Practical Basis of Factors Affecting the Decision to Use Mobile Banking Services

Mobile Banking for me

very easy

Banking is easy for me

easy

Social Impact (XH)

Venkatesh & associates, 2003

People important to me think I should use

Mobile Banking service.

People important to me think I should use

Mobile Banking service.

XH1

Those familiar with

I think I should use

Mobile Banking Service

Those familiar with

I think I should use

Mobile Banking Service

XH2

People who influence my behavior think I should use Mobile services

Banking.

People who influence my behavior think I should use Mobile services

Banking.

XH3

Most of the people around me use Mobile Banking service, so I think I should use Mobile Banking service for my activities.

my action

Most of the people around me use Mobile Banking service, so I think I should use Mobile Banking service for my activities.

my action

XH4

Trust Perception (TC)

Luarn & Lin, 2005

I believe that the personal information

My identity is secure.

I believe that the personal information

My identity is secure.

TC1

I believe that the transactions made are guaranteed.

I believe that transactions made on Mobile Banking are safe.

all

TC2

I believe that using Mobile Banking is very reliable for

financial transactions

I believe that using Mobile Banking is very reliable for

financial transactions

TC3

Receive

Luarn & Lin, 2005

Maybe you are interested!

financial cost awareness (CP)

I feel mobile

Mobile service available

Banking is very expensive.

I feel mobile

Mobile service available

Banking is very expensive.

CP1

Connection costs (3G/4G, wifi, etc.) when using Mobile Banking service are very expensive.

I feel the connection cost (3G/4G, wifi,..) to use Mobile Banking service is very expensive.

expensive.

CP2

Using Mobile Banking Service is a Cost Burden

To me.

Using Mobile Banking Service is a Cost Burden

To me.

CP3

Using Mobile Banking service costs more transaction than other transaction channels.

I find that using Mobile banking service costs more in transaction fees than other transaction channels (counter transactions, online transactions).

Internet,...)

CP4

Risk Perception (RR)

Yousafzai et al., 2003

I am afraid that if the transaction via Mobile Banking fails, what can I do?

can lose money in account

I am afraid that if the transaction via Mobile Banking fails, what can I do?

can lose money in the account.

RR1

I am concerned that providing personal information for transactions via Mobile Banking is not appropriate.

safe.

I am concerned that providing personal information for transactions via Mobile Banking is not appropriate.

safe.

RR2

I am afraid that using Mobile Banking can be stolen by bad guys and use my account.

I am afraid that using Mobile Banking can be stolen and used by bad guys.

my account

RR3

I'm afraid that when I meet

RR4

Mobile Banking issues that banks don't

settle it for me

Mobile Banking issues that banks don't

settle it for me

Decision to use (QD)

Kuo et al., 2009

I have strong motivation to

Use Mobile Banking to handle banking transactions.

I have strong motivation to use

Use Mobile Banking to handle banking transactions.

QD1

I will use Mobile Banking more in the future.

next time

QD2

I will introduce the service

Mobile Banking for others in the near future.

I will introduce the service

Mobile Banking for others in the near future.

QD3

(Source: Author's own synthesis)

1.2. Practical basis of factors influencing the decision to use Mobile Banking services

Currently, thanks to the advancement of financial technology, customers can use more banking services, from money transfers to paying for purchases at online supermarkets via Mobile Banking without having to go through any additional procedures.

Young people and office workers in big cities are gradually getting into the habit of only carrying their phones when going out. No need for wallets or cards, everyday transactions can be made thanks to payment, transfer, QR code scanning and an ecosystem in a digital environment.

Mobile Banking is booming globally. According to Juniper Research, the number of users of this service globally will more than double, from 800 million today to 1.75 billion users in 2019. The main reason for the growth is the increasing rate of smartphone users and the popularization of mobile payment methods.

Some developing countries such as China, India and Bangladesh also witnessed significant growth in 2019. Banks in these countries

is witnessing a strong growth in both quantity and quality and has contributed

contribute greatly to revenue.

Grasping market trends and the importance of Mobile Banking applications in the future, banks in Vietnam have continuously invested in developing network infrastructure, building modern information technology systems, ... to ensure that service operations are always fast and smooth. With that criterion, up to now, many more banks have invested in technology and introduced Mobile Banking applications. Some names can be mentioned such as: BIDV, TPBank, MB, VIB, Vietcombank, OceanBank, Vietinbank, Agribank, Eximbank, MaritimeBank, SHB, NamABank ...

Launched around 2010, by 2019, Vietnam had 49 banks deploying Mobile Banking services. The number of transactions via the phone channel in 2019 increased by 198%, reaching 418 million with a total value of 21.92 million billion VND, an increase of 210% compared to 2018. With outstanding benefits and unexpected results, Mobile banking is gradually becoming a competitive strength of some banks in Vietnam. This is a wise investment in technology, contributing to the creation of a fast, convenient, safe banking service system and aiming at maximum benefits for customers.

CHAPTER 2. ASSESSMENT OF FACTORS AFFECTING THE DECISION TO USE MOBILE BANKING SERVICES OF INDIVIDUAL CUSTOMERS AT THE MILITARY COMMERCIAL JOINT STOCK BANK, THUA THIEN HUE PROVINCE BRANCH

2.1. Overview of Military Commercial Joint Stock Bank, Thua Thien Hue province branch

2.1.1. The process of formation and development of Military Commercial Joint Stock Bank, Thua Thien Hue province branch

Realizing that Thua Thien Hue is a province that plays the role of a bridge between the North and the South, identified as one of the four provinces in the key economic region of the Central region; the average economic growth rate in the period 2000 - 2005 reached nearly 9.5%/year, the economic structure is shifting in the right direction, in which industry and tourism - services account for nearly 78% of GDP; the demand for banking products and services in the development process is very large. Therefore, MB decided to establish a branch in Hue city.

On February 12, 2007, Military Commercial Joint Stock Bank (MB) officially opened its 39th branch in the entire system and the first branch in Hue city at 3 Hung Vuong, Phu Hoi ward.

The establishment of the Military Bank branch in Hue aims to increase competitiveness, promote products, enhance MB's image in the Central region, help MB implement the development strategy of "Becoming an urban, modern, multi-functional bank, best serving organizations and residents", and at the same time help individuals and businesses in need to access and use financial and banking services with many utilities.

Currently, Vietnam Military Commercial Joint Stock Bank Hue branch has moved to address 07 Nguyen Tri Phuong, Phu Hoi Ward, Hue City, Thua Thien - Hue Province. In addition to the branch at 07 Nguyen Tri Phuong, MB Hue branch also has 3 transaction offices in the area:

+ Bac Truong Tien Transaction Office No. 67 Dinh Tien Hoang, Thuan Thanh Ward, Hue City, Thua Thien Hue Province.

+ Nam Truong Tien Transaction Office No. 11 Ly Thuong Kiet, Vinh Ninh Ward,

Hue City, Thua Thien Hue Province.

+ Nam Vi Da Transaction Office No. 109 Pham Van Dong, Vi Da Ward, Hue City, Thua Thien Hue Province.

MB Hue Branch is considered one of the banks that Hue people trust and choose to use banking services. MB Hue Branch team constantly strives to serve customers in the best way and bring new and equally satisfying experiences when customers transact here.

2.1.2. Organizational structure and management apparatus

 Director : executive, leader, take overall responsibility for all activities

bank action

 Deputy Director : Authorized by the Director, responsible and has the right to make decisions within the scope of the regulations of the State Bank, directly managing departments.

 Bac Truong Tien Transaction Office, Nam Truong Tien Transaction Office, Nam Vi Da Transaction Office : Directly contact customers, directly conduct transactions with customers.

 Customer Service Department : Act as the focal point for providing all bank products to customers. Manage and be responsible for customer information records, account records and resolve customer requests. Guide and perform payment transactions for customers.

 Personal Customer Department : is the department that directly deals with individual customers, exploits capital, performs credit-related operations, and manages products. Directly advertises, markets, introduces, and sells banking products and services to individual customers. Supports and takes care of customers.

 Corporate Customer Department : is the department that directly deals with corporate customers, performing credit-related operations. Is the department that directly advertises, markets, introduces and sells banking products and services to corporate customers. Supports and takes care of customers.

 Customer Service Department : Research and provide services to customers, capture all customer information.

Graduation thesis Supervisor: MSc. Tong Viet Bao Hoang

Branch Manager

Sales Director

Service Director

Room

North School Education Department

Money

Education Department

South Truong Tien

Education Department

South Vi Da

BP Support

credit

use

Administration

Echo

Fund

Diagram 1. Management organization of Military Commercial Joint Stock Bank - Hue Branch

(Source: Military Commercial Joint Stock Bank, Hue branch)

 Credit Support Department : Research, connect, support customer departments to solve problems, complete credit tasks.

 Administration Department : Manage and implement regulations on personnel policies on salary, social insurance, health insurance, purchase of assets and labor tools, equipment and working means, and stationery for business activities at the branch.

 Treasury Department : is the department that manages the safety of the treasury, manages cash according to the regulations of the State Bank. Advances and collects money for transaction points inside and outside the counter, collects and disburses cash for businesses with large cash receipts and disbursements.

 Customer Relations Department : is the department that directly builds and creates relationships with customers, as well as takes care of customers so that customers trust and use the Bank's products.

2.1.3. Human resource situation of Joint Stock Commercial Bank, Hue branch in the period 2017-2019

Human resources are of particular importance to an organization. No organization's activities can be effective without human resources. Human resources are one of the reasons for success or failure in business activities. The basic goal of any organization is to effectively use human resources to achieve the organization's goals. Recognizing this issue, the management board of MB Hue Branch always focuses on organizing, recruiting and training human resources to achieve the highest business efficiency.

With the development orientation and strategy over the years, the human resources of MB Hue Branch in the period of 2017 - 2019 have fluctuated but not significantly. Specifically, in 2018, the total number of employees was 55 people, an increase of 2 people (an increase of 3.77%) compared to 2017. By 2019, it decreased to 51 people, a decrease of 4 people (a decrease of 7.27%) compared to 2018.

Regarding the labor structure by gender, the table above shows a large difference between male and female workers. The proportion of female workers has always been over 60% in 2017 and 2018. In 2018, there were 35 female workers, an increase of 1 person (an increase of 2.94%) compared to 2019. In 2019, there were only 30 female workers, a decrease of 5 people (a decrease of 14.29%) compared to 2018. This shows that the structure of female workers fluctuates unevenly. Although the positions of transaction officers, consultants, and controllers are all held by women and account for a large number

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