MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HCMC ------------------ Prepared by Vo Thi Thuy Linh MASTER THESIS Ho Chi Minh City, 2010 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HCMC ------------------ Prepared by Vo Thi Thuy Linh Department of graduate program Division of Banking, code no 60.12 MASTER THESIS Supervisors: Dr. Le Thai Thuong Quan Ho Chi Minh City, 2010 Abstract With the development of IT, e-commerce and international trade, e-payment becomes an indispensable payment trend in a modern society. E-payment has been developed and introduced in many developed countries for a long time, but it is still the phase of developing in Vietnam. E-payment in Vietnam has been applied for more than 10 years, marking a significant development in recent years.
E-banking services development is inevitable and objectivity tendency in the modern economy, in international economic integration. Benefits of electronic banking services is very large for customers, banks and the economy, thanks for convenient, fast, accurate and secure. Therefore, the primary purpose of this study is to examine the factors affecting to the adoption of e-banking using in Vietnam. The study based on the Technology Acceptance Model (TAM) and adding personal characteristics of the adopters, those factors to have huge impact on the e-banking adoption in Vietnam.
The study uses quantitative approach to survey over 500 Vietnamese customers in Ho Chi Minh. This study exploits and analysis the factors affecting to e-banking services adoption in Vietnam, a developing country case. We expect to provide banks with more information about the adoption of e-banking services in Vietnam. Acknowledgement This thesis was written during year 2010 at Economics University in fulfillment of the Master program in banking.
Many people have helped me with the completion of this study and made this work possible. First of all, I would like to express my sincere gratitude to my supervisor, Dr. Le Thai Thuong Quan for his valuable supervision and intelligent guidance during the whole process of the thesis writing. Second, I would like to express my sincere gratitude to Dr.
Dao Trung Kien, my senior master, for his strong support, encouragement and his helpful comments on my thesis. I would also like to show my sincere appreciation to managers of customer services division in Viet Nam Eximbank – District 10 branch for their kind support and cooperation. Finally, I would like to express my thanks to the branch staffs of Eximbank – District 10 branch who helped me a lot in distributing and collecting the questionnaires of th is research. I wish to take this opportunity to express my deepest thanks to my dear parents for the love and never-ending support they have extended me in every step of my life.
December 2010 Commitment I declare that the thesis entitled “Adoption of electronic banking services in Viet Nam” contains no results and data that has been submitted previously under any form by anybody. This thesis is my own work. I take full responsibility to the board of examiners for my commitment. th December 10 , 2010 Author’s signature TABLE OF CONTENTS LIST OF TABLES -----------------------------------------------------------------------------------Page 01 LIST OF FIGURES ---------------------------------------------------------------------- Page 03 GLOSSARY OF E-BANKING TERMS ----------------------------------------------------Page 04 ABBREVIAT IONS ---------------------------------------------------------------- Page 06 Chapter One: Introduction and Research problem -----------Page 07 1.2 The Research Problem -------------------------------------------- Page 08 1.3 Outline of the Thesis ---------------------------------------------- Page 10 Chapter Two: Theoretical Review ------------------------------------- Page 12 2.1 Electronic Banking ------------------------------------------------ Page 12 2.1 The History of Electronic Banking ------------------- Page 12 2.2 Benefits of Electronic Banking ----------------------- Page 13 2.3 Kinds of Electronic Banking ---------------------- Page 16 2.2 Diffusion of Innovations Theory -------------------------------- Page 18 2.3 Technology Acceptance Model (TAM) ------------------------ Page 21 2.1 Perceived Usefulness ----------------------------------- Page 22 2.2 Perceived Ease of Use ---------------------------------- Page 23 2.3 Perceived Risk ------------------------------------------- Page 25 2.4 Perceived Cost ------------------------------------------- Page 25 2.5 Information on e-banking ------------------------------ Page 26 2.6 Personal Trial -------------------------------------------- Page 26 2.7 Personal characteristics of the adopters -------------- Page 26 Chapter Three: Res earch des ign and methodology -------------- Page 27 3.1 Research Model ---------------------------------------------------- Page 27 3.2 Hypotheses development ----------------------------------------- Page 29 3.1 Hypotheses related to personal characteristics ------ Page 29 3.2 Relationships Hypotheses ------------------------------ Page 29 3.4 Sampling and Questionnaire ------------------------------------- Page 31 3.5 Data Analysis Procedures ---------------------------------------- Page 33 3.1 Descriptive statistics analysis-------------------------- Page 34 3.2 Purification and Reliability of the M.1 Factor analysis -------------------------------- Page 34 3.
Reliability analysis--------------------------- Page 34 3. One way analysis of variance ANOVA ------------- Page 35 3. Structural Equation Model ---------------------------- Page 35 Chapter Four: Data analysis and results ----------------------- Page 36 4.1 Descriptive Analysis----------------------------------------------- Page 36 4.1 Characteristics of Respondents ------------------------ Page 36 4.2 Measurement Results for Relevant Research V.2 Factor Analysis and Reliability Test ---------------------------- Page 40 4.1 Perceived usefulness ------------------------------------ Page 40 4.2 Perceived Ease of use ----------------------------------- Page 41 4.3 Perceived risk -------------------------------------------- Page 42 4.4 Perceived cost-------------------------------------------- Page 42 4.5 Information on E-banking------------------------------ Page 43 4.6 Personal Trial -------------------------------------------- Page 44 4.3 Independent Sample t-tests --------------------------------------- Page 45 4.1 Gender Respondents ------------------------------------ Page 45 4.2 One-way ANOVA -------------------------------------- Page 46 4.1 Age Respondents ----------------------------- Page 46 4.2 Education Respondents ---------------------- Page 48 4.3 Position Respondents------------------------- Page 50 4.4 Income Respondents ------------------------- Page 52 4.4 Structure Equation Model ---------------------------------------- Page 53 4.5 Results of research------------------------------------------------- Page 59 Chapter Five: Conclusions and Im plications ----------------- Page 62 5.2 Contribution and Managerial Implications--------------------- Page 63 5.3 Limitations of the study------------------------------------------- Page 66 5.4 Recommendations for further research ------------------------- Page 66 REFERENCES ----------------------------------------------------------------------------------------Page 68 APPENDIX I------------------------------------------------------------------------------------------- Page 69 APPENDIX II------------------------------------------------------------------------------------------Page 75 Page 1 LIST OF TABLES Table 1-1: Electronic banking service provided by Vietnam banks ----- Page 09 Table 3-1: The questionnaire items for measurements factors ----------- Page 31 Table 4-1: Descriptive Analysis of personal characteristics -------------- Page 37 Table 4-2: Measurement Results for Relevant Research Variables------ Page 39 Table 4-3: Factor Analysis and Reliability for Perceived usefulness---- Page 41 Table 4-4: Factor Analysis and Reliability for Perceived Ease of use -- Page 41 Table 4-5: Factor Analysis and Reliability for Perceived risk------------ Page 42 Table 4-6: Factor Analysis and Reliability for Perceived cost ----------- Page 43 Table 4-7: Factor Analysis and Reliability for Information -------------- Page 44 Table 4-8: Factor Analysis and Reliability for Personal Trial------------ Page 45 Table 4-9: T-Test results of Gender Respondents.------------------------- Page 46 Table 4-10: ANOVA test results of Age Respondents -------------------- Page 47 Table 4-11: ANOVA test results of Education Respondents ------------- Page 49 Table 4-12: ANOVA test results of Position Respondents --------------- Page 51 Table 4-13: ANOVA test results of Income Respondents ---------------- Page 52 Table 4-14: Standardized Regression Weights (Default model) --------- Page 55 Table 4-15: Fit Measures for Model ----------------------------------------- Page 58 Table 4-16: Standardized Regression Weights (Causality model) ------- Page 58 Table 4-17: Results of the testing Hypotheses------------------------------ Page 60 Table II.1: Correlation Matrix for Perceived usefulness ----------------- Page 75 Table II.2: Correlation Matrix for Perceived Ease of use ---------------- Page 75 Table II.3: Correlation Matrix for Perceived risk -------------------------- Page 75 Table II.4: Correlation Matrix for Perceived cost -------------------------- Page 76 University of Economics HCMC - Master Page 2 Table II.5: Correlation Matrix for Information ----------------------------- Page 76 Table II.6: Correlation Matrix for Personal Trial -------------------------- Page 76 Table II.7: Regression Weights (Default model) --------------------------- Page 77 Table II.8: Model Fit Summary (Default model)--------------------------- Page 78 Table II.9: Regression Weights (Causality model)------------------------- Page 80 Table II.10: Model Fit Summary (Causality model) ----------------------- Page 81 University of Economics HCMC - Master Page 3 LIST OF FIGURES Figure 1.1: Outline of the research ------------------------------------------- Page 11 Figure 2-1: Adoption Process ------------------------------------------------- Page 20 Figure 2-2: Technology acceptance model (TAM) ------------------------ Page 22 Figure 2-3: Chronological Progress of TAM Research-------------------- Page 24 Figure 3-1: The research framework of this study ------------------------- Page 28 Figure 3-2: Data Analysis Procedures --------------------------------------- Page 33 Figure 4-1: Measurement model---------------------------------------------- Page 54 Figure 4-2: Structural Equation model--------------------------------------- Page 57 Figure II.1: Structural Equation model (Causality model) ---------------- Page 82 University of Economics HCMC - Master Page 4 GLOSSARY OF E-BANKING TERMS E-banking. Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting bank.
Automated teller machine. An electronic terminal provided by financial institutions and other firms that permits consumers to withdraw cash from their bank accounts, make deposits, check balances, and transfer funds. Banking services that consumers can access, by using an Internet connection to a bank’s computer center, in order to perform banking tasks, receive and pay bills, and so forth. Many other financial services can be accessed via the Internet (for example, paying credit card bills on a credit card issuer’s web site), but those services may not be classified as computer banking.
A card used at an ATM or a point-of-sale (POS) terminal that enables a consumer to have funds directly debited from his or her bank account (usually a checking account). Some financial service providers (such as check cashers and currency exchanges) may market a so-called debit card that is not tied to a deposit account but instead functions as a stored-value card. A form of payment by which an organization (such as an employer or a government agency) pays funds (such as pay or benefits) via an electronic transfer. The funds are transferred directly into a consumer’s bank account.
A form of payment that allows a consumer to pay bills through electronic fund transfers. Funds are electronically transferred from the consumer’s account to the creditor’s account. A direct payment differs from a preauthorized debit in that the consumer must initiate each direct payment transaction. Electronic bill presentment and payment (EBPP).
A form of bill payment by which bills are presented to a customer online, via either e-mail or a notice in an e-banking University of Economics HCMC - Master Page 5 account. After presentment, the customer may pay the bill online when convenient. The payment is electronically deducted from the customer’s account. Payro ll card.
A type of stored-value card issued by an employer instead of a paycheck that enables an employee to access his or her pay at ATMs or point-of- sale terminals. The employer adds the value of the employee’s pay to the card electronically. A type of stored-value card in which one or more chips or microprocessors are embedded, making the card capable of storing data, performing calculations, or performing special-purpose processing (to validate personal identification numbers, authorize purchases, verify account balances, and store personal records). The memory in some smart cards is updated when the card is used.
The chip or microprocessor physically stores records, such as the value of funds remaining on the card. These cards can be used in ‘‘closed’’ systems (for example, a transit system) or ‘‘open’’ systems (for example, MasterCard or Visa networks). ATM cards, which consumers can use to access their bank accounts at an electronic terminal, were introduced in the late 1960s to help consumers make cash withdrawals from their deposit accounts. University of Economics HCMC - Master Page 6 ABBREVIATIONS ANOVA is the abbreviation of One way analysis of variance.
AVR is the abbreviation of Automatic voice response. E-banking is the abbreviation of Electronic banking. EBPP is the abbreviation of Electronic bill presentment and payment. ID is the abbreviation of Identifier.
INF is the abbreviation of Information. Intranet is the abbreviation of Internal network. IT is the abbreviation of Information Technology. PC is the abbreviation of Perceived cost.
PDA is the abbreviation of Personal digital assistant. PEU is the abbreviation of Perceived ease of use. PIIT is the abbreviation of Personal innovativeness in IT. PIN is the abbreviation of Personal identification number.
POS is the abbreviation of Point of sale. PR is the abbreviation of Perceived risk. PTR is the abbreviation of Personal trial. PU is the abbreviation of Perceived usefulness.D is the abbreviation of Standard deviation.
SEM is the abbreviation of Structural Equation model. SMS is the abbreviation of Sending messages. TAM is the abbreviation of Technology acceptance model. TRA is the abbreviation of Theory of reason action.