Table 2.1: Business performance results table from 2016-2018 9
Table 2.2: Business results table on capital mobilization targets 10
Table 2.3: Business results table on credit indicators 11
Table 2.4: Card business results table 13
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Table 4.1: Descriptive statistics 34
Table 4.2: Results of scale reliability assessment using Cronbach's alpha 41
Table 4.3: Factor extraction matrix 44
Table 4.4: The scale of the adjusted factors compared to the initially determined measurement scale 46
Table 4.5: Correlation regression between research concepts 48
Figure 2.1: Organizational system of Dong A Bank 7
Figure 2.2: Personal deposit situation at bank 11
Figure 2.3: Personal loan situation at Dong A Bank, District 5 branch 12
Figure 2.4: Magnetic card revenue situation 2016-2018 14
Figure 3.1: Door research model of Karunaratna, AC; Kumara, PAP Samantha, 2018 22
Figure 3. 2: Research model of Tran Nguyen Anh Tuan (2014) 22
Figure 3. 3: Model of factors affecting customer loyalty to retail banking services of Dong A Bank, District 5 branch. 24
Figure 4.1 Sample distribution by number of product users 35
Figure 4.2 Sample distribution by gender 36
Figure 4.3 Sample distribution by age 37
Figure 4. 4 Sample distribution by education level 38
Figure 4.5 Sample distribution by occupation 39
Figure 4.6 Sample distribution by collection 40
INTRODUCTION
Chapter 1: Topic introduction
1.1 Necessity of the topic
In the current integration trend, the competition in the banking market is increasingly fierce, the number of domestic and foreign banks is increasing rapidly, the needs of customers are increasingly high and diverse, so the development of retail banking services is identified as an important strategic orientation of Vietnamese commercial banks today because retail banking services are a field with high revenue, but low risk and a certain development orientation in the future. In addition, with the Vietnamese economy on the rise, the population of over 96 million people and the average income per capita GDP is increasing, therefore, Vietnam is considered a potential market for the development of retail banking services.
From such great potential, in Vietnam, commercial banks have been promoting the development of retail services. However, the strong development of retail services must be associated with improved service quality, synchronization, automation throughout the banking system, keeping up with the integration trend in the world, helping to expand the domestic financial market. In addition, many banks promote strategies to attract new customers and consider it a strategy to increase income. However, in reality, from primary data sources, it can be seen that the main revenue of businesses or banks comes from existing customers. In terms of cost: To attract a new customer, it costs a lot, very expensive, maybe 5-10 times more than the cost of retaining an existing customer, but only brings a very low profit for businesses as well as banks. According to research by Gartner Group (1998), 20% of a company's existing customers can generate 80% of a company's profits. Therefore, attracting new customers is even more important than retaining customers.
Dong A Bank, District 5 Branch, is one of the branches that operates strongly and has significant achievements in Dong A Bank. However, when there is more competition, many problems occur within the bank, the business activities of Dong A Bank in general and District 5 Branch in particular are facing many risks of losing existing customers. Therefore, in parallel with attracting new customers, retaining old customers is one of the important strategies of Dong A Bank, District 5 Branch, but how can we know the interests of loyal customers and what factors and policies have a positive impact on loyal customers, thereby helping the bank improve policies and enhance the quality of service provision of the bank.
1.2 Research objectives and questions
The main research objectives of the topic include :
- Analyze and evaluate the impact level of each factor affecting customer loyalty to retail banking services of Dong A Bank, District 5 branch.
- Propose policies and solutions to contribute to improving customer loyalty to retail banking services of Dong A Bank, District 5 branch.
The research questions are:
What factors influence and impact loyalty to retail banking services of Dong A Bank, District 5 branch?
What is the impact level of each factor on loyalty to retail banking services of Dong A Bank, District 5 branch?
What solutions are suitable to improve customer loyalty?
1.3 Research methods
The project used quantitative research methods through SPSS 20 statistical tools to process data. Using SPSS statistical tools through Cronbach alpha reliability coefficient, EFA exploratory factor analysis, regression analysis to determine which factors affect and the level of impact of each factor on customer loyalty to help provide appropriate solutions and policies for banks.
1.4 Significance of the topic
From the research results, the study has identified factors including "Customer satisfaction", "Service quality", "Customer trust", "Brand image", "Switching costs", these factors have an impact on customer loyalty with retail banking services of Dong A Bank, District 5 branch. From there, it contributes to the theoretical basis of factors affecting customer loyalty and creates more basis for managers and leaders to develop strategies and policies to maintain customer loyalty.
1.5 Structure of the research topic Chapter 1: Introduction to the topic
The research paper introduces the topic in general, including: the necessity of the topic, the objectives and methods of the research, and the significance of the topic.
Chapter 2: Introduction to Dong A Bank, District 5 branch
In chapter 2, the research focuses on introducing the history, organizational structure, products, services, and performance of Dong A Bank, District 5 branch from 2016-2018.
Chapter 3: Theoretical basis
Chapter 3 provides theoretical basis, overview of domestic and foreign research, from which hypotheses are built and research models are proposed. Identify factors that affect customer loyalty to retail banking services.
Chapter 4: Problem Analysis
Collect information, data and process data through SPSS 20 statistical tool. Descriptive statistics of the scale, scale testing through Cronbach Alpha coefficient analysis, EFA exploratory factor analysis, regression analysis to examine the impact of factors. Chapter 5: Solutions and recommendations
Summarize the results of the study and propose solutions to improve customer loyalty. State the limitations of the research topic.
1.6 Conclusion
Improving customer loyalty for retail banking services is a top concern for Dong A Bank, District 5 branch. Therefore, determining the factors and levels of impact on customer loyalty is very necessary.
Chapter 2: Introduction to Dong A Bank, District 5 Branch and Problem Identification
Chapter 2 Introduction
In this chapter, the study will briefly outline the Dong A Bank branch in District 5: establishment, organizational structure, and business performance report. Analyze basic theories, studies, and perspectives on retail banking services, loyalty, and influencing factors.
The hypotheses are proposed, built on the inheritance of a number of studies in countries around the world. However, the article has selected a few factors that are suitable for the economy and politics in Vietnam and the characteristics of the East Asia Bank.
2.1 History of establishment and development of Dong A Bank, District 5 Branch On July 1, 1992, Dong A Commercial Joint Stock Bank was officially established with an initial charter capital of 20 billion VND and 56 employees, 3 functional departments. During more than 20 years of operation, with the goal of targeting the market, consolidating the bank's image in the hearts of consumers, the bank has always strived to make continuous efforts. Therefore, the bank has made great strides in development, having a great influence.
In 2018, Dong A Bank received an award for excellence in overseas remittance services. The bank is constantly expanding its network from rural to urban areas, even to remote areas.
Dong A Bank, District 5 branch, was established on September 18, 2006, headquartered at 418 Tran Phu, Ward 07, District 5, Ho Chi Minh City, registered to do business in many fields such as: monetary intermediary activities, insurance brokerage, agency, auction.
During its operation, the Bank has always performed excellently in its targets, providing customers with the best services. The staff is always professional,
dedicated, caring, enthusiastic. Thanks to that, the branch is always the leading branch in completing the set goals well.
2.2 Organizational structure
The bank has a stable scale including managing 7 affiliated transaction offices and 112 employees.
The bank's structure operates according to a model of 3 departments and branches with 24 positions. The branch is headed by a Board of Directors consisting of 1 director and 2 deputy branch directors to operate and control, and is responsible for all activities of the branch. The three main departments include the corporate customer relations department, the individual customer business development department, and the operations department.
The personal customer business development department consists of 10 people, all of whom have university degrees or higher, with the task of personal customers such as: meeting and contacting customers, thereby providing advice to personal customers on the bank's products and services. In addition, in the issue of overdraft debt collection, credit cards must be regularly monitored and bad debts must be handled. In addition, the personal customer business development department also supports other units/departments in a number of related issues.
The Corporate Customer Business Development Department consists of 7 people, all of whom have a university degree or higher, with the main task being corporate customers. The main job is to appraise and re-appraise businesses. In addition, employees need to build and develop relationships with customers, have knowledge of economics and markets, and quickly grasp information to make timely analysis, especially in the manufacturing sector.
The Operations Department has five main departments including customer service department, credit management department, accounting department, treasury department, and general administration department.