Tài liệu Improving internet banking service quality at vietcombank ba dinh

i ACKNOWLEDGEMENTS First and foremost, I would like to express my gratitude to my supervisor PhD Phan Thuc Anh, who directed me through the path I should take as regards to this dissertation and had valuable on my research study. Secondly, I would like to thank all of the MBA professors from Business School, National Economic University. Thanks to Program Directors, Coordinators of the program as well as class teachers who did try their best to provide me valuable and precious knowledge. Thirdly, the author also do appreciate the kindness from all my friends and all classmates at EMBA 9A who gave me the help and shares to encourage me throughout the dissertation. My sincere thanks are also addressed to Head of Management at VCBBD for their assistance in this research. I am very thankful to the cooperation of my friends and colleagues who let me interview and gave me very useful information. Last but not least, the author would like to express my appreciation to my dear parents, my brothers and my sister in law who gave me enthusiastic support and shared housework with me during my study of MBA course at BS – NEU. Author Nguyen Huu The i ii TABLE OF CONTENTS ACKNOWLEDGEMENTS.....................................................................................i TABLE OF CONTENTS........................................................................................ii ABBREVIATIONS..................................................................................................v LIST OF TABLES..................................................................................................vi LIST OF FINGURES............................................................................................vii EXECUTIVE SUMMARY..................................................................................viii CHAPTER 1: INTRODUCTION...........................................................................1 1.1. Rationale.........................................................................................................1 1.2. Research objectives........................................................................................2 1.3. Research questions.........................................................................................2 1.4. Research methodology...................................................................................3 1.4.1.Research process..........................................................................................3 1.4.2. Data collection.............................................................................................4 1.4.3. Data Analysis..............................................................................................5 1.5. Research scope...............................................................................................6 1.6. Thesis structure..............................................................................................6 CHAPTER 2 THEORETICAL BACKGROUND ON QUALITY OF INTERNET BANKING SERVICE AT COMMERCIAL BANK .......................7 2.1. Commercial banks and banking services.....................................................7 2.1.1. Commercial banks.......................................................................................7 2.1.2. Banking services..........................................................................................8 2.2. Internet Banking service in Commercial bank..........................................13 2.2.1. Definition of internet banking service.......................................................13 2.2.2. Type of internet banking service...............................................................13 2.2.3. Benefits of internet banking service in commercial bank..........................14 2.3. Internet banking service quality in commercial bank...............................17 2.3.1. Service quality...........................................................................................17 ii iii 2.3.2. Model applied for Internet Banking service quality...................................18 CHAPTER 3 OVERVIEW OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE...........................................................................................24 3.1. Overview on vietcombank Ba Dinh............................................................24 3.1.1. VCBBD introduction.................................................................................24 3.1.2. Vietcombank Ba Dinh Branch’s business performance 2009 – 2012........27 3.2. Vcbbd’s internet banking service in the period 2009 – 2012....................29 3.2.1. Types of internet banking service at VCBBD...........................................29 3.2.2. Developing internet banking service at VCBBD.......................................33 CHAPTER 4 FINDINGS ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY........................................................................35 4.1. Evaluation on vietcombank Ba Dinh’s internet banking service quality..............................................................................................35 4.1.1. Tangibles dimension under customer’s view.............................................37 4.1.2. Responsiveness dimension under customer’s view...................................39 4.1.3. Reliability dimension under customer’s view............................................41 4.1.4. Assurance dimension under customer’s view............................................44 4.1.5. Empathy dimension under customer’s view..............................................46 4.1.6. Financial aspect dimension under customer’s view...................................46 4.1.7. Variety of service under customer’s view..................................................48 4.2. Gaps of vcbbd’s internet banking service quality.....................................50 4.2.1. Summary of the gap between customer’s expectation and perception.......51 4.2.2. Causes of gaps on internet banking service quality at VCBBD.................53 CHAPTER 5 RECOMMENDATIONS TO IMPROVE THE QUALITY OF VCBBD’S INTERNET BANKING SERVICE....................................................55 5.1. Vcbbd’s orientation on internet banking service development up to 2020..........................................................................55 5.2. Recommendations to improve the quality of vcbbd’s internet banking service..................................................................................................................57 iii iv 5.2.1. Improving staff quality..............................................................................57 5.2.2. Improving transaction channels between the bank and customers.............58 5.2.3. Developing infrastructure and investing in modern technology................59 5.2.4. Diversifying internet banking service........................................................60 5.2.5. Enhancing customer care...........................................................................61 5.3. Conditions to apply the recommendations.................................................61 5.3.1. Supports from the State bank of Vietnam..................................................61 5.3.2. Supports from the Headquarter..................................................................62 CONCLUSION......................................................................................................64 LIST OF REFERENCES......................................................................................65 APPENDICES........................................................................................................67 APPENDIX A: QUESTIONS FOR THE IN DEPTH INTERVIEW....................67 APPENDIX B: QUESTIONNAIRE.....................................................................68 ACKNOWLEDGEMENTS....................................................................................4 ABBREVIATIONS..................................................................................................5 LIST OF TABLES...................................................................................................6 LIST OF FINGURES..............................................................................................7 EXECUTIVE SUMMARY.....................................................................................8 CHAPTER 1: INTRODUCTION.........................................................................10 1.1. RATIONALE.......................................................................................................... 1.2. RESEARCH OBJECTIVES.................................................................................. 1.3. RESEARCH QUESTIONS.................................................................................... 1.4. RESEARCH METHODOLOGY........................................................................... 1.4.1.Research process...........................................................................................12 1.4.2. Data collection..............................................................................................12 1.4.3. Data Analysis................................................................................................14 iv v 1.5. RESEARCH SCOPE.............................................................................................. 1.6. THESIS STRUCTURE........................................................................................... CHAPTER 2: THEORETICAL BACKGROUND ON QUALITY OF INTERNET BANKING SERVICE AT COMMERCIAL BANK .....................16 2.1. COMMERCIAL BANKS AND BANKING SERVICES..................................... 2.1.1. Commercial banks.......................................................................................16 2.1.2. Banking services...........................................................................................17 2.2. INTERNET BANKING SERVICE IN COMMERCIAL BANK........................ 2.2.1. Definition of internet banking service........................................................21 2.2.2. Type of internet banking service....................................................................21 2.2.3. Benefits of internet banking service in commercial bank..............................23 2.3. INTERNET BANKING SERVICE QUALITY IN COMMERCIAL BANK ......................................................................................................................................... 2.3.1. Service quality..............................................................................................25 2.3.2. Model applied for Internet Banking service quality.................................26 2.3.3. Dimensions to measure internet banking service quality.........................29 CHAPTER 3: OVERVIEW OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE...........................................................................................31 3.1. OVERVIEW ON VIETCOMBANK BA DINH.................................................... 3.1.1. VCBBD introduction...................................................................................31 3.1.2. Vietcombank Ba Dinh Branch’s business performance 2009 – 2012.......35 3.2. VCBBD’S INTERNET BANKING SERVICE IN THE PERIOD 2009 – 2012................................................................................................................................. 3.2.1. Types of internet banking service at VCBBD............................................37 1. Inquiry................................................................................................................ 38 2. Transfer..............................................................................................................38 3. Card management.............................................................................................39 4. Fixed Deposit......................................................................................................40 5. Service registration............................................................................................40 v vi 3.2.2. Developing internet banking service at VCBBD.......................................41 CHAPTER 4: FINDINGS ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY........................................................................43 4.1. EVALUATION ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY................................................................................. * Dimensions to measure internet banking service quality at VCBBD.............43 4.1.1. Tangibles dimension under customer’s view.................................................44 4.1.2. Responsiveness dimension under customer’s view....................................46 4.1.3. Reliability dimension under customer’s view............................................48 4.1.4. Assurance dimension under customer’s view............................................50 4.1.5. Empathy dimension under customer’s view..............................................53 4.1.6. Financial aspect dimension under customer’s view..................................53 4.1.7.........................................................................................................................55 . Variety of service under customer’s view..........................................................55 4.2. EVALUATING ON FINDING GAPS OF VCBBD’S INTERNET BANKING SERVICE QUALITY................................................................................. 4.2.1. Summary of finding gap between customer’s expectation and perception ................................................................................................................................. 58 Error! Hyperlink reference not valid.4.2.2. Acceptable Gap from customer’s expectation and perception......................................................................................59 4.2.32. Causes of gaps on internet banking service quality at VCBBD...................60 CHAPTER 5: RECOMMENDATIONS TO IMPROVE THE QUALITY OF VCBBD’S INTERNET BANKING SERVICE................................................6362 5.1. VCBBD’S ORIENTATION ON INTERNET BANKING SERVICE DEVELOPMENT UP TO 2020................................................................................. 5.2. RECOMMENDATIONS TO IMPROVE THE QUALITY OF VCBBD’S INTERNET BANKING SERVICE.......................................................................... 5.2.1. Improving staff quality............................................................................6463 5.2.2. Improving transaction channels between the bank and customers.....6564 vi vii 5.2.3. Developing infrastructure and investing in modern technology..........6665 5.2.4. Diversifying internet banking service.....................................................6766 5.2.5. Enhancing customer care........................................................................6867 5.3. CONDITIONS TO APPLY THE RECOMMENDATIONS............................ 5.3.1. Supports from the State bank of Vietnam.............................................6867 5.3.2. Supports from the Hhead quarter..........................................................6968 CONCLUSION..................................................................................................7069 LIST OF REFERENCES..................................................................................7170 APPENDICES....................................................................................................7372 vii viii ACKNOWLEDGEMENTS viii ix ABBREVIATIONS LIST OF TABLES LIST OF FINGURES EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1. RATIONALE 1.2. RESEARCH OBJECTIVES 1.3. RESEARCH QUESTIONS 1.4. RESEARCH METHODOLOGY 1.4.1.Research process 1.4.2. Data collection 1.4.3. Data Analysis 1.5. RESEARCH SCOPE 1.6. THESIS STRUCTURE CHAPTER 2: THEORETICAL BACKGROUND ON QUALITY OF INTERNET BANKING SERVICE AT COMMERCIAL BANK 2.1. COMMERCIAL BANKS AND BANKING SERVICES 2.1.1. Commercial banks 2.1.2. Banking services ix x 2.2. INTERNET BANKING IN COMMERCIAL BANK 2.3. INTERNET BANKING SERVICE QUALITY IN COMMERCIAL BANK 2.2.1. Nature of internet banking service 2.2.2. Internet Banking service in commercial bank 2.2.3. Model applied for Internet Banking service quality 2.2.4. Dimensions to measure internet banking service quality 2.4. FACTORS AFFECTING INTERNET BANKING SERVICE QUALITY CHAPTER 3: OVERVIEW OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE 3.1. OVERVIEW ON VIETCOMBANK BA DINH 3.1.1. VIETCOMBANK BA DINH'S introduction 3.1.2. VIETCOMBANK BA DINH’S business performance 2009 – 2012 3.2. VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE IN THE PERIOD 2009 – 2012 x xi 3.2.1. Types of internet banking service at VIETCOMBANK BA DINH 3.2.2. Performance of internet banking service at VIETCOMBANK BA DINH CHAPTER 4: FINDINGS ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY 4.1. EVALUATION ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY 4.1.1. Safety dimension under customer’s view 4.1.2. Responding time dimension under customer’s view 4.1.3. Staff dimension under customer’s view 4.1.4. Issues relating to finance dimension under customer’s view 4.1.5. Tangible dimension under customer’s view 4.1.6.Variety of service under customer’s view 4.2. GAPS OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY 4.2.1. Summarize of findings on the gaps between customer’s expectation and perception 4.2.2. Causes of gaps on internet banking service quality at Vietcombank Ba Dinh xi xii CHAPTER 5: RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE 5.1. VIETCOMBANK BA DINH ’S ORIENTATION ON INTERNET BANKING SERVICE DEVELOPMENT UP TO 2020 5.2. RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE 5.2.1. Improving staff quality 5.2.2. Improving management competence and completing internet banking business performance organizational model 5.2.3. Developing infrastructure and investing modern technology 5.2.4. Diversifying variety of internet banking service 5.2.5. Enhancing customer care service 5.2.6. Improving competitiveness by service fees and charges 5.3. CONDITIONS TO APPLY THESE RECOMMENDATIONS xii xiii 5.3.1. Supports from the State of Vietnam 5.3.2. Suggestions to the State Bank of Vietnam CONCLUSION LIST OF REFERENCES APPENDICES ACKNOWLEDGEMENTS First and foremost, I would like to express my gratitude to my supervisor PhD Phan Thuc Anh, who directed me through the path I should take as regards to this dissertation and had valuable on my research study. Secondly, I would like to thank all of the MBA professors from Business School, National Economic University. Thanks to Program Directors, Coordinators of the program as well as class teachers who did try their best to provide us me valuable and precious knowledge. Thirdly, the author also do appreciate the kindness from all my friends and all classmates at EMBA 9A who gave me the help and shares to encourage me throughout the dissertation. My sincere thanks are also addressed to Head of Management at VCBBD for their assistance in this research. I am very thankful to the cooperation of my friends and colleagues who let me interview and gave me very useful information. Last but not least, the author would like to express my appreciation to my dear parents, my brothers and my sister in law who gave me enthusiastic support and shared housework with me during my study of MBA course at BS – NEU. xiii xiv Author Nguyen Huu The ABBREVIATIONS ALCO Assets Liabilities Management Committee ATM Automatic teller machine BOFB Branches of foreign banks EPS Earning per share FB Foreign banks FC Financial corporations xiv xv JSCB Joint stock banks JVB Joint venture commercial banks LC leasing companies VCB Vietcombank (Join stock commercial Bank for foreign trade of Viet Nam) VCBBD Vietcombank Ba Dinh ~ Vietcombank Ba Dinh Branch POS Point of sale SET Secure Electronic Transaction SMEs Small and Medium Enterprises SOCB SSL State owned commercial banks Secure Socket Layer xv xvi LIST OF TABLES Table 3.1: The process of increasing charter capital of VCBBD Table 3.2: The growth of capital mobilization from 2009 to 2012 Table 3.3: Loans for subjects from 2009 to 2012 Table 3.4: Expenses for operation activities from 2009 to 2012 Table 3.5: Time of providing services through Internet Banking channel Table 3.6: Transaction Limit on Internet Banking Table 3.7: Fees of using Internet Banking service Table 3.8: The interbanking transfer transaction on Internet Banking over year Table 3.9: The internal transfer and invoice payment on internet banking over year Table 3.10: Total transactions on Internet Banking Table 3.11.Dimensions and attributes of internet banking service quality Table 4.1: Mean Score of Safety dimension Table 4.2: Mean score of responding time dimension Table 4.3: Mean score of Staff dimension Table 4.4. Mean score of issues relating to finance dimension Table 4.5. Mean score of Tangible dimension Table 4.6. Mean score of Variety of services dimension xvi xvii Table 3.1 : Profit before tax of Vietcombank Ba Dinh Branch................................35 Table 3.2: The relation between interest and non-interest income...........................35 Table 3.3: The accumulated number of individual customers and individual customers using Internet bakning service through years.......................................... 41 Table 3.4: The internal transfer and invoice payment on internet banking over years ............................................................................................................................... 412 Table 4.0.Dimensions and attributes of internet banking service quality.................43 Table 4.1. Mean score of Tangibles dimension....................................................... 45 Table 4.2: Mean score of Responsiveness dimension.............................................. 47 Table 4.3: Mean Score of Reliability dimension...................................................... 49 Table 4.4: Mean score of Assurance dimension...................................................... 51 Table 4.5: Mean score of Empathy dimension......................................................... 53 Table 4.6. Mean score of Financial aspect dimension.............................................. 54 Table 4.7. Mean score of Variety of services dimension......................................... 56 Table 4.8. Mean score of 7 dimensions................................................................... 57 Table 3.1 : Profit before tax of Vietcombank Ba Dinh Branch................................27 Table 3.3: The accumulated number of individual customers and individual customers using Internet banking service through years..........................................33 Table 3.4: The internal transfer and invoice payment on internet banking over years....33 Table 4.1.Dimensions and attributes of internet banking service quality.................35 Table 4.1. Mean score of Tangibles dimension.......................................................37 Table 4.2: Mean score of Responsiveness dimension..............................................40 Table 4.3: Mean Score of Reliability dimension.....................................................42 Table 4.4: Mean score of Assurance dimension......................................................44 Table 4.5: Mean score of Empathy dimension........................................................46 xvii xviii Table 4.6. Mean score of Financial aspect dimension.............................................47 Table 4.7. Mean score of Variety of services dimension.........................................49 Table 4.8. Mean score of 7 dimensions...................................................................50 xviii xix LIST OF FINGURES Figure 1.1: Research Process................................................................................... 12 Figure 2.1: Model of service quality gap................................................................. 27 Figure 2.2: The gap between customer’s expectation and perception......................28 Figure 3.1: The structure of Vietcombank Ba Dinh Branch..................................... 34 Figure 3.2: The relation between total fund and fund mobilized.............................36 Figure 3.3: The relation between mobilized fund and utilized fund.........................37 Figure 4.1: The gap between customer’s expectation and perception......................58 Figure 4.2: Level of Service quality Gap................................................................. 59 Figure 1.1: Research Process.....................................................................................3 Figure 2.1: Model of service quality gap.................................................................19 Figure 2.2: The gap between customer’s expectation and perception......................20 Figure 3.1: The structure of Vietcombank Ba Dinh Branch....................................26 Figure 3.2: The relation between total fund and fund mobilized.............................28 Figure 3.3: The relation between mobilized fund and utilized fund........................29 Figure 4.1: The gap between customer’s expectation and perception......................51 Figure 4.2: Level of Service quality Gap.................................................................52 Figure 1.1: Research Process Figure 2.1: Model of service quality gap xix xx Figure 2.2: The gap between custemer’s exprectation and perception Figure 3.1:The growth rate of credit activities from 2009 to 2012 Figure 3.2: The Structure of outstanding Loans by Industries at 31st December, 2012 Figure 3.3: The structure of outstanding loans by period at 31st December 2012 Figure 3.4: Total assets of VCBBD Figure 3.5: After – tax profit of VCBBD Figure 4.1: Gap (P-E) of Safety dimension Figure 4.2: Gap (P-E) of Responding time dimension Figure 4.3: Gap (P-E) of Staff dimension Figure 4.4: Gap (P-E) of issues relating to finance dimension Figure 4.5: Gap (P-E) of Tangible dimension Figure 4.6: Gap (P-E) of Variety of service dimension Figure 4.7: The gap between customer’s expectation and perception Figure 4.8: Level of Service quality Gap xx