Factors affecting customer satisfaction of services quality in digital bank Viettelpay = Các yếu tố ảnh hưởng đến sự hài lòng của khách hàng đối với chất lượng dịch vụ tại Ngân hàng số Viettelpay
INTRODUCTION
Research rationale
Developing digital banking services is an inevitable trend in light of increasing competition, and changes in people's transaction and payment habits that begin shifting from directly to online Especially when the banking industry is in charge of digital transformation, promoting non-cash payments, the level of competition in banking activities is and will be more and more exciting Digital banking products have many advantages over traditional banking services, helping the bank to save costs and improve competitiveness Along with that, digital banking has very high accuracy and fast services so it can best serve customers
According to the World Bank (2018) 1 , the amount of non-cash transactions in Vietnam is currently the lowest in the region at 4.9%, while the rates in China, Thailand and Malaysia are 26.1%, 59.7%, and 89% respectively These figures show that developing digital banking services in Vietnam has a big potential At the moment, digitization in both services and operation is a race between banks Vietnamese banks have to take steps in building a comprehensive information technology system before foreign bank infiltrate and gradually gain the market share This competitive trend has been and will continue to open new opportunities for banking industry in Vietnam It is forecasted that by 2020, about 40% of banking transactions will be carried out via mobile newtworks and devices, and about two third of banking operations will be carried out the IT system The application of digital technology has enabled banks to increase their profitability in the retail segment by up to 45% (The State Bank of Vietnam, 2017)
The trend of customers using digital banking is growing rapidly Over 3.4 billion people (about 46%) of the global population are using the internet with growth rates of 16% per year (Internet Worlds Stats, 2017) The World Bank Open Data in Financial Sector (2016) also emphasizes that the proportion of customer
1 https://tapchitaichinh.vn/ngan-hang/kiem-soat-cac-hinh-thuc-thanh-toan-trong-khu-vuc-kinh-te-phi- chinh-thuc-o-viet-nam-312063.html
2 using mobile banking services in 2015 is 30%, up to 33% in 2016, corresponding to the dercrease in percentage of internet banking users that has been slightly reduce from 65% (2015) to 59.4% (2016) The proportion of customers using social networks for transactions with banks increased from 9.8% (2015) to 11% (2016), corresponding to the reduction of customers to bank branches trading form 16.2%
(2015) to 3% (2016) in all over the world
In terms of supply in the banking market, the number of service providers in Vietnam has continued to accelerate the adoption of digital technology in their operation to meet the demands of non-cash payment and business digitization such as the Government‟s non-cash payment scheme, e-customer; Tax payment via internet/ Mobile Banking/ POS channels of the bank or collected via e-wallet of payment intermediaries; Payment in train tickets, air tickets through online payment system or bank cards; Tution fees, hospital fees through e-banking channels; All telecommunication units has payment services or telephone cards on the internet Thus, Vietnam‟s market with large population size, the high rate of users of telephone and internet is a potential market for digital banking
In recent years, Viettel has invested in establishing digital banking services During the period from the official launch in June, 2018 to the end of 2019, ViettelPay Digital Bank had more than 9 million customers and covered networks to all provinces nation-wide In 2020, the average monthly cash flow generated through ViettelPay reached 50,000 billion VND with 40 million transactions In
2021, ViettelPay increased the number of regular customers three times comparing to the year 2020 (ViettelPay yearly summary report)
Currently, there are 78 organizations providing Internet based payment services and 45 organizations providing mobile payment services (mobile payment) Thus, ViettelPay digital banking service of VIETTEL GROUP is facing fierce competition in the era of technology 4.0 Keeping customers using the service and developing more customers is very important As a result, research on customer satisfaction about ViettelPay digital banking service is necessary to promptly adjust policies and services for these customers Currently there has been no research on
3 customer satisfaction related to this new field at Viettel Group This is the reason for selecting the topic: Factors affecting customer satisfaction using service of digital bank ViettelPay
For the digital transformation businesses in the era of the industrial revolution
4.0, improving customer satisfaction plays an important role Customer satisfaction in the new digital service context will be an important basis for improving service quality, keeping customers, improving profitability, and expanding new customers Currently, many businesses have expanded research channels to improve customer satisfaction, thereby maintaining their competitiveness.
This study aims to 3 objectives:
- This study aims to explore the main factors affecting customer satisfaction using ViettelPay services
- At the same time, the study also measures the impact of those factors on customer satisfaction using ViettelPay digital banking service
- From the empirical results, solutions are proposed to improve the customer care in order to bring the best customer satisfaction to ViettelPay's service
- What factors affect customer satisfaction with digital banking services?
- Which factors have the most impact and the least impact on customer satisfaction with retail banking services?
- What should ViettelPay do to maintain and improve customer satisfaction?
- Scope of research: The study investigated the factors affecting customer satisfaction of service quality in ViettelPay digital bank
Research is conducted through two main phases:
(1) Qualitative research to develop and complete interview questionnaires
(2) Quantitative research through surveys of customers who have been using digital banking services ViettelPay by random sampling method Survey results are statistically, synthesized and processed by SPSS software to form an overall picture of customer satisfaction, thereby providing viable solutions to retain and develop customers
This thesis will follow the structure with 5 chapters:
Chapter 2: Theories of customer satisfaction in the field of digital banking services Chapter 3: Research design and Methodology
Chapter 4: Research results of the factors affecting of customer satisfaction using the Viettelpay digital banking services
Chapter 5: Conclusion and recommended solutions for improving the level of customer satisfaction on ViettelPay
THEORETICAL FRAMEWORK OF THE RESEARCH
Overview of digital banking services
Digital Banking is a new term emerging in the Vietnamese banking industry and has begun to receive a lot of attention from both professionals and customers Digital banking is a form of banking that digitizes all traditional services and operations of the bank (Skinner, 2014) In other words, all traditional service such as withdrawals, money transfers, term deposits, demand deposits, saving and funding account management are all digitized and integrated into a single digital banking aaplication Although digital banking and e-banking are similar in the execution of online transaction, e-banking is only a convenient simple utility for bank transaction, bill payments or account mamager while digital banking is a much boarder term In other words, e-banking only focus on digitizing some of the core banking features while digital banking implies all features and operations of the bank (SCN Education, 2001) Thus, digital banking is a modern banking model that operates on the basis of digitizing all activies while e-banking is only an additional service on the traditional banking platform with service such as: Internet and SMS banking
It is possible to consider digital banking as a modern form of banking – a new type of digital business Digital Banking can cover all aspects a common bank such as organizational structure, human resource management, operations and service (Kelman, 2016) All administrative paperwork could be digitized and simplified Digital banking has many advanced featrures such as 24/7 services with all transactions through the Internet and applications Digital banking also could be considered as no-branch banking or auto banking (Scardovi, 2017) Generally, digital banking is a technology-based platform for exchanging information as well as performing transactions and services between banks and customers (Wewege,
2017) This whole process is excuted through digital devices Customers do not have to go to the bank to make transactions and vice versa The bank also does not
6 have to meet customers to complete their transactions Digital banking is a combination of emerging tehnologies in financial instiutions to changes in internal and external relationships in order to effectively improve services for customers Moreover, it is aslo critical in enhancing the ability to adapt to the competitive business environment and improve the business management of commercial banks in the near future (Bachoo, 2017) 2
2.1.2 Features of Digital banking service
2.1.2.1 Convenient account opening in minutes
Digital self-onboarding allows customers to open a bank account no matter where they are or what device they are using Simplifying access to banking services and reducing the time to open an account to just a few minutes makes life easier for customers and removes barriers to switching
Next-generation onboarding consists of gathering and validating basic information about a customer, reviewing provided documents, and performing due diligence to ensure legal and regulatory compliance This process can be completed in about five steps in less than 5 minutes by using remote review services from ID and Optical Character Recognition (OCR) to automate the document review and validation steps
According to OneSpan.com, facilitating digital account opening is already a top priority for banks and financial institutions 68% of respondents are actively using it in their onboarding processes Self-onboarding not only greatly improves the customer experience, but also streamlines data collection and processing, allowing banks to allocate their resources elsewhere
P2P, or peer-to-peer payments, are a simple but effective solution that allows near-instantaneous money transfers between any device With just a few taps, customers can pay and send money to friends and family from their phone or
2Thanh Phuong Nguyen and Thi Lan Phuong Dang (2018) “Digital Banking in Vietnam current situation and Recommendations”, International Journal of
Invovation and Reseach in Education Sciences, Vol 5
7 computer Mobile-first customers have little patience for multi-day bank transfers that do not work on weekends when better and faster alternatives work 24/7/365 Banks that offer the convenience and simplicity of instant payments can keep their customers in their ecosystem instead of losing them to payment services like Venmo
With an automated digital application process, customers can effortlessly open additional accounts, obtain credit cards and apply for loans The ability to apply for any banking service with just a few clicks can improve conversion rates for existing and new financial products Lending is a core banking service that can benefit greatly from a next-generation digital strategy
By integrating the loan application process into a core banking system, customers do not have to re-enter their data that is already in the system Customers can save their applications and reopen them later, while banks can monitor these leads and follow up with assistance and personalized offers
Monthly and annual bills are recurring payments that take time Automating and providing management billing tools brings a new level of convenience for both individuals and customers By linking billers directly to bank accounts or cards, banks can give their customers the ability to centralize and control their spending through manual or scheduled bill payments Quick access to all subscriptions with a real-time overview prevents unexpected costs and gives customers peace of mind
As with scheduled payments, account holders can also send money from a single account to multiple recipients with bulk transfers Business transactions, salaries and other frequent payments can be streamlined to provide customers with a fast, easy and efficient way to process bulk payments
Digital banking services collect and store sensitive customer data that must be protected and kept secure with innovative technologies To deliver a next- generation customer experience, banks and financial institutions must meet
8 stringent regulatory data requirements and implement industry best practices Multi- factor biometric authentication, location-based security, suspicious activity notifications, card tokenization, and predictive fraud detection systems are a must for a modern banking experience
With in-app alerts and notifications, customers can monitor their financial activity and protect themselves from fraudulent withdrawals and transactions Real- time notifications of incoming and outgoing payments, low balance alerts, overdraft protection alerts and payment providers allow customers to stay on top of their finances Each app alert is also an opportunity for banks to offer better products and services to their customers
2.1.3 Comparision between Digital Banking and E-Banking
Similarities between Digital Banking and E-Banking as follows:
• All support banking products and services on digital technology platform
• Purpose built: Bringing the fastest, best and safest banking services to attract and support customers on the widest possible range
Difference between digital banking and e-banking
Table 2.1 Difference between digital banking and e-banking
The concept of digital banking is broader and more comprehensive than electronic banking
The concept of e-banking only reflects a part of the application of digitization in the banking sector, and does not require digital integration for the entire banking operation
Concept Digital banking brings all products and services of a bank into applications to support customers online without going to
Is a banking service that facilitates customers to use almost any banking product today, anywhere, at any time
9 a bank branch through an Internet connection
Feature • Online transactions like e- banking: International/domestic transfers, payments, shopping, mobile top-ups, e-wallets… and
• Loan products: borrow money right on banking applications
• Bank savings, management and liquidity savings
•Participating in investment products: Insurance, investment
• Open the card and lock the card on the app
•Add other information and shopping utilities
Device Phone, computer, laptop, ipad connected to the internet
Phone, computer, laptop, ipad connected to the internet
Theoretical background
2.2.1 Concept and classification of satisfaction
The concept of customer satisfaction plays a central role in the planning and implementation of marketing strategies Knowing the importance of satisfaction, researchers often try to find out the factors that determine or influence it According to Anderson and Srinivasan (2003), satisfaction is an emotional response from what customers receive from the service provider Customer satisfaction is the state/perception of the customer towards a service provider after using that service (Levesque and McDougall, 1996)
In the electronic environment, Szymanski and Hise (2000) have shown that customers' perception of convenience, goods/service information, interface design
10 and security play a key role for customer satisfaction when using the service The above factors can also apply to services in the digital environment Thus, the concept of satisfaction, like many other psychological definitions, is difficult to define and easy to misunderstand, this is an open concept
In brief, based on the above definitions, we can understand that customer satisfaction with digital banking services is the comparison between the actual benefits that customers perceive due to transactions with customers through this service with initial expectations set forth These expectations are formed on the basis of the benefits that customers get when make transaction directly with the bank and even those traditional transactions cannot bring to customers
The classification of customer satisfaction is very important It helps the bank understand the behavior of customers and then implement appropriate strategies for each customer group However, this classification is not easy, because banks often confuse customers between groups Therefore, the bank must be very clear to classify customers into exactly which group, in line with the strategic development goals of that group Below is a commonly used classification that can be applied to divide customer satisfaction with Digital Banking services That is the type of classification according to Bernd Stauss and Patricia Neuhaus (1997) Accordingly, we have 3 types as follows:
- Demanding customer satisfaction: When customers' demand for digital banking services is increasing, it shows a positive satisfaction This satisfaction is because customers feel that there are many improvements in the bank's service provision and they want to continue using this service And from the trust of customers, the bank will make more efforts to improve the quality of its services
- Stable customer satisfaction: This group of customers feels comfortable and satisfied with what is going on and they do not require any change in the way which the bank provides services Therefore, it is said that this group are cosy customers and the bank usually does not spend much time in marketing this service
- Resigned customer satisfaction: Customers with passive satisfaction have less trust in the bank They feel satisfied not because the bank completely satisfies their needs but they think that it is impossible to ask the bank to improve further
There have been several studies on measuring service quality and customer satisfaction relating to online and offline services It elaborates that there is strong relationship between service quality, brand perception and perceived value with customer satisfaction and loyalty
There are some different definitions of service According to Cronroos
(1984), "Services are actions or sequences of actions that represent interactions between customers and customer-contact staffs, physical resources or service delivery systems to solve customer‟s problems Similarly, Professor Ton That Nguyen Thiem (2005) defines that “Service is the fulfillment of promises from businesses to improve, establish or expand relationships with customers and markets The fact that customers can feel the ability to fulfill the above promises will completely determine the quality of that service
According to Philip Kotler (2000): “A service is any activity or benefit that a entity provides to another, in which the object provided is necessarily intangible and does not lead to the ownership of anything Also, the production of a service may or may not be tied to a physical product.” From that, we can conclude that “Service is a transaction without any tangible goods being transported from seller to buyer The value of the Service is demonstrated by the willingness of the buyer to make a decision to purchase the service
2.2.2.2 What is the service quality?
“Service quality perceptions result from a comparison of customer expectations with actual service performance.” And Service quality is more difficult for the consumer to evaluate than goods quality According to Parasuraman et al
(1985), service quality is the gap between customers' expectations (expectations) and their perceptions (perceptions) when they have used the service It is hard for
12 customers to evaluate service quality than goods quality “Service quality perceptions result from a comparison of customer expectations with actual service performance.” And Service quality is more difficult for the consumer to evaluate than goods quality
In addition, Nitecki (2000) also defines that service quality is the sastify or exceeding of customer expectations, or the difference between customer perception and expectation of service According to Cronin and Taylor (1992), service quality is defined as a form of attitude but not satisfaction, and is the result of a comparison between service expectations and the value received
2.2.2.3 Service quality and customer satisfaction
The relationship between expectation, perceived service quality and customer satisfaction have been investigated in a number of researches (Zeithaml, et al, 1988) They found that, there is very strong relationship between quality of service and customer satisfaction (Parasuraman et al., 1985 and 1988) The higher level of perceived service quality results in increased customer satisfaction When perceived service quality is less than expected service quality customer will be dissatisfied (Jain and Gupta, 2004) According to Cronin and Taylor (1992), satisfaction super ordinate to quality-that quality is one of the service dimensions factored in to customer satisfaction judgment Parasuraman, Zeithaml and Berry
(1988) posited that if there is expected quality of service and actual perceived performance is equal or near about equal there is customers can be satisfied, while a negative discrepancy between perceptions and expectations a “performance-gap” as they call it causes dissatisfaction, a positive discrepancy leads to customer delight
Literature review
2.3.1 Researches on customer sactisfaction of digital banking services
Fangfang Tao (2020) on “Customer Relationship Management based on Increasing Customer Satisfaction” emphasizes the main factors affecting customer satisfaction which focus on the analysis of customer expectations and managing customer expectations including the discussion on ideas from the theory The author considers how to evaluate customer satisfaction scientifically, taking corresponding measures on this basis, to enhance customer relationship management In customer perception, the analysis of customer satisfaction should have the basic elements According to the American Customer Satisfaction Index model, using correlation
14 analysis, evaluation index system was constructed The evaluation index system to improve customer satisfaction has some theoretical and practical value
Miah (2018) studies “Users‟ Satisfaction of Digital Banking Services in Finland” in his master thesis This research uses mixed-methods to measure customer‟s satisfaction and loyalty on digital banking services in Finland by adopting UTAUT2 (Theory of Acceptance and Use of Technology) theoretical framework and E-service quality dimensions Six independent variables are used in this study including: performance expectancy, effort expectancy, responsiveness, reliability, personalization, and security to measure customer satisfaction and customer satisfaction as a mediator between independent variables and dependent variable (i.e., customer loyalty) 190 valid respondents participated in an online survey Partial Least Squares Structural Equation Modelling (PLS-SEM) technique is applied to analyse the data Findings show that only responsiveness has no influence on customer satisfaction among those six variables All the other variables have positive impact on customer satisfaction, and customer satisfaction has positive influence on customer loyalty of digital banking services in Finland
Nguyen Hong Quan (2020) studies the factors affecting the satisfaction of e- banking service quality at Tien Phong Commercial Bank Based on survey database with 225 customers regularly using banking services of Tien Phong Bank Research results have shown that there are 6 factors affecting customer satisfaction with the use of e-banking services, including: reliability of e-banking services, responsiveness to e-banking service, electronic means, e-banking service capacity, customer empathy, e-banking service costs Similarly, Nguyen Thu Trang (2018) on the quality of e-banking services at Timo Digital Bank Vietnam - Ho Chi Minh Branch, focuses on introducing Timo digital banking and survey results on service quality provided by this bank Therefore, some recommendations were further developped this type of bank in the future
In summary, researches in Vietnam on customer satisfaction are mainly implemented for E-banking services For digital banking services, particularly at ViettelPay, the factors affecting customer satisfaction have not been studied
2.3.2 The Service Quality Model SERVQUAL (Parasuraman et al., 1985)
This model was formulated by Parasuraman et al (1988), is a multidimensional research tool, to measure service quality by capturing the expectations and perceptions of the respondents The initial ten dimensions that were believed to represent service quality were:
1 Access: involves approachability and ease of contact
2 Communication: means keeping customers informed in language they can understand and listening to them
3 Competence: means possession of the required skills and knowledge to perform the service
4 Courtesy: involves politeness, respect, consideration, and friendliness of contract personnel
5 Credibility: involves trustworthiness, believability, honesty It involves having the customer‟s best interests at heart
6 Reliability: involves consistency of performance and dependability
7 Responsiveness: concerns the willingness or readiness of employees to provide service
8 Security: is the freedom from danger, risk, or doubt
9 Tangibles: includes the physical evidence of the service
10 Understanding/Knowing the Customer: involves making the effort to understand the customer‟s needs
Figure 2.1 Determinants of Perceived Service Quality
Source: A conceptual model of service quality and its implications for future research” Parasuraman, A., Zeithaml, VA, and Berry, LL (1985)
Researching model including 10 dimensions of service quality as above has the advantage of covering all aspects of a service However, this model is quite complicated and difficult to measure, and does not reach discriminatory validity in some cases Therefore, Parasuraman et al (1985) gave a scale of 5 components which in testing, appear to be relatively stable and robust:
1 Reliability: Ability to perform the promised service dependably and accurately
2 Responsiveness: Willing to help customers and provide prompt service
3 Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence
4 Empathy: Caring, individualized attention the firm provides its customers
5 Tangible Media: Physical facilities, equipment, and 16 appearance of personnel
The dimension assurance and empathy contain items representing seven orginal dimension – communication, credibility, security, competence, courtesy, understanding/knowing customers, and access – that did not remain distinct after the two stages of scale purification Therefore, while SERVQUAL has only five distinct dimensions, they capture facets of all 10 originally conceptualized dimensions Nyeck và cộng sự (2002) stated the SERVQUAL measuring tool
“appears to remain the most complete attempt to conceptualize and measure service quality” The SERVQUAL measuring tools has been used by many researchers across a wide range of service industries and contexts, such as healthcare, banking, financial services, and education
The service quality can be conceptualised as a simple equation: SQ = P – E, where: SQ is service quality; P is the individual‟s perceptions of given service delivery; E is the individual‟s expectations of a given service delivery When customer expectations are greater than their perceptions of received delivery, service quality is deemed low When expectations exceed expectations then service quality is high
2.3.3 SERVPERF model (Cronin and Taylor, 1992)
Cronin and Taylor (1992) in their empirical work controverted the framework of Parasuraman, Zeithaml and Berry (1985, 1988) with respect to conceptualization and measurement of service quality, and propounded a performance-based measure of service quality called „SERVPERF‟ illustrating that service quality is a form of consumer attitude They argued that SERVPERF was an enhanced means of measuring the service quality construct Their study was later replicated and findings suggest that little if any theoretical or empirical evidence supports the relevance of the E-P (quality gap as the basis for measuring service quality) Levelling maximum criticism against SERVQUAL scale, Cronin and Taylor (1992) provided empirical evidences across four industries viz fast food, pest control, dry cleaning and banking to support the superiority of their
„performance only‟ scale over SERVQUAL scale retaining the same items as had
18 been proposed by the Parasuraman, Zeithaml and Berry (1988) In equation form, SERVPERF service quality can be expressed as:
= Perceived service quality of individual „i‟ k = Number of attributes/ items
P = Perception of individual „i‟ with respect to performance of a service firm on attribute „j‟
On the basis of the SERVQUAL model, Cronin and Taylor (1992) argued that service quality is best reflected by perceived quality without the expected quality Therefore, this scale retains the observed dimensions and variables of the SERVQUAL scale, but it removes the assessment of expectations and retains only an assessment of the customer's perception of the service received by them This conclusion was supported by the studies of Lee et al (2000) and Brady et al (2002)
2.3.4 Research model of the thesis
Considering the topic researching factors affecting customer satisfaction with ViettelPay digital banking services, the important factor affecting service user satisfaction can be considered as quality service Therefore, the author considers between two models SERVQUAL and SERVPERF According to Parasuraman et al (1991), SERVQUAL is a complete measure of service quality, value and reliability, and can be applied to all different types of services However, according to Cronin and Taylor (1992) as well as other authors such as Quester and Romaniuk
(1997), Lee et al (2000), Brady et al (2002), the SERVPERF model will give better results than SERVQUAL Besides, the questionnaire according to SERVPERF model is more concise than SERVQUAL, not confusing, boring and time consuming for respondents In addition to the lengthy questionnaire, the concept of expectations was rather vague for respondents
Therefore, the thesis will take the SERVPERF scale as the foundation to build a research model It will eliminate the assessment of expectations, focusing
19 only on the customer's perception This current study only focuses on testing the theoretical model, the hypothesis about the relationship between the components of service quality and service fee components with customer satisfaction when using digital banking services at ViettelPay Based on the theoretical basis and analysis above, the theoretical model and hypotheses of the thesis are proposed as follows:
Figure 2.2: Theoretical model of the topic
1 Hypothesis S1: Reliability component is positively correlated with customer satisfaction
2 Hypothesis S2: Component responsiveness is positively correlated with customer satisfaction
3 Hypothesis S2: The assurance component is positively correlated with customer satisfaction
4 Hypothesis S2: Empathy component is positively correlated with customer satisfaction
5 Hypothesis S2: Tangible media composition is positively correlated with customer satisfaction
6 Hypothesis S2: Service fee component is positively correlated with customer satisfaction
The factors in SERVPERF model are applied to the form of digital banking The factors in the Figure 2.2 model are explained as follows:
RELIABILITY involves consistency of performance and dependability It means that the firm performs the service right the first time It also means that the firm honors its promises Specially, it involves:
- Performing the service at the designed time
RESPONSIVENESS concerns the willingness or readiness of employees to provide service It involves timeliness of service:
- Giving prompt service or system response quickly on error transaction
ASSURANCE: Knowledge and courtesy of employees and their ability to inspire trust and confidence
- Customer feel safe when transacting on the application
EMPATHY: Caring, individualized attention the firm provides its customers
- Explaint how much the service cost (the bank proactively informs customers when the bank fee change)
- Assuring the consumer that a problem will be handled
TANGIBLE MEDIA: Physical facilities, equipment, and appearance of personnel
- Physical facilities (ATM card widely used at ATMs of many banks)
- Tools or equipment used to provide the service (User friendly interface, operate-easily interface by application)
SERVICE FEE: Customers are interested in fee such as money transfer fees compared to other banks, ATM withdrawal fees, stability of fees
RESEARCH METHODOLOGY
Research process
The process of this study is shown in Figure 3.1 This process begins with the speaking out research question and setting up research objectives and end up with the results explaining and solutions proposing
The research results were collected by interviewing that use a questionnaire The questionnaire was built based on the proposed research model resulting from theoretical background The following step was data processing using SPSS software In this step, data from survey was input and cleaned, analysis were done then (descriptive statistics, Cronbach‟s alpha test, Exploratory Factor Analysis (EFA) and correlation and regression analysis) The last main part of this study is the results and proposed solutions
The study was designed based on quantitative method After building the scale, setting questionnaire and sending it to interviewees, the aims of this method are to collect and analysis survey data, to estimate and test research scale and model The proposed scale is presented as the below Table 3.1, This table also shows the acronyms of the variables
REL1 The Bank's services are performed accurately and quickly
REL2 Transaction information is saved and easy to look up
REL3 Customers‟ inquiries or complaints about services are always satisfactorily resolved by the Bank REL4 Using secure methods for transactions
RESPONSIVENESS RES1 Transaction processing speed is fast (doesn't take into account poor network factors or slow speed phones) RES2 Diverse services provided on the app
RES3 System response quickly on error transaction
RES4 VTPay Digital Bank's money transfer service is widely linked with other banks in the same system RES5 Customer complaints is solved in short time
ASS1 Keep confidentially customer information
ASS2 Username and password are well secured
ASS3 You feel safe when transacting on the app
EMP1 The bank proactively informs customers when the bank fee change
EMP2 The bank informs customers when the system fails or is temporarily
24 unusable (upgrade, ) EMP3 Instruct fully customer on registration procedures, package upgrades, questions when customer use the app
TANG1 User-friendly interface, operate-easily interface
TANG2 ATM card widely used at ATMs of many banks
TANG3 Save unlimited bank account information for next time usage
FEE1 Transaction fees is competitive compared to other e-banks
FEE2 VTPay's service fee is always stable
FEE3 Customers feel satisfied when Viettelpay charge no fee for withdrawing money at any bank‟ ATMs in Vietnam FEE4 Accumulate points and link many online consumming promotions
SAT1 You will use VTpay digital banking service when you have demand SAT2 You will introduce friends/acquaintances to use VTpay Digital Banking services SAT3 Are you satisfied when using VTPay's services?
OBJECT Are you a Business or an individual
TIME Time to use VTPay service
FRE Frequency of using VTPay services
Source: reference to SERVPERF model (Cronin and Taylor,1992)
The questionnaire uses Likert scale with 5 response options, from 1 to 5 with the meanings: “Strongly disagree”, “Disagree”, “Neutral”, “Agree”, “Strongly agree”, respectively The answers show how much the respondents agree with the statement The questionnaire includes 3 parts:
Part 2: The main part consists official statements connecting to factors affecting customer satisfaction of services quality in digital bank ViettelPay
The questionnaire is attached in appendix.
Sampling and data collection approach
* Sample size and sampling method
Random sampling was used to collect data To calculate the sample size, the research topic used the following formula:
Due to the property p + q = 1, so pq will be max when p = q = 1, so pq = 0.25
We calculate the sample size with a confidence of 95% and a tolerance of e = 8% Then the sample we need to choose will have the largest sample size:
In which: n is defined as sample size; Z: corresponding value of the statistical domain (threshold value of the normal distribution) With the significance level α 5%, Z = 1.96; P = 0.5 is the maximum scale So, the sample size needed is 150 observations According to Nguyen Dinh Tho and Nguyen Thi Mai Trang, the sample size used in factor analysis must be at least 4 to 5 times higher than the number of observed variables for the survey results to be meaningful However, in the limit of investigation with some other factors, the author investigated 150 samples
Survey method: Send survey form to each customer, estimated sample size is about 150 observations
The sampling method was used in this research is convenience sampling The author created an online version of questionnaire on docs.google.com The link of this version was then sent to Viettel people via messenger, zalo and viber 100%
Data analysis method
Vietteller use Viettpay because their salary is transfered to their ViettelPay account Right after the questionnaire was responded by the first respondent, attached result chart and excel file would be created and they were kept updating continuously in the collection process These responds were selected, rejected inappropriate responds and input to quantitative analysis Because of testing online, this research can collect the sample in the whole territory of Vietnam Actually, the author carries out survey to the customers in big city like Ha noi and Ho Chi Minh where people currenly are familiar with the modern technology in banking transactions
A questionnaire was built based on proposed research model after consulting customer‟s opinions To meet the requirement of the minimum sample, the questionnaire was sent to customer who use ViettelPay service from May 2022 to June 2022 A total 230 questionnaires were sent out and 220 respondents were collected, 216 of them are qualified Data was then analyzed by SPSS
After collecting online responds, all the responds were examined to reject unsatisfactory ones Responds were extracted to an excel file, coded, input and cleared by SPSS 20 software In order to evaluate the statistical significance of the scale in the study, usually the scales are preliminarily evaluated through two main tools: Cronbach Alpha reliability coefficient and EFA exploratory factor analysis
3.4.1 Testing the scale by the reliability coefficient Cronbach Alpha
Alpha coefficient is used to determine the reliability of the scale (including 3 or more observed variables) This method allows to eliminate inappropriate variables and limit garbage variables in the research process This coefficient has a value ranging from [0.1] and in theory the higher the cronbach alpha the better However, this is not really true because if this coefficient is too large (α > 0.95), it shows that there are many variables in the scale that do not have any difference And if Cronbach α > 0.6 is an acceptable scale in terms of reliability (Nunally & Burnstein, 1994) Therefore, a scale has good reliability when it varies in the range [0.7 - 0.8] In addition, according to
Nunally & Burnstein (1994), a measurement variable with a total (adjusted) variable correlation coefficient >= 3, that variable meets the requirements
3.4.2 Testing the scale by exploratory factor analysis (EFA)
Exploratory Factor Analysis (EFA): from the results of the scale reliability analysis, remove inappropriate variables and determine which variables will be used in the next EFA process This analysis will answer the question: the observed variables used in considering the impact on customer satisfaction on service quality of ViettelPay digital bank EFA analysis is mainly used to evaluate the convergent and discriminant validity of the scale According to research by Nguyen Dinh Thi
(2011), the process of exploratory factor analysis should be carried out by researchers according to the following steps:
- Step 1: Consider the Kaiser-Meyer-Olkin coefficient (KMO) to know the suitability of the factor analysis process The accepted scale will have a coefficient of 1≥ KMO ≥ 0.5 If the KMO index does not satisfy the above conditions, it is likely that the discovery factor is not suitable for the data set
- Step 2: Bartlett's test to find out about the correlation of variables and sums
If the test has Sig ≤ 0.5, showing that the observed variables are correlated with each other in the population
- Step 3: consider the characteristic Eigenvalue to comment on the variation explained by each factor The condition is that this value must be greater than 1, in order to determine the factor to be drawn
- Step 4: when the total variance quoted is greater than 50%, the scale is accepted, with this ratio explaining the factor to be drawn
- Step 5: With factor loading Factor loading, must be greater than or equal to 0.5, then it is considered to be of practical significance Using extraction method
“Principal Component” with rotation “Varimax”
Examine the relation between dependent variables and independent variable
If the sig < 0.05, dependent variable significantly relates to independent variable
If the sig > 0.05, Pearson's correlation coefficient (r) has no statistic significant, it was rejected If r > 0, the relation is positive If r < 0, the relation is negative
Estimate and access the strength of relationships between a dependent variable and one or more independent variables Using some indexes of Model Summary table (adjusted R 2 ), ANOVA table (sig of F test), Coefficients table (beta, sig., VIF)
EMPIRICAL RESULTS OF SATISFACTION OF DIGITAL
Overview of Digital bank in Vietnam
Data from regulatory agencies show great changes in the development of digital banking in recent times Statistics from the State Bank of Vietnam (SBV) show that up to 94% of credit institutions are implementing or building a digital transformation strategy
By August 2020, there were 75 organizations deploying payment services via the internet and 45 organizations implementing via mobile phones
Table 4.1- Stages of digital banking development
1 Digitization Stage This is the stage where banks improve operational efficiency by applying technology to individual data, resources or processes in their operations At this stage, banks will change traditional and manual services and processes to digital, online or computerized processes
This is the period when banks begin to digitize all banking activities to create customer experience, support customer needs and what they want Digital transformation in banks involves integrating and connecting phase 1 digital processes together to deliver a personalized customer experience
This is the stage when banks combine technology and digital platforms like never before to generate revenue and results through innovative product and experience strategies Digital reinvention in banking requires banks to fundamentally redefine how they interact with customers and stakeholders
In Vietnam, most of the big banks have gone through the digitization phase and are in the digital transformation stage (automation of processes) which integrate various communication channels and digital processes to provide customers with
“personalized experiences” The rest of the banks are at the first level of transformation - digitalization in the data base Some small commercial banks have strongly shifted their investments to digital technology Typical is the case of OCB, TPBank OCB's OMNI synchronously connects all communication channels with customers, in which all banking services are integrated on a single digital platform so that customers can use all services without going to the counter Some banks tend to set up a new business or set up pure digital banking Accordingly, digital banking is said to be a separate business segment targeting new customer segments, independent of traditional business activities, typical examples are Timo of VPBank, LiveBank of TPBank This is considered a fully automatic 24/7 digital banking model that can perform almost all transactions like a traditional branch without having to directly contact the bank staff Large-scale banks such as Vietcombank, VietinBank, BIDV, ACB, MB, etc., focus on digital transformation of traditional business activities combined with creating new products and service channels for customers, exploiting new business segments on the basis of combination with Fintech applications
Some banks such as TPBank, MB have recorded more than 80% of transactions done on digital platforms Tens of millions of customers are using applications: digital banking applications VCB Digibank, VietinBank iPay, BIDV Smart Banking, eBank X of TPBank; OCB's Omni-Channel; to perform daily transactions and payments Through the available data, it can be expected that the number of customers using digital channels will reach 60% in the next 3-5 years
Table 4.2: Growth in digital banking usage at VPBank
Result Number of users Value of transactions
Source: VPBank's performance report in June 2019
Overview of ViettelPay Digital Bank
On June 29, 2018, ViettelPay, a product of Viettel Digital Services Corporation, was officially born This is the first digital banking application in Vietnam that allows people in all parts of the country to use it Simple operation, convenient, compatible with all phones Up to now, ViettelPay has surpassed the milestone of more than 15 million users, bringing home many prestigious national and international awards such as: Sao Khue Award 2020; Vietnam Digital Awards 2020; Smart payment solution Vietnam Smart Cities 2020
ViettelPay operates in the country with a nationwide network of transaction points and payment acceptances ViettelPay's channel system covers every ward and commune across the country with more than 15,000 local employees, 4,000 direct stores, and supermarkets The product has the ability to reach the entire Vietnamese market, diversifying the customer base: rural, urban, and remote areas; customers using smartphones and featurephones; subscribers of all types of networks, of all ages Every month, ViettelPay processes millions of payment transactions with a value of tens of thousands of billion VND, the cash flow on ViettelPay in 2019 reached more than 130,000 billion VND As a result, ViettelPay became the fintech application with the fastest user growth in Vietnam in 2019, in the context of more and more fintech companies participating in this field
In 2019, after 9 months of providing payroll products for businesses, ViettelPay has provided services to more than 1,000 partners, paying nearly 800 billion VND/month The service of paying salaries to ViettelPay has helped many workers in remote, island and mountainous areas for the first time have the opportunity to receive their salary into a safe, convenient and fast bank account for the first time quick and easy to access Revenue of ViettelPay in 2019 was more than 2,800 billion VND In particular, ViettelPay has also implemented the payment of tuition fees at 450 schools, in 20 provinces and cities across the country This service contributes to the universalization of e-banking services to remote and
32 isolated areas, contributing to the realization of the Government's Resolution 02/2019 on promoting non-cash payments
For individual customers: ViettelPay meets most of the daily needs of Vietnamese people:
Diverse sources of money – allowing customers to easily access services through:
• Top up at transaction points throughout 63 provinces and cities
• Receive money via ViettelPay account and card number
• Transfer, receive money: o Transfer (interbank, to phone number, account number, card number) o Transfer and receive money via QR code ViettelPay o Cash transfer to the recipient's hand, fast money transfer 2-4 hours, throughout 63 provinces and cities in Vietnam
• Saving, borrowing, digital investment: simple procedure, quick operation right on the phone
• Physical ATM card: allows withdrawing money at ATMs nationwide and making payments easily
• ViettelPay Mastercard: allows to issue non-physical international prepaid cards on the app, without any maintenance fees or financial proof, for online payment at card-accepting units
Telecommunications service group: top up phone cards, buy scratch cards, buy 3G/4G data
• Easily pay bills: electricity, water, television, internet, telecommunications, credit repayment (can register for automatic monthly payment)
• Travel, shopping: book train tickets, airplane tickets, book hotels, buy movie tickets, order food, coffee, buy gifts which process on your phone
For corporate customers: ViettelPay provides payment intermediary service solutions:
• Collection/payment service: is an extension of the partner's arm, taking advantage of the channel network covering 63 provinces and cities, Viettel's employees work all day off and holidays, allowing partners to authorize ViettelPay collects/disburses salaries, bonuses, commissions, etc for officials and employees The collection/payment service allows partners to optimize human resources, transparently collect and spend, access to many areas with more flexible working time
• Payment gateway: Customers can pay and order online and quickly through Viettel's payment gateway with a variety of money sources: international cards, domestic cards, ViettelPay
• Payment acceptance points: Customers using ViettelPay make quick and simple payments with just a few taps on their phones at Viettel's payment acceptance points nationwide.
Customer satisfaction survey results at ViettelPay
Through analyzing the frequency, the author gets the descriptive analysis results on the characteristics of the survey object as follows:
Table 4.3 - Object of the survey
Percen t Valid Percent Cumulative Percent
Source: Survey by the author
The number of individual customers accounts for a big proportion, and the number of businesses is small In fact, the number of individual customers is up to
15 million people, while the number of businesses is about 1000 corporate customers
Table 4.4 - Occupation in the survey
Source: Survey by the author
The respondents are of various professions, in which office staff account for the main proportion of 88% with 190 customers; this is a high rate At the same time, they have regular income, relatively high education level suitable for using digital banking services Thus, it is necessary to maintain and continue attractting this important force
Table 4.5 - Customer’s age in the survey
Frequenc y Percent Valid Percent Cumulative
Customer using ViettelPay service are of many different ages, but mainly in the age 31-45, accounting for 66.2% At this age, the customers are quite "sensitive" to the changes of new technology and are active in finding new applications Thus, this group of customers mainly uses digital banking services provided by ViettelPay Those who are at the age form 24 – 30 account for lower rate of 17.1% with 37/216 people They are very receptive to technology, quickly catching up with new trends They have job and income as well Thus, they are potential customer for a lot of banking transactions such as money transfer, shopping, bill payment and savings Therefore, in the coming time, ViettelPay needs to approach this group, creating opportunities to expand the potential market for service development
Table 4.6 - The frequency of Uses
Frequency Percent Valid Percent Cumulative
Source: Survey by the author
The data shows that ViettelPay application is used very often and regularly with 55.6% and 38.9% respectively As such, their responses and assessments in this survey will closely reflect reality
Purpose Transfer money through the bank 37 14.7% 17.1%
Pay bills, recharge phone cards, shopping 177 70.2% 81.9%
Source: Survey by the author
Customers using VTPay service to pay bills, recharge phone cards, shopping with the highest rate of 70.2% such as payment for telecommunications, electricity, water, school fees, air tickets, hotel rooms, etc When paying phone/internet charges via VTPay, customers will hae an additional discount of up to 10%, data 20% Although this proportion is large, these transactions are often small value Money transfer transactions are common transactions in the banking sector, the above data showing that remittance transactions account for 14.7%, which is not a high number Savings service with the rate of 13.5% is a number that shows that customers trust ViettelPay when using this service
Table 4.8 - Quantity of digital bank used by customer
Source: Survey by the author
There are up to 56% of customers using 2-3 digital banks and 31.9% using 1 digital bank, only 12% of customers using over 3 digital banks Digital banking is gradually becoming familiar to customers This shows that customers have many choices and high competition in this field
4.3.2 The verification of the scale
Cronbach's Alpha coefficient is a statistical test of the degree to which the question items on the scale are correlated This relates to two aspects: the correlation between the variables and the score correlation of each variable with the scores of all variables for each respondent This method allows the analyst to remove the non-conforming variables, limiting the garbage in the research model because otherwise we cannot know the exact variation as well as the error of the variables Accordingly, only variables with the corresponding total variable correlation coefficient greater than 0.3 and Cronbach's Alpha coefficient greater than 0.6 are considered acceptable and suitable for further analysis Test results for the observed variables are shown as follows:
Table 4.9 – Result of Cronbach's Alpha coefficient for the observed variables
Cronbach's Alpha if Item Deleted
REL1 The Bank's services are performed accurately and quickly 556 800
REL2 Transaction information is saved and easy to look up 666 749
Customers‟ inquiries or complaints about services are always satisfactorily resolved by the Bank
REL4 Using secure methods for transactions 668 748
Transaction processing speed is fast
(doesn't take into account poor network factors or slow speed phones)
.811 RES2 Diverse services provided on the app 614 770
RES3 System response quickly on error transaction 628 766
VTPay Digital Bank's money transfer service is widely linked with other banks in the same system
RES5 Customer complaints is solved in short time .640 762
ASU1 Keep confidentially customer information 699 732
ASU2 Username and password are well secured 662 770
ASU3 You feel safe when transacting on the app 672 761
EMP1 The bank proactively informs customers when the bank fee change 640 684
The bank informs customers when the system fails or is temporarily unusable (upgrade, )
Instruct fully customer on registration procedures, package upgrades, questions when customer use the app
TAN1 User-friendly interface, operate- easily interface 597 753
.788 TAN2 ATM card widely used at ATMs of many banks 642 701
TAN3 Save unlimited bank account information for next time usage 653 687
FEE1 Transaction fees is competitive compared to other e-banks 685 805
FEE2 VTPay's service fee is always stable 630 828
Viettelpay charge no fee for withdrawing money at any bank‟
FEE4 Accumulate points and link many online consumming promotions 690 803
SAT1 You will use VTpay digital banking service when you have demand 648 712
You will introduce friends/acquaintances to use VTpay
SAT3 Are you satisfied when using
Source: Results from the author's survey data
The analytical results in Table 4 9 show that Cronbach's Alpha coefficients of all survey scales are greater than 0.6, in which the lowest is the dependent variable
"Empathy” scale for with Cronbach's Alpha coefficient = 0.782 and the highest is the
“Service fee” scale with Cronbach's Alpha coefficient = 0.847 This means that the survey data is completely reliable Moreover, the total variable correlation coefficients of all observed variables with the factors they represent are greater than 0.3, in which the lowest one is the RES4 scale with the total variable correlation coefficient of 0.515 and the highest one is FEE3 scale with a total variable correlation coefficient of 0 731 This
40 shows that the respondents have a concept of the group of factors given by the scales/observed variables representing that factor, so the scales are reliable Based on above results, the scales/observed variables and factors are retained for the next analysis
4.3.3 Results of exploratory factor analysis (EFA)
After ensuring that the data is reliable, the next analysis is to analyze the Exploratory Factor Analysis (EFA) factor to make a judgment about the convergence of the factors and the number of factors given from the survey data The factor analysis results are required to meet the following requirements: KMO coefficient (Kaiser - Meyer - OlKIN) ≥ 0.5, significance level of Bartllett test ≤ 0.05, Factor Loading ≥ 0.50, if any observed variable has a loading factor > Tất cả các biến quan sát đều có Corrected Item-Total Correlation lớn hơn 0.3
Hệ số Cronbach‟s Alpha của thang đo lớn hơn 0.6, như vậy thang đo đảm bảo độ tin cậy
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
>> Tất cả các biến quan sát đều có Corrected Item-Total Correlation lớn hơn 0.3
Hệ số Cronbach‟s Alpha của thang đo lớn hơn 0.6, như vậy thang đo đảm bảo độ tin cậy
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
>> Tất cả các biến quan sát đều có Corrected Item-Total Correlation lớn hơn 0.3
Hệ số Cronbach‟s Alpha của thang đo lớn hơn 0.6, như vậy thang đo đảm bảo độ tin cậy
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
>> Tất cả các biến quan sát đều có Corrected Item-Total Correlation lớn hơn 0.3
Hệ số Cronbach‟s Alpha của thang đo lớn hơn 0.6, như vậy thang đo đảm bảo độ tin cậy
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
>> Tất cả các biến quan sát đều có Corrected Item-Total Correlation lớn hơn 0.3
Hệ số Cronbach‟s Alpha của thang đo lớn hơn 0.6, như vậy thang đo đảm bảo độ tin cậy
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
>> Tất cả các biến quan sát đều có Corrected Item-Total Correlation lớn hơn 0.3
Hệ số Cronbach‟s Alpha của thang đo lớn hơn 0.6, như vậy thang đo đảm bảo độ tin cậy
Kaiser-Meyer-Olkin Measure of Sampling
Extraction Method: Principal Component Analysis
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations
>> Loại biến RES4 do biến này có hệ số tải nhỏ hơn 0.5 Loại biến REL3 do biến này tải lên ở cả 2 nhân tố Chạy lại lần 2:
Kaiser-Meyer-Olkin Measure of Sampling
>> KMO = 0.827 > 0.5 nên phân tích nhân tố là phù hợp
>> Sig (Bartlett‟s Test) = 0.000 (sig < 0.05) chứng tỏ các biến quan sát có tương quan với nhau trong tổng thể
Extraction Method: Principal Component Analysis
>> Eigenvalues = 1.083 > 1 tại nhân tố thứ 6, như vậy 6 nhân tố rút trích được từ
EFA có ý ghĩa tóm tắt thông tin các biến quan sát đưa vào tốt nhất
>> Tổng phương sai trích: Extraction Sums of Squared Loadings (Cumulative %) 69.486% > 50 % Điều này chứng tỏ 69.486% biến thiên của dữ liệu được giải thích bởi 6 nhân tố
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations
Kaiser-Meyer-Olkin Measure of Sampling
>> KMO = 0.697 > 0.5 nên phân tích nhân tố là phù hợp
>> Sig (Bartlett‟s Test) = 0.000 (sig < 0.05) chứng tỏ các biến quan sát có tương quan với nhau trong tổng thể
Initial Eigenvalues Extraction Sums of Squared Loadings Total
Extraction Method: Principal Component Analysis
>> Kết quả ma trận xoay cho thấy, có một nhân tố được trích từ các biến quan sát đưa vào phân tích EFA Phương sai trích được giải thích là 71.098% tại eigenvalue là 2.133 > 1
SAT REL RES ASU EMP TAN FEE
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
>> Kết quả cho thấy tất cả các giá trị sig tương quan Pearson giữa các biến độc lập với biến phụ thuộc đều nhỏ hơn 0.05 Như vậy các biến độc lập đều có tương quan tuyến tính với biến phụ thuộc.