1 BỘ GIÁO DỤC VÀ ĐÀO TẠO ĐẠI HỌC KINH TÉ THÀNH PHÓ HÔ CHÍ MINH BÁO CÁO TỎNG KÉT ĐÈ TÀI NGHIÊN cứu KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG ‘ NHÀ NGHIÊN cứu TRẺ UEH” NĂM 2024 <STUDY OF THE FACTORS AFFECTING THE DECISION TO USE DIGITAL BANKING SERVICES OF STUDENTS AT UNIVERSITY OF ECONOMICS IN HO CHI MINH CITY> Thuộc nhóm chuyên ngành: 1 TP. Hồ Chí Minh, tháng 02/2024 2 ABSTRACT Globalization represents an inevitable trend in the contemporary world, profoundly impacting various facets of economic and social life, notably the banking sector. In Vietnam, the globalization phenomenon has brought forth a plethora of opportunities and challenges for banks, necessitating their integration of technology and digitalization of processes to streamline operations, enhance customer experience through effective data utilization, and foster customer engagement. Using expert contributors’ insights, this study investigates the factors that affect students' decisions to use digital banking, specifically students al University of Economics Ho Chi Minh City.
Multivariate data analysis techniques (CronbaclTs Alpha test, Confirmatory Factor Analysis, Structure equation model) are used for the survey data collected from 300 customers who have access to digital banking. The analysis results show that only two factors Convenience and Perceived security have a strong impact on Intention to use digital banking, but two factors Customer support and Social influence do not. And only the Trust factor affects Attitude towards the digital banking, while surprisingly Perceived usefulness, Perceived ease of use and Perceived risk do not show an impact. From the results of this study, perceived usefulness has a positive effect on attitude and intention to use the service.
Therefore, research to know how to create good experiences is very important for Digital banking to continue its long-term development and application in Vietnam. In terms of application, this study provides empirical evidence that experience strongly influences customer satisfaction and attitudes. It outlines the factors that banks should consider to assist customers in experiencing new technology more effectively. Furthermore, future research may seek to replicate the findings of this study in different contexts to evaluate model robustness.
The findings of the study can offer guidance to entrepreneurs, researchers, and policymakers in comprehending and effectively implementing digital banking growth strategies, which are essential for enhancing business reputation and acquiring customers. KEYWORDS: Intention to Use, Digital Banking, Internet Banking, Students at University of Economics HCMC 3 TABLE OF CONTENTS ABSTRACT. 2 TABLE OF CONTENTS. 3 LIST OF FIGURE.
5 LIST OF TABLE. 6 LIST OF ABBREVIATION.4 Scope of the study.6 The contribution of this research. 10 CHAPTER 11: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT.1 Factors Affecting the Intention to Use Digital Banking in Vietnam (Nguyen, o.2 Intention to Use Digital Banking Services of Young Retail Customers in Vietnam (Tran, N.2 Perceived ease of use.2 Measurement of concept.1 Measurement of Attitude towards the Digital Banking (ATS).2 Measurement of Intention to use Digital Banking (IU). 21 CHAPTER IV: FINDINGS.
Assessment of measurement model. Internal consistency reliability - Cronbach's alpha. Convergent validity - outer loadings and the average variance extracted (AVE). Discriminant Validity - Fornell-Larcker Standard.
Assessment of structural mode. Multi-collinearity assessment. Path coefficient and hypothesis testing. Discussion and contributions.
Limitations and recommendations. 41 Appendix 1: SURVEY QUESTIONNAIRE.41 Appendix 2: OUTER LOADINGS. 46 Appendix 3: FORNELL-LARCKER STANDARD OF CORRELATIONS.48 Appendix 5: PATH COEFFICIENTS RESULTS. 51 6 LIST OF FIGURE Figure 1: Research model Figure 2: Research process Figure 3: Structural model and results of PLS-SEM 7 LIST OF TABLE Table 1: Sample demographic characteristics report Table 2: Assessment of measurement model Table 3: Outer Loadings Table 4: Fornell-Larcker Standard of correlations Table 5: Collinearity Statistics: variance inflation factor (VIF) result Table 6: Path coefficients results 8 LIST OF ABBREVIATION AI Artificial intelligence API Application program interface AVE Total variance extracted ATS Attitude towards the service CFA Confirmatory factor analysis cs Customer support CA Cronbach's Alpha CR Composite reliability cv Convenience EFA Exploratory factor analysis FAQs Frequently Asked Questions PU Perceived usefulness PEU Perceived ease of use PR Perceived risk PS Perceived security SEM Structure equation model SI Social influence 9 TAM Technology Acceptance Model TR Trust VIF Variance inflation factor 10 CHAPTER I: INTRODUCTION 1.1 Overview Digital banking is a banking model based on information technology and communication platforms.
The success of digital banks reflects not only advancements in technology but also their ability to provide flexible and convenient banking services through electronic devices such as smartphones, tablets, and personal computers. Globalization is an inevitable trend in the modern world, profoundly impacting all aspects of economic and social life, including the banking sector. The globalization trend has created a series of opportunities and challenges for the banking system in Vietnam, demanding banks to integrate technology and digitize processes towards automation to efficiently provide products and services, exploit data effectively to enhance customer experience, and foster customer engagement. rhe digital transformation effort is actively taking place in Vietnamese banks, with electronic transactions gradually overtaking traditional branch transactions.
According to Mr. Pham Anh Tuan, the Head of the Payment Department al the State Bank of Vietnam, in the first 9 months of 2023, non-cash payment transactions increased by 49,32% in quantity compared to the same period in 2022. Specifically, transactions through the Internet channel increased by 60,30% in quantity and 5,66% in value; Mobile transactions increased by 60,82% in quantity and 9,71% in value; QR Code transactions increased by 105.33% in quantity and 10,66% in value. Moreover, many banks have implemented process automation through robots, artificial intelligence (AI), cloud computing, Blockchain, big data, electronic Know Your Customer (eKYC), etc., to provide 100% digital banking services: account opening, money transfers, bill payments, savings deposits, etc.
Instead of face-to-face interactions, customer data analysis and service provision to individuals occur rapidly, saving time. Furthermore, with Vietnam's average population reaching 100.3 million in 2023, representing a potential labor force, it propels the digital transformation development of banks. In light of this significance, the research team conducted a “STUDY OF THE FACTORS AFFECTING THE DECISION TO USE DIGITAL BANKING SERVICES OF STUDENTS AT UNIVERSITY OF ECONOMICS IN HO CHI MINH CITY” to examine the factors influencing the decision to use digital banking among individuals who have used and experienced these services. The aim is to provide recommendations and 11 solutions for banks to increase the number of customers using digital services.
In relation to this topic, there have been previous studies, such as "Intention to Use Digital Banking Services of Young Retail Customers in Vietnam" by Ngoc Anh Tran (2021).2 Research objectives The primary focus of this study is to investigate the intention to use digital banking services among students at universities in Ho Chi Minh City.This study endeavors to shed light on the intricacies of digital banking adoption, aiming to provide valuable insights for both academic research and practical applications in the banking industry. Following the completion of this research, we hope to identify the factors that impact the adoption of digital banking services among consumers' immersive experiences as well as among students at University of Economics Ho Chi Minh City. As a result, the study's findings offer actionable recommendations for banks to enhance their digital services and cater effectively to the evolving needs of their customer base.3 Research questions From the above research objective, our research question is: Research Question 1: What motivates customers to utilize digital banking services? Research Question 2: How significant is the impact of the factors on the intention to use digital banking services? Research Question 3: What solutions can banks implement to attract more customers to use digital banking services? 1.4 Scope of the study The research is mainly concentrated on evaluating the factors affecting the attitude towards and intention to use digital banking. Students who live in Ho Chi Minh city are our research respondents.
300 samples were collected through University of Economics Ho Chi Minh City in January 2024 1.5 Research method In this thesis, quantitative methods were applied. The measurement scales for all analyzed variables were adapted from prior studies and translated into Vietnamese during the initial stage. 12 The second stage was a quantitative study that included the main survey as well as data analysis. The survey was conducted over a two-week period at Ho Chi Minh City universities.
After collecting data, SmartPLS was utilized to evaluate measurement scales and test hypotheses.6 The contribution of this research This study aims to identify the factors influencing the decision to use digital banking services and evaluating the impact of each factor. The findings of the research will support banks and economic organizations in better understanding the needs and desires of customers regarding digital banking services, thereby developing more suitable and effective strategies. Digital banking services are expanding as more and more people become aware of and use them. Moreover, the number of young people, especially university students, is increasing every day.
Therefore, digital banking services are expected to become the primary transaction method in the Vietnamese market soon. Through providing and surveying necessary information, this research will contribute to improving and optimizing existing digital banking services. 13 CHAPTER II: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 2.1 Definitions Digital banking is the conversion of all traditional banking activities and services to a digital format (Sarma, 2017). Digital banking is a highly technologically demanding field that includes innovations in financial services for consumers and businesses centered on mobile, digital, AI, and payment strategies, regtech, data, blockchain, API, distribution channels, and technology (Sarma, 2017).
In general, digital banking is a technology-based operating paradigm that allows banks and clients to exchange information and make transactions. This technique is carried out using digital devices linked to computer software in an internet environment. Customers are not required to visit physical branches of banks to conduct transactions, and banks arc not required to meet with customers to finalize transactions (e., signing paperwork and tracking information) Davis (1993) and Venkatesh (2000) define the intention to utilize technology services as the customer's knowledge of their potential to use services. Customers' intents to utilize a service are impacted by many motivational elements (Fortes & Rita 2016).
Research on the intention to utilize technology services is frequently based on the Technology Acceptance Model (TAM) and other models derived from the TAM model (King & He, 2006). Factors such as simplicity of use, perceived utility, and attitude to service influence the intention to use in the TAM model, which is viewed through the lens of theory of rational action and theory of planned behavior.1 Factors Affecting the Intention to Use Digital Banking in Vietnam (Nguyen, o. , 2020) This article examines the elements that influence young retail consumers' inclination to adopt digital banking services in Vietnam. This article uses multivariate data analysis techniques, such as Cronbach's Alpha, Exploratory factor analysis (EFA), Confirmatory factor analysis (CFA), Structure equation model (SEM), and Bootstrapping, to analyze data from 525 young respondents under 35 who use or have access to digital banking services.
The survey respondents were mostly university students with earnings under VND 5 million. The investigation found that perceived ease of use, social influence, and customer assistance all favorably impact young people's inclination to utilize digital banking services. 14 While previous studies revealed that technology self-efficacy, ease, and perceived security influenced intention to use services, this study found that these characteristics had no significant affect on intention to utilize digital banking services. Based on these findings, the author suggests ways for commercial banks to enhance young people's intentions to use digital banking in Vietnam.2 Intention to Use Digital Banking Services of Young Retail Customers in Vietnam (Tran,N.,2021) The study's goal is to assess the factors that influence Vietnamese consumers' intentions to adopt digital banking.
The survey data from 201 digital banking users was analyzed using multivariate approaches, including Cronbach's Alpha, Confirmatory Factor Analysis, and Structure Equation Model. The analysis results reveal that: (1) attitude toward the sendee, perceived usefulness, has a favorable influence on the intention to use; (2) convenience does not affect the intention to use digital banking sendees.