Factors affecting customer satisfaction with the quality of international money transfer services at Dong A Commercial Joint Stock Bank - 1

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS



VU THI BICH VAN

FACTORS AFFECTING CUSTOMER SATISFACTION WITH THE QUALITY OF OVERSEAS MONEY TRANSFER SERVICES AT DONG A COMMERCIAL JOINT STOCK BANK

MASTER'S THESIS IN ECONOMICS

Ho Chi Minh City - 2013

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS



VU THI BICH VAN

FACTORS AFFECTING CUSTOMER SATISFACTION WITH THE QUALITY OF OVERSEAS MONEY TRANSFER SERVICES AT DONG A COMMERCIAL JOINT STOCK BANK

Major: BANKING FINANCE

Code: 60340201

MASTER'S THESIS IN ECONOMICS

Scientific supervisor: Dr. NGUYEN THI LOAN Ho Chi Minh City - 2013

COMMITMENT

I hereby certify that this Master's thesis in Banking and Finance with the topic "Factors affecting customer satisfaction with the quality of international money transfer services at Dong A Commercial Joint Stock Bank" is my own research work.

The data used are authentic and the results presented in this thesis have never been published in any other work.

I would like to sincerely thank Dr. Nguyen Thi Loan for guiding me to complete this thesis.

Ho Chi Minh City, October 22, 2013

Thesis author

Vu Thi Bich Van

INDEX

COVER PAGE GUARANTEE

LIST OF TABLES LIST OF CHARTS LIST OF FIGURES

LIST OF ABBREVIATIONS INTRODUCTION

CHAPTER 1: OVERVIEW OF OVERSEAS MONEY TRANSFER SERVICES AT COMMERCIAL BANKS 1

1.1 Overview of international money transfer services at commercial banks 1

1.1.1. Concept and characteristics of banking services 1

1.1.2. Concept and characteristics of international money transfer service 3

1.1.3. The role of money transfer abroad 5

1.1.4. Forms of money transfer abroad 6

1.1.5. Procedure for transferring money abroad 11

1.1.6. Legal basis for transferring money abroad 12

1.1.7. Risks in international money transfer activities 13

1.2 Overview of banking service quality and customer satisfaction..15

1.2.1 Banking service quality 15

1.2.2 Customer satisfaction 17

1.2.3 The relationship between service quality and customer satisfaction 19

1.3 Research model to evaluate factors affecting the quality of international money transfer services 20

1.3.1. SERVQUAL 20 service quality measurement model

1.3.2. Measuring the quality of international money transfer services 24

CHAPTER 2: CURRENT STATE OF OVERSEAS MONEY TRANSFER SERVICES AT EAST A BANK AND FACTORS AFFECTING SERVICE QUALITY 26

2.1 Current status of international money transfer services at Dong A Bank ..26

2.1.1. Introduction to Dong A Bank 26

2.1.2. Overseas remittance activities of Dong A Bank during the period

past 27

2.2 Analysis of the quality of international money transfer services through surveys

Customer 34

2.2.1. Research methods 34

2.2.2. Research results 40

2.3. Evaluation of international money transfer service at DAB and influencing factors

affecting service quality 57

2.3.1. Review of international money transfer service at DAB 57

2.3.2. Factors affecting the quality of international money transfer services from customer survey 64

CHAPTER 3: SOLUTIONS TO IMPROVE CUSTOMER SATISFACTION ON THE QUALITY OF OVERSEAS MONEY TRANSFER SERVICES AT DONG A BANK 66

3.1. Orientation on international money transfer service at DAB 66

3.2. Some solutions to improve customer satisfaction with service quality

Overseas money transfer at DAB 67

3.2.1. Group of solutions affecting factors affecting the quality of international money transfer services 67

3.2.2. Group of solutions on customers and money transfer service products 71

3.3. Recommendations for the State Bank and the Government 77

3.3.1. Recommendations to the State Bank 77

3.3.2. Recommendations to the Government 79

CONCLUSION 82

LIST OF TABLES

Table 2.1 Income results from overseas money transfer services from 2009-2012 ..27 Table 2.2 Corporate money transfer services from 2009 to 6/2013 30

Table 2.3 DAB company's money transfer fee schedule from 2008 to 2013 32

Table 2.4 Personal money transfer services from 2009 to June 2013 32

Table 2.5 DAB personal money transfer fee schedule from 2008 to 2013 34

Table 2.6 Research progress 34

Table 2.7 Questionnaire structure and scale 37

Table 2.8 Description of variables in multiple regression equation 39

Table 2.9 Sample structure by customer group 41

Table 2. 10 Reliability of the “trust” component scale after removing TC3 42

Table 2. 11 Reliability of the “response” component scale after eliminating DU3, DU4 43

Table 2. 12 Reliability of the “competence” component scale 43

Table 2. 13 Reliability of the “empathy” component scale after eliminating DC4, DC5 44

Table 2.14 Reliability of the “tangibles” component scale after removing

HH2 44

Table 2. 15 Reliability of the “quality” component scale 45

Table 2. 16 Reliability of the dependent component scale “satisfaction” 45

Table 2. 17 KMO and Bartlett's Test Table for Independent Variable 46

Table 2. 18 Factor matrix with Principal Varimax rotation for independent variable 47

Table 2. 19 KMO and Bartlett's test for dependent variable 48

Table 2. 20 Factor matrix for dependent variable 49

Table 2. 21 Definition of independent variables extracted from EFA factor analysis 49

Table 2. 22 Adjusting the hypotheses in the research model 50

Table 2. 23 Correlation Analysis Results Table 51

Table 2.24 Summary table of regression coefficients 51

Table 2.25 Table of results of testing model hypotheses 52

Table 2.26 Analysis of differences according to the attributes of the research object 55

LIST OF CHARTS

Figure 2.1 Comparison of income from foreign money transfer services in total revenue

Import banking services from 2009-2012 28

Chart 2.2 Comparison of foreign money transfer service income in the international payment service structure from 2009 to 2012 29

Chart 2.3 Comparison of income and number of corporate remittance records from 2009 to June 2013 31

Figure 2.4 Comparison of income and number of personal remittance records from 2009 to June 201 33

LIST OF IMAGES

Figure 1.1 Process of transferring money abroad 11

Figure 1. 2 SERVQUAL service quality model 21

Figure 2.1 Research process 35

Figure 2. 2 Official research model 36

LIST OF ABBREVIATIONS

Acronym

English	Vietnamese
CHIPS	Clearing House Interbank Payments System	Interbank Clearing System
CLDV		Quality of service
CTNN		Transfer money abroad
DAB	Dong A Bank	Dong A Bank
L/C	Letter of credit	Letter of credit
State Bank of Vietnam		State Bank
SWIFT	Society for Worldwide Interbank Financial Telecommunication	Society for Worldwide Interbank Financial Telecommunication
International		International Payment

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