USING E-BANKING SERVICES AT SACOMBANK
5.1. Electronic banking services at Sacombank
Sacombank has been providing e-banking services since 2005 and after 8 years of implementation, Sacombank has upgraded its technology platform with a new banking version introduced in 2013 to provide customers with more transaction channels with a total investment cost of more than 100 billion VND. Sacombank has brought e-banking to customers more easily with the motto of developing services in a simple and easy-to-use direction. In April 2012, the core banking system T24 was successfully upgraded from version R8 to modern R11 to promote management capacity, diversify products and services and increase competitiveness for Sacombank. On April 9, 2018, Sacombank launched a new version of the e-banking system (Sacombank eBanking) with many outstanding features on a high-security technology platform. Then, on June 7, 2018, Sacombank officially launched the project to upgrade the T24 core banking system from version R11 to version R17 by partner Temenos and on July 31, 2018, coordinated with partners to launch the project "Credit risk quantification model" and the project "Completing the risk management database framework" to accelerate the process of completing the standard method and moving towards the internal approach of Basel II.
Sacombank's e-banking services include two main types of services: Internet banking (iBanking) and Mobile banking (mBanking), in which iBanking transacts via a computer connected to the internet and mBanking transacts via a mobile phone. When transacting via a mobile phone, customers can transact via an Internet browser on the mobile phone (mBanking Web) or transact via an application installed on the mobile phone (mBanking App).
For iBanking service, there are common functions such as: transfer within the system, transfer outside the system, pay bills.
In addition to the following new features: In addition to the utility services (electricity, water, landline phones, etc.), phone top-up, and airline ticket purchases, customers can also experience new functions designed with many customizations to suit customer needs such as: personalizing the interface, managing beneficiaries/service providers, setting up future transaction schedules, initiating multiple transactions at the same time, notifying pending bills, and multi-level approval for corporate customers. Some of the new convenient features for customers recently deployed by Sacombank include:
- “Transfer money to Visa card” is a service deployed for the first time in Vietnam for all customers who own an Account/Card opened/issued at Sacombank. With this service, customers can make payments, transfer money, and top up to all credit cards, payment cards, and prepaid cards with the Visa brand issued in Vietnam by entering the beneficiary Visa card number. “Transfer money to Visa card” is a technological step forward as the service has helped customers minimize data entry operations when transferring money to other banks while still strictly complying with information security and safety regulations of the Visa International Card Organization.
- Money transfer – Receive by mobile, customers can transfer money from their account, credit card or prepaid card via Internet Banking. The beneficiary ONLY NEEDS to go to any Sacombank ATM to receive money with simple operations: press key 9 on the ATM keyboard, enter the withdrawal code, the amount provided by the sender and the verification code sent by Sacombank to the recipient's phone after entering the correct withdrawal code. This service is really useful for customers who need to transfer money urgently, outside of working hours, and the recipient does not have a Card or Bank Account.
- Use credit cards and prepaid cards to perform many transactions on Internet Banking such as: transferring money within the system, paying bills, recharging phones, buying travel tickets, recharging prepaid cards; or using prepaid cards to pay credit cards. In particular, customers can proactively register
Automatic payment of consumer bills such as electricity, water, telephone, internet, cable TV... from credit card. Bill payments will always be on time and customers can also take advantage of the 25 to 55 day interest-free payment grace period from credit cards. This service helps customers maximize financial benefits automatically.
- Opening a future deposit online is a type of term deposit, opened in the form of contributing a fixed amount of money periodically to achieve the desired future benefit amount. According to the period registered by the customer, Sacombank will automatically deduct from the payment account and deposit into the customer's online future deposit account. Customers are also allowed to pay late for the past period, can mortgage loans at the counter and are also given a Life Insurance Contract worth up to 200 million VND if the customer opens an account with a registered capital of 50 million VND or more.
- Deposit securities online to the associated securities company, VNDIRECT. With simple data entry, investors only need to use a single securities account number to transfer money from their bank account to their securities account, ready to place a purchase order. In the future, Sacombank is expected to expand its links with many other securities companies to facilitate transactions and increase the efficiency of customers' securities trading.
For mBanking service, Sacombank has integrated synchronously with iBanking and added many new functions similar to iBanking. Customers can completely access mBanking to retrieve data on iBanking and vice versa including: login information (login name, login password), list of beneficiaries when transferring money, list of registered invoices for payment, and transactions performed.
Sacombank's e-banking services are invested according to international standards, which have been assessed by KPMG Auditing Company, with many outstanding utilities, suitable for many customer groups. With a technology platform
With modern information and a well-invested information security network, Sacombank is qualified to diversify customer services, control fraud and ensure network security. Therefore, Sacombank has received many prestigious titles and awards for electronic banking services such as: "Most favorite electronic bank in 2014 - My Ebank" organized by VnExpress Newspaper, under the professional advice of Smartlink Card Service Company and the sponsorship of the State Bank, "Bank with the best online services in 2016"
- Best Use of Online Banking 2016" within the framework of the Global Retail Banking Awards 2016 - Global Retail Banking Awards - organized by Retail Banker International magazine (UK).
Over the years, the number of customers using Sacombank's e-banking services has been constantly increasing. In 2013, when Sacombank started upgrading its technology platform for e-banking services, the number of customers was about 130 thousand. Just one year later, the number of customers had more than doubled, reaching about 278 thousand customers in 2014. In 2015, the number of customers also increased nearly 2 times compared to 2014, reaching 523,433 customers, and the number of customers by the end of 2016 was 763.6 thousand people, about 1.5 times higher than in 2015.
Along with the rapid growth of the number of customers using e-banking services, customer payment activities and revenue from this type of service also grew rapidly. In 2014, the number of bill payment orders via e-banking services was only 28.5 thousand, but after only 1 year, this number increased to 862.7 thousand and reached 1.5 million in 2016. Within 1 year from 2013 to 2016, Sacombank's revenue from e-banking services also increased more than 4 times, from only 53 billion VND (2013) to 171 billion VND (2016). Rapid revenue growth is a condition for Sacombank to improve business efficiency, although the investment capital for developing information technology for this type of service is quite large, the cost for an e-banking transaction is only 1/3 compared to a transaction at the counter.
With the achievements in the development of e-banking services and the strong development trend of e-commerce in Vietnam. Sacombank identifies e-banking as one of the important service areas for competition and is the key to becoming a leading modern, multi-functional retail bank in Vietnam and reaching the regional level.
5.2. Descriptive statistics and comparison of factors
Table 5.1 presents the descriptive statistics of each factor. The value of each observation for each factor is the average value of all observed variables belonging to the factor. Statistics on the average value show that the ease of using e-banking services reaches the highest level of all factors with a value of 4.7576, followed by the intention to use the service with a value of 4.3854. The remaining factors mostly have an average value above 4. Only subjective norm has an average value of only 3.5168. This shows that customers do not consider subjective norm as important as other factors.
Table 5.1. Descriptive statistics and comparison of factors
Minimum value | Maximum value | Average value | Standard deviation | |
Ease of use | 1 | 7 | 4,7576 | 1,20094 |
Usefulness | 1 | 6.6 | 4,3565 | 1,14989 |
Subjective standard | 1 | 6.8 | 3,5168 | 1,2631 |
Controlling perceived behavior | 1.2 | 6.8 | 4,1072 | 1,15183 |
Customer service | 1 | 7 | 4.0442 | 1.22658 |
Customer attitude | 1 | 7 | 4,023 | 1.33162 |
Intended use | 1 | 7 | 4,3854 | 1.31285 |
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Source: Data analysis results
5.3. Preliminary test of the reliability of the scale in the research model
To test the reliability of the preliminary scale, the researcher used Cronbach's Alpha reliability coefficient and EFA exploratory factor analysis. Table 5.2 shows
The results of the Cronbach's Alpha test for all factors are shown. The Cronbach's Alpha values of the factors all meet the requirements according to Hair et al. (1998) which are greater than 0.7. However, for the Perceived Behavioral Control factor, the CN5 variable has a total item correlation coefficient of only 0.268 - less than the required level of 0.3. Therefore, this variable needs to be removed before conducting exploratory factor analysis.
Table 5.2. Preliminary test of scale reliability using Cronbach's Alpha
Variable
Scale mean if variable is removed | Variance of the scale if the variable is removed | Total variable correlation coefficient | Cronbach's Alpha if variables are removed | |
Perceived Ease of Use - Cronbach's Alpha = 0.861 | ||||
SD1 | 19,006 | 23,806 | 0.705 | 0.825 |
SD2 | 18,972 | 23,448 | 0.693 | 0.828 |
SD3 | 19,133 | 22,905 | 0.713 | 0.822 |
SD4 | 19,087 | 24,788 | 0.648 | 0.839 |
SD5 | 18,956 | 24,456 | 0.632 | 0.843 |
Perceived Usefulness - Cronbach's Alpha = 0.809 | ||||
HD1 | 21,632 | 30,838 | 0.622 | 0.767 |
HD2 | 21,564 | 30,350 | 0.532 | 0.790 |
HD3 | 21,670 | 31,624 | 0.567 | 0.779 |
HD4 | 22,230 | 31,189 | 0.587 | 0.775 |
HD5 | 21,637 | 31,615 | 0.587 | 0.775 |
HD6 | 21,783 | 33,056 | 0.523 | 0.788 |
Subjective norm - Cronbach's Alpha = 0.815 | ||||
CQ1 | 14,239 | 25,223 | 0.663 | 0.761 |
CQ2 | 13,663 | 26,589 | 0.651 | 0.766 |
CQ3 | 14,536 | 27,102 | 0.580 | 0.786 |
CQ4 | 13,398 | 26,214 | 0.613 | 0.777 |
CQ5 | 14,499 | 28,405 | 0.518 | 0.804 |
Perceived behavioral control - Cronbach's Alpha = 0.746 | ||||
Variable
Scale mean if variable is removed | Variance of the scale if the variable is removed | Total variable correlation coefficient | Cronbach's Alpha if variables are removed | |
CN1 | 16,444 | 20,889 | 0.639 | 0.652 |
CN2 | 16,225 | 21,178 | 0.555 | 0.684 |
CN3 | 16,532 | 21,430 | 0.568 | 0.679 |
CN4 | 16,615 | 22,488 | 0.532 | 0.694 |
CN5 | 16,328 | 26,885 | 0.268 | 0.779 |
Customer Service - Cronbach's Alpha = 0.776 | ||||
DK1 | 11,786 | 13,729 | 0.618 | 0.701 |
DK2 | 11,766 | 14,290 | 0.604 | 0.709 |
DK3 | 12,595 | 14,692 | 0.564 | 0.730 |
DK4 | 12,383 | 15,491 | 0.533 | 0.746 |
Customer Attitude - Cronbach's Alpha = 0.800 | ||||
TD1 | 12,028 | 16,473 | 0.672 | 0.721 |
TD2 | 12,274 | 17,067 | 0.573 | 0.770 |
TD3 | 11,829 | 17,430 | 0.573 | 0.769 |
TD4 | 12,145 | 17,125 | 0.637 | 0.738 |
Intention to use electronic banking services - Cronbach's Alpha = 0.867 | ||||
YD1 | 13,070 | 15,257 | 0.773 | 0.807 |
YD2 | 13,123 | 16,245 | 0.745 | 0.820 |
YD3 | 13,254 | 16,651 | 0.647 | 0.860 |
YD4 | 13,177 | 16,640 | 0.711 | 0.833 |
Source: Data analysis results Table 5.3 presents the results of the KMO coefficient (Kaiser-Meyer-Olkin) and Bartlett's test. The KMO coefficient is 0.931, indicating that exploratory factor analysis is appropriate. Bartlett's test is statistically significant at the 5% significance level, meaning that the observed variables are correlated with each other in the population. Therefore, factor analysis
Exploratory factors are appropriate for scale validation.
Table 5.3. KMO coefficient and Bartlett test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
0.931 | ||
Bartlett's Test of Sphericity | Approx. Chi-Square | 8750,751 |
df | 496 | |
Sig. | 0.000 |
Source: Data analysis results
The results of the exploratory factor analysis are shown in Table 5.4, showing that 7 factors were formed after removing observed variables with factor loading coefficients less than 0.5. The extracted variance was 54.04%, meeting the requirement of greater than 50%, and the eigenvalue coefficients of all factors were greater than 1. The factors that were formed were basically no different from the factors in the original research model, only the variables that did not meet the requirements were deleted. Specifically:
- Perception of ease of use (De su dung) includes variables from SD1 to SD4.
- Perception of usefulness (Huu dung) includes variables from HD1 to HD4.
- Subjective standard (Chu quan) includes variables from CQ1 to CQ4.
- Sensory behavior control (Cam nhan) includes variables from CN1 to CN3.
- Customer service (DVKH) includes variables DK1 and DK2.
- Customer attitude (Thai do) and intention to use electronic banking services (Y dinh) retain the same observed variables as the original scale.