Factors affecting customer satisfaction when using digital banking in Ho Chi Minh City, 2021

STATE BANK OF VIETNAM THE MINISTRY OF

EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

LAC HONG NHU

FACTORS AFFECTING THE SATISFACTION OF

CUSTOMERS WHEN USING DIGITAL BANKING IN

HO CHI MINH CITY

GRADUATE THESIS

MAJOR: FINANCE – BANKING

CODE: 7340201

HO CHI MINH CITY, 2021

STATE BANK OF VIETNAM THE MINISTRY OF

EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

LAC HONG NHU

FACTORS AFFECTING THE SATISFACTION OF

CUSTOMERS WHEN USING DIGITAL BANKING IN

HO CHI MINH CITY

GRADUATE THESIS

MAJOR: FINANCE – BANKING

CODE: 7340201

SUPERVISOR

M.Sc VO THI NGOC HA

HO CHI MINH CITY, 2021

i

ABSTRACT

The goal of this research is to use the modified SERVPERF model to assess customer

satisfaction and the influence of these dimensions (interface, reliability,

responsiveness, empathy, security, and price) on customer satisfaction in three digital

banks in Ho Chi Minh City (Timo, Tnex, and Cake).

Data is collected from 304 Timo, Tnex, and Cake consumers. The SPSS 20 program

statistically evaluated the sample data using exploratory factor analysis, factor

analysis, descriptive statistics, correlation analysis, and regression to assess service

quality perception and customer satisfaction.

The results show that customer satisfaction is influenced by six factors: interface,

reliability, responsiveness, security, empathy, and price. The reliability factor has a

positive impact on customer satisfaction with a statistical significance of 90% while

the remaining factors have a positive impact on customer satisfaction with a statistical

significance of up to 95%. The study's findings also revealed that there was no

difference in satisfaction between genders but there is a difference in satisfaction with

age group and occupations.

Finally, the paper provides management implications for digital banks to enhance

their service quality, as well as points out some limitations of the research, and

suggests future research directions.

ii

DECLARATION

I hereby declare that this is my own research under the supervision of MSc. Vo Thi

Ngoc Ha. The truthful data, content, results, tables, and images used for commenting

and analysis collected from various sources are cited and clearly stated in the

references section. In addition, comments, reviews as well as results of other authors

will be fully cited.

The Author

Lạc Hồng Như

iii

ACKNOWLEDGEMENTS

I would like to express my sincere thanks to all the professors at Banking University

of Ho Chi Minh City for their patience and dedication in teaching and imparting

practical and useful knowledge to me over the past four years, especially MSc. Vo

Thi Ngoc Ha, who directly guided and helped me complete my graduation thesis.

Due to limited knowledge and practical experience, my research still has many

shortcomings. I am looking forward to receiving your advice and comments to

improve this thesis.

Finally, I wish you all health and success in your career.

Best regards.

The Author

Lạc Hồng Như

iv

ABBREVIATION LIST

Abbreviation Description

DB Digital Banking

Fintech Financial technology

SBV State bank of Vietnam

VP Bank Vietnam Prosperity Joint Stock

Commercial Bank

MSB Vietnam Maritime Commercial Joint

Stock Bank

v

LIST OF TABLE

Table 2.1 The difference between Digital banking and e-banking.............................8

Table 3.1 Encrypt data for Interface component.......................................................29

Table 3.2 Encrypt data for Reliability component....................................................30

Table 3.3 Encrypt data for Responsiveness component ...........................................30

Table 3.4 Encrypt data for Security component .......................................................31

Table 3.5 Encrypt data for Empathy component ......................................................31

Table 3.6 Encrypt data for Price component.............................................................32

Table 3.7 Encrypt data for Satisfaction component..................................................32

Table 3.8 Summary of correlation between factors and customer satisfaction ........32

Table 4.1 Survey sample characteristics...................................................................45

Table 4.2 Descriptive Statistics.................................................................................49

Table 4.3 Cronbach's Alpha test results for independent variables ..........................50

Table 4.4 Cronbach's Alpha test results for dependent variable ...............................50

Table 4.5 KMO and Bartlett's Test for independent variables..................................51

Table 4.6 Total Variance Explained for independent variables................................52

Table 4.7 Rotated Component Matrix for independent variables............................53

Table 4.8 KMO and Bartlett's Test for dependent variable ......................................54

Table 4.9 Total Variance Explained for dependent variable ....................................54

Table 4.10 Component Matrix for dependent variable .............................................55

Table 4.11 Pearson Correlation Analysis..................................................................55

Table 4.12 Regression analysis.................................................................................57

Table 4.13 ANOVA ..................................................................................................57

Table 4.14 Coefficients.............................................................................................57

Table 4.15 Test of Homogeneity of Variances between Genders ............................59

Table 4.16 ANOVA test between Genders...............................................................59

Table 4.17 Test of Homogeneity of Variances between Age groups .......................60

Table 4.18 ANOVA test between Age groups..........................................................60

Table 4.19 Test of Homogeneity of Variances between Occupations......................60

vi

Table 4.20 ANOVA test between Occupations........................................................61

vii

LIST OF FIGURES

Figure 2.1 Digital bank models.................................................................................13

Figure 2.2 The SERVQUAL model..........................................................................18

Figure 2.3 The GRONROOS model .........................................................................21

Figure 3.1 Proposed research model .........................................................................28

Figure 4.1 Level of research and implementation of digital transform strategies of

commercial banks in Vietnam............................................................................42

Figure 4.2 Digital transformation model in Vietnam................................................43

viii

TABLE OF CONTENTS

ABSTRACT............................................................................................................... i

DECLARATION...................................................................................................... ii

ACKNOWLEDGEMENTS.................................................................................... iii

ABBREVIATION LIST ......................................................................................... iv

LIST OF TABLE.......................................................................................................v

LIST OF FIGURES ............................................................................................... vii

TABLE OF CONTENTS...................................................................................... viii

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

1.1 Reasons for choosing the topic .........................................................................1

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

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

1.4 Research subjects..............................................................................................3

1.5 Research methods .............................................................................................4

1.6 Contribution ......................................................................................................4

1.7 Structure of research .........................................................................................5

2 CHAPTER 2: THEORETICAL BASIS AND LITERATURE REVIEW....7

2.1 Overview of digital banking .............................................................................7

2.1.1 Definition of digital banking .........................................................................7

2.1.2 Benefits and limitations of digital banking....................................................9

2.1.2.1 Benefits of digital banking......................................................................9

2.1.2.2 Limitations of Digital Banking.............................................................12

2.1.3 Forms of digital banking .............................................................................12