction) The variable RL3, which assesses the completeness and accuracy of transaction documents and statements, received the highest average satisfaction score of 4.06 In contrast, the RL4 variable, which evaluates how quickly issues are resolved, scored the lowest at 3.81 Despite this minor difference, customer satisfaction regarding reliability remains notably positive, averaging around 4 points.
Table 3.2 Descriptive statistic of Responsiveness variable
The average satisfaction levels for the variables RL1, RL2, and RL3 are 3.78, 3.72, and 3.98, respectively, indicating a generally positive response However, these scores are lower than the ratings for Reliability, suggesting that MBBank should enhance the Responsiveness of its app to ensure a more satisfying customer experience across all aspects.
Table 3.3 Descriptive statistic of Empathy variable
The factor Empathy has 4 observed variables Among these 4 variables, EM1
MBBank has achieved the highest satisfaction rate by effectively addressing customer needs regarding app utilities, reflecting its commitment to becoming the most convenient banking option for users.
Variable EM3, which reflects that "MB always cares about customers' personal experience when using the app," received the lowest score among the four metrics, averaging only 3.63 To enhance customer satisfaction and deliver an optimal experience, MB must prioritize and consider the feedback of each individual customer.
Table 3.4 Descriptive statistic of Technology variable
The technology factor comprises three key variables that contribute to customer satisfaction: first, the app interface design is user-friendly (TE1), second, the app maintenance is efficient and minimally disruptive to users (TE2), and third, the app is regularly updated with new services and utilities to align with customer needs (TE3).
63 higher than 4, which indicate that most of the customers are satisfied with the technology element of the MBBank app
Table 3.5 Descriptive statistic of Price variable
The Price factor, like the Technology factor, received an average score exceeding 4 points across all three observed variables This indicates that most customers involved in the research believe that the registration and usage fees for the app are reasonable, the service fees are clearly and thoroughly outlined, and the fees adapt flexibly to market changes.
Table 3.6 Descriptive statistic of Assurance variable
The Assurance factor shows only minor differences among its three variables However, when compared to other factors such as Technology and Prices, customer satisfaction levels for these Assurance variables are notably lower This suggests that MBBank should focus on enhancing the Assurance factor, particularly in ensuring that transactional and customer information remains confidential, that customers feel secure when using the MB app, and that bank staff possess the necessary skills and expertise to effectively address customer issues and complaints related to the app.
Table 3.7 Descriptive statistic of Customer satisfaction variable
The findings reveal that the majority of customers express satisfaction with the MBBank app Notably, the variable CS2, which assesses the likelihood of customers continuing to use the app, received the highest score, indicating that the MBBank app has garnered significant customer loyalty and successfully attracted new users.
To enhance customer engagement and attract new users, MBBank should implement referral programs that incentivize existing customers to introduce the app to friends and family Additionally, prioritizing improvements in the app's quality will help position MBBank as a superior mobile banking service compared to competitors.
The reliability of Cronbach's Alpha with each scale of each factor in the model and the results are presented below:
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted Reliability factor: Cronbach's Alpha 712
Price factor: Cronbach's Alpha 820 ươnPR1 8.03 2.344 697 728
Table 3.8 Cronbach's Alpha test results
Cronbach's Alpha value of all 6 independent factors “Reliability”,
“Responsiveness”, “Empathy”, “Technology”, “Price”, “Assurance” and the dependent factor “Customer satisfaction” are greater than 0.6, this satisfies the requirements of Nunnally & Bernstein (1994)
CONCLUSION AND RECOMMENDATIONS
Conclusion
Customer satisfaction has consistently been a crucial determinant of a bank's success, driving institutions to prioritize it as their ultimate goal In the competitive landscape of banking, particularly with the rise of mobile banking apps, banks are increasingly investing in technology to gain a competitive edge As the market expands and competition intensifies, understanding the key factors that influence customer satisfaction in mobile banking services becomes essential for banks striving to enhance their offerings.
The research titled "Factors Affecting Customer Satisfaction Using Mobile Banking Services of Military Bank" employs both qualitative and quantitative methods to analyze variables influencing customer satisfaction with the TCMP Military Bank's Mobile Banking app The study aims to validate the research hypothesis by gathering data through a survey, which yielded a significant sample size.
A study involving 172 customers of the MB Mobile Banking App in Hanoi identified key components affecting user satisfaction, grounded in theoretical frameworks tailored to the mobile banking context Utilizing survey methods and exploratory factor analysis (EFA), along with correlation regression analysis, the research revealed significant factors influencing customer satisfaction in their app experience.
MB Mobile Banking App service are sorted by degree of influence from large to small as follows: Reliability, Empathy, Technology, Assurance, Price, Responsiveness
Six key factors significantly enhance customer satisfaction, demonstrating strong alignment with the model's requirements for value, reliability, and data fit This study confirms that these factors are particularly relevant in the context of mobile banking services, highlighting their impact on overall customer satisfaction.
Development trend of MBBank application in future
MBBank is committed to becoming "the most convenient bank" by focusing on digital banking development, enhancing customer communication channels, and improving professionalism According to Mr Vu Thanh Trung, Director of Digital Banking, MBBank views digital transformation as an ongoing journey, continuously testing and adapting to provide modern digital experiences for customers The bank has strategically invested in IT infrastructure, developed its workforce, and adopted an Agile working model, reshaping its operational processes to function like a technology company from the outset.
Mr Vu Thanh Trung emphasizes the importance of customer-centric innovation at MBBank, which is rapidly expanding its digital ecosystem The bank aims to create a self-service digital banking model through a highly personalized all-in-one app, designed to be flexible and tailored to customer needs, featuring two key products: App MBBank and BIZ MBBank.
In 2021, the bank led the way in digital innovation by introducing personalized digital accounts, instant card printing, and custom VietQR payment codes Additionally, it launched the "Volunteering" app to enhance transparency in charity donations, while also promoting cashless payments for various services, including utilities, telecommunications, hotel bookings, air ticket purchases, insurance, and securities.
MBBank is investing $50 million annually in independent technology infrastructure and training for its workforce The bank is implementing automation projects and integrating robotics into its operations Additionally, MBBank collaborates with leading domestic and international technology partners, including IBM, Oracle, and Viettel, to enhance its digital transformation solutions.
MBBank is currently investing a budget of US$50 million per year for
Military Bank is committed to enhancing its technological infrastructure by training skilled human resources and implementing various automation projects, including the application of robotics in its operations The bank collaborates with leading domestic and international technology partners like IBM, Oracle, and Viettel to optimize digital transformation solutions Additionally, the MBBank application is continuously improved to meet customer needs, with regular updates and new features introduced to provide an exceptional all-in-one app experience.
Recommendations
The author suggests several solutions to enhance the quality of e-banking services, specifically focusing on the MBBank App of Military Bank By improving the mobile banking service, the bank aims to increase customer satisfaction during transactions, which in turn will boost existing customer loyalty and attract new clients.
Customer trust in a bank is influenced by various factors, including the institution's reputation, its adherence to commitments, the quality of service delivery, and the security measures in place To enhance this trust, the author suggests implementing several solutions.
As customer demands continue to rise, it is essential for banks to enhance and diversify their product features Regularly updating information on customer preferences and needs is crucial for banks to refine and perfect their offerings.
To enhance its brand image and strengthen customer loyalty, MBBank should increase its marketing budget to effectively promote its services This strategy will not only help retain existing customers but also attract new ones Additionally, MBBank should implement promotions and express gratitude towards customers who have chosen its Internet banking service, fostering a deeper connection with its clientele.
Engaging in community initiatives, charitable events, and environmental activities fosters a strong connection with customers, enhancing the bank's image and making it more relatable across diverse regions nationwide.
To enhance user experience, MBBank should prioritize improving its app based on actual customer feedback gathered from transaction points and online platforms Additionally, sending a thank-you email to customers, highlighting their valuable comments, can foster motivation and encourage further development.
To enhance customer trust, it is essential to expedite transaction processing on the app while ensuring it meets the criteria of being "Fast - Enough - Right." Addressing inconvenient transaction issues effectively and thoroughly resolving existing system errors will significantly improve user experience and satisfaction.
To enhance customer satisfaction, it is crucial for the automatic reply system to promptly address complaints regarding app quality Additionally, improving the phone answering skills of the 24/7 call center will ensure that customer inquiries are handled efficiently at any time By providing support beyond regular administrative hours, the bank can foster greater understanding and appreciation from customers regarding its responsiveness.
To enhance customer satisfaction with mobile banking services at MBBank, it is essential for the bank to conduct surveys that gather customer opinions and feedback By encouraging customers to share their feelings and desires regarding products and services, MBBank can identify areas for improvement and implement necessary adjustments to elevate service quality.
To effectively align their strategies with customer interests, banks must prioritize the development of services that cater to actual customer needs Enhancing the utilities and features of existing mobile banking apps is essential for achieving this goal, ensuring that banks provide valuable and relevant solutions to their clients.
To enhance the professionalism of bank staff, it is essential to implement comprehensive training programs that establish behavioral standards Regular experience exchange sessions among employees, as well as meetings facilitated by leaders, should be organized to foster an environment where staff can share insights and learn from one another.
To enhance customer satisfaction and improve perceptions of professionalism, employees should actively engage in 81 experiences that prepare them to effectively handle various situations By equipping staff with the skills to address customer needs, banks can foster a more positive image and build trust with their clientele.
Mobile banking services seamlessly blend traditional banking products with advanced information technology platforms To ensure the sustainable growth of Internet banking services, investing in technological enhancements is essential The author emphasizes the importance of these improvements for the future of mobile banking.
To enhance user experience, it is essential to refine and elevate the application's quality, ensuring it is both convenient and user-friendly Features should be organized in a clear and coherent manner, with regular updates to maintain relevance Additionally, the application's interface must be visually appealing and engaging, designed to capture attention and keep users interested.
As the number of customers registering for the MBBank service continues to grow, the simultaneous access to the MBBank app is also increasing This surge can lead to issues such as transaction interruptions or cancellations, causing inconvenience for both customers and bank staff To address these challenges, Military Bank must consistently monitor and upgrade its technology platform, as well as enhance transmission lines to ensure swift and accurate transactions.
CUSTOMERS SURVEY QUESTIONS
Initial research model
From the above research model, the author make the following research hypotheses:
H1: Reliability has a positive correlation with customer satisfaction
H2: Responsiveness has a positive correlation with customer satisfaction H3: Empathy has a positive correlation with customer satisfaction
H4: Technology has a positive correlation with customer satisfaction
H5: Assurance has a positive correlation with customer satisfaction
H6: Price has a positive correlation with customer satisfaction
3.1.2 Description of variables in the model
To analyze the qualitative data series effectively, encoding is essential The dataset comprises six independent variables: Reliability (RL), Responsiveness (RP), Empathy (EM), Technology (TE), Assurance (AS), and Price (PR), alongside one dependent variable.
Each factor includes many different observed variables Each variable has 5 answers: (based on Likert scale)
“Strongly disagree” assign the value number 1
“Disagree” assign the value number2
“Normal” assign the value number 3
“Agree” assign the value number 4
“Strongly agree” assign the value number 5
RL1: MBBank brand is reputable
RL2: Transactions on the app are accurate and fast, no mistakes
RL3: Transaction documents and statements are complete and accurate
RL4: MB quickly solves and fixes problems when something goes wrong
RP1: MBBank app has full utilities to meet the needs of customers
RP2: Customers always receive quick feedback from MB staff about questions and problems encountered when using the app
RP3: Customers always receive notifications about transactions and changes on the MBBank app
EM1: MB understands the needs of customers about utilities on the app
EM2: Customers are always MB's priority
EM3: MB always cares about customers' personal experience when using the app
EM4: MB's staff is dedicated to taking care of and solving individual customer problems
TE1: App interface design is easy to use
TE2: App maintenance time is quick, does not affect the use of customers
TE3: MB regularly updates services and utilities on the app to meet customer needs
AS1: Transactional information and customer information are confidential
AS2: Customers feel safe when registering and using MB's app
AS3: MB bank staff have enough skills and expertise to solve customer problems and complaints when using MB app
PR1: Fees when registering and using the app are applied reasonably
PR2: Service fees are specified clearly and in detail
PR3: Fees change flexibly in line with market movements
CS1: Customer are satisfied with quality of MBBank app
CS2: Customer will continue using MBBank app
CS3: Customer will introduce MBBank app to their friends and family
CS4: MBBank app quality is better than mobile banking service of other banks
Table 3.1 Factors and observed variables of research model
3.1.3 Description of the survey form
Firstly, the author created the draft of the questionnaire base on the research model with information needed to conduct the survey
Consulting with instructors and other experts to adjust the questionnaire accordingly
The author distributed a questionnaire to select customers to evaluate the clarity and coherence of the questions, making final adjustments before officially launching the survey to all participants.
- Step 2: Determine the number of samples needed and the scale for questions
According to Hair et al (2014), a minimum sample size of 50 is recommended, with an ideal size exceeding 100, and suggests a ratio of observations to variables of 5:1 or 10:1 However, other researchers advocate for a more stringent ratio of 20:1 for optimal results.
As with the limited time and ability to get access to customers, the author decided to choose 5:1 ratio This questionnaire includes 26 questions (equivalent to
26 observed variables of different factors) Apply the ratio 5:1, the sample size should be 26*5 = 130 This is larger than the minimum sample size required (50 or 100), so this sample size is acceptable
Considering that in the survey progress, there might be some inappropriate answers, the author chose the sample size of 200 customers to be able to collect enough data for analysis
- Step 3: Send questionnaire to customers
This research was conducted in April 2022 The questionnaire was send to customer by 2 way:
+Directly send questionnaires to customers who come to make transactions at Military Bank branch (50 customers)
+Indirectly send the questionnaire (in the form of a google form link) through customers’ email address or other contact information (150 customers)
- Step 4: Contact customers again to track survey results
One week after distributing the questionnaire to customers, the author follows up with those who have not yet responded, offering reminders and assistance for any difficulties they may be experiencing with the survey form.
- Step 5: Collect, process data and conduct analysis
Descriptive statistics are coefficients that succinctly describe or summarize a given data set, which may be representative of the whole or a sample of a population
Descriptive statistics provide concise summaries that help to describe and understand the characteristics of a specific data set Key concentration trend parameters, such as the mean, median, and mode, are commonly utilized across various levels of mathematics and statistics By simplifying complex quantitative information from large data sets, descriptive statistics enable clearer insights and interpretations.
Cronbach's Alpha test is essential for assessing the reliability of scales and the correlation among observed variables By analyzing the correlation coefficient of a composite variable formed by omitting one observed variable, researchers can identify strong and weak correlations within the dataset Prior to conducting exploratory factor analysis (EFA), applying the Cronbach's Alpha test is crucial for eliminating unsuitable variables that could introduce fictitious factors and compromise the model's reliability According to Nunnally & Bernstein (1994), a Cronbach's Alpha coefficient of 0.6 or higher is deemed acceptable, and variables should be retained if their correlation coefficient with the composite variable is 0.3 or above.
- Step 3: EFA exploratory factor analysis
The scale validity test or factor analysis is to test the convergent and discriminant value of each concept and between concepts through EFA exploratory factor analysis
After assessing the scale's reliability using Cronbach's Alpha coefficient, a factor analysis was conducted to condense the variables into a more coherent set of factors To ensure the validity of the exploratory factor analysis (EFA), specific conditions must be met.
0.5 ≤ KMO ≤ 1: KMO is an indicator used to consider the appropriateness of EFA (Hoang Trong and Chu Mong Ngoc, 2008)
Barllet test is statistically significant when Sig < 0.05 (Hoang Trong and Chu Mong Ngoc, 2008)
Total variance extracted > 50% and Eigenvalue greater than 1 (Gerbing and Anderson, 1998)
The Pearson correlation is essential for assessing the linear relationship between dependent and independent variables, as correlation is a prerequisite for regression analysis Additionally, it is crucial to address multicollinearity issues when independent variables exhibit strong correlations among themselves A significant correlation is indicated when the significance value is less than the predetermined threshold.
0.05, the new correlation coefficient r has statistical significance, the sig value greater than 0.05 means r is not significant, or in other words, there is no correlation between these two variables
The F test in analysis of variance evaluates the appropriateness of the overall linear regression model by assessing whether the dependent variable has a linear relationship with all independent variables.
To assess multicollinearity, it is essential to use the Variance Inflation Factor (VIF), ensuring that VIF values remain below 3 A higher standardized Beta coefficient for any variable indicates a stronger influence of that variable on overall satisfaction.
The multivariate regression analysis model is essential for assessing the significance of each factor in the relationship between dependent and independent variables To evaluate model fit, researchers utilize the coefficient of determination, R², which remains stable regardless of the number of independent variables included However, the adjusted R² provides a more accurate reflection of the multivariable linear model's fit, as it accounts for the number of predictors and avoids inflating the model's performance Thus, using the adjusted R² coefficient is a safer approach for evaluating model fit.
Out of a total of 200 surveys sent to customers, the author received 178 responses, 50 direct responses (from customers to transactions at a bank branch) and
The author collected 128 indirect responses through a Google Form link shared with customers After filtering out inappropriate responses and conducting data cleaning, the final survey dataset comprised 167 observations, exceeding the previously estimated minimum sample size of 130 customers.
Diagram 3.1 Age structure of customers participating in the survey
The majority of MBBank app users are aged 22-35, representing 49% of customers, followed by those under 22 at 35% This indicates that MBBank's primary audience is a young, tech-savvy generation that embraces digital transactions, particularly during the ongoing pandemic MBBank targets this demographic with its “zero fee” policy Customers aged 35-55 make up 14%, while those over 55 constitute only 2% of the user base.
Diagram 3.2 Gender structure of customers participating in the survey
The difference between the male and female sexes of the survey participants was not significant, thus completely ensuring the objectivity of the research data
Diagram 3.3 Job structure of customers participating in the survey
A recent study involving 172 customers revealed that student and officer customers represent the largest segments, comprising 39% and 31% respectively This trend is attributed to their ease of access to the MBBank application and a higher demand for mobile banking services due to their lifestyles Civil servants, including military personnel, rank third, as many receive their monthly salaries through MBBank, fostering loyalty to the bank and its mobile services Business customers, although only 7% of the total, engage in larger transactions compared to other groups Lastly, retired individuals make up a mere 2% of the customer base.
Diagram 3.4 Income structure of customers participating in the survey
In our analysis of customer income distribution, those earning between 10-20 million VND per month represent the largest segment at 43% This is followed by customers with incomes below 3 million VND, making up 25% of the total The third largest group consists of individuals earning between 3-5 million VND, while those earning 20-50 million VND account for 12% Lastly, both the 5-10 million VND and over 50 million VND income brackets each contribute only 3%, indicating they are the smallest segments in our study.
Time customers have used MBBank app
Diagram 3.5 Usage time structure of customers participating in the survey
In term of usage time, loyal customers who have use MBBank app for more than 3 years accounts for the largest amount with 43% This is a positive sign as
Adjusted research model
Thus, the calibration model includes 6 independent factors affecting customer satisfaction when using MB mobile banking app as follows:
+ Factor "Reliability" includes: RL1, RL2, RL3
+ Factor "Technology" includes: TE1, TE2, TE3
+ Factor "Responsiveness" includes: RP1, RP2,RP3
+ Factor "Price" includes: PR1, PR2, PR3
+ The factor "Assurance" includes: AS1, AS2, AS3
+ Factor "Empathy" includes: EM1, EM2, EM3
+ Factor "Customer Satisfaction" includes: CS1, CS2, CS3, CS4
After removing RL4 and EM4, the regression equation has the form:
CS= β0+ β1*RL+β2*RP+ β3*EM+ β4*TE + β5*PR+ β6*AS
CS: Dependent variable (Customer satisfaction)
RL, RP, EM, TE, PR, AS: Independent variables
(RL : Reliability is the average of the variables: RL1, RL2,RL3; similar to RP,
EM, TE, PR, AS) β0: Intercept βi ( i = 1,2,3,4,5,6): Coefficient
3.2,7.2 Determining the fit of the model
Std Error of the Estimate
1 828 a 685 674 35338 2.048 a Predictors: (Constant), EM, RL, AS, TE, RP, PR b Dependent Variable: CS
The adjusted R squared is 0.674 = 67.4% Thus, the independent variables included in the regression affect 67.4% of the change of the dependent variable
Sig test F = 0.00 < 0.05, so the regression model is significant
The results of the multivariable linear regression analysis showed that the VIF magnification coefficients of the independent variables were all < 10, so there was no
72 multicollinearity between the independent variables, so the model was accepted Sig values of the independent variables all have Sig values < 0.05, and should be kept
B Std Error Beta Tolerance VIF
Regression tests indicate that the model adheres to test hypotheses and demonstrates statistical significance, confirming a linear relationship between independent factors and customer satisfaction regarding the service quality of the MBBank app.
From the obtained results, there are 6 factors affecting customer service quality satisfaction, in which the positive standardized Beta coefficient shows that the factors have a positive influence on customer satisfaction
The Sig coefficients of beta are all = 0.000 < 0.005, showing that the beta coefficient of the independent variable is statistically significant
The unstandardized regression model has the form:
CS= 0.096 + 0.178*TE + 0.095*RP + 0.134*AS + 0.241*RL + 0.108*PR +
Meaning of unstandardized regression coefficient:
The beta regression coefficient for the Technology factor is 0.178, indicating a positive influence on customer satisfaction This suggests that, holding other variables constant, a 1-unit increase or decrease in the Technology factor will result in a corresponding increase or decrease in customer satisfaction by 0.178.
The beta regression coefficient for the Responsiveness factor is 0.915, indicating a positive relationship with satisfaction This suggests that, while holding other variables constant, a 1-unit increase or decrease in Responsiveness will result in a corresponding increase or decrease in satisfaction by 0.915 units.
The beta regression coefficient for the Assurance factor is 0.134, indicating a positive relationship between Assurance and satisfaction This suggests that, holding other variables constant, a 1-unit increase in Assurance results in a 0.134-unit increase in satisfaction, while a 1-unit decrease in Assurance leads to a corresponding decrease in satisfaction.
The beta regression coefficient for the Reliability factor is 0.241, indicating a positive relationship with satisfaction This suggests that, holding other variables constant, a 1-unit increase or decrease in the Reliability factor will result in a corresponding increase or decrease in satisfaction by 0.241 units.
The beta regression coefficient for the Price factor is 0.108, indicating a positive relationship between Price and satisfaction This suggests that, while keeping other variables constant, a 1-unit increase in Price results in a 0.357-unit increase in satisfaction, and conversely, a 1-unit decrease in Price leads to a 0.357-unit decrease in satisfaction.
The beta regression coefficient for the Empathy factor is 0.207, indicating a positive influence on satisfaction This suggests that, when other variables remain constant, an increase or decrease in the Empathy factor directly correlates with changes in satisfaction levels.
1 unit, the satisfaction will increase or decrease, respectively, by 0.207 units
The Standardized regression has the following form:
CS= 0,219*TE + 0,130*RP + 0.159*AS + 0.311*RL + 0.133*PR + 0.274*EM
This coefficient determines the position of influence of independent factors on dependent factors in the regression model
The regression analysis reveals that customer satisfaction is influenced by six key factors, ranked by their significance: Reliability (RL), Empathy (EM), Technology (TE), Assurance (AS), Price (PR), and Responsiveness (RP).
3.2.8 Verification of the research model's theories
The analysis, including correlation and regression, confirmed the acceptance of hypotheses H1 to H6, indicating that various factors positively influence customer satisfaction with the MB mobile banking app The multivariable regression analysis revealed that all factors had a positive Beta coefficient and a significance level below 0.05, demonstrating that an increase in these factors correlates with higher customer satisfaction.
H1: Reliability has a positive correlation with customer satisfaction
H2: Responsiveness has a positive correlation with customer satisfaction
H3: Empathy has a positive correlation with customer satisfaction
H4: Technology has a positive correlation with customer satisfaction
H5: Assurance has a positive correlation with customer satisfaction
H6: Price has a positive correlation with customer satisfaction
So the results of the research model are as follows:
Regression result
The regression analysis reveals that six key factors significantly influence customer satisfaction with mobile banking services: Reliability, Responsiveness, Empathy, Technology, Price, and Assurance These factors collectively account for 67.4% of the variance in customer satisfaction, highlighting their critical role in enhancing the overall user experience.
Reliability is the most significant factor affecting customer satisfaction When the login system, security measures, and transaction invoices of an app improve, customer satisfaction tends to rise, assuming all other factors remain unchanged.
The second most influential factor on customer satisfaction is Empathy When the factors of staff attitude, the bank's interest in the customer's personal experience increases, customer satisfaction also increases
The third factor influencing customer satisfaction is Technology As factors related to App interface design, transaction processing speed, and App functionality increase, customer satisfaction will increase
Assurance is the fourth strongest factor influencing customer satisfaction, with a coefficient of β = 0.159 This indicates that as MB enhances its Assurance—by making customers feel safe, employing qualified staff, and providing additional benefits—customer satisfaction is likely to rise.
The two factors that have the least impact on customer satisfaction in the six research factors are Price and Responsiveness
The findings indicate that users of the MB mobile banking app prioritize the app's reliability, followed by understanding, empathy, technology, and assurance While price and responsiveness are also considered, the current market penetration strategy of MB includes attractive incentives on fees and interest rates, making their mobile banking service competitively priced compared to other banks.
CHAPTER IV: CONCLUSION AND RECOMMENDATIONS
Customer satisfaction has consistently been a crucial determinant of a bank's success, driving banks to prioritize it across all eras To gain a competitive edge, banks are investing heavily in technology, particularly in developing mobile banking apps As the market grows and competition intensifies, understanding and assessing the key factors that influence customer satisfaction in mobile banking services becomes increasingly vital.
The research titled "Factors Affecting Customer Satisfaction Using Mobile Banking Services of Military Bank" employs both qualitative and quantitative methods to analyze variables influencing customer satisfaction with the TCMP Military Bank's Mobile Banking App The study concludes its hypotheses based on data collected from a survey, which included a valid sample of participants.
A study involving 172 customers of the MB Mobile Banking App in Hanoi identified key components influencing user satisfaction The measurement scales were developed based on theoretical foundations and tailored to the context of Mobile Banking services Utilizing survey data and exploratory factor analysis (EFA), along with correlation regression analysis, the research revealed significant factors impacting customer satisfaction in their app experience.
MB Mobile Banking App service are sorted by degree of influence from large to small as follows: Reliability, Empathy, Technology, Assurance, Price, Responsiveness
Six key factors significantly enhance customer satisfaction in mobile banking services, demonstrating their alignment with value, reliability, and data model fit This study confirms the importance of these factors in understanding customer satisfaction within the banking app sector.
4.2 Development trend of MBBank application in future
MBBank is committed to becoming "the most convenient bank" through the continuous development of digital banking, focusing on enhancing customer communication and professional capacity According to Mr Vu Thanh Trung, Director of Digital Banking, MBBank views digital transformation as an ongoing journey, consistently testing and adapting to provide modern digital experiences for customers The bank has made systematic investments in IT infrastructure, developed human resources, and adopted an Agile working model, fostering a mindset shift and establishing operational processes akin to a technology company from the outset.
Mr Vu Thanh Trung emphasizes that MBBank is prioritizing customer-centric innovation by expanding its digital ecosystem The bank aims to create a self-serving digital banking model through a highly personalized all-in-one app, tailored to meet customer needs, featuring two standout products: App MBBank and BIZ MBBank.
In 2021, the bank took the lead in adopting various digital utilities, allowing customers to create personalized digital accounts, print instant cards, and generate their own VietQR payment codes Additionally, the innovative "Volunteering" technology application was launched to enhance transparency in charitable donations These initiatives not only cater to societal demands but also significantly promote cashless payments across a range of services, including utilities, telecommunications, hotel bookings, air ticket purchases, insurance, and securities.
MBBank is investing $50 million annually in independent technology infrastructure and training for its workforce The bank is focused on automating processes and enhancing its systems through Robotics Additionally, MBBank collaborates with leading technology partners like IBM, Oracle, and Viettel to optimize its digital transformation initiatives.
MBBank is currently investing a budget of US$50 million per year for
Military Bank is committed to enhancing its technology infrastructure by training skilled personnel and implementing automation projects, including the integration of robotics into operational processes The bank collaborates with leading technology partners like IBM, Oracle, and Viettel to optimize digital transformation solutions Additionally, the MBBank application is continuously improved, with regular updates and new features tailored to meet customer needs and preferences, ensuring an exceptional user experience through an all-in-one app technology.
The author suggests several solutions to enhance the quality of e-banking services, specifically focusing on the MBBank App of Military Bank These improvements aim to elevate customer satisfaction during transactions, ultimately fostering greater loyalty among existing customers while attracting new users to the mobile banking platform.
Customer trust in banks is influenced by various factors, including the bank's reputation, adherence to commitments, service delivery processes, and the security of the services offered To enhance this trust, the author suggests implementing several key solutions.