Determinants of the decision to use E-Banking at the Joint Stock Commercial Bank for Investment and Development of Vietnam – My Tho Branch, 2021

STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING

BANKING UNIVERSITY HO CHI MINH CITY

PHẠM NGỌC ANH

DETERMINANTS OF THE DECISION TO USE E-BANKING AT

THE JOINT STOCK COMMERCIAL BANK FOR INVESTMENT

AND DEVELOPMENT OF VIETNAM – MY THO BRANCH

GRADUATION THESIS

MAJOR: FINANCE AND BANKING

CODE: 7340201

--- Ho Chi Minh City, June 2021 ---

STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING

BANKING UNIVERSITY HO CHI MINH CITY

PHẠM NGỌC ANH

DETERMINANTS OF THE DECISION TO USE E-BANKING AT

THE JOINT STOCK COMMERCIAL BANK FOR INVESTMENT

AND DEVELOPMENT OF VIETNAM – MY THO BRANCH

GRADUATION THESIS

MAJOR: FINANCE AND BANKING

CODE: 7340201

SUPERVISOR

TRẦN NGUYỄN MINH HẢI, PhD.

--- Ho Chi Minh City, June 2021 ---

i

ABSTRACT

Title: DETERMINANTS OF THE DECISION TO USE E-BANKING AT

THE JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND

DEVELOPMENT OF VIETNAM – MY THO BRANCH.

In the era of technology 4.0, according to the government's policy and the

command of the State Bank of Vietnam on promoting the development of non-cash

payments, in recent years, electronic banking services (E-Banking) have been

considered as one of the most concerning issues by Joint Stock Commercial Banks

and considering the determinants of the decision to use E-Banking services have

always been a very important issue. Because of E-Banking advantages, the user

decision to use these services receives great attention from banks, including BIDV

My Tho.

Based on the survey results at the branch, the thesis has identified five factors

that have a positive impact on the customer's decision to use E-Banking services,

which are (1) Perceived usefulness, (2) Social influence, (3) Branch image, (4)

Facilitating condition and (5) Safety/Security. In addition, the thesis also surveyed

the group of people who have not yet decided to use the services about the reasons

why they have not used the services at the branch and learned that they would use it

if the branch meets some of their requirements.

In the article, the thesis has presented the role and meaning of customers'

decision to use E-Banking services, outlined the theoretical basis and related

empirical studies, analyzed the actual situation at BIDV My Tho using regression

model, and eventually proposed some solutions on the decision to use E-Banking

services at the branch via the above analysis.

Keywords: Decision to use, E-Banking, BIDV My Tho.

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COMMITMENTS

I hereby declare that this thesis is my own work with the support of supervisor

Trần Nguyễn Minh Hải, PhD., a lecturer of Faculty of Finance, Banking University

Ho Chi Minh City. The thesis does not copy other research, all statements information

contained herein are correct and accurate to the best of my knowledge and belief. The

data and information used in the report are clearly cited and honestly.

Ho Chi Minh City, ........................................

Author

Phạm Ngọc Anh

iii

ACKNOWLEDGEMENT

First of all, I would like to express my sincere thanks to the lecturers of

Banking University Ho Chi Minh City who enthusiastically helped me a lot during

my 4 years studying at school. In the past 4 years, I have gathered a lot of knowledge

and experience from passionate lecturers. All of it is the basis and premise for me to

write my graduation thesis. This completed article would not be done without the

assistance of lecturers, especially my supervisor - Trần Nguyễn Minh Hải, PhD., who

has always supported and facilitated me to complete this thesis.

In addition, I would also like to express my sincere gratitude to the Executive

Board, the staff at the Joint Stock Commercial Bank for Investment and Development

of Vietnam - My Tho Branch for always facilitating me to collect information so that

I can have the basis to complete the article. Besides, I also acknowledge my

thankfulness to customers at BIDV My Tho who participated in the survey, helping

me to have data to conduct my research.

Due to the limitation of time, knowledge, and practical experience, this thesis

certainly still has many shortcomings in the implementation process. I am looking

forward to receiving the sincere responses of lecturers to improve this thesis. That is

the basis, the premise for me to improve my knowledge in the future.

Best regards!

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TABLE OF CONTENTS

LIST OF ABBREVIATIONS............................................................................... viii

LIST OF TABLES AND FIGURES........................................................................x

CHAPTER 1. INTRODUCTION............................................................................1

1.1. Research motivation ...........................................................................................1

1.2. Research objectives.............................................................................................3

Overall objectives ........................................................................................3

Specific objectives.......................................................................................3

Research questions.......................................................................................3

1.3. Research subjective and research population .....................................................3

Research subjective......................................................................................3

Research population.....................................................................................3

1.4. Research scope....................................................................................................3

Geographic location.....................................................................................3

Duration .......................................................................................................4

1.5. Research methodology........................................................................................4

Research approaches....................................................................................4

Data collection methods...............................................................................5

1.5.2.1. Primary data ..........................................................................................5

1.5.2.2. Secondary data ......................................................................................5

Data processing methods.............................................................................5

1.6. Research contributions........................................................................................6

Theoretical contributions.............................................................................6

Empirical contributions................................................................................6

1.7. Research process framework ..............................................................................7

1.8. Thesis structure ...................................................................................................8

CHAPTER 2. LITERATURE REVIEWS ...........................................................10

2.1. An overview of Electronic-Banking services (E-Banking)..............................10

Electronic commerce (E-commerce) .........................................................10

Electronic Banking services.......................................................................11

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2.1.2.1. Definition ............................................................................................11

2.1.2.2. Role of E-Banking in Joint-Stock Commercial Banks.......................11

Types of E-Banking services.....................................................................12

2.1.3.1. Internet Banking..................................................................................12

2.1.3.2. Automatic Teller Machine (ATM)......................................................12

2.1.3.3. Mobile Banking ..................................................................................12

2.1.3.4. Phone Banking ....................................................................................13

2.1.3.5. Call Center ..........................................................................................13

2.1.3.6. Home Banking ....................................................................................14

2.1.3.7. Kiosk Banking ....................................................................................14

2.2. The decision to use E-Banking services...........................................................14

2.3. Theoretical literatures .......................................................................................15

Theory of Stakeholders..............................................................................15

Theory of Perceived Risk – TPR...............................................................16

Theory of Reasoned Action – TRA ...........................................................16

Theory of Planned Behaviour – TPB.........................................................16

Unified Theory of Acceptance and Use of Technology – UTAUT ..........17

2.4. Relative empirical researches ...........................................................................18

2.5. Proposed regression model for population .......................................................22

CHAPTER 3. RESEARCH METHODOLOGIES..............................................24

3.1. Research process...............................................................................................24

3.2. Proposed regression model for population .......................................................25

3.3. Research hypotheses.........................................................................................25

Relationship between Perceived Usefulness and User Decision...............25

Relationship between Social Influence and User Decision .......................25

Relationship between Branch Image and User Decision...........................26

Relationship between Facilitating Conditions and User Decision ............26

Relationship between Safety/Security and User Decision.........................27

3.4. Scale construction .............................................................................................27

3.5. Data collection methods....................................................................................29

For secondary data .....................................................................................29

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For primary data.........................................................................................30

3.6. Model testing method .......................................................................................30

3.7. Quantitative methods........................................................................................31

Descriptive statistics method .....................................................................31

3.7.1.1. Descriptive statistical analysis............................................................32

3.7.1.2. Frequency Table..................................................................................32

3.7.1.3. Cross-tabulation ..................................................................................32

Cronbach's Alpha reliability coefficient method .......................................32

Exploratory factor analysis........................................................................33

Regression Analysis...................................................................................34

CHAPTER 4. RESEARCH RESULTS AND DISCUSSION .............................36

4.1. Background of using E-Banking at the Joint Stock Commercial Bank for

Investment and Development of Vietnam – My Tho Branch...................................36

4.2. Research results ................................................................................................37

Descriptive statistics ..................................................................................37

Analyzing the Reliability of the Scale .......................................................41

Exploratory Factors Analysis (EFA) .........................................................42

Pearson correlation coefficients.................................................................44

Regression test results................................................................................45

Variance Inflation Factor test ....................................................................46

Heteroskedasticity test ...............................................................................47

Accepted linear regression model..............................................................47

4.2.8.1. Testing the assumptions of the residual normal distribution ..............48

4.2.8.2. Testing assumption of the linear relationship .....................................49

4.3. Discussion based on the results of data processing ..........................................49

CHAPTER 5. CONCLUSIONS AND RECOMMENDATIONS.......................53

5.1. Recommendations.............................................................................................53

Safety and Security ....................................................................................53

Perceived Usefulness.................................................................................54

Facilitating Conditions...............................................................................55

Branch Image .............................................................................................56

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Social Influence .........................................................................................57

5.2. Conclusions.......................................................................................................57

5.3. Limitations and future research ........................................................................59

THESIS SUMMARY..............................................................................................61

REFERENCES.......................................................................................................... i

APPENDIX: SURVEY QUESTIONNAIRES.......................................................xi