Solutions Contributing to Expanding Bank Card Payments in Vietnam Today

Factors affecting the intention and decision to use bank cards in Vietnam. It can be seen that this logical integration model is suitable in the development trend of the theory. This model includes (1), internal factors of the TAM model, (2), external predictors, (3), and factors from other theories. All variables are strictly tested for validity and application scale in the new context in Vietnam. In a comprehensive way, this is the first time an integrated model with so many variables has been applied in Vietnam, instead of just stopping at the traditional TAM model.

The thesis cannot be ambitious to solve all the problems, relationships, and correlations in the interdisciplinary research trend. With the understanding of the researcher, there are currently more than 45 factors and more than 28 variables that have appeared in the extended TAM.

These factors or variables are named according to their function, personal perspective, or the researcher's environment or field, so it is really necessary to build clear concepts when researching because it is easy to get confused when the concepts are intersecting and interdisciplinary.

Specifically, perceived usefulness and perceived ease of use are considered external variables including personal traits, demographic traits or computer confidence [124]. Perceived usefulness belongs to the user's output characteristics while perceived ease of use belongs to the user's characteristics (Koert et al., 2006). Perceived usefulness depends on external variables such as personal traits, demographic traits, and computer effectiveness. However, Koert et al. (2006) have a different view. He believes that subjective norms belong to the characteristics of individual users (personal traits). Subjective norms are factors related to normative beliefs. Subjective norms are present in both TRA models.

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[82] and TBP [56,57]. Therefore, subjective norm is an external variable including factors such as personal personality, demographic characteristics, computer performance all affect perceived usefulness and perceived ease of use.

Bauer (1960) [61] first proposed the risk perception factor for consumer behavior. He argued that the belief in risk perception is also a decisive factor in consumer behavior and it is also the main factor affecting the change in consumer behavior. Discussing the risk perception factor, Koert (2006) argued that this factor belongs to the technological characteristics and is the output characteristic of the user.

application. Risk is also conceived as privacy and security and safety according to the theory of perceived credibility [81]. Perceived behavioral control is a factor belonging to control belief [56, 57]. However, Koert et al. (2006) did not mention perceived behavioral control but only mentioned factors such as observability, result demonstrability and triability. Maranguinie and Granie (2014) [124] analyzed that the factors triability, visibility, and result demonstrability are additional trust factors. All of these factors belong to the technology characteristics factor which is the user's characteristics. Many researchers have upgraded TAM by adding external variables. One of the important external variables is perceived credibility. Trust is defined as the extent to which people believe that using a system is private and secure (Weng et al., 2003). Trust consists of two elements: Security and Privacy.

“Factors affecting the intention and decision to use bank cards: practical research in Vietnam” includes: perceived usefulness, perceived ease of use (TAM model - [71]), marketing policy, legal policy, science and technology (inherited from research [4], social influence, behavioral control (according to the Theory of Planned Behavior - TPB), perceived risk (according to the E - CAM model [135] and service quality factor [60]. All variables are strictly tested for validity and application scale in the new context in Vietnam. Comprehensively, this is the first time a comprehensive model with so many variables has been applied nationwide in Vietnam, instead of just stopping at the traditional TAM model.

4.3. Significance of the study

In all economic relationships, people still play a central role and are a particularly important factor affecting the success of any technological system. Therefore, although bank card services and their benefits are widely popular, there are still some customers who are not interested in using this service. Therefore, studying the factors that have affected customers' intentions in deciding to continue using or not using bank card services is necessary to help banks have a general view of the decision to use bank cards in the conditions of Vietnam.

Chapter 4 Summary

This chapter summarizes the results, evaluates and gives the significance of the study. Through this study, it can be seen that the TAM model is not only a model of variables within the model but also combines with many models as predicted by scholars around the world. The research results have also been presented in detail in this chapter.

5.1. Conclusion

CHAPTER 5

CONCLUSION AND SOLUTION

The study has achieved success in building a model “Factors affecting the intention and decision to use bank cards: practical research in Vietnam” which is a useful model that is more broadly integrated with the addition of many related variables including (1), internal factors of the TAM model, (2), external predictors, (3), and factors from other theories. It can be seen that this logical integrated model is suitable in the development trend of theory and has achieved the following specific highlights:

Firstly, the study has shown important groups of variables that have a direct impact on consumers' intention to use bank cards in Vietnam. In which, the factors with positive impacts in decreasing order are: (1) Science and technology, (2) service quality, (3) perceived ease of use, (4) perceived usefulness, (5) legal policies, (6) behavioral control, (7) social influence, (8) marketing policies, and the factor with negative impacts is (9) Perceived risk. From there, the variable "Intention to use card" has a direct impact on " Decision to use card" with an impact level of 0.416, meaning that when the intention to use card increases by 1 unit, the decision to use card increases by 0.416 units.

Second, the research results also pointed out the differences in demographic characteristics in the research model. Specifically, the group of customers with an income of over 10 million VND/month has a higher intention to use the card than the group of customers with an income of 6 million VND to less than 10 million VND/month. Similarly, the group of business customers and the group of civil servants. This is the basis for proposing solutions to increase the demand for services for each customer group as well as maintain the loyalty of current customer groups using bank cards.

Third, because the scope of the thesis research was first implemented in major cities of Vietnam (Hanoi City, Da Nang City, Ho Chi Minh City, and other localities) with a valid sample size of 410 and related to 29 banks out of 52 banks that have issued cards in Vietnam, the results of the research have provided useful and complete information on customer card usage behavior for bank managers, from which they will make decisions.

better managed with a comprehensive and effective marketing plan.

Fourth, the thesis provides implications for management activities to increase the use of bank cards, select target markets to attract and maintain, orient communication strategies, and design products and services. These management orientations aim to achieve the goal of increasing the use of bank cards.

5.2. Solutions to contribute to expanding bank card payments in Vietnam today

After analyzing the data and evaluating the factors affecting the decision to use bank cards, it can be seen that to attract new customers and retain existing customers, a combination of many factors is needed. From that perspective, some solutions are proposed.

5.2.1. Marketing policy solutions

Banks will join forces with the Vietnamese banking system in building a synchronous marketing strategy, which is the immediate solution and also the long-term solution of the entire banking system to further develop bank card services:

- Banks must conduct market research to determine the market characteristics of card services in order to provide optimal services. Bank card services face fierce competition from other banks, obstacles in the psychology of preferring cash of the population. Moreover, bank card services operate in a diverse market. Therefore, banks need to identify their target customer groups to come up with appropriate business orientations.

- Banks need to focus on product policy because this is a policy that is vital to the existence and development of card services in the long term. Product policy needs to fully and synchronously implement the following issues:

+ Must evaluate existing products: To have a good product policy requires banks to self-evaluate their entire card products.

+ Developing new products: Product innovation is the basis for banks to consolidate and expand the market, increase sales and increase income. In new products, uniqueness is extremely important because it can find a gap in the market, to satisfy customer needs, and thus penetrate the market.

+ Product diversification: On the one hand, to exploit all available market potentials, on the other hand, to limit risks.

- Another equally important policy that helps customers better understand the bank as well as the bank card products is the communication and promotion policy. Banks often pay the most attention to the communication and promotion policy, because the communication between card office staff and the bank creates the image of the bank, creating customer trust in the bank. Banks need to pay more attention to implement this policy well. The communication and promotion policy is specified by the following policies:

+ Advertising activities: promoting advertising on mass media is effective, will gradually bring bank cards to penetrate into the people. When advertising on newspapers, radio, or billboards on the street, it is necessary to have impressive images, attractive advertising words and especially to let customers see the civilized factor associated with using cards, hitting the right customer psychology. Currently, the development of the internet is also an effective advertising channel for banks.

+ Contact: this is contact with customers through a wide service network, through annual customer contact conferences, through professional expertise, and through provided services.

+ Organize promotional programs to increase sales and customer base: give away cards, increase usage limits for customers, organize reward point programs for customers, organize gifts for customers who make frequent transactions on holidays.

+ Regularly organize customer conferences to introduce new benefits provided by the card and survey customer opinions on the quality of products and services provided.

+ Functional departments that have relationships with customers: Customer Relations Team, Service Department... coordinate with the card department to proactively introduce the bank's card payment activities to customers who come to make transactions. A customer who trusts them will introduce them to their friends, this is a low-cost method with quite high efficiency.

5.2.2. Technology infrastructure solutions

Banks need to improve the skills of technical staff to fix system errors.

Regularly upgrade infrastructure, add new modern equipment to replace old outdated equipment to create maximum convenience for customers using card services.

In the current context, the State Bank is promoting non-cash payments and developing POS payment systems, which are of particular interest to the government. Therefore, banks need to pay attention to developing POS networks in the coming time to meet customer satisfaction.

5.2.3. Safety solutions

Currently, the loss of money from cards is increasing and causing a stir in the card market. Therefore, banks need to strengthen measures to prevent this situation. When customers feel safe, the demand for use will increase. To do so, banks can apply many preventive solutions such as: installing cameras at cash machines, informing customers about many fraud and theft tricks that can occur so that they can take precautions.

5.2.4. Solutions on the reputation of the bank providing

Consumers’ trust in the bank’s reputation has a positive impact on their decision to use a bank card. It is important to create and develop a trustworthy business reputation with a long-term vision. Banks and service providers need to have a suitable strategy to create trust for customers when using the service. Therefore, banks need to:

- Always keep the quality commitment: one of the words customers often use to talk about their favorite brands is guaranteed quality. A good product will help attract more customers, but it is reputation that can keep them in the long run.

- Training sales staff is also one of the top priorities. Staff need to understand the characteristics of each customer, know what they want to buy. And above all, not only train staff with the basics of card services but they also need to know how to react in all situations and respond to customer requests and suggestions.

5.2.5. Some other solutions

In addition to the above main solution groups, banks need to perform well a number of

following solution:

- The decision to use bank cards will increase when customers feel that the cost of switching to using is reasonable and acceptable to customers. Therefore, banks need to review and rebuild reasonable fees and create more options for customers.

- Banks need to provide information about the benefits of bank cards compared to other banks so that customers can better understand the role and feel the benefits and importance of using bank cards, which will encourage customers to use the service.

- Customers should be advised on the importance of keeping their account passwords secure so that they can also limit the risk of having their PINs exposed, such as not using passwords that are too familiar, as is the habit of most customers, because they think they are easy to remember.

- In addition, banks need to strengthen and establish close relationships with units in many other sectors in the area to promote non-cash payment methods, the benefits of card products and services, and take appropriate measures to encourage people to use this modern form of transaction. The important thing is to make people feel that using cards brings superior benefits compared to traditional forms of transaction.

5.3. Limitations of the study and recommendations for future research

Although the study has made certain theoretical and practical contributions, there are still limitations.

Firstly, the number of samples collected was only 410 samples by the convenience sampling method in some provinces/cities under the Central Government. Therefore, it cannot fully represent Vietnamese consumers. Therefore, the generality is not high.

Second, the survey subjects were only on the demand side (consumers) and did not mention the supply side (suppliers). In addition, the research results were not analyzed for each type of bank.

Third, the proposed research model only includes nine factors that influence Vietnamese consumers' intention to use bank cards. In fact, there may be other factors that have not been mentioned such as: personal personality, brand image, etc.

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