Tiến Sĩ Factors affecting the use of mobile banking services in Hanoi, Vietnam

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF DOCTOR IN BUSINESS ADMINISTRATION
2013

TABLE OF CONTENTS
Chapter I.
INTRODUCTION . 1
1.1 Background of the study 3
1.2 Statement of the objectives 4
1.3 Hypothesis 4
1.4 Significance of the study 5
1.5 Scope and Limitations 6
1.6 Definition of terms . 7

Chapter II.
REVIEW OF RELATED LITERATURE AND STUDIES . 9
2.1 Banking in Vietnam . 9
2.2 Mobile Banking Services . 10
2.3 Mobile Financial Services 13
2.4 Mobile Commerce Services . 15
2.5 Mobile banking technology . 16
2.6 Mobile Banking in Vietnam . 20
2.7 Consumer Behavior . 22
2.8 Expectancy-Value Theory . 25
2.9 The Theory of Reasoned Action 26
2.10 The Theory of Planned Behavior . 27
2.11 Technology Acceptance Model . 29
2.12 The conceptual framework 36

Chapter III.
RESEARCH METHODOLOGY 42
3.1 Research design . 42
3.1.1 Pilot study . 43
3.1.2 Variable measurement 43
3.2 Determination of Sample size 46
3.3 Sampling design and techniques 47
3.4 Research Instrument . 47
3.5 Data gathering procedure . 48
3.5 Data processing method . 49
3.6 Statistical treatment 49
3.6.1 Reliability Analysis of Scale . 49
3.6.2 Exploratory Factors Analysis 49
3.6.3 Regression analysis . 50
3.6.4 Testing the hypothesis . 50
3.7 Evaluation of the reliability of scales . 51
Chapter IV.
RESULTS AND DISCUSSION . 55
4.1 Profile of the respondents 55
4.1.1 Demographic characteristics . 55
4.1.2 The status of the use of banking services 57
4.2 Purpose of use mobile banking services 58
4.3 Analysing the differences in the use of mobile banking services 62
4.3.1 The difference by living area 62
4.3.2 The difference by gender 63
4.3.3 The difference by age 63
4.3.4 The difference by education 65
4.3.5 The difference by occupation 65
4.3.6 The difference by income . 66
4.4 Exploratory Factor Analysis 67
4.5 Correlation analysis . 73
4.6 Regression analysis 74
vi
4.6.1 Regression model 74
4.6.2 Tesing the assumptions of the regression model 78
Chapter V.
SUMMARY, CONCLUSION AND RECOMMENDATIONS . 81
5.1 Summary of results and findings . 81
5.2 Conclusion . 83
5.3 Recommendations 85
REFERENCES 90
Appendix 1. QUESTIONNAIRE . 97
Appendix 2. DESCRIPTIVE STATISTICS 104
Appendix 3. RELIABILITY ANALYSIS - SCALE (ALPHA) 106
Appendix 4. EXPLORATORY FACTOR ANALYSYS (EFA) . 112
Appendix 5. REGRESSION 117

Chapter I. INTRODUCTION
The rapid development of science and technology, particularly information
technology, has affected all aspect of life-socio-economics of Vietnam. This
development process has changed the perception of the use of high-tech services in
many areas, many different economic sectors, especially in the field of
telecommunications, finance and banking. Online transactions, payment on Internet
as well as mobile network, etc. have become the development and competition trends
of integrated service providers in Vietnam.
Development of banking services based on mobile phone technology has
become the objective and inevitable trend during the international economic
integration more and more deeper in Vietnam. The development of mobile banking
services has brought significant benefits to customers as a convenient, fast and
accurate of the transaction. At the same time it also opens up new development
opportunities for the telecommunications providers, application and software
developers, e-commerce merchants, bankers, etc. in Vietnam.
Mobile banking services are tools that permits user to carry out transactions
with its bank via cell phone. The concept of this service had been raised since late 20th
Century. Traditional payment methods such as bank transfer, credit card, debit card,
bank notes, etc. have been helping the payment-via-bank being convenience and
popular in several developed countries that buyers will not need being face-to-face
with seller, and cash becomes useless. Everything has its pros and cons. The
traditional payment methods have certain limitations. For examples, bank transfer and
notes transactions must be performed within work time and places; credit/debit cards
depend on sellers and the card itself.
From early 21st century, Internet banking has been emerging and serving
consumers with certain conveniences by mean of payment. Buyers can make payment
from anywhere and at anytime. However, some online security limitations lead to the
imposture of banking cards to thieve money in several countries. Consequently,
consumers have been hesitated to use Internet payment. In comparison with stated
payment methods, Mobile banking has been less risky by transaction process while
still providing users with its convenience and high security. However, this service is
not yet popular in Vietnam so far although lots of Banks are ready to make use of it.
According to The State Bank of Vietnam, in front the fast and strong
development of information technology and telecom, Vietnam Prime Minister signed
Decision No. 2453/QD-TTg approved the project to promote non-cash payment
period 2012-2015, in which, electronic payments are a key task of the project. The
purpose of the decision to reduce the consumption of cash and create consumer habits
non-cash in large populations (Bui Quang Tien, 2012). General Director of State
Bank of Vietnam in HCMC said: many people use mobile for payment as a modern
payment methods and targeting high-tech is a perfect fit. The investment of banks to
develop mobile payment is a trend worth encouraging. With the same vision, Leaders
of VietA Bank said, developing money transaction services to a large extent through
mobile phone is a new trend of the banking sector, although some banks start to
provide the trial basic package but they have successfully implemented.
The ubiquity of mobile phones is changing the way for consumer access
financial services. The mobile banking was developing in some countries. Some new
services allow consumers to get account information and conduct a money transaction
with the banks (named “mobile banking”) and others allow consumers to make a
payment for goods and services (“mobile payments”). Since 2009, many banks in
Vietnam have invested very much in technological infrastructure, diversified banking
products and services, improved service quality, and built multi-channel service
systems. (Le Thanh Tam, 2012). Mobile phones and mobile Internet access are in
widespread use in Vietnam. But, Mobile banking is still not popular. Sometimes it is
ambiguous or expensive in the mind of many customers.
In brief, Vietnam has more than 86 million population (GSO, 2012), 120.7
million mobile subscribers, 15.5 million fixed subscribers, over 31% rate of people
use the Internet regularly, 30.2 million mobile users and (MIC, 2012), 44 bankers
with high-tech infrastructure (SBV, 2013), and more then 400 Value added services
providers (MIC, 2013). It should be a great potential market for the development the
high-tech financial services products, but mobile banking just stop at checking bank
account, paying for telephone fee (top-up) in a small set of customers, pay for
monthly bills (such as electric invoice) in restrict area, pay for purchase in simple
business (e.g. air-tickets). It is really not popular. The question is what issues or
factors is affecting positive and what is negative to the use of mobile banking services
in Vietnam. Grasp deeply this problem can alter the behavior of consumers towards a
cashless society. At the same time, it is also a basic promoting robustly the
development of mobile banking services in Vietnam.