VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS AFFECTING USER SATISFACTION OF PERSONAL FINANCIAL MANAGEMENT APPLICATIONS IN VIETNAM Student’s name: Nguyễn Ngọc Linh Trang Hanoi - Year 2024 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS AFFECTING USER SATISFACTION OF PERSONAL FINANCIAL MANAGEMENT APPLICATIONS IN VIETNAM SUPERVISOR: Nguyễn Thị Kim Oanh, Ph.D STUDENT: Nguyễn Ngọc Linh Trang STUDENT ID: 20070630 COHORT: QH-2020 SUBJECT CODE: INS401101 MAJOR: Accounting, Analyzing & Auditing Hanoi - Year 2024 ABSTRACT Purposes: This study investigates factor affecting user satisfaction of Personal Financial Management App in Vietnam. Specifically, the research focuses on different factors: convenience, control, effort, risks and perceived value. Design/Methodology/Approach: The study involves collecting data from a sample of 224 people who used PFMA in Vietnam through an online survey, which subsequently is analyzed by PLS-SEM. Findings: The study finds that convenience, risks and perceived value directly affect to user satisfaction of PFMA.
On the other hand, Control and Risks have an intermediate impact on user satisfaction through perceived value. Implications: The results identify factors that affect to user satisfaction of PFMA in Vietnam. It can provide businesses and application developers information and evidence for product review and development. Originality/Value: This study investigates the relationship between convenience, control, effort, risks and perceived value with user satisfaction of PFMA in Vietnam.
Keywords: Personal Financial Management Apps, convenience, control, effort, risks, perceived value, user satisfaction, Vietnam. ACKNOWLEDGEMENT First and foremost, I would like to thank Dr. Nguyen Thi Kim Oanh for her committed advice and assistance during the course of my graduate dissertation. Without her enthusiastic leadership, insightful counsel, and insightful criticism throughout this time, I might not have been able to finish this assignment on time.
I have gained a great deal of knowledge about research techniques, data analysis, writing abilities, and endurance thanks to her coaching. I also want to thank all of the instructors and personnel at the Vietnam National University's International School for their guidance and for setting up the necessary environment for me to do my research and study. I will find great use for the knowledge I have acquired in the future. I also want to thank all of my friends, teachers, and fellow students for giving up their time and energy to complete my survey.
Without their tremendous assistance in gathering a large amount of data, I could not have finished this project. Finally, I want to express my gratitude to my family and other loved ones. Their support in both material and trust, encouragement, and both have been invaluable in giving me the willpower and drive to finish my graduation thesis. LETTER OF DECLARATION Hereby, I declare that the graduate project entitled " Factor affecting user satisfaction of personal financial management applications in Vietnam" represents an original work of research that I have undertaken.
I have carefully followed the guidelines for research ethics, and this study's results are exclusively derived from the data we gathered. The results of this study have not been published anywhere. I take full responsibility for the precision and reliability of the numerical data as well as other elements included in this academic study. Hanoi, 31/05/2024 Nguyễn Ngọc Linh Trang LIST OF ABBREVIATIONS AVE Average variance extracted PFMA Personal Financial Management App CA Cronbach’s Alpha COT Control COV Convenience CR Composite reliability CVT Customer Value Theory ECM Expectation confirmation Model ECT Expectation confirmation Theory EF Effort HCM Hierarchical component model IQ Information Quality IS Information System Success PLS-SEM Partial Least Square-Structural Equation Modelling PV Perceived Value R Risk SQ Service quality STD.deviation Standard deviation TAM Technology acceptance model U User satisfaction VIF Collinearity statistics LIST OF TABLES Table Content Page Table 2.1 Summary of related theories 22 Table 3.1 Measurement constructs 33 Table 4.1 Gender of survey’s respondents 38 Table 4.2 Age of survey’s respondents 39 Table 4.3 Occupation of survey’s respondent 40 Table 4.4 Descriptive statistics of convenience 41 Table 4.5 Descriptive statistics of control 41 Table 4.6 Descriptive statistics of effort 42 Table 4.7 Descriptive statistics of risks 42 Table 4.8 Descriptive statistics of perceived value 44 Table 4.9 Descriptive statistics of user satisfaction 45 Table 4.10 Items loadings and composite reliability (CR) 47 of the constructs Table 4.11 Construct reliability analysis 48 Table 4.12 Convergent Validity among constructs 48 Table 4.13 Discriminant Validity among constructs 49 Table 4.14 Heterotrait-Monotrait (HTMT) 49 Table 4.15 VIFs of exogenous variables 50 Table 4.16 Results of hypothesis testing 51 LIST OF FIGURES Figure Content Page Figure 2.1 Conceptual framework of the study 29 Figure 4.1 Gender Proportion 37 Figure 4.2 Age Proportion 38 Figure 4.3 Occupation Proportion 40 Figure 4.4 The measurement model 46 Figure 4.5 The structural model 50 TABLE OF CONTENT CHAPTER 1: INTRODUCTION .1 Background of the study .2 Research objectives, research question and scope.5 Structural of the study.
16 CHAPTER 2: LITERATURE REVIEW .2 Prior studies on factor affecting user satisfation .1 Based on Technology Acceptance Model (TAM) .2 Based on Customer Value theory (CVT) .3 Based on Ground theory (GT) .3 Related Theoretical model of the study .4 Hypothesis formulation and conceptual framework .1 Convenience and User Satisfaction.2 Control and User Satisfaction.3 Effort and User Satisfaction .4 Risks and User Satisfaction.5 Convenience and Perceived Value .6 Control and Perceived Value .7 Effort and Perceived Value .8 Risks and Perceived Value .9 Perceived Value and User satisfaction. 28 CHAPTER 3: RESEARCH METHOD .1 Survey as a quantitative research method .2 Reliability and validity .2 Questionaire design and pilot test .3 Sample and data collection. 33 CHAPTER 4: DATA ANALYSIS AND RESEARCH FINDINGS.1 Data analysis with PLS-SEM using Smart-PLS .2 An evaluation of measurement model .3 Structural model assessment for hypothesis testing .4 Effects different factors on user satisfaction of PFMA. 51 CHAPTER 5: DISCUSSION, CONCLUSION AND LIMITATIONS .1 Discussion and conclusion.2 Contribution and implications of the study .3 Limitation of the study .1 Background of the study Vietnam's mobile technology landscape has experienced rapid growth, with smartphone penetration reaching nearly 70% of the population (GSMA, 2023).
This widespread adoption of smartphones has facilitated the proliferation of PFMA usage among Vietnamese consumers. However, the mere availability of these applications does not guarantee their success, as user satisfaction is influenced by various factors beyond technological accessibility. Vietnam's economy has experienced remarkable growth, driven by factors such as industrialization, urbanization, and an expanding middle class. This economic dynamism has been accompanied by a rapid increase in internet penetration and smartphone ownership, laying the groundwork for the proliferation of digital financial solutions (Tran, 2023).
Customer Value Theory (CVT) posits that customer value is a primary driver of satisfaction and loyalty, emphasizing the trade-offs between benefits and costs perceived by users (Woodruff, 1997). This theory highlights the multifaceted nature of value, which includes functional, emotional, and social dimensions (Zeithaml, 1988). In the context of personal financial management apps, functional value may encompass ease of use, reliability, and effectiveness in financial planning, while emotional value could relate to the sense of control and security users feel. Social value might involve the app's ability to connect users with financial communities or support networks.
TAM provides a useful lens to explore how perceived ease of use and perceived usefulness influence user satisfaction (Davis & Davis, 1989). TAM underscores that users are more likely to be satisfied with technology if they find it easy to use and beneficial in achieving their financial goals. Additionally, the ECT posits that satisfaction is contingent on the extent to which users' expectations are met or exceeded by their actual experiences (Oliver, 1980). In this study, I focus on CVT because of its relevance to the PFMA context.
CVT emphasizes the benefits and sacrifices factor that affects the user, creating user feelings after using that product or service (Prof Savvas Papagiannidis). Users will be able to evaluate and feel based on beneficial and limiting factors to give specific feelings. 11 The usability and intuitiveness of app’s interfaces are critical determinants of user satisfaction (Hassenzahl, 2008). Research suggests that factors such as ease of navigation, visual appeal, and the presence of personalized features significantly impact user perceptions of application quality and utility (Foroughi et al.
Moreover, the compatibility of app’s interfaces with the Vietnamese language and cultural norms is essential for ensuring user engagement and satisfaction (Nguyễn Thu Lan, 2024). Factors such as interface design, navigation simplicity, functionality, and responsiveness can greatly influence users' perceptions of usability and overall satisfaction (Hassenzahl & Tractinsky, 2006; Nielsen, 1993). Amidst the growing prevalence of cyber threats and data breaches, Vietnamese become more concerned about the security and privacy of their financial information when using mobile banking (Ai, 2020). The perceived trustworthiness of app’s platforms, reinforced by robust security measures and transparent data handling practices, is vital for fostering user confidence and satisfaction.
Studies have shown that factors such as security, reliability, responsiveness, and empathy significantly impact users' trust and satisfaction with digital financial services (Ha & Stoel, 2009; Zhou et al. Huh et al. (2009) noted that users are more satisfied with financial management tools that reduce the complexity of managing finances, allowing for straightforward budget tracking, expense categorization, and financial goal setting. In Vietnam, where digital literacy levels are varied, the simplicity of a PFM app can significantly impact user satisfaction.
As noted by Nguyen and Gizaw (2014), in the Vietnamese market, user- friendly interfaces and seamless functionality are critical for user retention and satisfaction. Studies by Chen and Hitt (2002) found that users of online financial services place significant importance on the perceived value derived from ease of use, time savings, and enhanced financial control. This is particularly pertinent in the PFM app market, where users expect substantial benefits such as effective budgeting tools, insightful financial analysis, and personalized financial advice. In Vietnam, the rapid adoption of fintech solutions has underscored the importance of PV in driving user satisfaction.
Phan and Daim (2011) identified PV as a key determinant in the adoption and satisfaction of digital 12 financial services in emerging markets like Vietnam. Their research indicated that users highly value features that simplify financial management, offer security and privacy, and provide cost advantages over traditional banking methods. PFMAs are increasingly popular worldwide, driven by their ability to help users manage their finances efficiently. Globally, the personal finance software market is projected to reach approximately USD 1.57 billion by 2031, with a compound annual growth rate of 5.
Major apps in this market include Mint, You Need A Budget (YNAB), and PocketGuard,. known for their budgeting, expense tracking, and financial planning features. For example, Rocket Money, an app that helps users create budgets that automatically track spending, separate transactions into spending categories, send notifications about upcoming fees or low balances, etc. The app has more than 5 million users in many different countries.
Users will experience the application for free in the regular version and for a fee in the premium version. Similarly, the You Need A Budget (YNAB) those who love analytics and zero-based budgeting (KATHERINE HAAN, 2024) app, allows users to sync all their accounts, track monthly spending, stay in touch with bills and save for emergencies. YNAB's estimated annual revenue is approximately $49M. In addition, there are many other apps used for personal financial management purposes.
In Vietnam, the adoption of PFMAs is also rising. The country’s young, tech-savvy population and increasing smartphone penetration are key factors driving this trend. Specific data of users and revenue for PFMAs in Vietnam is limited, but the global trend suggests a growing market. Local apps like Money Lover and MISA MoneyKeeper are gaining popularity, addressing the unique financial needs of Vietnamese users.
MoneyLover, an application that records expenses and categorizes financial groups according to personal income This program will assist in monitoring and analyzing each user's cash flow patterns and serve as a helpful reminder to keep your spending reasonable and within reason. Furthermore, the application generates a monthly revenue and expense chart to facilitate your assessment and comparison of your expenditures for the preceding month.