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Advantages and Disadvantages of Current Payment Methods at Vietinbank


To be more specific, the author will also perform a multivariate regression model to quantify the level of influence of the above attributes on customers' evaluation of TTD. The evaluation variable of TTD is also expressed in the form of a question with a 5-level Likert scale, in which level 1 is "Very good", level 5 is "Very bad".

Table 4.12: Model Summary b



Model


R


R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1

.871a​

.759

.751

.5161

1,348

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Advantages and Disadvantages of Current Payment Methods at Vietinbank

a. Predictors: (Constant), Cost of using the card (interest rate), International payment acceptance, Payment convenience, Minimum payment amount, Card limit, Handling when the card is stolen, Payment acceptance in Vietnam, Safety when using the card

b. Dependent Variable: Evaluation of TTD


The Model Summary table above shows the model's fit. With an adjusted R-squared coefficient of 75.1%, it means that the independent variables explain 75.1% of the variation in the dependent variable. This is a fairly high fit, completely acceptable.

Table 4.13: ANOVA a



Model

Sum of

Squares


df


Mean Square


F


Sig.

1

Regression

222,618

8

27,827

104,463

.000 b


Residual

70,858

266

.266


Total

293,476

274


a. Dependent Variable: Evaluation of TTD

b. Predictors: (Constant), Cost of using the card (interest rate), Accepted for international payments, Convenience of payment, Minimum payment amount, Card limit, Handling of stolen cards, Accepted for payments in Vietnam, Safety of using the card

With the sig value of the F test in the table above < 0.05, it proves that the R square of the population is different from 0, which means that the constructed linear regression model is suitable for the population.


Table 4.14: Multivariate regression results



Model

Unstandardized

Coefficients

Standardized

Coefficients


t


Sig.

Collinearity

Statistics


B

Std.

Error


Beta


Tolerance


VIF

1

(Constant)

-.760

.132


-5.735

.000




Accepted

international payment


.196


.029


.223


6,672


.000


.812


1,232


Convenience in

pay


.192


.044


.157


4.402


.000


.718


1,393


Accepted

Payment in Vietnam


.338


.039


.371


8,707


.000


.499


2.004


Card limit

.215

.051

.179

4,256

.000

.514

1,945


What to do when your card is lost

steal


.102


.070


.101


1,459


.146


.189


5,300


Safety in use

use card


.259


.086


.221


3.020


.003


.170


5,883


Amount payable

minimum math


.115


.043


.097


2,700


.007


.707


1,414


Card usage fees

(interest rate)


.147


.053


.112


2,780


.006


.558


1,792

a. Dependent Variable: Evaluation of TTD

Through the multivariate regression results table above, we can see that, except for the attribute "Handling when the card is stolen", all the remaining attributes have sig coefficients < 0, so it can be concluded that their impact on the dependent variable is statistically significant. The level of impact of the attributes is shown through the coefficient B. The larger the coefficient B, the greater the impact. For example, the attribute with the largest coefficient B is "Accepted for payment in Vietnam" with B = 0.338. That shows that when the variable "Accepted for payment in Vietnam" increases by 1 unit, the variable "TTD assessment" increases by 0.338 units. However, with the variance inflation factor (VIF) of some variables > 2, multicollinearity may exist at a certain level. Theoretically, the VIF coefficient is compared with 10, if VIF > 10 then the conclusion is that there is multicollinearity (Hoang Trong and Chu Nguyen Mong Ngoc, 2005). However, in


In fact, people often compare it with 2. Here, the VIF coefficient of the variable "Safety when using cards" is 5.883, although it is larger than 2, it is still less than 10, so it is still somewhat acceptable.

Chapter 4 Summary:

In chapter 4, we have conducted tests and regressions according to the research method proposed in the previous chapter. The results have identified the factors affecting the decision to own and use Vietinbank TTD in Ho Chi Minh City as well as the direction and level of their influence. This is an important premise for providing solutions and recommendations in the following chapter.


CHAPTER 5

SOLUTIONS AND RECOMMENDATIONS TO INCREASE THE INTENTION TO USE VIETINBANK'S TTD SERVICES IN HO CHI MINH CITY

5.1 Basis for solutions and recommendations

5.1.1 Advantages and disadvantages of TTD payment methods at Vietinbank currently

now

Through the analysis of the current situation, we can see some advantages and disadvantages.

of payment through TTD in general and TTD Vietinbank in particular in recent times

has the following advantages and disadvantages:

Advantage

Firstly: The Vietnamese TTD market in recent years has witnessed remarkable growth in both the number of cards and transaction value. The development of TTD payments has helped banks, including Vietinbank, have more lending channels as well as effective capital mobilization. At the same time, it can develop other services to best serve its customers.

Second: To attract customers, banks have actively linked with businesses to bring the best incentives to customers. From discounts, refunds, interest-free installment purchases, etc. to points for gifts, VIP lounges at airports and other added values.

Third: Promote the issuance of co-branded cards to reach partners' customers and provide more incentives for customers.

Fourth: Focus on the safety of card usage for customers as well as banks when promoting the development of chip cards according to EMV standards with a higher level of security.

Fifth: The infrastructure for card payments is constantly being improved. The number of ATMs/POS is increasing rapidly, and a banking alliance system has also been established to make payments outside the system more convenient and faster. The Internet is becoming more and more popular and the speed is getting faster.

Sixth: The legal corridor continues to be improved to orient the card market to develop rapidly and sustainably. Strengthen coordination between ministries,


The industry and related units ensure the safety of the card payment system, protect the rights and legitimate interests of payment participants.

Disadvantages

Besides the achievements, the Vietnamese TTD market in general and Vietinbank in particular still have many shortcomings:

First: Although the number of cards and transactions is constantly increasing, it still accounts for a very small proportion of the total means of non-cash payment, not commensurate with the potential of an economy with nearly 100 million people.

Second: Although the card payment infrastructure has been continuously developed, it has not yet met the increasing demand. ATM/POS systems are mainly concentrated in large brands in big cities. The internet is sometimes unstable and the cost of use is still high.

Third: The management of card acceptance points is not closely monitored. Many card acceptance points, because they are afraid of high card payment fees, deliberately do not allow customers to pay by card even though they know that this behavior is a violation of the law.

Fourth: The work of ensuring card payment security is not good, there are still many cases of card information theft, causing harm to the interests of payment participants as well as losing people's trust, leading to fear of owning and paying with cards.

Fifth: The promotion of TTD has not been done well. Banks often only focus on developing international TTD for individuals, while domestic TTD or cards for businesses are known by very few people, while the development of society leads to an increasing demand for owning this type of card.

The existence of many limitations in the card market in Vietnam is due to many reasons, some of which can be mentioned as follows:

Firstly, the habit of using cash is still deeply ingrained in people’s minds. Most people use ATM cards to store and withdraw money when needed, not to make payments. This is a major barrier that must be overcome if the Vietnamese card market is to develop strongly in the future.

Besides, the banking system has not fulfilled its mission well. Banks have not created a clear economic difference to encourage people to use cards instead of cash. The payment system is often


There are problems that cause payment interruptions, customers cannot feel secure when spending money and only carry cards without carrying cash.

State agencies, especially the police, have not managed card crimes well. Fraud and theft of customer information still occur frequently, affecting the interests of payment participants while the police have not taken effective measures to prevent them.

In addition, the informal economy is also an important reason for the underdeveloped card market. With the characteristics of small-scale production and consumption, access to non-cash payment methods is quite difficult. At the same time, a large part of the informal economy is the underground economy related to smuggling, tax evasion, commercial fraud, etc. For these transactions, no one wants to use non-cash payment methods no matter how useful and convenient they are.

5.1.2 Summary of research model results

TTD ownership decision

Chi-square test shows that there are 3 factors affecting the decision to own TTD: age, average income and perception of debt. In which, the older the age, the lower the rate of TTD ownership and vice versa, people with higher income are more likely to own TTD, while those who think TTD debt is good mostly own cards while those who think TTD debt is bad often do not own cards.

The results of the Binary Logistic regression model to quantify the influence of factors on the decision to own TTD showed that 4 factors were included in the model including age, education level, average income and perception of debt with influence coefficients of -1.423, -0.883, 1.067 and 1.937 respectively. With the above regression model, we can derive a model to predict the probability of owning TTD for any customer as follows:

𝑒 𝑒 (−1.423∗ 𝑡𝑡𝑡𝑡 degree drive 𝑖𝑖−0.883∗𝑡𝑡𝑡𝑡 ì 𝑛𝑛ℎ degree ℎ ọ 𝑐𝑐𝑐𝑐 ă 𝑛𝑛+1.067∗𝑡ℎ𝑡𝑡𝑛𝑛 ℎ ạ 𝑝𝑝𝑝 ì 𝑛𝑛ℎ𝑞𝑞𝑡𝑡 â 𝑛𝑛+1.937∗𝑐𝑐 ( The girl was very shy . )

𝑃𝑃 𝑖𝑖 =1 + 𝑒𝑒 (−1.423∗ 𝑡𝑡𝑡 degree drive 𝑖𝑖−0.883∗𝑡𝑡𝑡𝑡 ì 𝑛𝑛ℎ degree ℎ ọ 𝑐𝑐𝑐𝑐 ạ 𝑛𝑛+1.067∗𝑡ℎ𝑡𝑡𝑛𝑛 ℎ ạ 𝑝𝑝𝑝 ì 𝑛𝑛ℎ𝑞𝑞𝑡𝑡 â 𝑛𝑛+ 1,937 ∗ 𝑐𝑐 𝑚𝑚𝑛𝑛 ℎ 𝑛𝑛𝑐𝑐 𝑛𝑛𝑐𝑐 )

Decision to use the card

Frequency analysis revealed the 5 most popular TTD usage purposes among the 10 purposes included in the study, including: Using to buy and pay


Contribute goods and services; To receive discounts when paying; To use for online shopping; To get a loan from the bank and Avoid carrying cash when traveling. Of which, the first 2 purposes receive the most attention with rates of 27% and 20% respectively, the next 3 purposes have the lowest interest rate, reaching from 11% to 13%. Meanwhile, the remaining purposes have the highest interest rate not exceeding 5%.

Regarding the level of card usage, One way Anova analysis of variance showed that only the average income factor had an impact on customers' decision to use cards (enough evidence to show that there is a difference in the level of card usage between different average income groups).

Chi-square test shows that two factors, average income and number of cards owned, affect the turnover of TTD balance. In which, people with higher income and more TTD owning tend to maintain their card balance while the rest do not.

Assess the impact of card attributes on customer perceptions of TTD.

The mean test shows that all 8 attributes given affect customers' views on TTD (good or bad) arranged in order of decreasing concern as follows: Cost of using the card (interest rate); Security when using the card; Handling when the card is stolen; Convenience in payment; Card limit; Accepted for payment in Vietnam; Accepted for international payment and Minimum payment amount per period.

A multivariate regression model to quantify the influence of the above attributes on customers' evaluation of TTD was also conducted and the results showed that except for the attribute "Handling when the card is stolen" which was not suitable for inclusion in the model, the remaining attributes were accepted. The influence of the attributes was arranged in descending order through the influence coefficient as follows: "Accepted for payment in Vietnam (0.338)"; "Safety when using the card (0.259)"; "Card limit (0.215); "Accepted for international payment (0.196)"; "Convenience in payment (0.192)"; "Cost of using the card (interest rate) (0.147)" and "Minimum payment amount (0.115)".


The above are the results obtained after the quantitative analysis process. These results will contribute significantly to providing solutions and recommendations to promote the development of the Vietnamese TTD market in general and Vietinbank in particular in the future.

5.1.3 Development orientation of Vietnam's card market in the coming time

next

In developed countries, the trend of non-cash payments has emerged.

has been around for a long time. A cashless society with the use of bank cards is becoming a model that many developing countries are aiming for, including Vietnam. According to a MasterCard report, thanks to card transactions, countries save 1% of GDP compared to the costs incurred when transacting entirely in cash. However, this figure is only a part of the target because cashless payments can also limit the lack of transparency of cash payments. A cashless society is not only a trend in European countries but also a global trend (Vietnam Television Online Newspaper, 2017).

On August 8, 2018, the Government issued Decision 986/QD-TTg on the Strategy for the Development of the Vietnamese Banking Industry to 2025, with a vision to 2030. The Strategy clearly states the Government's view that the monetary and banking system and the operations of credit institutions are the lifeblood of the economy, continuing to play a key role in the overall financial system of Vietnam. Stabilizing the operations of the credit institution system plays a key role in monetary and financial stability, is a prerequisite for macroeconomic stability, sustainable growth and must be ensured by synchronous and effective coordination between monetary policy and fiscal policy and other macroeconomic policies, along with harmonious and balanced development between the banking, securities and insurance sectors... (SBV, 2019).

Through this strategy, the Government has also set out goals for non-cash payment methods, of which card payment is an important component, specifically as follows: Promote the development of non-cash payment, optimize the ATM and POS network. By the end of 2020, the proportion of cash in total means of payment will be below 10%; by the end of 2025, this figure will be reduced to 8%; Increase the number of businesses and people accessing financial and banking services provided by credit institutions. Focus on developing types of

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