Improving the quality of e banking services at agribank

LIST OF ABBREVIATIONS AGRI/AGRIBANK Vietnam Bank for Agriculture and Rural Development AGRI-BM Branch Vietnam Bank for Agriculture and Rural Development Binh Minh Branch ATM Automated Te

IMPROVING THE QUALITY OF E-BANKING SERVICES

AT AGRIBANK - BINH MINH BRANCH

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

CERTIFICATE OF ORIGINALITY

I declare that this dissertation entitled “Improving the quality of E-Banking services at

Agribank - Binh Minh Branch” is the result of my original research work Except

where states otherwise by reference or acknowledgment, the work presented isentirely

my own For the present thesis, which I’m submitting to the Banking Academy of

Vietnam, has not been submitted to this or any other universities before

Ha Noi, May 22, 2022

Tran Thi Ngoc Anh

ACKNOWLEDGEMENTS

Becoming a student at the Banking Academy of Vietnam's Faculty of Foreign Languages has been an incredible journey filled with wonderful experiences Without the aid and support of my loved people, I would not have been able to accomplish that voyage, as well as my graduation thesis

First of all, I would like to express my heartfelt gratitude to my supervisor, Mr Ngo Tung Anh I am so greatful for his valuable guidance and constructive suggestions when I’m working on my research He provided me with knowledge that I needed to determine the proper approach and methods, and helped me in effectively completing

my study

Secondly, I am very thankful for all of my lecturers at Banking Academy in general and Foreign Languages Falcuty in particular, who have given me useful knowledge from the lessons I took during my four-year course Their lectures have provided me with excellent opportunities to extend my horizons

In addition, I would like to thank my coworkers from Agribank-Binh Minh branch for their helps They were always supportive and eager to provide the information I need for my study

Last but not least, I'd want to express my gratitude to my parents, who have always been the inspirations behind all I've accomplished in my life Their love and support are invaluable to me

Although this study may have some flaws, I hope that the lecturers and readers would sympathize and provide valuable feedback

TABLE OF CONTENTS

CERTIFICATE OF ORIGINALITY i

ACKNOWLEDGEMENTS ii

TABLE OF CONTENTS iii

LIST OF ABBREVIATIONS v

LIST OF TABLES vii

LIST OF FIGURES viii

LIST OF APPENDICES ix

ABSTRACT x

CHAPTER I INTRODUCTION 1

1.1 Introduction 1

1.2 Background of the Study 2

1.3 Objectives of the Study 3

1.4 Significance of the Study 4

1.5 Scope and limitations of the Study 5

1.6 Structure of the Study 6

CHAPTER 2: LITERATURE REVIEW 7

2.1 Literature Review 7

2.2 Theoretical and Conceptual Framework 10

2.2.1 Introduction of e-banking services 10

2.2.2 The development of e-banking services 16

2.2.3 Role of Electronic banking 18

2.2.4 Factors affecting quality of e-banking services 22

2.3 Sub-Conclusion 25

CHAPTER III: RESEARCH METHODOLOGY 26

3.1 Locale of the Study 26

3.2 Research Design 26

3.2.1 Primary Data 26

3.2.2 Secondary Data 26

3.3 Sub-Conclusion 28

CHAPTER IV: FINDINGS AND DISCUSSIONS 29

4.1 Current background of AGRIBANK-BINH MINH branch 29

4.1.1 Overview of Agribank Vietnam 29

4.1.2 General introduction of Agribank - BM Branch 32

4.1.3 The local socio-economic situation affects the operation business of Agribank-Binh Minh Branch 34

4.2 The reality of e-banking services at AGRIBANK-BINH MINH 37

4.2.1 E-banking services of AGRIBANK-BM branch 37

4.2.2 Achievements of e-banking services of AGRIBANK- Binh Minh branch 40

4.2.3 The importance of electronic banking method at AGRIBANK-Binh Minh 44

4.2.4 Challenges for e-banking services at AGRIBANK-Binh Minh Branch 48

CHAPTER V: CONCLUSION AND RECOMMENDATION 55

5.1 Summary of the Findings 55

5.2 Conclusion 56

5.3 Recommendations 57

5.3.1 To Agribank-BM Branch 58

5.3.2 To Agribank Vietnam 61

BIOGRAPHY

APPENDIX

TURNITIN

LIST OF ABBREVIATIONS

AGRI/AGRIBANK Vietnam Bank for Agriculture and Rural

Development

AGRI-BM Branch Vietnam Bank for Agriculture and Rural

Development Binh Minh Branch

ATM Automated Teller Machine

BIDV Joint Stock Commercial Bank for Investment and

Development of Vietnam

E-BANKING Electronic banking

EBIT Earnings Before Interest and Taxes

I-BANKING Internet banking

IT Information Technology

LIENVIETPOST BANK LienViet commercial Joint Stock Bank

MBBANK Military Commercial Joint Stock Bank

OTP One Time Password

PIN Personal Identification Number

POS Point Of Sale

ROI Return on Investment

SBV State Bank of Vietnam

SMEs Small and Medium Enterprises

SMS Short Messaging Service

TECHCOMBANK Vietnam Technological and Commercial Joint Stock

Bank

TPBANK Tien Phong Commercial Joint Stock Bank

VCB/VIETCOMBANK Joint Stock Commercial Bank for Foreign Trade of

Vietnam

VietinBank Vietnam Joint Stock Commercial Bank for Industry

and Trade

VPBANK Vietnam Prosperity Joint Stock Commercial Bank

WAP Wireless Application Protocol

LIST OF TABLES

TABLE PAGE

Table 4.1 Cost of Agribank’s e-banking activities 39

Table 4.2 Annual Fee for individual customers collected of E- Mobile

Banking at Several Banks in 2021

51

LIST OF FIGURES

FIGURE PAGE

Figure 4.1 Top 500 Most Valuable Banking Brand Rankings (151-165) 30

Figure 4.2 Agribank’s Structure of total assets from 2019 to 2021 31

Figure 4.3.Organization Structure of Agribank Binh Minh Branch 33

Figure 4.4 The number of customer using Agribank-BM’s cards from

Figure 4.6 Card services Sales from 2019 to 2021 (million VND) 43

Figure 4.7 E-Banking Services Sales from 2019 to 2021 (million VND) 44

Figure 4.8 E-Banking and Banking Services Sales from 2019 to 2021

LIST OF APPENDICES

APPENDIX 1 Interview Questions on E-Banking Services for

Managers and Staffs in AGRI-BINH MINH Branch

APPENDIX 2 Internal report of AGRIBANK-BM Branch

ABSTRACT The title of the thesis: Improving the quality of E-Banking services at Agribank - Binh

Minh Branch

Author: Tran Thi Ngoc Anh, student of the Faculty of Foreign Languages, Banking

Academy of Vietnam

Advisor: Mr Ngo Tung Anh, the Vice Dean of the Faculty of Foreign Languages,

Banking Academy of Vietnam

Key words: E-banking services, recommendations, AGRI-Binh Minh branch

Abstract: Nowadays, E-banking services play a significant role in many banks in

Vietnam Thus, the thesis was conducted to find out the reality of e-banking services and seek out the solutions to enhance these services performance at AGRI-Binh Minh branch Firstly, the dissertation introduced about the profile of Agribank and Agribank-Binh Minh branch Afterward, the research investigated about the operation of E-banking services in AGRI-BM branch during the period 2019-2021 in terms of total sales, net profits, numbers of custiomers and procession Next, e-banking services were compared with other services that the branch provides in terms of proportion of total sales and net profits, then point out the advantages of e-banking method for branch Finally, some solutions were proposed to deal with notable issues Through the research, some outstanding problems related to e-banking services at AGRI- BM were found out The first problem was that many e-banking services were unknown to users

on E-Banking platform The lack of human resources, many competitors in E-banking market shares and inadequate facilities are the other difficulties that AGRI-BM branch should overcome Fortunately, numerous practical and innovative alternatives were presented at the end of the study, which might significantly improve the provision of e-banking services at the branch

CHAPTER I INTRODUCTION

1.1 Introduction

The Fourth Industrial Revolution (Industry 4.0) has been affecting all aspects of the economy - the society in general and the banking industry in particular This flow creates more opportunities and motivations for commercial banks in automating business processes, simplifying procedures, and creating transparency At the same time, it helps to provide many modern digital banking services to customers Furthermore, the Prime Minister's decision on October 28, 2021, to approve a project

to expand non-cash payments in Vietnam for the period 2021-2025 is one of the key driving causes behind the epidemic's spread Digital banking services at banks across the country are increasingly developed at present According to the State Bank of Vietnam's data, approximately 70 commercial banks have offered online banking, around 40 commercial banks have offered mobile banking payment services, and more than 60 commercial banks have offered card services People can use online banking services to easily perform transactions such as money transfers, bill payments, account information queries, and online purchases in minutes using a computer or a mobile device with internet connection Especially in the current epidemic situation, online banking is an effective solution for customers to be able to both implement the government's 5K directive and solve the necessary problems in daily payment transactions As a result, Agribank has taken a number of particular initiatives, ranging from implementing, establishing, and updating the payment system to develop a payment system and advance payment technology infrastructure system Agribank focuses on expediting the implementation of e-banking projects to construct a platform, focused on fostering research and development of new goods and services based on technology, capable of quick development to give clients Customers may access financial services via a variety of channels, including online banking and mobile banking, thanks to a comprehensive multi-channel service platform Agribank now offers over 200 banking products and services Many of Agribank's goods and services

fall into the categories of capital mobilization, credit, domestic payment, foreign payment, card, e-banking, and so on, highlighting the bank's product service capabilities Recognizing the great benefits of internet banking, commercial banks in Vietnam in general and Agribank, in particular, have been very interested in expanding these services, and at the same time offering utilities to compete fiercely to dominate in market share One of the most important factors to do this is to capture customer psychology With the digital banking development strategy, Agribank determines to develop customer-centric products and services, expand the customer base, develop customers to open accounts, and use utility services The fact that Agribank puts customers at the center, intending to optimize the customer's personal experience, helps

to build "positive emotions" and subsequently customer loyalty to its bank To do this, service improvement is one of the inevitable issues as well as the core of the strategy Therefore, awaring of the importance of the e-banking services, we have decided to

choose this title for the thesis: “Improving the quality of e-banking services at

Agribank - Binh Minh branch”

1.2 Background of the Study

The research took place at Agribank-Binh Minh Branch, one of the three branches of Agribank's systems in Kim Son and one of 37 branches in Ninh Binh province Vietnam Bank for Agriculture and Rural Development (Agribank) was established under Decree No 53-HDBT dated March 26th 1988, of the Council of Ministers (now the Government) Currently, Agribank has nearly 2,300 branches and transaction offices present in all regions, is the only commercial bank present in 9/13 island districts, nearly 40,000 officials and employees As of December 31, 2020, total assets reached over VND 1.57 million billion; capital source reached over 1.45 million billion dongs; total outstanding loans to the economy reached over 1.21 million billion VND,

of which nearly 70% of outstanding loans were for investment in agricultural and rural development The branch of Agribank - Binh Minh was established in 2014 Although its establishment is not long, it has been growing and developing, contributing to the

total sales of the whole region Although established in a rural area, Agribank-Binh Minh branch has increasingly developed e-banking services not only in quantity but also in service quality, meeting the various needs of many customers in the region

As one of the state-owned commercial banks playing a key role in the banking system, Agribank always promotes the pioneering and exemplary role of a state-owned commercial bank in leading the system of credit institutions, seriously and effectively implementing the national monetary policy and the Party and State's guidelines and policies on currency and banking, especially credit policies for agricultural and rural development The industrial revolution 4.0 affecting all aspects of life has made the trend of customers using technology in banking transactions urgent and familiar Compared with other commercial banks, Agribank entered the field of e-banking later, but initially obtained significant results and is gradually asserting its position in the e-banking market On August 25th 2015, Agribank officially launched the Agribank E-Mobile Banking service - a multi-utility banking application installed on mobile devices (phones, tablets), in addition to familiar features such as money transfer, bill payment, phone recharge, this application also integrates the function of booking hotel rooms, train tickets, air tickets, movie tickets and especially coordinating with Western Union to pay expenses and remittances However, the overall number of transactions and clients utilizing Agribank e-banking services remains quite competitive with other banks in Vietnam such as Vietcombank or Techcombank As a result, implementing realistic solutions to the performance of internet banking services at the Agribank-Binh Minh branch might help the branch enhance its e-banking operations and satisfy consumers who use these banking services at the branch in general

1.3 Objectives of the Study

Recognizing the importance of e-banking as a trend payment method in daily activities, the research examined the reality of e-banking service operations at the branch and compared it to other banks' in order to find ways to satisfy the customer

In particular, there are five specific objectives of the thesis:

Firstly, introduce the profile of Agribank and AGRI-Binh Minh Branch

Secondly, identify the trend of using e-banking services in Vietnam from 2019 to 2021 Thirdly, evaluate the operation of the payment method by e-banking at the branch in terms of:

• Agribank-Binh Minh branch’s mobile banking policy fee with other banks’

• Agribank-Binh Minh branch’s total sales of using e-banking methods payment with a total operating turnover of the branch

Finally, propose solutions for the branch to deal with outstanding problems related to electronic banking services to improve the quality of this function

1.4 Significance of the Study

The research is being carried out at the AGRI-Binh Minh Branch in order to identify new techniques for improving e-banking services at this institution As a result, once the study is completed, the branch will benefit immediately from it They may apply these ideas to real-world e-banking processes Finally, AGRI-Binh Minh's e-banking operations may be enhanced by adopting the recommendations in this thesis These services’ performance may improve, leading to a rise in the number of clients utilizing e-banking services As a result, the branch will make more money from the e-banking services and expand the facilities that support the operation of this payment

Students at Banking Academy and other universities who are looking for prior research

on increasing the quality of e-banking services are also potential benefits To some extent, this thesis would be a beneficial source of data for them, allowing them to completely examine the topic they would write about

Following the completion of the research, the researcher will have gained some knowledge of internet banking and mobile banking operations at banks such as Agribank, as well as a better understanding of not just the transaction procedure but also the policy governing this function

1.5 Scope and limitations of the Study

The study was conducted at the Agribank - Binh Minh branch from March to May

2022 The article employs research methods such as the analysis-synthesis method to aid in the analysis of small problems or the factors that comprise the problem under consideration; the comparative method aids in the comparison of problems in other banks from which to draw experience as well as the ability to see the problems in many different dimensions; and the data method aids in making the essay more objective, authentic, and convincing

Because the research primarily evaluated the performance of a service at the branch over a short period of time, the scope of the study would be limited to the e-banking services operation at AGRI-Binh Minh branch for three years beginning in 2019 and ending in 2021 Furthermore, the research was unable to adequately examine other bank services, thus it will now just focus on outstanding e-banking services in AGRI-

BM Branch As a result, this study has several limitations The first consideration is the research's geographical location The research took place at a branch of Agribank in Ninh Binh province, which could not fully describe the mobile banking service at Agribank in total as well as bring out practical solutions to improve the quality of e-banking operations at Agribank in general Second, because the research was done in just three months, the findings and results of the study only presented some slides of the whole scene of online banking service operation at AGRI-Binh Minh branch

Finally, because to a lack of financial resources and the Covid-19 outbreak environment, the study was unable to obtain access to the major data resource, which was mostly derived from a direct survey of clients utilizing online banking services at the branch If the study could make use of this type of data, it would be significant information for the branch's e-banking services review process As a result, the majority of the data included in the study came from secondary data given by the AGRI-Binh Minh branch

1.6 Structure of the Study

The thesis is devided into 5 chapters as follows:

Chapter 1: Introduction

Chapter 2: Literature Review

Chapter 3: Research Method

Chapter 4: Findings and Discussions

Chapter 5: Conclusions and Recommendations

CHAPTER 2: LITERATURE REVIEW

This chapter will discuss the definition, forms, and advantages of E-banking services,

as well as the variables influencing E-Banking adoption by commercial banks and the economy

2.1 Literature Review

First appeared in the 90s at a bank in the US after more than 4 decades of existence and development, with thousands of research articles and surveys in every country in the world, electronic banking developed to a near-absolute level, filling most of the holes

in the management and security stages, bringing maximum convenience and satisfaction to customers around the world In Vietnam, the E-banking services were started in 1994 under the former governor of the bank-Mr Cao Sy Kiem with a limited information technology background, small investment capital, and strict requirements

In the legal regime, the opening, integration, and development of the above services faced many obstacles In 2002, the first ATM card issued by former Governor-Mr Le Duc Thuy and former General Director of VCB- Mr Vu Viet Ngoan was introduced to the public After 17 years, a series of other electronic banking products and services was born, ushering in a cashless revolution, speed of improvement, and quality of electronic banking services, especially for individual customers constantly improve During the same period, researchers published a series of articles and scientific studies, raising crucial points related to the quality of electronic banking method for domestic clients in particular and worldwide in general

According to Peter and Keng (2004), the Internet has already transformed the banking business However, if certain banks, particularly those in specific parts of the market,

do not fully utilize current technology, they will lag behind their competitors Investing

in the development of e-banking goods and services is one of the most effective strategies for banks to compete in the Vietnamese banking sector Most banks throughout the world always offer efficient, quick, and well-supported contemporary

technological services in order to enhance the integration process, attract clients, and take advantage of commercial prospects Automatic trading machines (ATMs), payment points at point of sale (POSs), a network that provides financial services through the telephone network, and personal computers are only a few examples of significant services Indeed, based on the analysis and synthesis of the data gathered throughout the study process, it is clear that enhancing the operational sufficiency of online banking and mobile banking, particularly internet banking, is a high priority According to study by K Batu Tunay et al (2015), the more sophisticated Internet banking practices in European countries, the better the performance of the strongest banks However, under such a connection, the relative development of less developed European nations could not be ascertained According to a survey by Five Degree, a business that helps financial institutions with digital transformation, an online banking transaction costs $0.09 and a mobile banking transaction costs $0.19 on average However, a branch transaction costs the bank on average $4.00 The majority of e-banking clients in Vietnamese commercial banks are retail consumers, with a small number of corporate customers The goal of utilizing an electronic bank's benefits and absolute advantages is to create new, diverse, easy, and high-quality goods and services with rapid, accurate transactions To suit consumers' needs and technological changes,

a big number of banks in Vietnam are presently expanding their e-banking services As

a result, several researchers have paid close attention to and evaluated the growth of electronic financial services Some of the following research findings are used in the thesis to provide a framework for theory and support for the claims made In particular,

as follows: Pham Thu Huong's doctoral thesis at Foreign Trade University is titled

"Developing electronic banking services in Vietnam in the world economy." The author has thoroughly systematized and rigorously systematized the overview of e-banking, including e-banking services and a model of elements that influence consumer perception of e-banking services In addition, the author presents an analysis and comparison of the experience of using e-banking services in several industrialized nations, such as Malaysia and Singapore At the same time, the thesis examined the

current state of using e-banking services in Vietnam, as well as the benefits and drawbacks, and provided answers and ideas for improving e-banking services in their early phases Ngo Thi Lien Huong's doctoral thesis at National Economics University

in 2011 was titled "Diversifying services at commercial banks in Vietnam." The study looked at the many service groups that the bank offers to its clients, introduced the idea

of diversification, and established diversification techniques and indicators to assess the diversification of e-banking services Diversification and its importance for commercial banks in Vietnam are influenced by a number of factors The study used international experience with commercial bank service diversification to derive lessons for implementing a service diversification plan for commercial banks in Vietnam The findings of the study demonstrate the current state of service diversification in Vietnamese commercial banks and offer some recommendations for successfully implementing the strategy The report focuses solely on diversified e-banking services and only gives an outline of future banking service development trends Truong Thi Ngoc Thuan is one of a group of scholarly works and publications regarding commercial bank service improvement Some practical experiences in improving banking services at local commercial banks like Vietcombank and Agribank have been reported in scholarly publications Since then, Vietnamese commercial banks have been using pricing management principles to build their e-banking services There are also several research papers and publications on the evolution of e-banking services in Vietnamese commercial banks Luu Thanh Thao, "Development of electronic banking services at Asia Commercial Joint Stock Bank," examined the situation and identified acceptable directions for developing banking services in the context of international economic integration and the rise of information technology Although the aforementioned scientific works covered a wide range of topics related to the development of e-banking services, each scientific work, each article focused on a single facet of development The research mentioned above has helped to address the theoretical and practical concerns surrounding the development of e-banking services

at commercial banks, such as the constraints and reasons of these restrictions Solutions

are also recommended to develop commercial banks' e-banking services in order to meet customers' needs, resulting in a rise in bank revenue from this activity The author has learnt from the experience of other banks and has come up with appropriate recommendations for Agribank based on the information gathered

2.2 Theoretical and Conceptual Framework

2.2.1 Introduction of e-banking services

2.2.1.1 Definition

There are several different interpretations of e-banking services According to www.sbv.gov.vn- the official website of the State Bank of Vietnam, “E-banking services are understood as the banking operations, products, and services that are distributed on electronic channels such as the Internet, telephone, wireless network, etc

In a visual sense, it is the type of banking service performed by customers and no need

to go to the counter to meet the bank staff In a broader sense, this is a combination of some traditional banking activities with IT, electronics and telecommunications E-banking is a form of e-commerce applied in the banking business.” According to decision No 35/2006/QD-NHNN issued by the State Bank on July 31st, 2016: “ Electronic banking activities are banking activities carried out through electronic distribution channels, which are systems of electronic means and automatic transaction processing procedures used by credit institutions to communicate and provide banking products and services to customers.” The following is how the State Bank of Vietnam considers e-banking services: "Modern and convenient banking products and services are distributed to wholesale and retail customers quickly online, 24/7, space-time independent) through distribution channels (internet and other terminal access devices such as computers, ATMs, POSs, desk phones, mobile phones)) is called an e-banking service" According to Mr Leszek Borysiewicz, Vice-Chancellor of the University of Cambridge, “Electronic banking is a form of banking in which money is transferred through the exchange of electronic signals instead of through the exchange of cash, checks or other types of paper documents Money transfer occurs between financial

institutions such as banks and credit institutions.”

In our nation, some individuals frequently confuse internet banking (i-Banking) with electronic banking (e-Banking) The term "e-banking" refers to a far larger range of services than "i-banking." If i-Banking is merely the provision of banking services through the Internet, e-Banking encompasses the provision of services by fax and telephone, phone, e-mail, and so on Thus, i-Banking is a subset of e-Banking, and because of the internet's benefits over other methods, the transaction price is comparatively low, and the pace is rapid and achievable If you can quickly transport data anywhere in the globe, i-banking will be regarded the heart of e-banking The scope of this thesis considered the definition of e-banking services from the perspective

of service delivery, then defined as follows: E-banking services are those offered by banks to their consumers via the use of a sophisticated information technology platform, allowing customers to remotely access a bank to perform some transactions with the bank or with other customers through the latest media without going to the counter

2.2.1.2 Classifications

Types of e-banking via the phone

• Phone Banking: Customers enter the pre-specified code on the phone keypad and request that the system respond to the information we seek 24 hours a day, seven days a week Because of the automated response system, information such as interest rate, exchange rate, promotion information, stock price, customer's personal information such as the list of past year's transactions on the same account, the newest announcements, and so on, will be pre-determined When the consumer orders the products listed above, the system will automatically send faxes Customers' information is always fully and regularly updated nowadays, therefore the number of registered accounts has grown significantly

• SMS Banking and Mobile Banking: Mobile Banking allows consumers to query information by sending SMS from a mobile phone using a predefined syntax, and also

allows the bank to send notifications to customers The services comprise an inquiry service for account information and transactions, a query service for customer support information, an account fluctuation notice service, and a timing notification service Furthermore, wireless device apps (WAPs) enable mobile phones to effortlessly connect to the internet and use the bank's online services In addition, many banks also issue mobile banking applications integrated on smart phones that allow customers to perform many transactions in addition to wire transfers such as payment for electricity, water, internet services, shopping for goods, booking train and plane tickets, and so on

• Call centre: This is a service where people can call this phone number to query

information that clients need through the guidance and answers of bank staff The advantage is that the call center can flexibly provide all information that customers need Its downside is the need to have an employee on-call 24/7

Types of e-banking via the internet

• Home Banking: With Home Banking, customers transact with the bank online, but it is an intranet built by the bank itself Clients can perform transactions from their homes using a computer system linked to the bank's computer system Customers can use the Home Banking service to make money transfer operations, list transactions, currency rates, interest rates, and so on Customers just require a computer linked to the bank's computer system through a modem and landline to register for Home Banking, and they must register a phone number that only these contact numbers can access to the bank's Home Banking system Nowadays customers have widely used this service because it brings speed, safety, and convenience

• Internet Banking: This is a form of e-banking services, built on the existing banking transaction system to provide customers with facilities to perform transactions such as transfer, payment, and receipt of money through the internet Customers may use Internet Banking to make transactions from home rather than visiting the bank, which is incredibly convenient and saves time because all transactions are completed instantly, even if the client does not have a bank account on holidays such as Saturday

or Sunday Customers who enroll for Internet Banking service may quickly access their account, pick the proper kind of transaction, and follow the directions using just a computer, laptop, or cellphone and the access code issued by the bank In general, people often use Internet Banking for cases where they want to transfer funds, pay bills

or update account information, existing balances, etc However, for clients who connect to the Internet, the bank must have a robust security system capable of dealing with worldwide hazards

Types of e-banking through other means

• Card:Cards are used to store cash, which is very common today Cards can be divided into a few basic categories:

Debit Card: Customers use the amount loaded on the card

Credit Card: Clients use prepaid revolving credit with an authorized limit to pay for goods and services There are current international credit cards such as Mastercard, Visa, JCB, Amex, DinerClub, etc.

Other cards include travel cards, entertainment cards, shop cards, and so on Payment cards are mostly used to complete automatic operations including reviewing client accounts, withdrawing or sending money, paying the bills, purchasing phone cards, and

so on via automated teller machines (ATMs)

• ATM

According to the Cambridge dictionary: “An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, transfer funds, or acquire account information, at any time and without the need for direct interaction with bank staffs.” Currently, ATM is a common and popular device that performs customer identification through cards or compatible devices and helps customers check balances, withdraw cash, transfer, and make payments for goods and services Many additional services have been added to ATMs, such as depositing cash, depositing

checks, paying for phone, water, and energy, purchasing mobile scratch cards, selling tickets, and conducting other electronic transactions ATMs have made life easier for both banks and customers Although installing an ATM is quite expensive, it allows the bank to do more transactions, serve clients anytime, anyplace, and reduce transaction expenses as compared to servicing customers online or at the counter On the consumer side, it is feasible to reduce time, make transaction sites more convenient, and complete transactions quickly, correctly, and safely

• POS

POS is an acronym for Point Of Sales, which refers to the points of distribution of products (retail points) arranged by a person or business, such as a grocery store, a chain of fashion stores, boutiques, display cases, and shops, and so on Every POS has

a system or instrument for recording transactions, such as notebooks, excel files, or high-level cash registers, and sales monitoring software, to show the quantity of cash and items flowing in and out in a given period (POS software) The performance of these transactions at the payment acceptance point must have two conditions:

-Firstly, this acceptance point has a contract with the issuing bank or its payment agency to take card payments, and the bank has provided it with a suitable payment machine

-Secondly, clients have to enter their identification number (PIN) when carrying out a transaction

2.2.1.3 Features of e-banking services

• Transaction processing speed is fast and convenient

E-banking service allows customers to make transactions with the bank in the shortest time In the current era, everyone's time is becoming more limited so customers want to sit in one place and make their transactions with one click Processing time is currently lowering in tandem with the advancement of information technology Banks are all focusing on modernizing their core banking systems to deliver the most stable e-banking services with the shortest transaction processing time in order to please clients

Clients who have limited time to go to the bank, small and medium-sized customers, and individual customers with a modest volume of transactions and a little amount for each transaction can benefit from e- banking activitives

• Not limited by space and time

Customers do not need to go to the bank to fill out the paperwork, write money orders,

or wait in line; instead, they may do it on computers or make phone calls from home, at work place, a coffee shop, or any place Customers can save much time traveling, and queuing for transactions, thereby capturing more opportunities In just a moment, with modern transmission facilities, customers can check their accounts, pay service fees, transfer funds, and perform payment transactions like purchase goods to be timely seize investment and business opportunities Everything happens very quickly, instantly through the bank's automatic processing system

• Low transaction costs

In addition to saving travel costs, minimizing opportunity costs due to time-saving, and looking at a bank's fee schedule, e-banking services always have the lowest fees This also comes from the fact that the bank itself does not have to pay expenses for location rental, staff salaries, administrative costs, costs for accounting documents, cost of counting, etc., so customers also enjoy a much lower usage fee

• Large investments

To build a successful e-banking system, a bank must spend a sizable initial investment capital to acquire modern technology and operate safely, with additional costs, maintenance costs, repair costs, contingency costs, improvement costs, and technology innovation In addition, the bank spends money on customers' expenses to train a team

of information technology staffs and professional technicians

• High requirements for security

Information security plays a significant role in customers' usage of e-banking transactions, and at the same time, it gives customers confidence when participating in

online form The use of an automatic money payment system often faces risks such as leakage of personal information, theft of passwords, or other errors Therefore, building

an IT system with high requirements for security is the main focus of banks Unlike the traditional transaction channel, customers can conduct transactions via the electronic network, and the banks have to advise them on how to use it Moreover, customers must also be consulted and comply with bank security regulations

2.2.2 The development of e-banking services

E-banking services have grown in popularity and popularity throughout the world Chemical Bank of New York State (USA) was the first to envision "E-Banking" in the mid-1970s However, hefty transaction costs and a shortage of internet users have slowed the rise of E-Banking Because of the internet boom in the mid-1990s, certain commercial banks in the United States and Hong Kong embraced E-Banking services until the mid-1990s (Batchelor, 2017) Nonetheless, many clients remained apprehensive about performing financial transactions via the internet In the mid-2000s, e-banking services became recognized in Vietnam and the initial foundations were laid However, it was not until the early 2010s, as a result of the growth and influence of the 4.0 revolution that the trend of e-banking truly took off

Therefore, it can be said that the E-banking service was born in 1989 when Well Fargo bank of the US first provided online banking services So far, through a lot of research, testing, and application, the e-banking system has become complete and modern to meet the various needs in the best way In general, the development of the e-banking system goes through the following phases:

Phase 1 (Brochure-ware): This is the stage in the simplest form, as well as, most banks choose it when they first develop their electronic banking service, which is the internet application for advertising In essence, advertising on the internet is the construction of

a domain name (website) that shows the most basic information about a commercial bank, including operations and products and services provided by that commercial bank In short, brochure-ware has laid the foundation for the electronic banking

services in the later stages

Phase 2 (Internet banking information): The purpose of the application is to look up information or inquire about customer accounts online At this stage, banks used the internet and their websites as a new distribution channel for financial services It is worth noting that in the past, customers could only be provided with these services periodically through the postal system or had to be present at the transaction offices of commercial banks At this stage, the internet has played a role as a service that brings 'added value' for convenience and saves both time and money for customers, so banks become background closer to the public

Phase 3 (Internet banking): In this stage, using the Internet and science and technology

to increase the connection, in which the basic operations and processes of a bank are integrated between the Internet and information channels to distribute data This stage

is distinguished from the two pre-customer ones above by increasing the number of products and product differentiation according to the customer's needs and relationship with the bank Moreover, the coordination and sharing of data between the bank's headquarters and distribution channels such as branches are through the Internet From there, processing requests and serving customers, businesses, and state management agencies are quick and accurate

Phase 4 (Electronic banking): This is the period when the ideal model of an online bank in the electronic economy It is a complete change in the business model and operational management style of commercial banks From the earliest steps of offering current products and services through various channels, the bank may combine all of those information channels to provide a variety of solutions for each particular consumer Through the strength of the global network, providing customers with the most convenient banking services through separate distribution channels, providing effective financial solutions, customers can perform online all financial services transactions that customers need to go to the bank's counter

Criteria to assess the development of E–Banking level:

• Quantitative indicators

Quantitative indicators, as their name implies, show a quantity The growth of e–banking may be measured by the quantity of goods and services available as well as the number of consumers These indicators may include:

- Quantity, type

- Number of customers

- Market share

- Branch system, distribution channels

- Income from service activities

• Qualitative indicators

In contrast to quantitative indicators, qualitative indicators reflect the status of something in qualitative terms rather than quantities or amounts The following are examples of qualitative or performance indicators for E–banking development:

- Diversification

- Utility

- Safety

2.2.3 Role of Electronic banking

• Choice and convenience for customers

In the heated struggle for consumers, creating a one-of-a-kind experience is the appealing aspect that will keep them coming back A 'customer first' mindset is essential for the success of e-banking services Consumers are the vital aspects to success, and businesses should discover what different consumers demand and provide

it using the best technology available Customers in today's corporate contexts desire more options They want traditional banking services supplemented with the ease of online capabilities and a greater emphasis by banks on creating personal relationships

with consumers Politeness and neatness, welcome recognition, readiness to give fast service, and the capacity to apologize and exhibit concern for a mistake are all vital for bank customers The bulk of these customer support sectors are not automatable The competency of customer service representatives is likely to have a direct influence on client contentment Moreover, e-banking enabled by data mining technologies can help

in better knowing consumers' wants and designing services to meet their desires Increasing the number of service delivery channels means providing customers with more alternatives and convenience, which improves customer service E-banking may

be made available 24 hours a day, 365 days a year, and the internet's widespread availability, particularly on mobile phones, means that clients can do many of their financial activities almost anywhere and at any time This is especially true in industrialized countries, but the advancement of wireless communications suggests that

it is becoming widely true in developing countries as well

• Attracting high value customers

E-banking performance usually attracts high-profit users with above-average income and education levels, which increases the number of revenue streams E-banking clients are thus of particular interest to a retail bank, and such customers are likely to have a higher demand for banking products The majority of them utilize online channels a regular basis for a variety of objectives, and some do not require frequent physical contact with the bank's branch network, which is an expensive channel for banks to operate Adding the Internet delivery channel to an existing portfolio of service delivery channels resulted in nontrivial gains in bank profit-ability, according

to one research These extra revenues are mostly the consequence of an increase in non-interest income from deposit/current account servicing charges These clients are also more likely to be high-income earners with higher profit margins

• Enhanced Image

E-banking method contributes to the business's image as a customer-focused, creative organization This was especially true in the early days, when only the most forward-

thinking firms used this medium Despite its widespread availability today, an appealing banking website with a diverse variety of new goods improves a bank's face This image also aids in e-marketing effectiveness and acquiring a young or professional consumer base

• Boosted revenues

Revenue increase as a result of offering electronic channels is regularly observed, owing to prospective client expansion, retention of existing clients, and cross-selling prospects The question of whether these revenues are adequate for a good ROI from diverse sources remains open It has also allowed banks to widen the scope of their value creation efforts E-banking has transformed the traditional retail banking business model in various ways, including the opportunity for banks to separate the production and delivery of financial services into independent enterprises This means that banks can sell and manage services offered by other banks (usually foreign banks) to boost the sales This is a particularly tempting alternative for smaller banks that have a limited product offering Credit card lending has also grown as a result of e-banking since it is a sort of transactional loan that can be delivered most simply over the Internet Electronic bill payment is also on the rise, indicating that electronic bill payment and other related e-banking capabilities have a significant impact on retail banking habits and rapidly developing income streams

• Easier Expansion

Historically, if a bank wanted to expand geographically, it had to create new branches, incurring significant start-up and maintenance costs In many situations, e-channels like the internet have rendered this obsolete Banks with a traditional client base in one area of the nation or the globe may now attract customers from other parts of the country or the world, because most financial transactions no longer require a physical presence near the customer's home or office Banks in many countries pool their resources, such as ATMs or post offices as their principal point of contact for cash and check deposits

• Load reduction on other channels

E-Channels are often automated and may be used to do most basic operations such as account checking and bill payment This typically reduces the demand on other distribution channels, such as branches or contact centers When more sophisticated services, such as mortgages and asset finance, become available through e-banking channels, this trend is projected to continue Routine branch tasks, such as cash/cheque deposit related chores, are also being automated in a few of nations, freeing up time for branch workers to deliver better quality customer services

• Cost reduction

Until far, the key economic rationale for e-banking has been the decrease of overhead costs associated with other channels such as branches, which need expensive infrastructure and employees It also appears that after a saturation point of customers has been achieved, the cost per transaction of e-banking typically falls quicker than that

of traditional banks The research on this topic is still in its early stages, with contradicting findings emerging in various parts of the world According to popular belief, the fixed costs of e-banking are significantly more than the variable expenditures, therefore the larger a bank's client base, the lower the expense per transaction While this implies that the cost per transaction for smaller banks would most likely be greater than that of larger banks, the cost per transaction for small banks

is predicted to be lower than that of alternative banking channels Having said that, some studies in this area suggests that banks have generated minimal savings as a result of implementing e-banking It suggests that any efficiency gains are outweighed

by higher-than-average pay and benefits per worker, owing to the necessity for a more highly skilled workforce to handle the more complex delivery system Other expenditures, such as system integration and additional security measures, are involved

• Organizational Efficiency

To implement e-banking, companies must often reengineer their business processes, integrate technology, and develop agile working styles These stages, which are pushed

to the forefront of the agenda by the requirement to accomplish e-banking, often result

in greater organizational efficiency and agility However, major organizational changes are frequently associated with hazards such as poor staff morale or the collapse of conventional services or client bases

2.2.4 Factors affecting quality of e-banking services

Subjective factors

- Infrastructure - Technology, information facilities

The information technology infrastructure required for banking operations in general, and e-banking services in particular, necessitates a significant investment in the information technology system Constantly inventing, developing, and modernizing the information technology system has become a critical prerequisite for increasing bank competitiveness The bank's IT system is composed of two major components: (i) the core banking system, which serves as the foundation for customer development and development, and (ii) a banking services system to produce helpful goods for clients, application software is used

- Bank's human resources

Electronic payments are a contemporary transaction technique with highly established criteria and a uniform operating process Unlike traditional methods of payment, online payment necessitates a team of human resources with the ability, qualifications, and experience to approach, fully meet, and provide more information This will assist the bank in avoiding network problems caused by subjective or objective errors And e-banking services will both lessen the bank's harm and boost the bank's competitiveness

in comparison to other rivals because it has built client confidence As a result, organizing training to increase professional and professional credentials for the bank's

workforce is a critical and urgent task

- Risk management in e-banking service business

Besides the benefits of e-banking services, the rapid development of this type of service also contains many risks If banks only race to deploy a variety of products and services, ignoring risk management, when something goes wrong, it will reduce the bank's reputation, causing customers to lose trust in the quality of products provided by the bank Banks need to identify, handle and manage risks with due care appropriate to their e-banking services provision

Objective factors

- Responsiveness of the population

The level of life is a major determinant in the evolution of electronic payment systems Will people not care about e-banking if they have to live on a low income, or if they have little? They will pay in cash rather than using electronic payment methods As a result, economic progress and rising living standards are constantly required for the expansion of electronic banking services Understanding and acceptance of electronic banking services, as well as the customer's habit and preference for cash, can be important impediments to the growth of e-banking services The popularity of electronic banking services is more closely tied to client acceptance than to the services provided by the bank There should be no need for banks to offer electronic banking services without the agreement of their customers The majority of clients have a strong awareness of electronic banking services and the benefits of these advanced services However, the bank should not believe that having good services is enough to promote e-banking services because other banks alsso have provided these services It

is vital to make customers aware of the availability of such services and to train them

on using them

- Socio-economic environment

The economic environment includes factors: the level of monetary, capita income,

GDP growth rate, inflation, etc representing the economic development The development and stability of these elements provide ideal conditions for the bank's payment operations while also having a significant influence on customers' requirements and methods of using banking goods and services When the domestic economy is growing, all macro variables show positive indicators, and the expansion of production and commercial activities will provide me with a chance to enhance payment operations for banks Because at that time, the production of goods flourished, the need for exchange and exchange to expand the buying and selling process took place more often, the real spending of the population increased rapidly, requiring a new and more modern payment method to better meet the needs of customers In the context of a fiercely competitive economic environment, banks must strengthen their competitiveness by offering new services to satisfy their customers, which is a favorable condition for the development of electronic banking services At that time, customer needs are satisfied at the highest level and at the same time bring economic efficiency to the bank The socio-cultural environment is made up of several organizations and resources that have a significant impact on societal values such as perception, education, cultural level, lifestyle, and payment habits, as well as people's comprehension of payment activities through banks E-banking services will grow if the bank's socio-cultural level is high, and vice versa

- Regulatory environment

The regulatory environment is an extremely important factor, affecting not only banking operations but also all areas of life In all countries, a bank is only allowed to apply electronic banking services when its legality is recognized (specifically expressed by acknowledging the payment value of electronic documents, electronic transactions, and electronic payments) and has authentication authorities (certificates of electronic signatures) Because the legal system of its nation guarantees the operations,

a stable legal environment would have a favorable influence on the quality of this sort

of service As a result, a more stable and entirely legal environment will aid E-

banking’s activities in running more smoothly and efficiently

2.3 Sub-Conclusion

This chapter presents a general theoretical foundation for E–banking, establishing the groundwork for investigating the real-world situation of evolving E–banking services

at the Bank for AGRIBANK-Binh Minh Branch The chapter begins with an overview

of E–banking, which includes the idea of E–banking, the various types of E–banking services, and the origins and history of this facility Then there are certain fundamental elements for assessing the relevance of E–banking in commercial banks, as well as important advantages, with the goal of assisting in the effective adoption of electronic channels at the branch In this chapter, the researcher also discussed some of the elements that influence the adoption of this distribution channel

CHAPTER III: RESEARCH METHODOLOGY

The goal of this section is to discuss how data was acquired and which approaches were employed to analyze the data As previously said, the primary achievement of this study is to demonstrate the reality of E-banking services at Agribank, as well as to find solutions to develop E-banking services at the Agribank-Binh Minh Branch

3.1 Locale of the Study

The research is being carried out at the AGRI-Binh Minh Branch, which is located at

Vu Duy Thanh street, Binh Minh town, Kim Son, Ninh Binh Furthermore, the majority of the research will concentrate on the functioning of e-banking services at the branch As a result, the Treasury Accounting Division has accountability in the process plays an important function in supplying data as well as a location for future study

3.2 Research Design

3.2.1 Primary Data

Following a three-month internship at Agribank, the author set out to conduct interviews with existing employees at the AGRI-BM branch to learn more about the effectiveness of electronic banking services and their thoughts on future of these services at Agribank Furthermore, the study's results are based on what the author saw throughout the internship The author opted to collect data through interviews and observation for a variety of reasons Interviewees are people who are currently creating E-banking services, so they are aware of the strengths and challenges that must be addressed As a consequence, it would be simple for the author to propose some solutions to the bank

information is derived from a secondary source provided by the AGRI-Binh Minh branch The research's subjects or figures are measured at each point in time, resulting

in a descriptive study to evaluate the link between the data and the execution of banking activities at the branch A few tools have been investigated and employed in order to fully realize the value of the data Word and Excel apps, which have been utilized often, aid research in providing readers with the clearest and most intuitive image of electronic banking services at the branch

e-All data used in the study were obtained directly from the AGRI-BM Branch's banking transaction office The data contain branch revenue statements and balance sheets, as well as yearly trade finance department operating reports connected to e-banking services Furthermore, the research looked for data from 2019 to 2021 to maintain it up

to date and to make the study represent the current state of e-banking activities at the branch

The information was given by the vice director of the AGRI-BM Branch Following that, he supplied this source of information to the researcher to aid in the study's inquiry The data were gathered in the form of quantitative and proportional numbers between 2019 and 2021 Furthermore, it was completely compatible with the data supplied to Agribank's Head Office by AGRI-Binh Minh's Treasury Accouting Division

These figures were examined in stages to illustrate the differences in the statistics at each time period Furthermore, the research generated tables and figures based on data for each specific criterion in terms of total sales, net profit, and e-banking process at the AGRI-BM Branch Based on internet research, the charge policy, in particular, must be maintained and further contrasted with other banks

The qualitative data types used for the study are numbers and proportions that can be counted These figures are from the business and economic sectors, and they may be seen on the balance sheet or financial report of any typical corporation There are some main sets of the data collected by the study:

• Total sales of e-banking services at AGRIBANK-BM

• Net profits of e-banking operation at AGRIBANK-BM

• Table of e-banking fee at Agribank and other banks

• The total value of the transactions

To evaluate the performance of E-banking services at AGRIBANK-Binh Minh Branch, the research primarily focused on total sales, net profits, and transaction counts at the branch Additionally, in order to fully utilize the data linked to e-banking services performance, the proportion of each method at Agribank-Binh Minh was carefully assessed Furthermore, all of the research components included in the study adhered to the guiding and analyzing techniques of past investigations The Vice Director of AGRIBANK-Binh Minh Branch thoroughly confirms and grants access to this source

of data All data was obtained directly from the AGRI-BM branch's Treasury Accounting Division, and the statistics and figures reflect the current state of e-banking operations at the branch

3.3 Sub-Conclusion

The research has gathered incredibly important resources for e-banking performance evaluation thanks to the enthusiastic cooperation of the branch's management department All measurements are highly precise and may be used for direct analysis or

to create comparison tables However, because consumer feedback on service quality at Agribank-Binh Minh is scarce and difficult to come by, assessing diverse customer perspectives on e-banking service at the branch remains an unanswered issue

This chapter detailed the research methods used in the thesis All of the data's characteristics, in particular, were given The quantitative technique was used in the thesis, and the majority of the assessments are heavily reliant on secondary data The researcher also expressed her thoughts on the thesis' study design and the source of information that she acquired to explore

CHAPTER IV: FINDINGS AND DISCUSSIONS

This chapter provided an overview of AGRI-BINH MINH Branch and examined how e-banking services are used in this branch

4.1 Current background of AGRIBANK-BINH MINH branch

4.1.1 Overview of Agribank Vietnam

The Vietnam Agricultural Development Bank (Agribank) was created on March

26, 1988, by Decree No 53/HDBT of the Chairman of the Council of Ministers After many name changes, the Bank was renamed the Bank for Agriculture and Rural Development of Vietnam on November 15, 1996 The State Bank of Vietnam (SBV) issued Decision No 214/QD-NHNN on January 30th, 2011, authorizing the Bank for Agriculture and Rural Development of Vietnam's change

of ownership form from a State-owned firm to a one-member limited liability corporation controlled by the State Throughout its 34-year history, Agribank has maintained its position as one of Vietnam's premier commercial banks In the journey of construction and growth, Agribank was awarded the First-class Labor Medal by the Party and State along with many noble awards for outstanding achievements in service to economic development in agriculture field during this renewal period Agribank was voted 446th out of the 1000 largest banks in the world, for many years in the top 10 VNR500, Bank for the community, is a reliable partner of millions of customers, partners, and international financial institutions In 2021, Agribank will continue to increase its credit rating in the world and the region The prestigious international magazine The Asian Banker ranked 138/500 leading banks in the Asia Pacific region in terms of asset size and increased 96 ranks in terms of operational quality compared to the announcement

in 2020 According to Brand Finance, the world's premier brand value consulting organization, Agribank scored first among Vietnamese banks in the Global 500 Most Valuable Banking Brand Rankings