Factors Affecting The Decision On Using Mobile Banking Of University Students An Empirical Study In Ho Chi Minh City.pdf

HO CHI MINH UNIVERSITY OF BANKING

GRADUATION THESIS

FACTORS AFFECTING THE DECISION ON USING MOBILE BANKING OF UNIVERSITY STUDENTS:

AN EMPIRICAL STUDY IN HO CHI MINH CITY

MAJOR: FINANCE – BANKING CODE: 7 34 02 01

PHAN VU DUY KHANG

HO CHI MINH UNIVERSITY OF BANKING

GRADUATION THESIS

FACTORS AFFECTING THE DECISION ON USING MOBILE BANKING OF UNIVERSITY STUDENTS:

AN EMPIRICAL STUDY IN HO CHI MINH CITY

MAJOR: FINANCE – BANKING CODE: 7 34 02 01

Student’s name: PHAN VU DUY KHANG Student’s ID: 050607190193

Class: HQ7-GE04

SUPERVISOR

NGUYEN THI THU TRANG, PHD

ABSTRACT 1 Thesis title

Factors affecting the decision on using Mobile Banking of University students: An empirical study in Ho Chi Minh City

2 Thesis content

The thesis studies the factors influencing the decision to use Mobile Banking among university students in Ho Chi Minh City Through a questionnaire administered to 294 students and utilizing the TAM model as a framework, the author proposed six factors and constructed a scale comprising 27 observational variables to assess their impact

Throughout various stages including data processing, statistical analysis, scale reliability testing, exploratory factor analysis, and linear regression, the research findings indicate that all six expected factors significantly influence the decision to use Mobile Banking The impact of these factors decreases in the following order: perceived usefulness, perceived ease of use, social influence, transaction costs, perceived risks and lastly brand image While most factors have a positive impact, perceived risk is the only factor negatively affecting students' decision to use Mobile Banking Moreover, the decision to use Mobile Banking shows no significant differences across gender, place of birth, year of study, major and income Finally, the author proposes practical implications for bank management to enhance customer attraction and offers suggestions for future research directions

3 Keywords: Mobile Banking, decision to use, factors affecting, university students,

Ho Chi Minh City

TÓM TẮT 1 Tên đề tài

Các nhân tố ảnh hưởng đến quyết định sử dụng Mobile Banking của sinh viên: Nghiên cứu thực nghiệm tại Thành phố Hồ Chí Minh

2 Nội dung

Khóa luận nghiên cứu các nhân tố tác động đến quyết định sử dụng Mobile Banking của sinh viên trên địa bàn Thành phố Hồ Chí Minh Thông qua bảng câu hỏi mà tác giả đã thu thập được dữ liệu từ 294 sinh viên, từ đó tác giả sử dụng mô hình TAM làm nền tảng, đề xuất được 6 nhân tố và xây dựng thang đo gồm 27 biến quan sát để tiến hành nghiên cứu tác động của các nhân tố

Qua nhiều giai đoạn như xử lý dữ liệu, thống kê, kiểm tra độ tin cậy của thang đo, phân tích nhân tố khám phá và hồi quy tuyến tính, kết quả nghiên cứu cho thấy rằng cả 6 yếu tố kỳ vọng đều có ảnh hưởng đến quyết định sử dụng Mobile Banking của sinh viên Các nhân tố được sắp xếp theo mức độ ảnh hưởng từ cao xuống thấp là: nhận thức lợi ích, nhận thức dễ sử dụng, ảnh hưởng xã hội, chi phí giao dịch, nhận thức rủi ro và cuối cùng là hình ảnh ngân hàng Trong đó, nhận thức rủi ro là nhân tố duy nhất có tác động ngược chiều đến quyết định sử dụng Mobile Banking còn 5 nhân tố còn lại đều có tác động tích cực Ngoài ra thì nghiên cứu cũng cho thấy sự đa dạng về các biến định tính như giới tính, địa chỉ thường trú, năm học, ngành đào tạo và nguồn thu nhập không mang đến sự khác biệt về quyết định sử dụng Mobile Banking của sinh viên Cuối cùng, tác giả đề xuất những khuyến nghị cho công tác quản trị ngân hàng nhằm cải thiện, nâng cao dịch vụ Mobile Banking và đồng thời đề xuất hướng phát triển cho những nghiên cứu tiếp theo

3 Từ khóa: Mobile Banking, quyết định sử dụng, nhân tố ảnh hưởng, sinh viên,

Thành phố Hồ Chí Minh

Author

First and foremost, I would like to express my profound gratitude to all the teachers and lecturers at Ho Chi Minh University of Banking for their devoted teaching and guidance throughout four years of study, which have equipped me with the necessary knowledge to undertake this graduation thesis today In particular, I would like to extend my heartfelt thanks to Ph.D Nguyen Thi Thu Trang for her guidance and support throughout the entire process of my thesis, from the initial stage of ideation to the content and presentation

Especially, I would like to express my gratitude to my family, especially my parents, for their unwavering support and being the greatest source of motivation for me up to this point Additionally, I am grateful to my friends who have stood by me through thick and thin, whether in times of difficulty or joy, failure or success

However, due to my limited knowledge, there may still be shortcomings in the execution of this graduation thesis, and I sincerely hope to receive feedback from the professors to complete the thesis to the best of my ability

Lastly, I would like to sincerely thank and wish all the professors good health, happiness and boundless dedication on the path of education

Phan Vu Duy Khang

1.6 Contribution of the study 5

1.7 Structure of the study 5

CONCLUSIONS OF CHAPTER 1 6

CHAPTER 2 LITERATURE REVIEW 7

2.1 Overview of Mobile Banking 7

2.1.1 Definition 7

2.1.2 Benefits of using Mobile Banking 7

2.2 Theoretical literatures 9

2.2.1 Theory of Reasoned Action – TRA 9

2.2.2 Theory of Planned Behavior – TPB 10

2.2.3 Technology Acceptance Model – TAM 11

2.3 Relative empirical studies 11

3.5.1 Size of the sample 26

3.5.2 Data collecting methods 26

3.6 Data processing methods 27

3.6.1 Descriptive statistics evaluation 27

3.6.2 Cronbach's Alpha reliability coefficient analysis 27

3.6.3 Exploratory Factor Analysis 27

3.6.4 Pearson correlation coefficients 28

3.6.5 Regression analysis 29

3.6.6 Testing differences of the sample characteristics 29

CONCLUSIONS OF CHAPTER 3 30

CHAPTER 4 RESEARCH RESULTS AND DISCUSSIONS 31

4.1 Descriptive statistics of the sample 31

4.2 Cronbach's Alpha reliability coefficient analysis 32

4.2.1 Independent variables 33

4.2.2 Dependent variable 35

4.3 Exploratory Factor Analysis 36

4.3.1 Independent variables 37

4.3.2 Dependent variable 46

4.4 Pearson correlation coefficients 48

4.5 Regression analysis 49

4.6 Testing differences of the sample characteristics 52

4.6.1 Independent Sample T-Test 52

5.3 Limitations of the study 67

5.4 Future research directions 68

CONCLUSIONS OF CHAPTER 5 69

REFERENCES xi

APPENDIX xv

LIST OF ABBREVIATIONS

No Abbreviation Meaning

LIST OF TABLES

Table 2.1 Summary of previous studies 14

Table 3.1 Summary of hypotheses 20

Table 3.2 Summary of scale 23

Table 4.1 Demographic statistics of the survey 31

Table 4.2 Reliability Statistics for Independent variables 33

Table 4.3 Reliability Statistics for Dependent variables 35

Table 4.4 Results of KMO and Bartlett test (I) 37

Table 4.5 Total Variance Explained (I) 37

Table 4.6 Results of Rotated Component Matrix (I) 39

Table 4.7 Results of KMO and Bartlett test (II) 40

Table 4.8 Total Variance Explained (II) 41

Table 4.9 Results of Rotated Component Matrix (II) 42

Table 4.10 Results of KMO and Bartlett test (III) 43

Table 4.11 Total Variance Explained (III) 43

Table 4.12 Results of Rotated Component Matrix (III) 45

Table 4.13 Results of KMO and Bartlett test for Dependent variable 46

Table 4.14 Total Variance Explained for Dependent variable 46

Table 4.15 Component Matrixa 47

Table 4.16 Correlations 48

Table 4.17 Model Summary 50

Table 4.18 ANOVA 50

Table 4.19 Coefficients 51

Table 4.20 Results of testing the research hypothesis 52

Table 4.21 Independent Samples Test (Gender) 53

Table 4.22 Independent Samples Test (Place of birth) 53

Table 4.23 Independent Samples Test (Main income) 54

Table 4.24 Test of Homogeneity of Variances (Year of study) 56

Table 4.25 ANOVA (Year of study) 56

Table 4.26 Test of Homogeneity of Variances (Major) 57

Table 4.27 ANOVA (Major) 57

LIST OF FIGURES

Figure 2.1 Theory of Reasoned Action (TRA) 9

Figure 2.2 Theory of Planned Behaviour (TPB) 10

Figure 2.3 Technology Acceptance Model (TAM) 11

Figure 3.1 Research model 16

Figure 3.2 Research process 21

CHAPTER 1 INTRODUCTION 1.1 Rationale of the study

The worldwide impact of the Fourth Industrial Revolution on the everyday lives of people has increasingly become more evident Nowadays, individuals can carry out most of their necessary activities solely using a smartphone or a computer connected to the Internet In order to meet customer demands and avoid being left behind in this new technological era, commercial banks in Vietnam have been striving to introduce advanced banking services such as Internet Banking, Mobile Banking and Smart Banking In fact, developing and enhancing the quality of online service products can be considered as essential for banks if they want to thrive in the future and maintain their customer base

According to Alkrisheh (2022), the development of information technology is critically important in the evolution of e-commerce transactions in general and banking transactions specifically on online platforms Technology has become habitual, gradually altering customer behavior People seek secure and convenient financial services, enabling transactions anytime, anywhere, right from their handheld electronic devices, rather than spending time and effort commuting Alongside these advancements, Mobile Banking stands out as one of the innovations by banks to adapt to this change, allowing banks to gain a competitive edge by efficiently utilizing technological innovations to enhance operational efficiency and retain customer usage rates

In fact, the COVID-19 pandemic during the 2020 – 2021 years had posed significant challenges to the economy and people's lives The restriction of cash usage to avoid physical contact during transactions caused a temporary disruption in people's daily habits During that time, online payments in general and specifically Mobile Banking emerged as the "key" to avoid payment difficulties As a result, the number of users of these services surged significantly

Moreover, according to the General Statistics Office of Vietnam, as of April 2023, Vietnam's population is estimated to reach 100 million people The Ministry of Information and Communications also reported that by May 2023, Vietnam had approximately 123.26 million mobile subscribers Of these, smartphone users were estimated at 101 million subscribers, an 8.72% increase year-over-year, equivalent to a rise of 8.1 million subscribers Basic phone users (also known as 2G) were 22.26 million, a decrease of 4.14 million Hence, this is a vast and promising market for Mobile Banking development, especially considering the Vietnamese government's push towards cashless payments

Therefore, university students - a demographic known for being young, dynamic, and tech-savvy - are becoming one of the primary targets for banks and financial services to develop Mobile Banking Espicially in Ho Chi Minh City (HCMC), acting as a leading economic hub in the Southern key economic region, where a diverse young population, especially students from all over the country gather - with an extensive network of banks covering the city

Building upon this, the author conducted a study titled "Factors affecting the decision on using Mobile Banking of University students: An empirical study in Ho Chi Minh City" to identify and assess the impact of various factors on the intention to use Mobile Banking among this potential customer segment The insights derived from this research can serve as a foundation for banks to formulate marketing strategies and develop services tailored to the increasing needs of users This initiative could bolster satisfaction among existing customers and attract a considerable influx of new customers, contributing to the enhancement of their position and accelerating technological transformation in the banking sector

1.2 Research objectives 1.2.1 Overall objective

The overall objective of the study is to identify the factors influencing the adoption of Mobile Banking among university students in HCMC Based on the

results, the author also proposed several policy implications aimed at supporting banks in developing Mobile Banking product, with a particular focus on the group of university students in HCMC area

1.2.2 Specific objectives

Based on the overall objective outlined above, the study aims to achieve specific objectives:

• Firstly: Identifying the factors influencing the decision on using Mobile

Banking among university students in HCMC

• Secondly: Assessing the level of impact each factor has on the decision on

using Mobile Banking among university students in HCMC

• Lastly: Providing policy implications to contribute to the development of

Mobile Banking services in HCMC

1.3 Research questions

To address the research questions of the topic, specific research objectives are proposed, each corresponding to a research question The research questions for the topic could be formulated as follows:

• Firstly: Which factors influence the decision-making process regarding Mobile Banking usage among university students in HCMC?

• Secondly: To what extent do these factors impact the decision on using

Mobile Banking among university students in HCMC?

• Lastly: Which implications should be proposed for banks in order to attract

customers to use Mobile Banking services?

1.4 Research subject and Research scope 1.4.1 Research subject

The research subject of this study focuses on the factors influencing the decision on using Mobile Banking among university students in HCMC

1.4.2 Research scope

• Scope of space: The author conducted in HCMC

• Scope of time: The author conducted on February 2023 – March 2023

• Analyzing content

• Applying a professional approach

• Conducting in-depth interviews with open-ended questions

1.5.2 Quantitative method

The survey method using Google Forms platform was conducted on university students in HCMC, with a sample size of 300 Utilizing primary data collected from the survey, the study employed SPSS 20.0 software to analyze the impact of expected factors on the decision to use Mobile Banking This involved testing the reliability of the measurement scale through Cronbach’s Alpha coefficient, Exploratory Factor Analysis (EFA), Pearson correlation analysis, and regression analysis to identify factors influencing the decision to use Mobile Banking and validate the hypotheses

set in the research Additionally, the author utilized Independent Sample T-Test and One-way ANOVA to examine differences in Mobile Banking usage decisions among students with different characteristics Based on these analyses, the author synthesized and drew conclusions about the factors affecting students' decisions to use Mobile Banking in HCMC

1.6 Contribution of the study

In theoretical terms, this study combines theoretical frameworks relating to Mobile Banking services generally, by reviewing both domestic and international studies, it identifies research gaps then proposes a model, and formulates research hypotheses regarding influencing factors Later, it examines these on university students in HCMC The research findings could provide a foundation for future studies related to determinants of Mobile Banking usage in other areas or nationwide In practical terms, the results of the study support banks in the electronic payment industry to grasp customer behavior, especially in the changing scenario where online payments are steadily becoming the norm after the Covid-19 outbreak By surveying students in HCMC, a vibrant and potentially tech-savvy customer group, service providers can plan marketing strategies and technological improvements that cater to customer requirements This strategy is aimed at broadening their market presence and solidifying their brand standing

1.7 Structure of the study

The structure of the research includes 5 chapter as follows: CHAPTER 1: INTRODUCTION

CHAPTER 2: LITERATURE REVIEW CHAPTER 3: RESEARCH METHOD

CHAPTER 4: RESEARCH RESULTS AND DISCUSSIONS CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONS

CONCLUSIONS OF CHAPTER 1

In the first chapter of the study, the author has provided an overview of the topic, including the study’s rationale, research objectives, research questions, research scope, research subjects and the selection of an appropriate research methodology Finally, the author outlined the structure of the study, which including 5 chapters In the next chapter, the author will present an overview of the theoretical foundations and previous research related to the topic, both domestically and internationally, regarding the factors influencing the decision to use Mobile Banking of university students in HCMC

CHAPTER 2 LITERATURE REVIEW 2.1 Overview of Mobile Banking

2.1.1 Definition

In this modern days, consumers can install various applications on their smartphones to meet different needs According to Hanafizadeh et al (2014), the banking sector has introduced numerous electronic banking channels to supply diverse requirements from customers and a recent addition to these channels is Mobile Banking - which can offer a wide range of financial services to consumers through communication technologies

Wessels and Drennan (2010) argue that Mobile Banking represents a new dimension of electronic banking, distinct from traditional telephone banking services that offer limited functionalities, it serves as a versatile platform for automated banking and various financial services

Ngo Duc Chien (2022) defined “Mobile banking is a service offered by banks or other financial institutions that enables their customers to conduct financial transactions remotely using mobile devices such as smartphones and tablets Unlike internet banking, it involves the use of software, typically referred to as an app, provided by financial institutions for this purpose Mobile banking is usually available 24/7.”

In summary, in this study, Mobile Banking can be understood as a banking service performed on mobile devices (smartphones or tablets) with an internet connection, enabling customers to conduct a wide range of transactions, fulfilling many customers’ needs without the need to visit the bank in person, offering convenience and accessibility anytime, anywhere

2.1.2 Benefits of using Mobile Banking

According to Tran Huu Ai and Cao Hung Tan (2020), Mobile Banking has significantly changed the operations of banks, contributing to cost reduction and

increased efficiency for customers The essence of Mobile Banking lies in conducting transactions through portable devices Mobile banking enables users to perform diverse financial transactions anywhere and anytime, allowing 24/7 financial services, therefore customers can enjoy a wide range of services, including checking balances, transferring funds, paying bills, making purchases through e-wallets, and engaging in online shopping (Tran Huu Ai and Cao Hung Tan, 2020)

Therefore, using Mobile Banking helps customers save time and transportation costs, especially when there is a considerable geographical distance between the bank and the customer Compared to the traditional approach of traveling to the bank branch, waiting in line for transaction sessions or searching for the nearest ATM for basic financial needs, customers can now fulfill these requirements anytime they want with just a few taps on their portable devices

On the other hand, for banks, Mobile Banking significantly reduces overhead costs and staff expenses - conducting transactions online shortens processing times, standardizes procedures, and enhances efficiency in document retrieval and processing Consequently, it boosts operational productivity and the bank's revenue (Ngo Duc Chien, 2022)

Furthermore, the data storage feature of Mobile Banking ensures that customers can securely access their transaction history and account information conveniently This not only deducts paperwork needs but also improves transparency and accountability in financial transactions Also, by allowing customers to track their savings and loan accounts in real-time, Mobile Banking allows them to make informed financial decisions and manage their finances more effectively

At the moment, most banks have already deployed and developed Mobile Banking services For example, Vietcombank offers the VCB Digibank, Standard Chartered with SC Mobile, VietinBank ưith VietinBank iPay, Sacombank provides Sacombank Pay,…

2.2 Theoretical literatures

2.2.1 Theory of Reasoned Action – TRA

The Theory of Reasoned Action (TRA), developed by Fishbein and Ajzen in 1975, suggests that behavioral intentions lead to consumer behavior, and intentions are determined by an individual's attitude along with subjective norms regarding the performance of those behaviors

Figure 2.1 Theory of Reasoned Action (TRA)

Source: Fishbein & Ajzen (1975) In the TRA model, the attitude factor is measured by customers' perceptions of the attributes of the service This factor is specifically reflected in the research model on the factors influencing the decision to use Mobile Banking, where customers often consider the benefits they receive to make their final decision As for the "subjective norms" factor, it is measured through individuals who have relationships with customers such as family members, friends, acquaintances, colleagues, etc., and the impact of these relationships on customers' decisions The closer the relationship, the higher the level of trust and decision-making regarding usage

2.2.2 Theory of Planned Behavior – TPB

The Theory of Planned Behavior (TPB), developed by Ajzen in 1991, suggests that actual behavior is influenced by the intention to perform the behavior, and this intention is affected by three specific factors: attitude, subjective norms, and perceived behavioral control To overcome the limitations of the TRA model, the "perceived behavioral control" factor is added, reflecting customers' perceptions of the difficulty or ease of performing the behavior and whether the behavior is controlled or constrained

Figure 2.2 Theory of Planned Behaviour (TPB)

Source: Ajzen (1991 Compared to the TRA model, the TPB model is considered more optimal in predicting and explaining the behavior of a customer in the same situation, timeframe, and research content

2.2.3 Technology Acceptance Model – TAM

Figure 2.3 Technology Acceptance Model (TAM)

Source: Davis (1989) Another theory built on the foundation of the TRA is the Technology Acceptance Model (TAM) by Davis (1989) This is one of the most influential theories, serving as the focus of studies examining beliefs, intentions to use, technology acceptance, and having high practical value The TAM predicts technology usage behavior through two factors: Perceived ease of use and Perceived usefulness

In TAM, Davis (1989) defines Perceived usefulness as "the degree to which a user believes that using the technology will enhance their job performance" Additionally, Perceived ease of use refers to the ease of using technology with existing skills without requiring specialized knowledge Figure 2.3 shows that both factors impact individuals' attitudes towards technology adoption, thereby indirectly influencing behavioral intentions Particularly, perceived usefulness can directly and indirectly influence the intention to use technology Therefore, the more positive the attitude towards technology usage, the higher the likelihood of actual usage by users

2.3 Relative empirical studies 2.3.1 Foreign studies

Mamun et al (2023) examined the factors affecting Mobile Banking adoption in Bangladesh through the evaluation of 630 people from January-June/2021 Data

were processed using Kaiser-Meyer-Olkin (KMO) and Bartlett's tests, reliability tests and EFA The study confirms that convenience, ease of use, cost and comparative advantage positively affect the decision to use Mobile Banking in Bangladesh, while risk is a factor that has an opposite impact

Kwateng et al (2020) examined the factors that influence customers' acceptance and subsequent use of Mobile Banking services in Ghana using the Unified Theory of Acceptance and Use of Technology (UTAUT2) model The study sampled 300 Mobile Banking service users in Ghana, and the results showed that habits, values and beliefs are the main factors influencing the adoption of Mobile Banking in Ghana

In a study by Makanyeza (2017), an examination was carried out regarding the factors influencing the adoption of Mobile Banking services in Zimbabwe The survey involved 232 customers across five banks in Chinhoyi city The research findings revealed that perceived usefulness, effectiveness, social influence, relative advantage, and compatibility demonstrated a positive influence, whereas perceived risk exhibited a negative impact on customers' inclination to use Mobile Banking services

In a study by Sitorus et al (2019), researchers delved into the adoption behavior of mobile banking in Indonesia They utilized partial least squares structural equation modeling to test a proposed model, drawing data from 319 respondents The results supported all hypotheses, indicating that individuals' intention to persist in using mobile banking is significantly influenced by factors including satisfaction, compatibility, perceived usefulness, perceived learnability, and social influence

2.3.2 Domestic studies

Vo Thi Phuong Lan and Nguyen Thanh Giang (2021) conducted a study examining the factors influencing the adoption of Mobile Banking among users in Vietnam By employing the TAM model and analyzing data collected from 420 participants in 2020, their research highlights the influence of brand and social factors

on customers' adoption of Mobile Banking Notably, a stronger brand and higher social influence of a bank positively correlate with increased utilization of services by users Furthermore, the study indicates that transactional risk exhibits a negative association with the adoption of Mobile Banking

Ngo Duc Chien (2022) conducted a study on the factors influencing the decision to use Mobile Banking services using data collected from 291 customer responses The author employed statistical methods, assessed Cronbach's Alpha reliability, conducted EFA, correlation analysis, and linear regression modeling using SPSS software The results indicated that factors bank image, perceived cost, perceived usefulness, perceived ease of use, and social influence all positively impact customers' decision to use Mobile Banking services, while risk perception impacted negatively

Le Hoang Ba Huyen and Le Thi Huong Quynh (2018) conducted a study on the factors influencing the decision to use mobile banking, using 300 survey questionnaires Utilizing and inheriting the theoretical foundations of TAM and UTAUT, the results showed that Perceived Cost had a significant inverse impact with the largest effect coefficient on the intention to use mobile banking Conversely, among the positively influencing factors, Social Influence had the strongest impact, followed by Perceived Ease of Use, Compatibility and then Perceived Trust

Ha Nam Khanh Giao (2022) conducted a study on the impact of security on customers' intention to use Mobile Banking in HCMC An online survey collected data from 200 respondents The analysis revealed that perceived usefulness of mobile banking significantly influences users' intention to continue usage, regardless of security concerns This suggests that as long as the app is user-friendly, users will use it without much concern for security

Table 2.1 Summary of previous studies Factors Related studies

Perceived usefulness

Riquelme and Rios (2010), Jeong and Yoon (2013), Sakala and Phiri (2019),

Ngo Duc Chien (2022), Mamun et al (2023), Perceived

ease of use

Ngo Duc Chien (2022), Sitorus et al (2019), Riquelme and Rios (2010), Ha Nam Khanh Giao (2022) Perceived

risks

Luo, Li, Zhang, and Shim (2010), Alalwan et al (2016), Thusi and Maduku (2020), Vo Thi Phuong Lan and Nguyen Thanh Giang (2021), and Mamun et al (2023) Social

image Vo Thi Phuong Lan and Nguyen Thanh Giang (2021) Ngo Duc Chien (2022),

Source: Combined by the author

2.3.3 Research gap and research direction

In general, previous research works have provided an overview of the theoretical foundations of Mobile Banking, behavior theories, and mostly applied the TAM model to identify the factors influencing customers' decisions to use Mobile Banking Each study adjusted the expected variables appropriately to the surveyed population Specifically, most foreign authors focused on factors related to ease of use, perceived usefulness, social influence, with some studies mentioning compatibility, user attitude, and trust In addition to these factors, transaction cost, perceived risk and bank image are of interest to domestic authors

However, the authors noticed that most studies chose a relatively broad target population, comprising adults of various ages and income levels Therefore, inheriting analysis methods from previous studies, the authors continued to apply the TAM model to identify the factors influencing the use of Mobile Banking among students in HCMC Students represent a large segment of young customers with sufficient knowledge and exposure to technology Narrowing the scope of the study allows the authors to gain a deeper understanding of the decision of customers who are still university students The study is expected to help banks develop services that match the adoption of customers, especially young customers, who have the potential for long-term service usage

CONCLUSIONS OF CHAPTER 2

Chapter 2 presents a theoretical framework based on topics related to the subject, ranging from the definition and characteristics of Mobile Banking to prominent behavior decision theories, notably the TAM model Additionally, the author systematically reviews experimental evidence on Mobile Banking usage decisions in recent years, expanding from domestic to regional and global contexts The content presented in this chapter will form the basis for the author to propose a model and establish research hypotheses in the following chapter

CHAPTER 3 RESEARCH METHOD 3.1 Research model

Based on theoretical foundations from theories TRA, TPB, and notably TAM, the author decides to utilize three factors: perceived usefulness, perceived ease of use, and social influence to examine their impact on the decision to use Mobile Banking among students in HCMC Additionally, drawing from the findings of literature reviews of experimental studies, the author takes in three additional factors - transaction costs, brand image, and perceived risk - into the research model to explore new dimensions of the psychological and behavioral intentions of present-day students Therefore, the research model is proposed as in Figure 3.1

Figure 3.1 Research model

Source: Proposed by the author

3.2 Research hypothesis 3.2.1 Perceived usefulness

Perceived usefulness is understood as the extent to which an individual perceives that using a specific system will enhance their job performance (Davis, 1989) Mobile Banking is perceived to have advantages over traditional services due to its flexibility, unrestricted access to time and space Users, especially students, often have a tendency to follow trends, so they are interested in experiencing new technologies and integrating them into their daily lives when they perceive them as useful Not only foreign studies by Riquelme and Rios (2010), Mamun et al (2023), Jeong and Yoon (2013), Sakala and Phiri (2019), but also recent domestic studies by Ngo Duc Chien (2022) and Ha Nam Khanh Giao (2022) have all indicated that perceived usefulness has a positive impact on the decision to use Mobile Banking Building on these research findings, the author expects perceived usefulness and the decision to use Mobile Banking to have a positive relationship and proposes a hypothesis accordingly

H1: Perceived usefulness positively influences the decision to use Mobile Banking among students in HCMC

3.2.2 Perceived ease of use

Perceived ease of use refers to the extent to which an individual believes that using a specific system requires minimal effort (Davis, 1989) It encompasses simple operations, understandable interfaces, and clear, specific features in Mobile Banking applications The level of ease of use varies depending on each individual's proficiency Alongside perceived usefulness, ease of use is considered a crucial factor in technology adoption, influencing long-term technology usage Ease of use has consistently shown a positive correlation with Mobile Banking adoption across various studies on the subject, such as those conducted by Riquelme and Rios (2010), Sitorus et al (2019), and Ngo Duc Chien (2022) Therefore, the author proposes the following hypothesis as the next step

H2: Perceived ease of use positively influences the decision to use Mobile Banking among students in HCMC

3.2.3 Perceived risks

Perceived risk is understood as the perception of uncertainty regarding the safety of using a product and its potential to cause harm to customers In other words, risk perception is the negative attitude of customers towards a product Concerns when using Mobile Banking may arise from transaction errors, login failures, the risk of account information leakage, or the risk of financial loss Risk perception is an important factor influencing users' intention to use a product because, according to general psychology, users tend to avoid and minimize losses Studies by Luo, Li, Zhang, and Shim (2010), Alalwan et al (2016), Thusi and Maduku (2020), Vo Thi Phuong Lan and Nguyen Thanh Giang (2021), Ngo Đuc Chien (2022), and Mamun et al (2023) have shown that risk perception negatively impacts the decision to use Mobile Banking Therefore, the author proposes the following hypothesis for further research

H3: Perceived risk negatively influences the decision to use Mobile Banking among students in HCMC

3.2.4 Social influence

Social influence refers to the extent of influence of external factors on an individual's behavioral intention In the study, these external factors stem from the advice and opinions of people around, including family, friends, and colleagues The greater the trust of users in the entity providing advice, the stronger the social influence This factor has been shown to have a positive relationship with the decision to use Mobile Banking through experimental studies by Makanyeza (2017), Ngo Duc Chien (2022), Le Hoang Ba Huyen and Le Thi Huong Quynh (2018), Vo Thi Phuong Lan and Nguyen Thanh Giang (2021), and Sitorus et al (2019) Therefore, the author continues to expect that social influence positively impacts the decision to use Mobile Banking and proposes a hypothesis accordingly

H4: Social influence positively influences the decision to use Mobile Banking among students in HCMC

3.2.5 Transaction costs

Transaction costs refer to the amount of money users need to pay to use a product or service Since Mobile Banking operates on Internet-based devices, when using Mobile Banking, customers need to pay for expenses such as smartphones or tablets, Internet access fees, service registration fees, etc When faced with the decision to use any product or service, individuals weigh the benefits received against the costs incurred, same situation applied to Mobile Banking Therefore, each customer's perception of costs varies According to Awad and Dessouki (2017), Ngo Duc Chien (2022), Jeong and Yoon (2013), and Mamun et al (2023), there exists a positive relationship between costs and the decision to use Mobile Banking Based on this, the author presents the fifth hypothesis of the study

H5: Reasonable transaction costs positively influence the decision to use Mobile Banking among students in HCMC

3.2.6 Brand image

Brand image refers to the perceived value of a bank in terms of credibility and quality by customers Brand image can stem from a bank's market position, service quality, customer care policies, or the effectiveness of its marketing strategies A bank with a strong brand image is more accessible, instills trust in customers, and thus provides a basis for encouraging customers to use its services Studies by Ngo Duc Chien (2022) and Vo Thi Phuong Lan and Nguyen Thanh Giang (2021) have demonstrated that a bank with a strong brand image has a positive impact on customers' decisions to use Mobile Banking services Therefore, the author anticipates a positive relationship between brand image and the decision to use Mobile Banking and proposes the hypothesis accordingly

H6: Brand image positively influences the decision to use Mobile Banking among students in HCMC

Table 3.1 Summary of hypotheses

+

influence the decision to use Mobile Banking

Figure 3.2 Research process

Source: Proposed by the author Step 1: The author conducted a search and synthesis of theories on Mobile Banking and behavioral intentions to enhance the theoretical foundation for the study Additionally, the author consulted literature from scientific journals and selected

empirical studies on factors influencing the decision to use Mobile Banking domestically and worldwide

Step 2: Based on the similarities among the reviewed empirical studies and the market context, the author identified factors expected to affect the decision to use Mobile Banking among students in HCMC to propose a formal research model and appropriate hypotheses

Step 3: The author built and adjusted the survey questionnaires based on the research model and theoretical framework, in final comprises 32 survey questions

Step 4: The author using Google Forms and distributed the survey on social media platforms and student groups in HCMC

Step 5: After collecting and filtering data from the survey, the author utilized SPSS 20.0 to examine the impact of expected factors on the decision to use Mobile Banking In addition to descriptive statistics, analysis methods included testing the reliability of the measurement scale using Cronbach's Alpha coefficient, EFA, Pearson correlation, regression analysis, and testing differences

Step 6: After running the regression model, the author presented the data analysis results based on SPSS findings using each method, drawing conclusions about the research outcomes

Step 7: Based on the research findings, the author provided recommendations to help banks develop Mobile Banking services, contributing to increasing their alignment with customer usage needs

3.4 Scale construction

The study utilized a Likert scale to investigate students' attitudes towards Mobile Banking, with responses displayed on a 5-point scale: (1) Strongly Disagree, (2) Disagree, (3) Neutral, (4) Agree and (5) Strongly Agree Through the research process, the author selected appropriate variables related to the topic from existing

experimental studies and constructed a scale consisting of 27 explanatory variables for one dependent variable and six independent variables as presented in Table 3.2

Table 3.2 Summary of scale

code Source

1 Perceived usefulness PU

Riquelme and Rios (2010), Mamun et al (2023), Jeong and

Yoon (2013), Sakala and Phiri

(2019)

2 Perceived ease of use PEU

Ngo Duc Chien (2022), Sitorus et

al (2019), Riquelme and Rios (2010), Ha Nam Khanh Giao

3 Perceived risks PR

Luo, Li, Zhang, and Shim (2010),

Alalwan et al (2016), Thusi and

Maduku (2020), Vo Thi Phuong Lan and Nguyen

Thanh Giang (2021), and Mamun et al

(2023)

9

I worry that my personal information may be leaked when using Mobile Banking

PR1

10

I fear that if I lose my phone with

Mobile Banking, I might lose my money as well

PR2

11

I am concerned about losing money in case of errors during transactions through Mobile Banking

PR3

12

When using Mobile Banking, I fear the possibility of my account being stolen by hackers/thieves

PR4

4 Social influence SI

Makanyeza (2017), Ngo Duc Chien (2022), and

Sitorus et al (2019) 13

SI2

5 Transaction costs TC

16

Using Mobile Banking helps me save more costs compared to transactions at the counter

TC1

Awad and Dessouki (2017),

Ngo Duc Chien (2022), and Jeong

and Yoon (2013)

17

I am satisfied with the fees associated with Mobile Banking because I receive corresponding benefits

Nguyen Thanh Giang (2021)

21 I am satisfied with the quality of the

7 Student’s decision SD

Ngo Duc Chien (2022), Xiao et al (2017), Lambert et

25 I will continue to use Mobile Banking

Source: Proposed by the author

3.5 Sampling methods 3.5.1 Size of the sample

The study utilized the EFA method, hence the sample size was determined based on the recommendation by Hair et al (2010), which suggests that the sample size should be at least 5 times the number of observed variables In this study, the author constructed a scale comprising 27 observed variables, thus the minimum sample size required is 27 * 5 = 135 Therefore, to ensure objectivity and reliability of the data, the author decided to select a sample size of 300 surveys for the study

3.5.2 Data collecting methods

The survey was conducted online via the Google Forms platform, targeting individuals currently studying at universities in HCMC area who use Mobile Banking services After data collection, the survey results will be tabulated and screened to eliminate invalid responses (incomplete surveys) Finally, the valid results will be used to facilitate the analysis process

3.6 Data processing methods

3.6.1 Descriptive statistics evaluation

The author employed descriptive statistical methods to categorize and then evaluate the data The filtered data will be presented in frequency tables based on demographic characteristics Compared to raw data, descriptive statistics provide a more visual perspective on the collected data, enabling the author to make clear observations about the sample size of the study

3.6.2 Cronbach's Alpha reliability coefficient analysis

In order to assess the reliability of the observed variables, the author utilized Cronbach’s Alpha coefficient to evaluate the quality of the constructed scale This analysis demonstrates the relationship between the observed variables within the same factor, thereby helping the author eliminate inappropriate variables Theoretically, a higher Cronbach’s Alpha coefficient indicates greater consistency among the variables in the scale However, the Cronbach’s Alpha coefficient only ranges from 0 to 1 The scale is considered meaningful when the coefficient is 0.6 or higher, specifically, a value ranging from 0.7 to nearly 0.8 reflects good scale usage, while a value from 0.8 to nearly 1 indicates excellent scale measurement

Conversely, when the coefficient is less than 0.6, the scale does not meet the requirements and cannot be used for further analysis Furthermore, the correlation between each observed variable and the other variables is also expressed through the corrected item-total correlation coefficient - a good scale is one in which the observed variables have coefficients of 0.3 or higher In summary, conducting a reliability test of the scale using Cronbach’s Alpha coefficient before performing EFA is essential

3.6.3 Exploratory Factor Analysis

EFA is applied to enhance the efficiency of research by condensing a set of multiple observed variables into a set of more meaningful factors Unlike assessing the reliability of the scale using Cronbach’s Alpha coefficient, EFA not only

evaluates the relationship between variables within the same factor but also considers the relationships between variables across all different factors According to Hair et al (2010), when applying EFA, certain conditions need to be met:

+ The KMO measure should range between 0.5 and 1 This measure is used to assess the suitability of the analysis method for the data of the study

+ The Bartlett's Test should be statistically significant (Sig value < 0.05) In this case, the null hypothesis that variables in the population are uncorrelated is rejected, indicating that the data have interrelationships

+ Factor loading should be 0.5 or higher, or at least 0.3 Higher factor loading indicates a stronger correlation between observed variables and factors

+ The total variance extracted reflects the degree of variation of the observed variables compared to the overall data, and it should be at least 50%

+ The Eigenvalue should be greater than 1, reflecting the amount of variance explained by each factor

3.6.4 Pearson correlation coefficients

To conduct regression analysis, there needs to be a relationship between the independent and dependent variables Therefore, the author performed a correlation analysis of variables using the Pearson correlation coefficient (symbolized as "r") This analysis allows the author to examine the linear correlation between the dependent variable and the independent variables The value of "r" ranges from -1 to 1 and is only significant when the Sig value is < 0.05 When the Pearson coefficient value is 0 (r = 0), it means there is no linear relationship between the two variables In cases where r < 0, there is a negative correlation between the two variables, and when r > 0, there is a positive correlation between them Additionally, when the independent variables are strongly correlated with each other, Pearson correlation analysis helps the author identify multicollinearity early on