Comparison of Traditional Banking Services and Electronic Banking Services

- Spatial scope: Research at Sacombank.

- Scope of content: Electronic banking services within the scope of Mobile banking and Internet banking services.

1.5. Research method

- Analyze, synthesize, and compare secondary sources of documents from scientific journals, reports of commercial banks, and legal documents.

- Survey of individual customers using e-banking services at 5 branches of Sacombank including: Ho Chi Minh City Center Branch (200 customers), Da Nang Branch (200 customers), Quang Nam Branch (100 customers), Quang Ngai Branch (100 customers) and Nghe An Branch (100 customers). After receiving 600 survey forms from Sacombank branches, the researcher reviewed and eliminated 57 survey forms with incomplete information. The final result obtained by the researcher was 543 survey forms with satisfactory response information used for analysis.

- Descriptive statistics and comparative statistics of factors affecting the intention to use e-banking services at Sacombank.

- Check reliability with Crobach Alpha, analyze exploratory factors with SPSS 20.0 statistical software

- Analyze linear structural model using Smart PLS 2.0 software.

- Oneway ANOVA to compare differences between customer groups.

1.6. New contributions of the Thesis

1.6.1. New theoretical contributions

Firstly, the thesis has once again affirmed that technology acceptance theory is still a reliable theoretical foundation for studying the intention to use e-banking services and based on this foundation, researchers can supplement,

adjusted to suit specific research conditions. The research model of the thesis can also be applied to studies on the intention to use e-banking services at other banks because Sacombank is a typical bank in implementing e-banking services in Vietnam.

Second, the thesis has built a research model of factors affecting the intention to use e-banking services of individual customers on the basis of inheriting and developing research in the world and in Vietnam. The research results with a fairly large sample of 543 in 5 provinces and cities show that the scale is relatively stable and the research model is appropriate.

1.6.2. Practical contributions

The thesis has analyzed the current status of factors affecting the intention to use e-banking services at a specific bank, typically in the implementation of e-banking services in Vietnam, Saigon Thuong Tin Commercial Joint Stock Bank - Sacombank. The research results show that the perception of ease of use of e-banking services has a positive impact on the perception of usefulness of this service; perception of ease of use, perception of usefulness and customer service all have a positive impact on customer attitudes; perceived behavioral control, subjective norms and customer attitudes are factors that positively affect the intention to use e-banking services of Sacombank. These research results further clarify the role of factors affecting the intention to use e-banking services in the context of Vietnam.

The research results of the thesis are a solid basis for managers at Sacombank in particular and commercial banks in general to be able to propose strategies, plans and measures to develop e-banking services in the coming time. Within the scope of Sacombank, the thesis has proposed a number of measures to improve the ease of use of e-banking services, improve the usefulness of e-banking services, impact on customers' subjective standards and improve the quality of e-banking services.

of customer service to create a positive overall impact on customers' intention to use e-banking services.

1.7. Thesis layout

The thesis is presented with 6 chapters, specifically as follows:

- Chapter 1: Introduction to research topic

- Chapter 2: Theoretical basis

- Chapter 3: Research methods

- Chapter 4: Electronic banking services in Vietnam

- Chapter 5: Analysis of factors affecting the intention to use e-banking services at Sacombank

- Chapter 6: Conclusion and managerial implications

Chapter 1 Summary

Chapter 1 presented the urgency of the research topic, an overview of studies on the use of electronic banking in the world and in Vietnam. From the urgency of the topic, the researcher clearly identified the research questions and tasks; the research object and scope along with appropriate research methods to collect and analyze data. The thesis has contributed new theoretical points in perfecting the research model and ensuring practical significance with analyses closely related to the current status of electronic banking service development in Vietnam and factors affecting the intention to use electronic banking services at Sacombank.

Chapter 2: THEORETICAL BASIS

2.1. Overview of e-banking services

2.1.1. Concept

Electronic banking has brought about a major change in commercial banking operations since its first introduction as “home banking” by four major banks in New York City, USA in 1981. Daniel (1999) defined electronic banking as the provision of information or services by a bank to its customers through electronic means. As the Internet grew, Muhammad Siddique (2014) focused on the platform element by stating that electronic banking is banking services based on the Internet. Semir Ibrahimović et al. (2017) approached the service type aspect by stating that electronic banking is both wholesale and retail banking services provided through electronic means. Although there are many different approaches, in general, electronic banking is understood as the implementation of banking transactions through electronic means. Therefore, the researcher agrees on the concept that: Electronic banking services are all banking services performed through electronic means. However, within the scope of the thesis, the researcher only focuses on two popular types: Mobile banking and Internet banking.

E-banking services allow customers to conduct banking transactions without having to contact the bank directly, helping banks provide banking services beyond the limits of time and space. E-banking is understood as traditional banking services and products that have previously been distributed on new channels such as the Internet, telephone, etc. Currently, many banks, especially banks in developed countries, are widely using e-banking to provide customers with many utilities, save time, reduce costs and operate anytime, anywhere. Bank

E-banking is the development trend of the banking distribution channel system in the 21st century. E-banking is a distribution channel system developed based on the use of modern information technology in the organization of providing banking products and services. The operating mechanism of e-banking is independent.

2.1.2. Advantages of electronic banking services

2.1.2.1. For customers

Compared with traditional banking services, e-banking brings customers many outstanding benefits.

Firstly, e-banking services are provided quickly, conveniently and save time for customers . Customers can use e-banking services at any location and at any time. E-banking can serve customers 24/24 hours a day and 7 days a week. Therefore, e-banking services are especially meaningful for customers who do not have time to go to the bank directly, customers with a small number of transactions or a large number of transactions but the amount of each transaction is not large. A text message, a phone call or a few seconds of accessing the website can help customers satisfy their transaction needs with the bank. In addition, customers are served by the bank on-site with the latest information such as exchange rate fluctuations, looking up financial information of partners, and viewing stock price fluctuations. Furthermore, with standardized transaction steps, customers are served wholeheartedly instead of having to depend on the service attitude of bank employees.

Second, e-banking services have low transaction costs. E-banking transaction fees are currently considered to be the lowest compared to other means of transaction.

Third, it limits many risks in transactions. Information transmitted during transactions between customers and banks is encrypted, ensuring that third parties cannot access the transaction content. Encryption

Information is the process of converting information into a new form to prevent access by certain subjects and sending it to the recipient. After receiving the encoded information, the recipient will decode it to receive the original information.

Table 2.1. Comparison of traditional banking services and electronic banking services

Banking services traditional	Electronic banking services
History of birth	Born with the formation of banks. For example: Receiving deposits, lending, providing transaction accounts, keeping valuables...	These are new services that were born when information technology began to develop. For example, card services, electronic payments, etc.
Proportion	Accounting for a large proportion of banking activities, these services are the main source of income for banks.	Occupying a small proportion, mainly support services for credit activities, supplementing income, attracting more customers.
Staff	Service requires many transaction staff	Mainly machinery and equipment so less staff is needed
Technology	Apply old technology system	Applying advanced modern technology systems
Trading channel	Most customers who want to use banking services must go directly to the bank.	Shorten transaction time, narrow spatial distance, customers may not need to go to the bank
Risk Level	These services pose high risks to banks that rely heavily on customers, especially after lending.	These services are diversified, spreading risks and increasing competitiveness for banks.

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Source: Compilation of PhD students

2.1.2.2. For banks

From the banking perspective, e-banking services also provide banks with better access and customer service, simplifying administrative processes and synchronizing systems (Table 2.2). With the support of modern technology, the trend of centralized management to ensure synchronization and speed for banking operations is a trend that brings about higher cost efficiency and performance. The development of e-banking services requires large initial investment costs but brings long-term and sustainable benefits when many transaction costs of banks are minimized.

The special feature of the e-banking service is the ability to provide a complete service package. Banks can cooperate with many other intermediary financial institutions such as financial companies, securities companies, insurance companies, etc. to design synchronized utility products to create a financial service ecosystem that fully meets the diverse needs of customers for banking, insurance, investment, securities, etc. services along with highly personalized customer care services.

Table 2.2. Comparison of old and new banking technology systems

Criteria

Old technology system	Technology system new
Data security and integrity	Short	High
Centralized processing model	Not responding	Response
Large trading volume	Not responding	Response
Customer relationship management	Not responding	Response
24/7 Trading	Not responding	Response
Multi-currency handling and daily exchange rate handling as well as multi-currency trading	Not responding	Response

Settlement at any time

Not responsive (Can only be performed (currently on 12/31)	Response
Innovation in transaction process, electronic signature electronic document	Not responding	Response
Plastic card, card connection system	Not responding	Response
Unlimited access capability access	Not responding	Response
Integrity	Short	High
Backup, automatic data recovery	Short	High
System synchronization	Not responding	High

Source: Nguyen Minh Kieu (2007)

With e-banking, customers' electronic devices act as an ATM, so when developing e-banking, banks will save a significant amount of funds to develop ATM networks and limit risks from ATM-related crimes. On the other hand, the development of e-banking in many countries shows that the cost of banks to provide services for this type is much lower than traditional banking services in the long term because traditional banks require a large system of branches and transaction offices with the service of a large number of employees, while e-banking mainly invests in technology. E-banking also helps banks expand their markets and effectively promote their banking image in the international market.

In particular, e-banking helps banks improve capital efficiency by optimizing transaction time and making customers have a better attitude towards many service utilities along with modern and thoughtful customer care services.

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