THEORETICAL BACKGROUND ON SERVICE QUALITY AND
Internet banking
Electronic banking serves as a distribution channel for banking products and services, with varying definitions among researchers According to Mobarek (2007), it encompasses both new and traditional interactive communication channels that deliver banking services directly to customers through automated systems Mols (1998) describes electronic banking as a new distribution method that allows customers to access information and perform retail banking services via computer networks, television, or mobile phones Additionally, Kolodinsky et al (2004) highlight that electronic banking can be defined across multiple platforms, reflecting its diverse applications in the banking industry.
• Internet banking or online banking
• PC banking or offline banking
Mobile internet banking is recognized for its speed and reliability, allowing users to conduct transactions safely from anywhere with an internet connection This convenient service eliminates the need to visit physical banks for tasks such as checking account balances, transferring funds, paying bills, and shopping online Key offerings of online banking include account access, statements, money transfers, credit card payments, and checkbook requests As internet usage increases, so does the expectation for online banking growth, influencing income and education levels Although research on internet banking adoption is limited compared to scientific studies, the trend has been growing since banks began offering these services in 1995 Despite a slowdown in the expansion of internet banking systems, users are eager for further advancements, as more individuals become adept at using computers and mobile devices for financial transactions Today’s customers prefer online transactions, utilizing text and email for financial updates and activities.
In today's competitive banking landscape, Internet banking serves as an effective solution for minimizing paper usage Maintaining paper records has become increasingly challenging, leading many financial institutions to transition to online systems Despite the convenience of digital records accessible via mobile phones and personal computers, some customers still request traditional receipts and paper documentation.
According to Circular 35/2016/TT-NHNN issued on December 29, 2016, by the State Bank of Vietnam, internet banking encompasses banking and payment services delivered via the internet This system comprises various components, including hardware, software, databases, telecommunications, and security measures, all designed to create, transmit, collect, manage, and exchange digital information for effective internet banking services The primary users of these services are individuals and organizations that utilize internet banking.
Internet banking refers to an electronic banking service that allows customers to conduct banking transactions online at any time and from any location, with the exception of cash withdrawals.
Services
Sasser et al., (1978) defined " A Service is a package of explicit and implicit benefits performed with a supporting facility and using facilitating goods " James
(1977) defined service as“a time perishable intangible experience performed for a customer acting in the role of co- producer" Gronroos (1984) defined service as
According to Payne, a service is defined as a series of intangible activities that typically involve interaction between customers and service employees, as well as physical resources, goods, or systems provided by the service provider to address customer issues.
Services are defined as primary or complementary activities that do not result in a physical product, encompassing the non-goods aspect of transactions between customers and providers (1993) Zeithaml et al (2006) describe services as deeds, processes, and performances, highlighting their unique characteristics such as intangibility, heterogeneity, simultaneous production and consumption, and perishability Baron and Harris (2003) emphasize that services are processes that unfold over time, with three fundamental components: process, people, and physical evidence Essentially, services encompass all economic activities that yield non-physical outputs consumed at the moment they are delivered, with intangibility being the key factor that distinguishes services from goods.
Service quality
In recent decades, quality and service quality have emerged as critical concerns for managers, researchers, and practitioners due to their significant impact on business performance Crosby defined quality as "conformance to requirements," emphasizing that delivering quality service involves consistently meeting customer expectations This perspective aligns with Gronroos' understanding of service quality, highlighting the importance of reliability and customer satisfaction in achieving business success.
In 1982, Gronroos proposed a model suggesting that consumers assess service quality by comparing their expected service with their actual experience He identified two key dimensions of service quality: technical quality, which refers to the tangible outcomes of the service received, and functional quality, which focuses on the delivery process and customer interaction.
According to Lehtinen (1982), service quality is evaluated based on two key aspects: service delivery and service outcome The core idea is that service quality emerges from the interaction between customers and various elements within the service organization Lehtinen identifies three dimensions of quality: physical quality, which pertains to the tangible aspects of the service such as equipment and facilities; corporate quality, which relates to the company's image; and interactive quality, arising from interactions between staff and customers, as well as among customers themselves Additionally, they distinguish between the quality linked to the service delivery process and the quality related to the final outcome of the service.
Gronroos (1982) highlights that the intangibility of services complicates the understanding of consumer perceptions regarding services and service quality He suggests that if service providers can grasp how consumers evaluate their services, they can effectively influence these evaluations in a favorable manner.
Examination of writings of Gronroos 1982; Lehtinen 1982 and other literature on services suggests three conclusions:
- Service quality perceptions result from a comparison of consumer expectations with actual service performance
- Quality evaluations are not made solely on the outcome of a service; they also involve evaluations of the process of service delivery
- Service quality is more difficult for the consumer to evaluate than goods quality
Over the years, defining and measuring "service quality" has posed challenges for both marketing scholars and practitioners (Parasuraman et al., 1988; Ananth et al., 2010) In their seminal work, Parasuraman et al (1988) define service quality as a "global judgment or attitude relating to the overall excellence or superiority of the service," offering a broad conceptualization of the term.
Quality is a strategic tool essential for enhancing efficiency and business performance, particularly in service industries where it measures how well services meet customer expectations To boost profits and market share, companies must prioritize service quality, which has emerged as a crucial factor for differentiation in a competitive landscape By focusing on service quality, businesses can effectively evaluate and improve customer experiences, making it a vital component for the survival of service-oriented companies.
Internet Banking service quality
(2002) indentified five key elements as central influences on perceived quality: + Customer expectations of service
+ The image and reputation of the service organization
+ aspect of the service setting
Figure 1.1 Five key elements as central influences on perceived quality
Customers form expectations derived from many sources - Boulding et al
In 1993, researchers suggested that customers develop expectations for future encounters based on their perceived entitlements Zeithaml and Bitner (2000) distinguished between two performance levels: desired service, which represents the ideal level of service that customers hope for, and adequate service, which meets basic expectations This framework allows for an examination of the gap between expected and actual service, focusing on the "zone of tolerance" identified by Parasuraman et al (1991).
Corporate image plays a crucial role in shaping customers' perceptions of service quality, as they often rely on the reputation of service providers to establish trust (Gronroos, 1984) Research by Shemwell et al emphasizes the significance of a strong corporate image in influencing customer confidence and satisfaction.
Trust in service providers significantly influences customer retention and reduces perceived risks, especially in the realm of Internet Banking, which is still relatively new and involves uncertain processes According to Andreason and Lindestad (1997), a service organization's image acts as a filter for customers’ perceptions of quality and satisfaction, simplifying their decision-making process and serving as an external cue However, in the financial services sector, the extent to which this image affects customer attitudes and beliefs regarding online service quality remains ambiguous.
Service quality, as defined by Gronroos (1988), encompasses both functional and technical aspects, influenced by two key elements: the service setting and the service encounter In the context of online services, understanding the factors that shape the service experience is crucial The service setting, which includes the digital environment where interactions occur, plays a significant role in perceived service quality Zeithaml and Bitner (2000) emphasize that physical evidence encompasses the environment of service delivery and the interaction between the firm and the customer, including tangible elements that aid in service performance and communication In an internet setting, the virtual service environment not only enhances performance but also provides customers with essential evidence regarding the service offered.
The physical environment significantly influences customers' perceptions of quality and service expectations (1996) Recent studies indicate that user satisfaction is closely tied to website features, including download speed, content design, interactivity, navigation, and security (Jayawardhena and Foley, 2000) Essential aspects of service settings encompass download speed, navigation, and interactivity, with common issues being slowness and poor usability Furthermore, key elements of service encounters include reliability, responsiveness, assurance, and empathy.
According to Broderick and Vachirapornuck (2002), internet customers play an active role in their service interactions, initiating processes by accessing websites, filling out forms, and contacting banks During these encounters, customers shape their roles based on their perceptions of the service environment and the instructions provided They also expect support personnel to act as information providers, especially when facing service issues or experiencing inadequate backstage service performance.
According to Jun and Cai (2001), key determinants of internet banking service quality includes seventeen dimensions identified under three categories of internet banking service quality:
Table 1.1 Key determinants of internet banking service quality
- Confidence in the bank'service
- Informing customer of important information
- Availability of status of transactions
- Continuous improvement on the online system
- Continuous improvement on banking products
- Continuous improvement on customer service
- Information on products, services online
- Other information that customer needs
- Accessibility of the Web site
- The functions that the customers need
- Attractiveness of the Web site
Service quality assessment models
Measuring the quality of goods is straightforward due to objective indicators such as durability and defect rates; however, assessing service quality is more complex due to its abstract nature According to Parasuraman et al (1988), service quality possesses three distinctive characteristics: intangibility, heterogeneity, and the inseparability of production and consumption Consequently, in the lack of objective metrics, evaluating a firm's service quality should focus on measuring consumer perceptions of that quality.
Parasuraman et.al (1985) describes the functional dimension in more detail through ten service quality determinants:
1) Access – the ease and possibility of getting in contact with a company
2) Courtesy – that employees are polite, kind and respectful towards customers, and also that things are neat and clean
3) Communication – that the customer is being informed of facts and events in an understandable way when it comes to the service itself, what the service will cost and that the service will be performed
4) Responsiveness –the employee‟s willingness and ability to serve That employees show an immediate interest for the customer and can provide the customer with a quick response
5) Competence – the employees have the competence that is needed to perform the service, both when it comes to customer interactions and when it comes to support functions It also means that there should be functional technology
6) Credibility – honesty and confidence that depends on the corporate image, personal traits of the employees and the degree of aggressive sales while in contact with customers
7) Reliability – the ability to function in a coherent manner That the service is performed right the first time, that the billing is correct and that the company is keeping their promises regarding time
8) Understanding – that the employees make an effort to understand the customer's needs and wishes Meaning that employees show personal and individual attention and recognize returning customers
9) Security – When it comes to risk, doubt or danger This includes a confidential working relationship, physical safety and financial safety
10) Tangibles – the physical elements of the service, such as premises, dress code, work tools and providing a receipt for a performed service
The Ten Service Quality Determinants Model offers a comprehensive framework that encompasses nearly every facet of service quality However, its complexity can pose challenges in measurement As a theoretical model, it may include various determinants that do not achieve distinct values, potentially impacting its effectiveness in evaluating service quality.
Parasuraman et al (1988) introduced SERVQUAL, a 22-item tool for assessing service quality, which has gained widespread recognition This model comprises five dimensions that enable customers to evaluate their perceived service quality effectively.
Assurance – employees‟ knowledge and courtesy and their ability to convey trust and confidence;
Empathy – caring and individual attention given to customers;
Reliability – ability to perform the promised service dependably and accurately;
Responsiveness – willingness to help customers and provide prompt service;
Tangibles – appearance of physical facilities, equipment, personnel, and written materials
According to Parasurama (1988), service quality is the distance between perception and expectation of a service The servqual model states that Service quality = Perceived Level - Expected Value
SERVQUAL has been extensively researched over recent decades, originating from five key industries: repair and maintenance, retail banking, credit card services, securities and brokerages, and long-distance telephone services Despite its advantages and widespread use, the SERVQUAL scale has notable limitations While customer perception can be clearly defined by their beliefs about the service, customer expectations remain ambiguous Babakus and Boller (1992) suggested that quality measurement scales should be tailored to specific service industries rather than relying on a generalized approach.
Figure 1.2 Service Quality 5 Gap Model in SERVQUAL
Source: Parasuraman et al (1985) 1.5.2 Servperf model
Cronin and Taylor (1992) challenged the service quality measurement framework established by Parasuraman, Zeithaml, and Berry (1985, 1988) by introducing the SERVPERF model, which defines service quality as a consumer attitude and focuses solely on performance They provided empirical evidence from four industries—banks, pest control, dry cleaning, and fast food—demonstrating that SERVPERF offers a more effective way to assess service quality than the traditional approach of comparing expected and experienced quality They argued that the SERVQUAL model's emphasis on five gaps between customer expectations and perceptions is flawed, suggesting that expectations should be based on actual experiences Moreover, they noted that while higher perceived service quality can enhance consumer satisfaction, satisfaction often precedes quality perceptions, indicating a complex relationship between the two.
SERVPERF model consists of five service dimensions: tangibles, reliability, responsiveness, assurance, and empathy, with two sets of 22 item statements for the importance and perception sections of the questionnaire
Tangibles are about physically visible aspects It could be viewed from the cleanliness of washroom, car parking facilities, waiting lounge comfort, and the appearance of the employees
Reliability in service delivery is crucial, as it ensures timely and accurate information for passengers This includes providing up-to-date details about flight status, baggage location, and access to trustworthy personnel.
Responsiveness in customer support is crucial, encompassing a readiness to address customer needs and provide swift services This includes quick access to airports and streamlined, efficient security clearance processes.
Assurance includes the knowledge, courtesy, skills, and trust-worthiness of the employees, as well as free from danger, risk, or doubt
Empathy plays a crucial role in fostering strong relationships and effective communication, as it involves attentive understanding of customer needs This quality is evident in the minimal waiting times for check-in, immigration inspection, and baggage reclaim services, ensuring that every customer feels valued and cared for.
Proposed model and hypothesis of the research
This research model, adapted from Jun & Cai (2001) and based on the SERPERF framework, has been refined for a more effective analysis of internet banking services The Tangible dimension has been redefined as Service Content of IBank, while Ease of Use, Efficiency, and Accuracy are derived from the Empathy, Reliability, and Responsiveness dimensions Furthermore, the Assurance dimension has been split into two distinct categories: Security and Reputation Additionally, situational and personal factors have been excluded from this model.
Figure 1.4: Conceptual model of the research
Source: Author (2020) Model in figure 1.4 analyzes the impact 6 factors to service quality of BIDV
So Giao Dich 1 Branch iBank We have the regression model estimated:
Service quality =βo + β1*Service content + β2*Ease to use + β3*Efficiency and accuracy + β4* Security+ β5*Reputation + β6*Readiness
1.6.2Proposed hypothesis of the research
Based on the above conceptual framework, the following research hypotheses are formulated to be tested as below:
H1: There is positive relationship between perception of Service contentof iBank service and service quality ofiBank service in BIDV So Giao Dich 1 Branch
H2: There is positive relationship between perception of Ease to useof iBank service and service quality of iBank service in BIDV So Giao Dich 1 Branch
H3: There is positive relationship between perception of Efficiency and accuracyof iBank service and service quality of iBank service in BIDV So Giao
H4: There is positive relationship between perception of Readinessof iBank service and service quality of iBank service in BIDV So Giao Dich 1 Branch
H5: There is positive relationship between perception of Securityof iBank service and service quality of iBank service in BIDV So Giao Dich 1 Branch
H6: There is positive relationship between perception of Reputation of iBank service and service quality of iBank service in BIDV So Giao Dich 1 Branch.
ASSESSING THE SITUATION OF BIDV IBANK SERVICE
Introduction of BIDV – SO GIAO DICH 1 BRANCH and BIDV iBankservice
The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) ranks among the top four largest commercial banks in Vietnam, alongside AgriBank, Vietinbank, and Vietcombank, based on total assets and operational network.
- Full name: Joint Stock Commercial Bank for Investment and Development of Vietnam
- Address: BIDV Tower, 35 Hang Voi Street, Hoan Kiem District, Hanoi
Founded on April 26, 1957, BIDV, originally known as the Bank for Construction of Vietnam, played a crucial role in managing and allocating capital for construction during the country's economic recovery from 1957 to 1981.
The Bank for Construction of Vietnam has invested in industrial facilities and construction projects aimed at enhancing national welfare and improving the livelihoods of the people, significantly transforming the landscape of North Vietnam Collaborating closely with the Vietnamese population, the Bank played a crucial role in wartime construction efforts, providing essential funding for air defense initiatives, transportation infrastructure, and the relocation of key industrial factories.
Between 1975 and 1981, the Bank played a crucial role in revitalizing the economic infrastructure of Southern Vietnam post-war It allocated funding for various sectors, including industrial, agricultural, transportation, and public welfare projects, as well as key initiatives vital to the national economy.
On 24 June 1981, the Bank for Construction of Vietnam was transferred from the Ministry of Finance to the State Bank of Vietnam under the new name Bank for Investment and Construction of Vietnam
From 1981 to 1990, the Bank for Investment and Construction of Vietnam enhanced its operational mechanisms to foster continued growth During this transformative period, the bank aligned itself with the national renovation efforts and the evolving banking sector, establishing itself as a leading specialized bank in the country Additionally, it began directly offering loans to businesses, gradually transitioning into a commercial bank operating under market principles.
During this period, BIDV played a crucial role in fostering innovation in the country by providing essential working capital to construction companies This support enabled these companies to accelerate their construction projects while enhancing their technology and productivity.
In 1990, the Chairman of the Council of Ministers announced Decision 401/CT, which established the Bank for Investment and Development of Vietnam by renaming the previously existing Bank for Investment and Construction of Vietnam.
In 1990, BIDV embarked on its inaugural international business operations by collaborating with foreign financial institutions to create joint ventures This expansion included a diverse range of sectors such as finance, banking, insurance, and securities, leading to the establishment of representative offices and banks in countries like Laos, Cambodia, Myanmar, Russia, and the Czech Republic.
Since its transformation into a commercial bank in 1995, BIDV has successfully integrated into international financial markets, playing a crucial role in the development and enhancement of Vietnam's market economy.
BIDV underwent equitization as directed by the Government, balancing the interests of the State, businesses, investors, and employees This process aligns with market mechanisms and emphasizes a robust approach to international integration.
On 28 December 2011, BIDV implemented equitization through initial public offering (IPO) On 27 April 2012, BIDV officially transformed into the Joint Stock Commercial Bank for Investment and Development of Vietnam, making significant changes to ownership structure, ensuring transparency in accordance with international practice BIDV has been listed on the stock exchange under the code BID since January
2014, operating effectively in international competitive market environment
Up to now, BIDV comprehensively completed its business targets, strengthening competitive capacity, becoming the leading commercial joint stock bank in Vietnam with sustainable development
- Banking: BIDV provides a full range of modern and convenient banking products and services including deposits, loans, trade finance, payment, card services and account services
- Insurance: BIDV provides various life and non-life insurance product packages that designed to meet the needs of each customer
- Securities: BIDV provides a wide range of brokerage services, investment consultancy with the ability of quickly developing agents
- Financial investment: BIDV contributes capital for investment in many key national projects and takes the lead in significant projects in Vietnam
BIDV stands as Vietnam's foremost commercial joint stock bank, distinguished by its commitment to sustainable development Its success is driven by effective credit growth management, enhanced retail operations, competitive capital mobilization, and a focus on liquidity and system safety In 2019, BIDV surpassed many key competitors in Vietnam with its total assets, outstanding loans, and deposits, reflecting its robust performance and operational efficiency.
BIDV's success is largely attributed to its team of 25,000 highly trained and experienced officers and employees, who play a crucial role in delivering reliable benefits to customers.
Organization Customer: BIDV is building the relation with nearly 200,000 corporate customers including groups, corporations, and small and medium-sized enterprises from all economic sectors
Financial institutions: BIDV is the trusted choice of nearly 1,700 financial institutions including domestic and international organizations
Individuals: 7.7 million individual customers currently use products and services of BIDV
BIDV stands out as a leading bank in Vietnam's banking sector, particularly in the adoption of modern technology In 2018, the bank advanced its digital banking initiatives and was recognized by S&P as a top institution collaborating with FinTech companies to enhance digital banking, especially in retail operations Additionally, BIDV's innovative iBank platform earned a spot in the Top 10 Sao Khue Awards, further solidifying its reputation in the digital banking landscape.
BIDV‟s banking network: Up to the end of December 2019, there are 190 Branches, 855 transaction offices with 57,825 ATM/POS covering 63 cities and provinces in Vietnam
General assessment of the quality of IBank service BIDV So Giao Dich 1
In recent years, the BIDV So Giao Dich 1 Branch has prioritized the development and enhancement of BIDV iBank services This focus on improving service quality is integral to the branch's business strategy, guiding its service development orientation and action plans.
Between 2017 and 2019, the internal analysis of IBank service development at BIDV So Giao Dich 1 branch revealed significant achievements There has been a consistent annual increase in customer registrations for the service, accompanied by substantial growth in transaction volumes over BIDV iBank Additionally, the service quality of BIDV iBank has received high praise from customers.
BIDV boasts a robust information technology infrastructure, featuring a modern Core Banking system equipped with diverse modules for deposits, loans, money transfers, trade finance, and capital support for large enterprises This strong foundation is advantageous for the growth of BIDV iBank and enhances the overall service quality offered by BIDV iBank.
BIDV boasts a professional and dynamic team of young, highly qualified staff, which, combined with its scale advantages, enables the bank to swiftly adapt to the latest technological advancements in its IBank services Furthermore, ongoing training initiatives have led to significant improvements, aligning the team's skills with real-world demands.
The BIDV So Giao Dich 1 branch has seen a significant enhancement in its prestige and brand recognition, thanks to continuous support from the community and local authorities This strong reputation fosters trust among customers, paving the way for the successful introduction and growth of BIDV iBank services.
The development of IBank services at BIDV aligns with the guidelines and policies of the State and the State Bank, garnering significant support from the Government and relevant departments This support facilitates the growth of this innovative distribution channel Notably, the Prime Minister's Directive 01/CT-TTg issued on January 14, 2020, and Decision 711/QĐ-NHNN dated April 15, 2020, focus on advancing digital enterprises in Vietnam, further enhancing conditions for BIDV to expand its iBank services for organizational customers.
Joining the WTO has enhanced collaboration between domestic and foreign financial institutions, enabling BIDV to receive vital technical support from strategic partners This assistance has allowed BIDV to continually improve its service quality and technological capabilities Today, BIDV stands as one of the leading banks in financing medium and long-term projects for state-owned enterprises, generating significant profits With its extensive scale and business network, BIDV has immense potential for developing its IBank services.
The BIDV So Giao Dich 1 branch has yet to fully leverage the potential of its IBank service, as it has primarily focused on traditional services like inquiries and payments Despite deploying a range of product packages, the overall efficiency remains below expectations, leading to underdevelopment of the IBank service in relation to the branch's potential customer base.
Many individuals struggle with limited computer skills, hindering their ability to access and utilize the full features of BIDV iBank Although there is a demand for these services among customers, many feel hesitant or unable to navigate the technology effectively.
The quality of IBank services at the BIDV So Giao Dich 1 branch has not met customer expectations due to cumbersome registration procedures and a lack of proactive consultancy and guidance Customers have expressed dissatisfaction with the staff's ability to effectively introduce and consult on the service.
Addressing customer complaints regarding service errors caused by the technology system lacks flexibility and promptness Furthermore, staff responses have not demonstrated full accountability or a constructive attitude Additionally, the direct hotlines for BIDV iBank at So giao dich 1 Branch have not been adequately communicated to all registered customers.
Finally, product promotion and marketing activities are not really effective and associated with the service development process Polices relating to BIDV iBank mainly come from BIDV Head office
The current legal framework governing electronic transactions is inadequate, as the existing banking regulations do not align with the Law on E-transactions and relevant transaction decrees This inconsistency hampers the effective implementation of electronic banking within banking operations.
As the economy continues to grow, the number of business entities is rising, leading to an increased demand for IBank services Consequently, IBank is facing challenges in enhancing its services swiftly enough to satisfy customer needs.
The rapid expansion of internet banking for businesses has led to heightened competition, with rivals willing to invest substantial resources to attract customers.
The human resources for this service are underqualified and lack proper training, with many staff members being young and inexperienced Additionally, there has been a lack of proactive promotion of the features, benefits, and conveniences that BIDV iBank offers to customers.
Reasearch finding result
Figure 2.1 Registered customer number by year
After experiencing significant growth in 2016 with over 270 new registered customers, the service faced a decline in 2017 and 2018, attracting fewer than 50 new users each year However, 2019 marked a resurgence, with nearly 180 new customers, and 2020 continued this positive trend, adding 121 customers within just six months.
The first-6-month in 2020 has seen a significant grown up in both transaction numbers and transaction volumes of IBank service of BIDV with 25.11% and 19.71% respectively
Figure 2.2 Proportion of customer by service package
In BIDV, 50% of IBank customers utilize the Non-financial package, while 46.1% opt for the Financial package, and 3.8% choose the capital management service.
Figure 2.3 Proportion of customer and proportion of transaction volume by type of corporation
In the context of BIDV's IBank services, corporations and financial institutions dominate transaction volume, contributing a significant 88.6%, with corporations accounting for 4.1% and financial institutions for 5.1% In contrast, small and medium-sized enterprises (SMEs) and other customers collectively represent only 11.5% of the transaction volume, with SMEs at 10.3% and others at a mere 1.2%.
Figure 2.4 Number of registered customer by service function
The most popular feature of the BIDV IBank service is the Account Inquiry function, favored by the majority of customers In contrast, non-financial functions have seen limited usage Approximately half of BIDV customers utilize the financial package, with Domestic Money Transfer being the most commonly selected feature Additionally, around half of the customers use the Salary Payment function, and nearly half engage in International Money Transfers Within the Capital Management package, most users activate the Cash Flow Control function, while half take advantage of Cash Flow Management Inquiry and Automatic Funds Transfer.
The seven largest transaction volume users include four companies from the Viettel Group, which collectively handle approximately 28 trillion VND in transactions, with two of these companies operating in the financial sector Notably, the transaction volume variation among these users is relatively low, with a coefficient of variation under 120%, compared to the average of 205%, indicating a high reliability in their service usage Similarly, the transaction numbers exhibit a comparable trend, with a coefficient of variation around 40%, in stark contrast to the nearly 160% average, further emphasizing the consistency among the top users.
2.3.2 Survey results on quality of iBank service at Bank for Development and Investment of Vietnam, So Giao Dich 1 branch
The study aims to gather a sample size of 100 valid responses; however, an online survey conducted via Google Forms yielded 80 responses After data cleaning, only 64 responses were deemed valid for analysis.
The analytical results are divided into the following groups: a Demographic analysis
Figure 2.5 Gender and age statistic
IBank's customer base is predominantly female, with three-fourths of its clients identifying as women Among these customers, over 62% fall within the age range of 31 to 40 years, while one-fourth are aged between 41 and 51 years Additionally, only 12% of users are aged 21 to 30 years, highlighting the bank's appeal to a more mature demographic.
Figure 2.6 Company size and industry statistic
BIDV customers predominantly engage in the commerce and finance sectors, accounting for 28% and 25% of their participation, respectively The industry and telecommunications sectors follow, representing 15.6% and 12.5% Other industries each contribute less than 7% to the overall customer distribution.
According to a 2020 report by the author, 58 out of 64 customers utilizing BIDV IBank services have opted for financial packages, while only 40% have selected non-financial packages for their businesses Additionally, just 10 companies have registered for BIDV's Capital Management service.
Figure 2.8 Main reason to use iBank service statistic
According to a 2020 survey by Author, the primary reason customers trust IBank services is their user-friendly design, with 42 respondents highlighting ease of use Additionally, effective functionality to meet customer needs and a high level of security were significant factors, attracting 36 and 32 customers, respectively Interestingly, only 6 out of 64 customers prioritized free transactions when using IBank services.
Figure 2.9 Customer problem while using service statistic
Over 40% of customers report no difficulties when using BIDV IBank, while nearly 20% experience challenges with transactions The most common issue, affecting 13.9% of users, is related to signing in, while 11.1% express concerns about seeking support and finding necessary information.
According to a 2020 survey, nearly 60% of IBank users engage in daily transactions, while over 28% utilize BIDV services 2 to 3 times each week In contrast, only 9.4% of users make transactions once a week, and a mere 3.1% do so monthly.
Figure 2.11 Amount of transactions per month statistic
A recent survey reveals that more than 65% of companies utilizing financial packages conduct fewer than 100 transactions monthly Approximately 15% of these businesses engage in 100 to 300 transactions, while 9.4% exceed 1,000 transactions each month Additionally, 6.3% of companies perform between 300 and 600 transactions, and 3.1% handle between 600 and 1,000 transactions monthly.
Figure 2.12 Transaction volumes per month
Source: Author (2020) The most common transaction volumes of BIDV IBank users are from 1 to
10 billions and under 1 billions with 40.6% and 31.3% In nearly 30% left of them, 12.5% companies make above 1000-billion transaction while 10-100-billion and 100-1000-billion group only take 9.4% and 6.3%
2.3.2.2 Service quality questionnaire analysis i Cronbach’s Alpha analysis
In our model, each factor is constructed from various observed variables, which are assessed for reliability using Cronbach's Alpha coefficient to determine the overall credibility of the factors To ensure that each question accurately belongs to its respective research factor, we analyze the correlation between individual questions and other related questions through the total variable correlation coefficient A reliable scale is established when the Cronbach's Alpha coefficient meets or exceeds the threshold of 0.6, as outlined by Hair et al.
In research, a minimum correlation coefficient of 0.3 is essential for variables, as noted by Nunnally (1994) Factors exhibiting a Cronbach's Alpha coefficient below 0.6 are deemed inappropriate, indicating that they do not effectively form within the research context Additionally, observed variables, or survey questions, with a total correlation of less than 0.3 are classified as garbage variables and should be excluded from the analysis.
Research result discussion
This research aims to analyze key insights from BIDV's internal documents and customer surveys regarding IBank users Notably, over 73% of cash flow is driven by a small percentage (4.1%) of major corporations in the telecommunications, logistics, and finance sectors Furthermore, half of the customers are utilizing services without being registered for the financial package, indicating significant potential for further engagement Customers highly value security (4.39), reputation (4.34), and efficiency (4.24), highlighting the need for continuous improvement in these areas to maintain satisfaction levels Interestingly, service content (3.94) is perceived as less important, suggesting BIDV should prioritize enhancing service functionality Lastly, 36% of customers expressed a desire for an intuitive and user-friendly experience (3.97), yet ease-of-use received the second-lowest average rating in the survey, emphasizing the need for improvement in this aspect.
A study involving 64 respondents using IBank services at BIDV identified two key factors influencing service quality: Reliability and Customer Friendliness The Reliability factor encompasses four elements: Efficiency and Accuracy, Security, Reputation, and Service Content Meanwhile, Customer Friendliness is derived from various customer-oriented aspects, highlighting the importance of these combined factors in enhancing overall service quality.
(1) Readiness, (2) Ease of use and (3) Service content To be specific, the factor
The relationship between reliability and service quality is paramount, with a coefficient of 0.774 indicating that BIDV customers are significantly influenced by reliability In contrast, customer friendliness has a lesser impact on service quality, reflected in a coefficient of 0.575, suggesting that IBank's target customers prioritize reliability over friendliness This trend is particularly evident among organizational clients who emphasize reliability during online transactions, especially those involving high-value amounts Notably, nearly 70% of customers conduct transactions exceeding 1 billion monthly, while 20% of BIDV IBank users engage in transactions over 100 billion per month.