FACTORS DETERMINE THE CUSTOMER'S SATISFACTION OF USING DIGITAL BANKING

TOPIC
LECTURER
Nguyen Thanh Dat
Group
Lam Binh Chi
Le Thi Minh Hieu
Nguyen Tan Nhat
Le Mai Kim Phung
Nguyen Le Anh Quan
Tran Uyen Thi
REPORT
2022
03/2022

CONTENTS
I. DETERMINE THE RESEARCH PROBLEM:..................................................2
1. What is digital Banking?..............................................................................2
2. Why do we choose digital banking to do survey?........................................2
2.1. The Importance of Digital Banking Development in Vietnam:.............2
2.2. The Potential for Digital Banking Development in Vietnam:................3
II. RESEARCH OBJECTIVE REPORT:.............................................................5
1. General objective:.........................................................................................5
2. Goal details:.................................................................................................5
III. RESEARCH QUESTION:..............................................................................6
IV. THEORETICAL BACKGROUND AND RESEARCH OVERVIEW:...........7
1. Theoretical basis:..........................................................................................7
1.1. Articles for reference:............................................................................7
1.2. Related Theories:...................................................................................7
2. Research overview of the topic:...................................................................8
2.1. About the Asia area:..............................................................................8
2.2. About Vietnam:.....................................................................................8
V. METHODOLOGY:.........................................................................................9
1. Gathering information:.................................................................................9
2. The questions are separated into three sections:...........................................9
3. Responses collected and data analysis:.........................................................9
VI. RESEARCH RESULTS:...............................................................................11
1. Descriptive statistics:..................................................................................11
2. Description of data by scale:......................................................................13
VII. CONCLUSIONS:.......................................................................................21
VIII. REFERENCES:..........................................................................................22
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I. DETERMINE THE RESEARCH PROBLEM:
1. What is digital Banking?
Digital Banking is a new word that has caught the attention of both professionals and clients
in the Vietnamese banking business. In truth, Digital Banking is a type of banking that
automates all of the bank's traditional services and activities (Skinner, 2014). To put it
another way, all traditional banking services like withdrawals, money transfers, term
deposits, demand deposits, saving, and funding account administration have all been digitized
and linked into a single digital banking application. All of these services are available via
websites and mobile devices. Customers simply need an internet connection to manage and
complete their purchases.
Although the execution of online transactions is comparable in both digital banking and e-
banking, e-banking is merely a simple utility for bank transactions, bill payments, and
account management, whereas digital banking is a much broader concept. To put it another
way, e-banking only focuses on digitizing a few basic banking features, whereas digital
banking encompasses all of the bank's features and operations (SCN Education B.V., 2001).
Thus, digital banking is a new banking model based on digitizing all activities, whereas E-
banking is merely an add-on service to the traditional banking platform, which includes
services such as Internet Banking and SMS Banking.
No-branch banking or auto banking are other terms for digital banking (Scardovi, 2017). In
general, digital banking is a technology-based platform that allows banks and clients to
exchange information as well as conduct transactions and services (Wewege, 2017). The
entire procedure is carried out using digital instruments. Customers do not need to visit a
bank to conduct business, and vice versa. Customers do not have to meet with the bank to
complete their transactions. Digital banking is the application of developing technologies in
financial institutions to changes in internal and external interactions with the goal of
improving customer service. Furthermore, it is crucial in improving commercial banks' ability
to react to a competitive business climate and improving their company management in the
near future.
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2. Why do we choose digital banking to do survey?
2.1. The Importance of Digital Banking Development in Vietnam:
Digital banking and digital finance will be crucial in the world's upcoming fourth industrial
revolution. In Vietnam, the fight to stay afloat in the banking sector has intensified more than
ever (Leung, 2009). Financial institutions and commercial banks can now provide services
and produce more accessible solutions for their consumers at cheaper costs thanks to
technological advancements. Furthermore, these financial institutions assist in the lowering of
market cash payments. According to the most recent data from the State Bank of Vietnam,
technological investment capital in the banking industry is steadily expanding.At the
moment, banks are competing in terms of digitization of both services and operations. Before
foreign banks enter and gradually gain market dominance, Vietnamese banks must take steps
to develop a comprehensive information technology infrastructure. This competitive trend
has created new chances for the banking business in Vietnam, and it will continue to do so.
The growth of digital technology-based products and services is required to raise the
proportion of fee-based services in overall income as income from credit activities declines.
Digital banking and mobile banking are rapidly evolving to provide customers with new
experiences with shorter transaction times, while banks benefit from increased operational
capacity, lower costs, and improved competitiveness.
2.2. The Potential for Digital Banking Development in Vietnam:
In terms of banking supply, the number of service providers in Vietnam has continued to
increase their use of digital technology in their operations to meet non-cash payment and
business digitization demands, such as the Government's non-cash payment plan, ecustoms;
Payment of taxes over the internet; Electricity bills are collected using the bank's Internet,
Mobile Banking, and POS channels, or through payment intermediaries' e-wallets. Train and
airline tickets can be purchased using an online payment system or by using a credit card.
ebanking channels for tuition and hospital costs; On the internet, all telecommunications units
have payment services or telephone cards. As a result, Vietnam's market, with its big
population and high proportion of phone and internet users, is a prospective market for digital
banking.
Vietnam is experiencing a period of rapid growth, with roughly 55 percent of the population
owning a smartphone and 52 percent having access to the Internet. As a result, Vietnam has a
bright future in Fintech. In fact, the number of Fintech firms has risen dramatically, from
around 40 firms at the end of 2016 to nearly 150 firms by the end of 2019. The recent
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COVID-19 pandemic has fueled the growth of electronic payment systems. However, the
development of Fintech in Vietnam is fraught with security risks, as the country's regulatory
framework for Fintech is still in its infancy (Lien et al. 2020). As a result, it's critical to
investigate the aspects that influence user awareness and intents.This study will look at the
elements that influence people's decisions to adopt financial technology, particularly in light
of the COVID-19 epidemic (Al-Nawayseh 2020). The conditions, awareness, and habits of
people, as well as other aspects, differ between established and emerging economies when it
comes to Fintech (Lehmann 2020).
Payment is a high-potential subject, which is obvious given the importance of payment
activity in daily life. Every option for e-commerce or service providers to participate in the
trend has been taken. Grab has purchased shares in Moca, a Vietnamese mobile payment
startup. Monpay, a payment app, was also bought by VinID. Emonkey was integrated into
Lazada Vietnam's platforms.
Mobile transactions in Vietnam are predicted to expand by 400 percent between 2020 and
2025, according to Fintech and Digital Banking 2025 Asia Pacific 2020 (2020), and the
number of bank accounts is expected to increase by around 50 percent for the top eight
leading banks. The current banking system is under a lot of strain due to the rapid growth of
accounts and transactions. According to this report, the average core banking system life
expectancy among the top 100 banks in the Asia Pacific region is still 17.5 years, making it
difficult to meet the demands of the digital era.Vietnam's banks are actively converting to
new digital platforms, however only approximately a quarter of the country's banks are
estimated to be converted by 2025.
As a result, research conducted in industrialized countries may not be applicable to Vietnam.
The current research will add to a more comprehensive understanding of the subject.
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II. RESEARCHOBJECTIVE REPORT:
1. General objective:
The overall objective of this study is to survey the current situation of users of all ages
when using digital banking in Danang, thereby offering some solutions to improve the
operational efficiency of using digital banking. number of customers.
2. Goal details:
 Analysis and evaluation of users' experiences with digital banking services in Danang in
particular, such as selecting specific survey subjects through analysis of age group,
occupation, gender, and survey scope. User ratings when using a specific digital bank,
such as the bank's location, transaction fees, incentives received, and digital banking
services.
 Propose some quality improvement solutions to contribute to promoting users' use of
digital banking in Danang in the future, such as asset management services, diversified
products and services compared to traditional banks, identification and data protection.
 Proposing a number of solutions to limit credit risks, such as improving the quality of
credit appraisal and analysis, strictly complying with the credit process
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