Research on customer satisfaction using vpbank neo

VPBank NEO VPBank''''s banking platform CSAT Customer Satisfaction LIST OF APPENDIX Appendix 1 Questionnaire of the customer satisfaction using VPBank NEO Trang 9 ABSTRACT The title of th

BANKING ACADEMY OF VIETNAM FACULTY OF FOREIGN LANGUAGES - - GRADUATION THESIS TOPIC: RESEARCH ON CUSTOMER SATISFACTION USING VPBANK NEO Student : Đỗ Thị Lan Hương Class : K22ATCB Academic year : 2019 – 2023 Student ID : 22A7510087 Advisor : Mr Ngo Tung Anh (MA) Hanoi, May 2023 ACKNOWLEDGEMENTS In this part, I would like to express my deep gratitude to those who helped me complete this research paper which is an important milestone in my academic career During my thesis work, I received a lot of help I wish through this to be able to express my deep gratitude First of all, I really appreciate my supervisor – Mr Ngo Tung Anh’s guidance to help me complete my research paper Next, I would like to thank the staff in the "process improvement" department of VPBank for helping me gain valuable lessons and experiences when I did my internship at VPBank In addition, my friends have stood shoulder to shoulder, encouraged me when I was tired, and reminded me of important deadlines And, VPBank NEO customers helped me complete my survey Finally, I would like to thank my family, especially my mother, who has always been a solid support for me both mentally and physically Hanoi, May 2023 Đỗ Thị Lan Hương i DECLARATION I declare that this thesis titled “RESEARCH ON CUSTOMER SATISFACTION USING VPBANK NEO” is the outcome of my own research efforts The arguments presented in the paper are based on my comprehension and analysis of the primary materials and are not published elsewhere References to all the books, articles, and websites used in the research are adequately acknowledged in the thesis Furthermore, I affirm that this thesis has not been submitted to any other university before and is solely intended for submission to the Banking Academy of Vietnam Hanoi, May 2023 Đỗ Thị lan Hương ii TABLE OF CONTENT ACKNOWLEDGEMENT i DECLARATION ii TABLE OF CONTENT iii LIST OF TABLE vi LIST OF FIGURES vi LIST OF ABBREVIATIONS vii LIST OF APPENDIX vii ABSTRACT CHAPTER I: INTRODUCTION 1.1 Introduction 1.2 Background of the study 1.3 Objectives of the study 1.4 Significance of the Study 1.5 Scope and Delimitation 1.6 Definition of terms 1.7 Conclusion CHAPTER II: LITERATURE REVIEW 2.1 Theoretical and conceptual framework 2.1.1 Service quality 2.1.2 Customer satisfaction 2.1.3 The relationship between service quality and customer satisfaction 2.1.4 Customer Satisfaction and the banking sector 2.1.5 Satisfaction Level 2.2 Related studies 2.2.1 CSAT model 2.2.2 Customer satisfaction model ServQual of Parasuraman 10 2.2.3 SERVPERF Model 12 2.3 Research paradigm 13 CHAPTER III: RESEARCH METHODOLOGY 15 iii 3.1 Data collection 15 3.1.1 Data source 15 3.1.2 Questionaire frame 15 3.1.3 Study location 16 3.1.4 Survey sample 17 3.1.5 Research process 18 3.2 Statistical analysis 19 3.2.1 Data code 19 3.2.2 Methods of data analysis 20 3.2.2.1 Cronbach’s alpha 20 3.2.2.2 Means 21 CHAPTER IV: RESULTS AND DISCUSSION 22 4.1 Research results 22 4.1.1 Demographic data 22 4.1.2 Reliability- Cronbach’s Alpha coefficient 23 4.1.3 Descriptive statistic 24 4.2 Discussion 27 4.2.1 User interface 27 4.2.2 Response time 28 4.2.3 Service fee 30 4.2.4 Reliability 31 4.2.5 Responsiveness 32 4.2.6 General satisfaction 34 4.2.7 Additional question 36 CHAPTER V: SITUATION, FINDINGS, RECOMMENDATION, AND CONCLUSION 37 5.1 Situation in Vietnam 37 5.1.1 General situation of using digital banking in Vietnam 37 5.1.2 Legal Policy on digital banking 38 5.2 Findings 39 5.3 Recommendations 40 iv 5.3.1 For the Vietnamese government 40 5.3.2 For the State Bank of Vietnam 41 5.2.3 For VPBank NEO 41 5.4 Conclusion 42 BIBLIOGRAPHY 43 v LIST OF TABLE Table Questionnaire structure Table Likert scale options Table 3 Demographic code Table Data code Table Scale of mean Table Cronbach’s alpha Table Descriptive Statistics of user interface Table Descriptive Statistics of Service Fee Table 4 Descriptive Statistics of Reliability Table Descriptive Statistics of Response Time Table Descriptive Statistics of Responsiveness Table Descriptive Statistics of General Satisfaction LIST OF FIGURES Figure CSAT model Figure 2.2 Five gap model Parasuramen et al (1985) Figure The VPBank NEO customer satisfaction model Figure Structure of the research Figure Occupation of respondents Figure Age of respondents Figure Using time of respondents Figure 4 Assessment of the "response time" of the respondents Figure Assessment the "Service fee" of the respondents Figure Assessment the "Reliability" of the respondents Figure Assessment the "Responsiveness" of the respondents Figure Assessment the "General satisfaction" of the respondents Figure You face many problems when using VPBank NEO's services vi LIST OF ABBREVIATIONS VPBank Vietnam Prosperity Joint Stock Commercial Bank VPBank NEO VPBank's banking platform CSAT Customer Satisfaction LIST OF APPENDIX Appendix Questionnaire of the customer satisfaction using VPBank NEO Appendix Reliability Statistics vii ABSTRACT The title of the thesis: Research on customer satisfaction using VPBANK NEO Author: Lan Huong, student of the Faculty of Foreign Languages, Banking Academy of Vietnam Advisor: Mr Ngo Tung Anh Keywords: VPBank NEO, digital banking, customer satisfaction, VPBank NEO quality service The purpose of this paper is to evaluate customer satisfaction using VPBank NEO based on customer perceptions regarding service quality This is an empirical study using mainly primary data collected through a well-structured questionnaire The method of the study is Validity and reliability testing of the questionnaire using the SPSS program for Windows version 20 The questionnaire has been personally administered to a sample size of 165 VPBank NEO customers This paper makes a useful contribution, as VPBank NEO is quite a new banking platform, and there are a few studies dealing with the assessment of customer satisfaction with the service quality of VPBank NEO The research is based on factors: User interface, Response time, Service fee, Reliability, Responsiveness, General satisfaction The findings provide insights that can help VPBank improve its digital banking services and enhance customer satisfaction This study contributes to the literature on digital banking and customer satisfaction in the Vietnamese context and has practical implications for banks seeking to enhance their digital offerings CHAPTER I: INTRODUCTION 1.1 Introduction Customer satisfaction is a crucial factor for the success of any business, including the banking industry With the advancements in technology, banks are incorporating digital channels into their operations to provide better services to their customers One such example is VPBank Neo, which offers various services to its customers, including banking, investment, and insurance In March 2023 I started working at VPBank as an intern at operational excellence center I was fortunate to have the opportunity to be exposed to several innovative projects related to VPBAnk NEO I realize that VPBank NEO is a fairly "young" platform that has only been launched for less than years Moreover, NEO bank is a fairly new concept in Vietnam, in fact there is no complete NEO bank in our country So I decided to study customer satisfaction when using VPBank NEO to get an overview of service quality as well as customer feedback to this platform 1.2 Background of the study VPBank, also known as Vietnam Prosperity Joint Stock Commercial Bank, is a leading commercial bank in Vietnam with a strong track record of growth and innovation Founded in 1993, VPBank has continuously expanded its operations and established itself as one of the most reputable and customer-focused banks in the country The bank operates a nationwide network of more than 200 branches and transaction offices, serving millions of individuals and corporate customers In recent years, VPBank has embarked on a comprehensive digital transformation journey to enhance the customer experience, increase efficiency, and stay ahead of the competition The bank has invested heavily in digital infrastructure, innovative products and services, and talent development to build a digital-first culture and transform itself into a leading digital bank On 26/08/2021, Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) launched VPBank NEO, a digital banking platform The platform provides customers with a wide range of digital financial services, such as online account opening, money VPBank NEO's customers are quite diverse, ranging in age from under 22 to over 55 years old Young customers make up the majority because this customer group is sensitive to technology and will be the main group of potential customers in the near future Most customers are of working age with high consumption and savings needs Although the VPBank NEO foundation from VPBank Online provides a solid base for its operations, it's still a young platform Compared to the leading banks today, VPBank NEO is still not the first choice of customers 5.3 Recommendations 5.3.1 For the Vietnamese government Currently, Vietnam has not had a complete NEO banking platform but this will be the trend in the near future The government can provide incentives and create a favorable regulatory environment to attract more fintech companies to set up NEO banks in the country This will increase competition and promote innovation, leading to better services and lower costs for customers  Strengthen consumer protection regulations: As digital banking becomes more prevalent, the government needs to ensure that consumer rights and interests are protected It can so by setting clear guidelines for data privacy, security, and fraud prevention Additionally, the government can establish a dispute resolution mechanism to resolve customer complaints and disputes  Promote financial literacy: The government should promote financial literacy among the population to increase the adoption of digital banking services This could include public education campaigns, financial literacy programs, and incentives for banks that offer financial education to their customers  Ensure data security: The government should ensure that digital banking platforms are secure and protect customer data This could include implementing strict data protection laws and regulations, as well as providing incentives for banks to invest in cybersecurity measures  Encourage partnerships: The government should encourage partnerships between banks and fintech companies to facilitate innovation and expand access to digital banking services This could include offering tax incentives 40 or other benefits to companies that collaborate on new digital banking products and services 5.3.2 For the State Bank of Vietnam For the Vietnam central bank, here are some suggestions: Develop a comprehensive digital banking strategy: The State Bank of Vietnam should develop a comprehensive strategy for digital banking that outlines the vision, objectives, and key initiatives for the sector Enhance cybersecurity measures: The State Bank of Vietnam should enhance cybersecurity measures to ensure that digital banking services are secure and reliable Promote financial inclusion: The State Bank of Vietnam should leverage digital banking to promote financial inclusion and expand access to financial services for underserved populations Strengthen consumer protection measures: The State Bank of Vietnam should strengthen consumer protection measures in the digital banking sector to ensure that consumers are treated fairly and transparently 5.2.3 For VPBank NEO From the data collected and analyzed as in the previous section, there are suggestions that can help VPBank NEO improve customer satisfaction Continuously gather feedback from customers: Conducting regular surveys to understand customers' needs, preferences, and pain points can help VPBank NEO identify areas that require improvement and address them promptly Focus on improving areas with lower satisfaction levels: Although the overall satisfaction levels for all factors are relatively satisfactory, there are still areas of concern Enhance the user interface: The user interface is an essential aspect of any banking application VPBank NEO should focus on continuously improving its interface to make it more user-friendly, attractive, and professional, which can increase customer confidence in the application and the brand 41 Further, reduce response time: Although VPBank NEO's response time is relatively satisfactory, customers always expect faster and more efficient service VPBank NEO should continue to invest in its server system to handle more transactions quickly, enhance its information authentication process, and optimize the speed of solving customer problems Consider offering more value-added services: Customers are hesitant to pay higher fees for better facilities, but VPBank NEO can explore the possibility of offering more value-added services that not necessarily require a higher fee This can help differentiate VPBank NEO from its competitors and enhance customer loyalty In addition, the survey received a lot of negative feedback about VPBank advertising too much, causing discomfort to users VPBank can find a new advertising direction to effectively approach and retrieve useful information for users to both increase the number of customers and increase revenue without affecting the customer experience 5.4 Conclusion In conclusion, the study examined the factors affecting customer satisfaction with VPBank NEO, including user interface, response time, and service fee The results showed that the user interface received the highest rating, with customers satisfied with its attractive design and ease of use Response time also scored well, with customers reporting high levels of satisfaction with transaction execution speed and problem-solving time Moreover, VPBank NEO's service fee was considered reasonable and competitive, with customers showing a preference for a balance between cost and quality Overall, while the study revealed some areas of concern, it demonstrated that VPBank NEO's banking service offering met customer expectations and needs However, to maintain customer satisfaction and improve the overall user experience, VPBank NEO should continue to listen to and respond to customer feedback to address any issues and enhance its services accordingly 42 BIBLIOGRAPHY Albro (1999) Satisfied Customers More Likely To Buy Other Bank Products Study Finds ABA Bank Marketing, Vol.31 (Iss.9), 54 Anastasiadou, A J (2009) Investigating the effects of service quality dimensions and expertise on loyalty European Journal of Marketing, 398-420 Anderson, E a (1993) Service Quality, Relationship Quality and Customer Loyalty (Case Study: Banking Industry in Iran) Open Journal of Social Sciences Anh, B P (2021) Factors affecting the adoption to use digital banking of Vietnam Ha noi: Banking academy Babakus, E a (1992) An Empirical Assessment of the SERVQUAL Scale Journal of Business Research, 253-268 Bolton, R a (1991) A Multistage Model of Customers’ Assessments of Service Quality and Value Journal of Consumer Research, 375-384 Clemes, M D (2008) University Student Satisfaction: An Empirical Analysis Lincoln University New Zealand CSAT Score: The complete guide to Customer Satisfaction index (2020) Retrieved from Ratenow E Napoletano, D F (2021) What Is Digital Banking? 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G R Gilbert and C Veloutsou (2006) "A Cross-Industry Comparison ofCustomer Satisfaction," Journal of Service Marketing, vol 20,, 298-308, H Lee, Y L (2000) "The determinants of perceived service qualityand its relationship with satisfaction," Journal of Service Marketing, vol 14, 217-231 Hazlina, T e (2011) Impacts of Service Quality on Customer Satisfaction: Study of Online Banking and ATM Services in Malaysia International Journal of Trade, Economics and Finance, 2, 10-23 Hoang Anh, C T (2019) Tên sách: The customer satisfaction of electronic banking services of VietNam prosperity joint stock commercial bank ( VPBank),Graduation Thesis Ha Noi: Banking Academy Hoang Trong, C N (2008) Research Data Analysis with SPSS Vol l Retrieved from https://sachvui.com/ebook/phan-tich-du-lieu-nghien-cuu-voi-spss-tap-1-hoangtrong-chu-nguyen-mong-ngoc.857.html Hom, W C (2000) An Overview of Customer Satisfaction Models 43 J Joseph Cronin, J a (1992) Measuring Service Quality: A Reexamination and Extension vol 56, No Journal of Marketing, 54-68 Krishnamurthy, R (2010) INFLUENCE OF SERVICE QUALITY ON BANKING CUSTOMERS’ BEHAVIOURAL INTENTIONS International Journal of Economics and Finance Krishnamurthy, R (2010) INFLUENCE OF SERVICE QUALITY ON BANKING CUSTOMERS’ BEHAVIOURAL INTENTIONS International Journal of Economics and Finance Nunnally, J a (1994) The Assessment of Reliability Psychometric Theory, 248-292 Parasuraman, A Z (1985) ‘A conceptual model of service quality and its implications for future research In Journal of Marketing, American Marketing Association, USA Parasuraman, Z a (1988) Servqual: A Multi–Item Scale for Measuring Consumer Perception of Service Quality Journal of Retailing, Vol Parasuraman, Z a (1991) Refinement and reassessment of Journal of Retailing, Vol.67, 420-450 Peterson, R A (1994) A Meta-Analysis of Cronbach’s Coefficient Alpha Journal of Consumer Research, 21, 381-391 PwC (2020) Global Consumer Insights Survey 2020 Retrieved from PwC: https://www.pwc.com/gx/en/consumer-markets/consumer-insightssurvey/2020/pwc-consumer-insights-survey-2020.pdf Salomi, G G (2005) SERVQUAL versus SERVPERF: a comparison of instruments for assessing internal service Source: Statistics from SPSS (n.d.) Sulieman (2011) Banking Service Quality Provided by Commercial Banks andCustomer Satisfaction American Journal of Scientific Research, no 27, 6883 Vinh, T Q (2022, 03 25) Tháng Thanh niên: Những 'số liệu vàng' niên Việt Nam Retrieved from Vietnamplus: https://www.vietnamplus.vn/thang-thanhnien-nhung-so-lieu-vang-ve-thanh-nien-viet-nam/780133.vnp VPBank (n.d.) Retrieved from https://www.vpbank.com.vn/ca-nhan/vpbank-neo/chitiet VPBank (n.d.) Retrieved from https://www.vpbank.com.vn/ca-nhan/vpbank-neo 44 APPENDICES Appendix 1: Questionnaire of customer satisfaction using VPBank NEO Part I: Background information Age: o 55 Your current occupation is: o Pupil o Employee o Undergraduate o Retired Your monthly income is: o < mil o 15 mil-25 o mil- 15 mil o >25 mil mil Time you have used VPBank NEO service: o Less than months o to 12 months o More than 12 months Number of banking apps you are using: o 1-2 banks o 3- banks o More than bank According to your experience, how you rank among the banking apps you have used VPBank NEO: o Best bank o Fourth bank o Second bank o After the fourth bank o Third bank Part II: Questionnaire section Strongly disagree Disagree Neutral Agree Strongly agree Some of the questions may appear similar, but they address some different issues Please read each question carefully No Statement User interface The user interface of the web and app VPBank NEO is eye-catchy and userfriendly The current utilities of VPBank NEO are diverse Finding necessary information on VPBank's website and applications is easy Service fee 10 Fees for services at VPBank NEO are suitable for the majority of users 11 The banking service fees at VPBank NEO are consistent with service quality 12 The banking service fees of VPBank NEO are not much different from other banks 13 You are willing to pay higher fees for better quality and more convenient service Reliability 14 VPBank NEO provides services according to their commitments 15 VPBank NEO performed the services exactly, on time as they promised 16 You feel secure about safety when using VPBank NEO Response time No Statement 20 You are satisfied with the transaction processing speed of VPBank NEO 21 You are satisfied with the response time when using the service of VPBank NEO 22 You are satisfied with the speed of solving problems of VPBank NEO Responsiveness 17 VPBank NEO meets your demands well 18 You are satisfied with VPBank NEO's response to your requirements 19 VPBank NEO cares about your needs General satisfaction 23 You are willing to introduce VPBANK NEO to your friends/colleagues 24 In the foreseeable future, you will keep on using VPBANK NEO 25 In general, you are satisfied with the service quality of VPBank NEO Additional question 26 You face some problems when using VPBank NEO's services 27 Your suggestions to improve the service quality of VPBank NEO You can share all your problems Appendix Reliability Statistics User interface Reliability Statistics Cronbach's Alpha N of Items 862 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted I1 7.42 2.807 761 788 I2 7.61 2.775 757 791 I3 7.70 2.625 705 844 Response time Reliability Statistics Cronbach's Alpha N of Items 911 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted T1 7.28 2.885 802 896 T2 7.45 2.371 849 849 T3 7.55 2.334 832 866 Service fee Reliability Statistics Cronbach's Alpha N of Items 756 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted F1 10.47 3.617 773 567 F2 10.48 4.166 672 639 F3 10.45 4.517 569 694 F4 10.92 4.878 383 855 Reliability Reliability Statistics Cronbach's Alpha N of Items 872 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted R1 7.19 2.621 696 877 R2 7.36 1.816 868 708 R3 7.40 2.120 731 843 Ressponsiveness Reliability Statistics Cronbach's Alpha N of Items 876 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Res1 7.31 1.751 808 782 Res2 7.34 1.872 792 798 Res3 7.48 2.007 689 888 General satisfaction Reliability Statistics Cronbach's Alpha N of Items 914 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted G1 7.25 2.785 756 935 G2 7.12 2.497 866 845 G3 7.16 2.634 866 846 XÁC NHẬN CỦA ĐƠN VỊ THỰC TẬP