report business research methods the influence of e service quality on customer satisfaction and loyalty in the banking industry in covid 19 pandemic in vietnam

However, in general, most of the current E-Banking services of the above banks meet the basic needs of customers, even reaching their expectations with only 16% of customers expressing d

TON DUC THANG UNIVERSITYFACULTY OF BUSINESS ADMINISTRATION

THE BANKING INDUSTRY INCOVID 19 PANDEMIC IN

VIETNAM

Lecturer: TRAN THI VAN TRANGGroup: 1 – Shift: 2 (Tuesday)Class: 20K70401Course: 24

Ho Chi Minh City, 14 May 2022

LIST OF GROUP MEMBERS

1 Nguyen Kim Long (Leader)

3 ACKNOWLEDGEMEABSTRACTNT

2 Tran My Buu

Chapter 1(1.5 – 1.5.1 – 1.5.2)

Chapter 2(2.2 – 2.2.1 – 2.2.2)

5 Tran Hong Ky

6 (1.2 – 1.2.1 – 1.3 –Chapter 11.3.1 – 1.3.2)

Chapter 3

Chapter 4

(4.2 – 4.2.1 – 4.2.1.1 –4.2.1.2 – 4.2.2 –4.2.2.1 – 4.2.2.2)

Chapter 5

(5.2)

COMMENT FOR LECTURER

development, the direction of the study of the subject, as well as guidance on the appropriate approach, presentation of content, to go in and analysis of the research laid out, based on her valuable expertise and research experience That is why we can conduct our survey and research in the most efficient manner feasible Second, we would like to express our gratitude to Ton Duc Thang University's Department of Business Administration for providing us with the opportunity to research and study the subject.Nonetheless, due to time constraints and a lack of practical expertise, we were bound to be defective and anxious to obtain feedback from lecturers and friends Thank you a lot.

Research Team

Online banking services in Vietnam are currently developing quitestrongly, especially in cities and urban areas Due to theoutstanding features of E Banking services such as time-saving,cost-saving, convenient transaction, etc., commercial banks inVietnam have been interested in developing this type of serviceand have the right policy appropriate administrative reform policyto meet the development trend Aware of this, each bank tries todesign, step by step perfect the E Banking service and deploystrong promotions and communication programs to attractcustomers It helps banks reduce costs and risks, save time forcustomers and banks, in line with the general development trendof the entire commercial banking system, and keep pace with thedevelopment of public science This article focuses on analyzingand understanding the correlation between customer loyalty toebanking services from central banks and private banks acrossVietnam during the Covid-19 pandemic Based on collecting datafrom customer groups from universities, we will analyze and comeup with appropriate strategies so that specific banks in Vietnamcan upgrade their ebanking services to retain old customers aswell as collect more potential customers during this covidpandemic.

TABLE OF CONTENT

CHAPTER 2: LITERATURE REVIEW 6

2.1 Research concepts & definitions 6

2.1.1 E-banking service quality (EBSQ) 6

2.1.2 E-banking satisfaction (EBS) 7

2.1.3 E-banking Loyalty (EBL) 8

2.2 Previous research 9

2.2.1 Summary key paper: 9

2.2.2 Summary support paper: 10

2.3 Proposal models and hypothesis 10

3.6 Data analysis method 23

CHAPTER 4: DATA ANALYSIS 25

4.1 Descriptive Statistics 25

4.4 Results of verifying research hypotheses 37

CHAPTER 5: CONCLUSION, AND RECOMMENDATIONS/ LIMITATIONS 39

5.1 Research summary 40

5.2 Recommendations 42

5.2.1 RE -> ES (Reliability -> E-banking customer Satisfaction) 43

5.2.2 PS -> ES (Privacy and Security -> E-banking customer Satisfaction)435.2.3 WD -> ES (Web design -> E-banking customer Satisfaction) 43

5.2.4 CSS -> ES (Customer service and Security -> E-banking Satisfaction) 44

5.2.5 RE -> EL (Reliability -> E-banking customer Loyalty) 44

Table 2 Parameters of variables in Smart Pls 3 23

Table 3 Demographic characteristics based on 274 samples 25

Table 4 Conformity results of factors 27

Table 5 Conformity results of factors 29

LIST OF FIGUREFigure 1 Conceptual framework 9

Figure 2 Research Model by Authors Synthesized 11

Figure 3 Model analysis results Error! Bookmark not defined.

LIST OF ABBREVIATIONS AND ACRONYMS

CSS Customer service and Support

Smart PLS Exploratory Factor Analysis

According to the Government's statistical report, there are currently 68.17 million people using Internet services in Vietnam as of January 2020; Mobile Banking has a growth rate of 200% andcurrently has about 30 million people using the bank payment system every day However, in addition to money transfer servicesinside and outside the system, consumers do not regularly use E-Banking's additional services, even without knowing the existence of these utilities In which, typical services of the industry such as

savings deposit, international money transfer, credit card payment, insurance purchase or ATM card locking/opening also have an average awareness (only 30-60% of people are aware of this issue) and low usage (about 20% of users).

To explain the above phenomenon, the authors of this article think that many banks have not yet implemented expanded services as well as the digital conversion motivation of E-Banking users as the main reason for the level of awareness and low additional service usage At the present time, customers use E-Banking mainly in theability to be proactive, save transaction time and be flexible in transaction locations (>80% of customers) Therefore, the form of using E-Banking by consumers has only stopped at normal daily transactions (transfer, phone top-up, electricity and water payment) but has not been extended to other services Services that need assurance of confidentiality and need direct advice such as savings or insurance.

1.1.2 Specific problem :

The Covid 19 pandemic that suddenly hit Vietnam at the beginningof 2020 forced us to isolate and limit social activities such as shopping and playing All trading and trading activities are restricted and stagnant, forcing us to gradually shift to buying and selling and mainly using e-banking services With the growth rate of Mobile banking up to 200% and about 30 million people using banking payment services every day in Vietnam Banks in Vietnamneed to know how to retain and find their customers through changing their interface and services to suit the needs of their customers over time

When asked about the barriers preventing them from using Banking, the majority of users said that the weakness of this platform is that it still has limited features (for example, low transaction limits) Moreover, some users still do not trust E-Banking because the system is not stable or there is an error causing the transaction to be interrupted In addition, the desire todirectly listen to advice at the table is also one of the important barriers in the eyes of users during the transition to a digital platform However, in general, most of the current E-Banking services of the above banks meet the basic needs of customers, even reaching their expectations with only 16% of customers expressing dissatisfaction with digital banking applications But theproblem is we’re currently living in a middle of a pandemic, so the desire of being able to directly listen to advice at the table insteadof using e-banking apps is hard to please So that the main reason for us to choose this topic is to analyze and make

E-recommendations for banks to develope their e-banking apps to reach their customers needs and from that forming a behaviour in using e-banking more often for every citizens in Viet Nam.

1.2 Problem statement

1.2.1 Reason for choosing the topic

The purpose of this research paper is to provide recommendations for banks based on real research to maintain customer satisfactionand loyalty during the covid pandemic.

1/ Investigate the factor influence the changes in the economic structure as well as the way people consume and live through the covid pandemic in 2022.

loyalty High quality of website design (WD) is essential If banks are to maintain and ensure their clients' electronic satisfaction (ES), high website design (WD) is essential According to our result, an Easy-to-use interface is the factor that users appreciate and care about the most Moreover, the elements of colors and items are still interesting, but customers do not have certain standards, so banks need to shape the consistent style of the brand to attract interaction from users.

Therefore our suggestion for this element is that banking firms should have a detailed and clear survey of the "easy to use" conditions of users and need an eye-catching design because nowadays the brand's image is a prerequisite for customer satisfaction.

5.2.4 CSS -> ES (Customer service and Security -> E-banking Satisfaction)

In different businesses, customer service means different things, yet it always boils down to the same core elements The banking industry, where technology is advancing our understanding of personal and business finances Customer service excellence requires keeping up with both live and digital choices for conducting transactions ranging from simple to complex According to our research in service and security field banking customers are very careful that their personal information is kept private, their monetary transactions must be personal Absolute security

and the bank's information is secure and this is especially noticeable when on the online platform Therefore to gain the trustof customers, the security factor as well as protecting the interests

of customers is a prerequisite, so banks need to focus on developing this field to the highest level possible through many such as having top-notch privacy policies for customers both online and offline.

5.2.5 RE -> EL (Reliability -> E-banking customer Loyalty)

As mentioned in the RE to ES section, for EL too, RE is one of the main factors to attract and retain customers, so financiers need to improve their trust through security and Policy for customers According to the data we collect, customer loyalty of e-banking services is affected by RE up to 30% Customer Reliability as a reputation might be the most dependable indicator of service quality and can be linked to previous customer experiences Because it is on an online platform, there are many hidden risks, so doing a good job to ensure the safety of customers' information is clearly what e-banking services need to invest in to achieve gain the loyalty of the majority of users.

PS -> EL (Privacy to E-banking customer Loyalty)

Many consumers have avoided online services, including mobile phone services, due to concerns about the privacy of personal information and communications Moreover, because of the growing number of mobile phone users around the world, the researcher decided to look into privacy as a predictor of customer loyalty on e-banking services The PS factor, like the ES factor RE also has an effect on the EL factor, and while it is minor, it has a significant impact Therefore, banks need to have the most reasonable and clear policy terms for dear customers to achieve their highest loyalty

5.2.6 EW -> EL

As mentioned above, in the current digital age for customers, brand image and usage on online platforms are very important, so e-banking websites and applications are not only necessary eye-catching designs but their applicability must also be optimized, in the least time and most effective.

5.2.7 CSS -> EL

Receiving careful care from service providers is an indispensable factor when it comes to customer loyalty According to our survey, e-banking users are very concerned that when they have trouble or malfunction when using an online platform, especially for monetary transactions, they will be supported by the bank In order to be able to correct errors as well as avoid damage from errors With this problem, banks need to have an online team 24/7 to be ready to receive information and promptly timely support errors for them

5.2.8 ES -> EL

Customer satisfaction is the foundation for which any business may fulfill its goals In other words, client satisfaction indicates how well an organization is meeting its objectives Customer Satisfaction is to tell people about their experiences, more so, dissatisfied customers will also tell people about their experiences.To gain loyalty, administrators need to gain their satisfaction with e-banking services, especially during the Covid-19 pandemic To achieve satisfaction, banks need to do well on the independent variables mentioned in this report such as: Reliability, Privacy and Security, Web design, Customer service and Support.

5.3 Limitations and directions for future research

With the goal of better understanding the factors affecting the trend of using e- banking in developing economies like Vietnam during the Covid pandemic, specifically factors related to information security and user interface, the research topic is "The influence of e-service quality on customer satisfaction and loyalty in the banking industry in Covid 19 pandemic in Vietnam." The research report, on the other hand, is useful for research and study, but it is still constrained in two aspects:

Our first limitation is geographically constricted, and despite efforts to survey other universities, the number of respondents remains insufficient, and it is still limited to Ho Chi Minh City As a result, the findings cannot be applied to the entire country So, we advise that data be collected from individuals from various locations of the country or the world for future research, which will provide a more complete outcome In the future, researchers may use alternative ways to conduct in-depth analysis And we only looked at the mediated impact of e-banking customer satisfaction, and it was difficult for us to establish a link between EBSQ dimensions and e-banking satisfaction due to the paucity of literature in this area.

Second, while our study only discovered four factors influencing customer satisfaction and loyalty in the banking industry in the Covid 19 pandemic in Vietnam, we believe there are other factors that we have not had enough time to investigate, so we hope that future research will result in a more comprehensive research model to address issues that we are still on a quest to solve For

example, potential researchers could look at various online serviceclassifications, such as the volume of sales or the products purchased Future research should concentrate on other factors such as technological speed, interface quality, perceived usefulness, compatibility, and their relationship with customers, aswell as the decision to use Internet banking and the importance of building trust in order to adopt online banking through the use of wireless networks.

In conclusion, the author will attempt to resolve and build further studies in order for the study findings to be highly relevant and administratively significant.

The current circumstances have increased the demand for banking, had a significant impact on the use of traditional banking,and focused on the impact during the pandemic, but their preferences related to reliability, web design, privacy and security,customer service and support, which is an interesting departure from previous research The probable reason is the hard times of the ongoing pandemic (COVID-19).

e-Banks in Vietnam can use our research and recommendations to establish e-banking strategies, particularly in times of epidemics and natural calamities, that will help banks maintain existing account holders and attract new ones Customers' perceptions andelements that make them more satisfied and loyal to e-banking services may also be understood by service providers This study also provides insight into consumers' goals and focal requirementsfrom e-banking services in order for them to become loyal and content with online banking platforms throughout the lockout It also aids banks in making strategic decisions for advances in Vietnam's e-banking future, as well as managing COVID-19 and digitalization.