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Solutions to Attract Individual Customers to Save at Vietinbank Binh Phuoc:


F_TH

Pearson

Correlation

.555 **

.192 **

1

.088

.095

.200 **

.124

.171 *

*

F_NV

Pearson

Correlation

.370 **

.038

.088

1

.171 **

.115

.081

.185 *

*

F_CT

Pearson

Correlation

.286 **

.139 *

.095

.171 **

1

.108

.098

.191 *

*

F_TL

Pearson

Correlation

.461 **

.206 **

.200 **

.115

.108

1

.131 *

.165 *

F_TT

Pearson

Correlation

.246 **

.118

.124

.081

.098

.131 *

1

.032

F_LS

Pearson

Correlation

.542 **

.073

.171 **

.185 **

.191 **

.165 *

.032

1

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Solutions to Attract Individual Customers to Save at Vietinbank Binh Phuoc:

**. Significance level 0.01

*. Significance level 0.05

Correlation is not eliminated because the sig between each independent variable and the dependent variable is less than 0.05.

The results show that convenience, interest rates, promotions, transaction procedures, bank brand, bank staff and customer care are all correlated with the decision to deposit savings. In which, brand and the decision variable have the closest relationship .0555, followed by interest rates. The Pearson Correlation values ​​are all positive, meaning that the independent variables are positively related to the decision variable (dependent variable).


Model Fit Assessment

Table 4.18 Results of model fit assessment


Model

R

R 2

R 2 effect

adjust

Standard error

1

.855a​

.732

.724

.27883


The adjusted R-squared is 0.724 = 72.4%. Thus, the independent variables included in the regression affect 72.4% of the change in the dependent variable.

Table 4.19 Model fit test table

ANOVA a


Model

Sum of

Squares

Df

Mean

Square

F

Sig.


1

Regressio

n

48,995

7

6,999

90,031

.000 b

Residual

17,959

231

.078



Total

66,954

238




a. Dependent Variable: F_QD

b. Predictors: (Constant), F_LS, F_TT, F_CS, F_NV, F_TH, F_CT, F_TL

Sig test F = 0.00 < 0.05, so the regression model is meaningful to extrapolate to the population.


Table 4.20 Regression results


Coefficients a


Model

Unstandardized

Coefficients

Standardized

Coefficients

t

Sig.

Collinearity

Statistics

B

Std. Error

Beta

Tolerance

e

VIF


1

(Constant

)

.040

.137


.294

.769



F_CS

.137

.020

.239

6,712

.000

.918

1,090

F_TH

.212

.021

.361

10,094

.000

.910

1,099

F_NV

.121

.020

.213

6,046

.000

.937

1,067

F_CT

.048

.022

.077

2.161

.032

.923

1,083

F_TL

.138

.021

.233

6,489

.000

.901

1.109

F_TT

.055

.018

.106

3,049

.003

.959

1,043

F_LS

.197

.019

.367

10,256

.000

.908

1.102

With the results from the table above we have the regression equation:

QD=0.4+ 0.138 TL + 0197 LS + 0.48 CT+ 0.055 TT+0.212 TH+0.121 NV + 0.137 CS


No factor was removed from the regression because the t-test sig of each independent variable was less than 0.05. The VIF coefficients of the independent variables were all less than 10, so there was no multicollinearity.

Results of Hypothesis Testing:


H1: Banks with convenient locations make customers decide to save more (+) : accept


H2: Higher interest rates will make customers decide to save more (+): accept

H3: Attractive marketing methods make customers decide to save more (+): accepted

H4: Simple transaction procedures will make customers decide to save more (+): accept

H5: Bank brand makes customers decide to save more (+): accept

H6: A better impression of the staff image will make customers decide to save more (+): accept

H7: Appropriate customer care policy will make customers decide to save more (+): accept


EVALUATION OF RESEARCH RESULTS


Research shows that there are 7 factors that affect customers' savings decisions at different levels.

Brand has the highest coefficient of 0.212, which is the factor that has the most impact on customers' decision to deposit savings at Vietinbank Binh Phuoc. This proves that customers are very interested in the bank's brand, reputation, and the safety of their capital is the first concern.

Next is the interest rate factor with a coefficient of 0.197. Currently, when there are many bank branches opening in the area, facing strong competition. The higher the interest rate, the more abundant the deposit source will be attracted, this is an important factor in maintaining relationships with current customers and potential customers.


Convenience factor (0.138). Usually, customers will choose a bank near their home or workplace to conduct transactions, with a large area and convenient routes to save time for transactions after comparing the reputation and interest rate differences of the banks.

Following important factors are customer care policy, bank staff, procedures and promotion.

The research model consists of 29 independent variables and 3 determinant variables. After running the model, the variables TL5 (easy-to-use online services), LS3 (flexible interest rates), TH3 (modern banks, leading technology) were removed. The reason why customers do not care much about these 3 factors is because bank interest rates fluctuate over time, people are mainly farmers so they have little understanding of the bank's policy mechanisms and do not care or have much contact with online services, modern technology...


CONCLUSION OF CHAPTER 4


Chapter 4 presents the research results including scale testing, model testing and research hypothesis. The results show that there are 7 factors influencing the decision to deposit savings of individual customers. The most influential factors are bank brand, interest rate, convenience, customer care, bank staff, transaction procedures and promotion is the factor that influences the least on the decision to deposit savings of customers.


CHAPTER 5: SOLUTIONS AND RECOMMENDATIONS


5.1 Solutions to attract individual customers to deposit savings at Vietinbank Binh Phuoc:

5.1.1 Convenience:

This is the third important factor in the decision of individual customers to deposit savings. Vietinbank needs to further enhance customer convenience to attract customers to deposit savings with the following solutions:

- Expanding transaction network (depending on the reputation and financial potential of the bank)

Vietinbank is a bank with a large branch network, however, the branches are still mainly concentrated in some large cities and central districts. The transaction network is an issue that banks and customers are interested in and choose. As the economy develops, the transaction volume is increasing, the need for savings is greater but the time to go to the bank to make transactions is not much. The characteristics of Binh Phuoc area are mainly farmers, farming so there is not much time, customers often choose the bank with the nearest transaction point, avoiding going far. Therefore, to attract customers to save money, the bank needs to expand the transaction network to potential areas such as Binh Long, Loc Ninh. For customers who need to save but have difficulty in traveling, the bank will support collecting and paying money at the customer's address.

5.1.2 Interest rate solution:

According to research results, interest rate is the second most important factor, playing an important role in attracting customers to deposit money. To decide to deposit money in the bank, they will find out the interest rate to have an objective view.

Because the interest rates of commercial banks in general and Vietinbank in particular are subject to the control of the Government and the State Bank of Vietnam regarding the ceiling interest rate. However, banks can be flexible in their interest rate policies to attract customers to the bank.


Interest rates of banks are quite similar, only differing in flexibility and interest rate policies of each bank in each period. Interest rates constitute the majority of the income and expenses of the bank, so any fluctuations in interest rates affect the business activities of the bank. On the other hand, individuals who deposit savings want to have income. Therefore, to attract customers, Vietinbank Binh Phuoc needs to:

- Flexible interest rate adjustment: apply preferential interest rates to customers with large deposits, long-term customers, creating favorable conditions when there is a need for loans.

- Diversify savings methods:

+ For deposits that customers deposit without a term for a long period of time, an additional interest rate margin can be added for customers. For term savings, the interest rate will automatically be converted to a higher term when the customer has not withdrawn the money.

+ Diversified by deposit balance: the more customers deposit, the higher the interest rate.

- Interest rates are suitable for each depositor, each residential area and each specific period, based on economic growth, inflation rate...

- Interest rate strategy may change but must still comply with the basic interest rate of the State Bank and within the allowed fluctuation range.

- Any changes in interest rates must be notified to customers, and customers must be advised to send savings packages that are beneficial to them. When customers need to withdraw savings before maturity, customers must be advised to take out mortgage loans.

5.1.3 Marketing forms:

Promotions and advertising are forms of marketing to build a brand for the bank, depending on the time and financial capacity of the bank with the aim of attracting the attention of customers. To make marketing activities more effective, banks need to carefully plan activities, maximize communication, consider reasonable plans, and stop when necessary.

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