BANKING ACADEMY OF VIETNAM DEPARTMENT OF FOREIGN LANGUAGES -----------o0o--------- GRADUATION THESIS THE EVALUATION OF E-BANKING SERVICES ATMILITARY JOINT STOCK COMMERCIAL BANK NGO GIA TU BRANCH Student: Bui Thi Thanh Thu Class: K20ATCC Student code: 20A7510177 Supervisor: Dr. Can Thuy Lien Hanoi, May 2021 17014129057441000000 Graduation Thesis Banking Academy CERTIFICATE OF ORIGINALITY The graduation thesis topic: “The evaluation of e-banking services at Military Joint Stock Commercial Bank - Ngo Gia Tu Branch" by student Bui Thi Thanh Thu performed under the guidance of supervisor Can Thuy Lien. This is my own unbiased research, which I hereby certify. The thesis' conclusions and statistics are accurate and have never been published before.
The materials cited in the thesis have originated. Thesis author Bui Thi Thanh Thu Student: Bui Thi Thanh Thu i Class: K20ATCC Graduation Thesis Banking Academy ACKNOWLEDGEMENTS I would like to express my heartfelt gratitude to the Banking Academy's collaborative teachers who taught and assisted me in the study, researching, and completing this thesis. I would like to express my sincere gratitude to Ms. Can Thuy Lien, Dean of the Faculty of Foreign Languages, for her assistance and guidance in finishing my study.
I would like to sincerely thank the leaders and employees of the related departments for providing data and assisting me to complete my thesis, especially the Small and Medium Enterprises Customer Department of Military Commercial Joint Stock Bank - Branch Ngo Gia Tu. Finally, I would like to thank my classmates and family members for supporting me, creating favorable circumstances, sharing challenges, and relentless encouragement during the study and research period to complete the thesis. Even though I have always tried to study and learn with a strong spirit of effort, my dissertation cannot avoid its shortcomings, and I hope to receive honest advice from teachers and scientists, experts, and people who care about the work being finished and able to do well in reality. Thank you sincerely! Thesis author Bui Thi Thanh Thu Student: Bui Thi Thanh Thu ii Class: K20ATCC Graduation Thesis Banking Academy TABLE OF CONTENTS CERTIFICATE OF ORIGINALITY.
ii TABLE OF CONTENTS. iii LIST OF ABBREVIATIONS .v LIST OF TABLES. vi LIST OF FIGURES. viii CHAPTER 1: INTRODUCTION .2 Background of the study .3 Objectives of the study .4 Significance of the study .5 Scope and limitation of the study .6 Definition of terms .7 CHAPTER 2: REVIEW OF RELATED LITERATURE .2 Theoretical and Conceptual framework .12 CHAPTER 3: RESEARCH METHODOLOGY .1 Locale of the study.3 Data gathering procedure .4 Population and Sample description.6 Statistical treatment of data.7 Reliability and validity.20 Student: Bui Thi Thanh Thu iii Class: K20ATCC Graduation Thesis Banking Academy CHAPTER 4: FINDINGS AND DISCUSSION .1 Evaluating the transaction volume of e-banking services at MB Ngo Gia Tu21 4.2 Evaluating the transaction turnover of e-banking services at MB Ngo Gia Tu .3 Assessing the satisfaction level of customers using e-banking service in Ngo Gia Tu branch through questionnaire .4 Introducing lessons learned on the electronic banking services in China and the US .1 Electronic banking services in Chinese banks .2 Electronic banking services at US banks .48 CHAPTER 5: CONCLUSION AND RECOMMENDATION .1 Summary of findings .1 Petition to Head Office of Military Commercial Bank .2 Solutions for Ngo Gia Tu branch .62 Student: Bui Thi Thanh Thu iv Class: K20ATCC Graduation Thesis Banking Academy LIST OF ABBREVIATIONS Abbreviation Meaning ATM Military Commercial Joint Stock Bank e-banking Electronic banking e-commerce Electronic commerce MB Military Commercial Joint Stock Bank POS Point of Sale PIN Personal Identification Number WTO World Trade Organization Student: Bui Thi Thanh Thu v Class: K20ATCC Graduation Thesis Banking Academy LIST OF TABLES TABLE PAGE Table 3.1: Describe customers using e-banking services at MB 16 Ngo Gia Tu Table 4.1: Table summarizing survey findings on consumer 34 reliability of MB Ngo Gia Tu's e-banking services Table 4.2: Table summarizing survey findings on assurance of 36 MB Ngo Gia Tu's e-banking services Table 4.3: Table summarizing survey findings on tangible of MB 37 Ngo Gia Tu's e-banking services Table 4.4: Table summarizing survey findings on empathy of 39 MB Ngo Gia Tu's e-banking services Table 4.5: Table summarizing survey findings on responsiveness 40 of MB Ngo Gia Tu's e-banking services Student: Bui Thi Thanh Thu vi Class: K20ATCC Graduation Thesis Banking Academy LIST OF FIGURES FIGURE PAGE Figure 4.1: Number of transactions via EMB channel of MB Ngo 21 Gia Tu Figure 4.2: Number of transactions via Mobile Banking of MB 23 Ngo Gia Tu Figure 4.3: Transaction volume via EMBlink of MB Ngo Gia Tu 24 Figure 4.4: Number of transactions via ATM card of MB Ngo 25 Gia Tu Figure 4.5: Transaction volume via POS service of MB Ngo Gia 27 Tu Figure 4.6: Money transfer turnover via EMB of MB Ngo Gia Tu 28 Figure 4.7: Money transfer turnover via Mobile Banking of MB 30 Ngo Gia Tu Figure 4.8: Transaction volume and money transfer turnover via 31 EMBlink of MB Ngo Gia Tu Figure 4.9: Money transfer turnover via ATM card of MB Ngo 32 Gia Tu Figure 4.10: Transaction turnover via POS service of MB Ngo 33 Gia Tu Figure 4.11: Total assets of the 10 largest banks in the world 42 Figure 4.12: Number of non-cash payments in the United States 46 from 2000 to 2018 (in billions) Student: Bui Thi Thanh Thu vii Class: K20ATCC Graduation Thesis Banking Academy ABSTRACT The title of the thesis: The evaluation of e-banking services at Military Joint Stock Commercial Bank - Ngo Gia Tu Branch.
Author: Bui Thi Thanh Thu (ID: 20A7510177), student of the Faculty of Foreign Languages, Banking Academy of Vietnam. Can Thuy Lien, the Dean of the Faculty of Foreign Languages, Banking Academy of Vietnam. Keywords: e-banking, previous experience, customers’ satisfaction, solutions. Abstract: E-banking is increasingly becoming mainstream with people and playing an important role in banking operations in the current context of information technology growth.
As a result, this thesis aims to evaluate the e- banking activities of the Military Joint Stock Bank - Ngo Gia Tu branch. First, based on total transaction volume and total revenue, the analysis will assess the current state of e-banking activities at Military Joint Stock Bank - Ngo Gia Tu branch. Following that, the essay will discuss some e-banks established in some of the world's most developed countries, namely China and the United States. Via a survey, the study also assesses customers' satisfaction levels who use e-banking services at MB Ngo Gia Tu.
Each segment will include a diagram depicting MB Ngo Gia Tu's limitation. E-banking products are usually not diversified and lack specialized products. Furthermore, MB Ngo Gia Tu continues to struggle with product marketing to customers. Finally, customers continue to have reservations about the system's security.
However, after the study, several feasible and innovative solutions were suggested to assist MB Ngo Gia Tu in promoting the efficiency of e-banking activities. Student: Bui Thi Thanh Thu viii Class: K20ATCC Graduation Thesis Banking Academy CHAPTER 1: INTRODUCTION 1.1 Introduction We are living in a new era, the era of brilliant development of information technology. Information technology has been at a high stage of development that is digitizing all information data, strongly circulating and connecting us all. In the global economy, with the development of the Internet, e-commerce is becoming a very vigorously growing field, promoting the manufacturing and services industries on a worldwide scale and of particular importance to developing countries having access to international markets.
Information technology is the key for countries to open the gate to the 21st century. The banking industry is always at the forefront of information technology to boost economic development. The vigorous development of market forces has prompted banks and financial institutions to apply information technology more effectively to create a competitive advantage and be a premise for developing new types of services to attract maximum customers. The banking industry always has to develop and find a fast, convenient payment method according to current trends.
The introduction of electronic banking services is an inevitable trend for banks. In the current fierce competition environment, banks that do not self-improve and do not improve their products and services will gradually fall behind and lose their foothold in the banking industry. Mobile payment services are becoming a global phenomenon, dominated by top giants like Alipay of Alibaba (now owned by Ant Financial Services), WeChat Pay owned by Tencent, and M-Pesa in Kenya and PayPal in the United States. In some countries, especially the US and China, mobile payments seem to have become a routine in every transaction, from paying bills, ordering online, ordering food and drink, transferring money, financial investments, or even charitable donations.
In China, from sidewalk restaurants to shopping malls, most of them use the Quick Response Code (QR) payment form. Although China's Alipay and WeChat Pay were born after M-Pesa and PayPal, it created an extreme wave affecting the world non-cash payment trend. As a result, there must be compelling Student: Bui Thi Thanh Thu 1 Class: K20ATCC Graduation Thesis Banking Academy reasons for it to expand quickly. Other emerging countries, such as Vietnam, may benefit from developing electronic payment models in the future.
Moreover, of course, implementing a new paradigm would present both opportunities and obstacles, necessitating the skillful manipulation of commercial banks in Vietnam, especially MB Ngo Gia Tu. Based on such urgent issues, the thesis “The evaluation of e-banking services at Military Joint Stock Commercial Bank - Ngo Gia Tu branch” is performed to propose strengths, weaknesses, and problems that need to be overcome and solutions to develop e-banking services of MB Ngo Gia Tu.2 Background of the study In countries all over the world, mobile payment is becoming increasingly common. In recent years, mobile payments have exploded in popularity in Vietnam, owing to benefits such as faster processing times, increased comfort, and increased security for consumers. According to Statista, the total value of electronic payment transactions in Vietnam in 2017 increased 22% compared to 2016 (equivalent to USD 6.
In 2018, that figure increased by 24%, or USD 7.61 billion, and is expected to reach USD 12. Online Banking services on mobile phones (Mobile Banking), which are invested and developed by banks, have become a payment platform that significantly impacts the transition from transactions on traditional channels to electronic channels. According to the Payment Department (State Bank of Vietnam), 41 commercial banks in Vietnam provide mobile payment services, with the number and volume of transactions rapidly increasing. The competition to provide telephone payment systems demonstrates the fintech wave has changed in the 4.0 technological boom while also confirming banks' attempts to get products and services closer to customers.
Apart from significant players like Vietcombank, BIDV, and Vietinbank, it is Student: Bui Thi Thanh Thu 2 Class: K20ATCC Graduation Thesis Banking Academy challenging to overlook MB's excellent products in the e-banking race. With the launch of MB e-banking, MB has reaffirmed its commitment to consumer needs in the current industrial age 4. Currently, MB provides several electronic banking services such as EMB (Internet Banking), Mobile Banking, EMBlink. Over the years, MB has continued to procure and improve devices to provide consumers with features that support them: Paying bills, online bank deposits, money transfers inside and outside the scheme, balance inquiries, and other services are available.
Lack of supply, management strategy and technological advancement are the three primary factors influencing the performance of MB's mobile payments. First, although the initial impetus for establishing MB e-banking was to resolve the issue of lack of confidence among partners, payment services are generally in short supply. For example, standard card payment systems, such as the majority of small and medium enterprises and low-income individuals, must conduct their financial transactions in cash. As mobile payment systems were available online, they were quickly adopted by point-of-sale terminals that were unreliable, cumbersome, and costly in the past.
Second, the regulatory framework supports MB's mobile payment scheme.