Research on factors affecting individual customers’ behavior of using sacombank mbanking service at saigon thuong tin commercial joint stock bank – ha dong branch

BANKING ACADEMY BANKING FACULTY - - GRADUATION THESIS Topic RESEARCH ON FACTORS AFFECTING INDIVIDUAL CUSTOMERS’ BEHAVIOR OF USING SACOMBANK MBANKING SERVICE AT SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK – HA DONG BRANCH Student’s name: Tran Thi Lan Trinh Class: K21CLCA Course 2018-2022 Student code: 21A4011001 Instructor: Dr Nguyen Thi Quynh Huong Ha Noi, May, 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014128962071000000 ANNOUNCEMENT Dear: Director of Banking Academy and teachers of Banking Faculty Full name: Tran Thi Lan Trinh Class: K21CLCA Faculty: Banking Course: 2018 – 2022 I hereby declare that the graduation thesis topic “RESEARCH ON FACTORS AFFECTING INDIVIDUAL CUSTOMERS’ BEHAVIOR OF USING SACOMBANK MBANKING SERVICE AT SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK – HA DONG BRANCH” is my own research work and has not been published in any way by anyone The data and information stated in this research paper are of clear and honest origin, derived from the reality of Saigon Thuong Tin Commercial Joint Stock Bank Ha Noi, May, 2022 Tran Thi Lan Trinh ACKNOWLEDGEMENT This thesis was completed at Banking Academy after four years of successful completion of the study During my graduation thesis, I received a lot of help to complete it First of all, I would like to express my sincere gratitude to Dr Nguyen Thi Quynh Huong who enthusiastically guided, imparted knowledge and experience to me during the process of making this graduation thesis I would like to thank the teachers of Banking Faculty - High Quality Program, who have imparted valuable knowledge to me during my last study period Finally, I would like to thank my family, friends and students of class K21CLCA for their encouragement and support throughout the course of this thesis At the same time, I would like to thank the respondents who enthusiastically participated in answering the survey questions to help me complete this graduation thesis I sincerely thank you! TABLE OF CONTENTS ABSTRACT 1 Urgency of the topic Overview of research on the behavior of using Mobile Banking services of individual customers Research objectives Objects and scope of research Research methods Structure of the research 10 CHAPTER 1: THEORETICAL BASIS OF E-BANKING SERVICES AND CUSTOMERS’ BEHAVIOR USAGE OF E-BANGKING SERVICES 11 1.1 Overview of E-banking services for individual customers of commercial banks 11 1.1.1 E-banking services for individual customers 11 1.1.2 Mobile Banking service 16 1.2 Theory of customers’ service usage behavior 19 1.2.1 The definition of individual customer’s behavior 20 1.2.2 Factors affecting the behavior of customer’s using the services 20 CONCLUSION OF CHAPTER 25 CHAPTER RESEARCH ON FACTORS AFFECTING THE BEHAVIOR OF INDIVIDUAL CUSTOMERS USING SACOMBANK MBANKING SERVICE AT SACOMBANK – HA DONG BRANCH 26 2.1 Introduction about Sacombank – Ha Dong Branch and the E-Banking service of Sacombank 26 2.1.1 The establishment and development of Sacombank – Ha Dong Branch… 26 2.1.2 Management structure of Sacombank – Ha Dong branch 28 2.1.3 Business performance of Sacombank Ha Dong Bank 29 2.1.4 The current situation of Sacombank mBanking services at Sacombank - Ha Dong branch 32 2.2 Research on factors affecting the behavior of using Sacombank mBanking services 35 2.2.1 Research theories and proposed models 35 2.2.2 Building research hypotheses and scales of measurement 39 2.2.3 Building the research 43 2.2.4 Sampling and collecting data 44 2.3 Description of the survey sample to assess the factors affecting individual customers’ behavior of using Sacombank mBanking services 44 2.4 Scale Testing 46 2.4.1 Evaluation of the scale by the reliability coefficient Cronbach's Alpha 46 2.4.2 Verified by Exploratory Factor Analysis EFA 47 The EFA result of independent variables 48 2.4.3 Analyzing the degree of correlation and linear regression model 49 2.4.4 Analysis of Pearson Correlation 50 2.4.5 The analysis of One-way Anova and Independent Sample T-Test 53 2.5 Summary of research results 56 CONCLUSION OF CHAPTER 58 CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS TO PROMOTE INDIVIDUAL CUSTOMERS’ BEHAVIOR OF USING SACOMBANK MBANKING SERVICE FOR SACOMBANK – HA DONG BRANCH 60 3.1 Solutions 60 3.2 Recommendations 63 3.2.1 Recommendations to State Bank 64 3.2.2 Recommendations to Sacombank 64 CONCLUSION OF CHAPTER 66 CONCLUSION 67 TABLE LIST Table Page Table 2.1 Capital mobilization activities of Sacombank – Ha Dong 29 Branch from 2020 to 2021 Table 2.2 Lending activity of Sacombank – Ha Dong Branch 2020- 30 2021 Table 2.3 Business results of Sacombank – Ha Dong Branch 2020 - 31 2021 Table 2.4 Mobile Banking service fee schedule of different banks 34 Table 2.5 The results of Cronbach’s Alpha test of the independent 47 variables Table 2.6 The result of Cronbach Alpha test of the dependent variable 47 Table 2.7 KMO and Bartlett’s test 48 Table 2.8 Rotated Component Matrix 49 Table 2.9 Correlation between the variables in the model 50 Table 2.10 Descriptive statistics of variables in the regression model 51 Table 2.11 The result of multiple linear regression analysis 51 Coefficients Table 2.12 Testing the relevance of the regression model 53 Table 2.13 ANOVA 53 Table 2.14 The result of ANOVA test 54 Table 2.15 Testing the variable “Age” by Independent Samples T- 55 Test Table 2.16 Testing the variable “Income” by Independent Samples TTest 56 DIAGRAM LIST Diagram Page Diagram 1.1: EUCS model of Pikkarainen et al (2006) Diagram 1.2 Model build by JA Hammould et al (2018) Diagram 1.3 Service quality measurement model of Gronroos (1984) Diagram 2.1 Management structure of Sacombank – Ha Dong 28 branch Diagram 2.2 Capital mobilization scale results of Sacombank – Ha 29 Dong branch Diagram 2.3 Lending activity of Sacombank – Ha Dong branch 30 Diagram 2.4 Theory of Reasoned Action (TRA) 36 Diagram 2.5 Theory of Planned Behavior (TPB) 36 Diagram 2.6 TAM Model 37 Diagram 2.7 UTAUT Model 38 Diagram 2.8 38 Prosposed model to study the factors affecting Sacombank mBanking use behavior of individual customers at Sacombank – Ha Dong Branch Diagram 2.9 Survey sample information 45 ABSTRACT Urgency of the topic: Over the years, technology has revolutionized the world and our daily lives Technology has created amazing tools and resources that bring us a lot of useful information This development process has changed the view of the use of technology services in many different fields, especially in the economic sector, telecommunications, finance and banking, etc Besides, in recent years, the Covid-19 epidemic has caused industries to fall into difficult situations in operation and circulation, thus it has set a stepping stone for promoting technology development in the period of time now Currently, the trend of online transactions, registration of online services, payment on the Internet has become a development and competitive trend of service providers in Vietnam For the banking industry in particular, technology has created a lot of opportunities for customers to know about products, access, use and prefer fast and convenient means of service on E-banking application For example, in the past, when a financial transaction arose, customers had to go to the counter and wait for hours to complete the procedures Now, just owning an Internet-connected electronic device and a bank account, people can sit at home, office or cafe to make their transactions In addition to transactional features, e-banking also provides online utilities such as electricity, water, network bill payment, phone top-up, etc It can be said that E-banking has a variety of features that help people still it but feel much more convenient such as financial management, maximum savings in transaction costs, safe and fast cash flow, especially reducing the risk of infection of the Covid-19 epidemic when in direct contact with people around As for banks, technological developments have made it possible for banks to save costs, increase revenue, expand operations and increase competitiveness In addition, banks can improve capital efficiency as well as increase their ability to care for and attract more customers In the context of the current Covid-19 epidemic, e-banking services are playing an extremely important role not only for banks, but also as a solution to create the most convenience and security With the foundation of the previous e-banking model, banks now need to have new plans to develop those services to better meet the diverse needs of customers special customers during this pandemic With an interest in the field, the research topic with the topic "Research on factors affecting the behavior of individual customers using Sacombank mBanking services at Sacombank - Ha Dong branch" was selected to learn about the good factors affecting the usage behavior of individual customers who are using Sacombank mBanking services at Sacombank - Ha Dong branch, then research would give solutions and recommendations to improve services banking on mobile to increase the number of users, and at the same time contribute to improving the competitive position of the bank Overview of research on the behavior of using Mobile Banking services of individual customers: ❖ Overview of studies on the behavior of using E-banking services: a Overseas research: Research on how to measure customer satisfaction in using Internet Banking in Finland, Pikkarainen et al (2006), "The Measurement of End-User Computing Satisfaction of Online Banking Services: Empirical Evidence from Finland" This study was carried out on the basis of the End-User Computational Satisfaction Model (EUCS) through a survey of 268 regular users of online banking services in Finland The results show that customers are quite satisfied with the factors of timeliness (Timeless), Format (Format), Accuracy (Accuracy) and Ease of Use (Ease of Use), while, Content factors (Content) lead to customer dissatisfaction According to customer feedback, the information content provided by online banking Web sites is very limited and it does not match their requirements Researchers have suggested that managers should focus on more effective, helpful methods of enhancing customer satisfaction by setting up the look and feel of the Web in a personalized way to consider the diverse needs of all customer segments and group them into separate utility groups, increasing efficiency