Types of Savings Deposits at Dong A Commercial Joint Stock Bank

to be able to withdraw capital when needed without having to pay non-term interest rates to reduce interest losses. The number of customers who deposit for long terms (over 12 months) are usually customers with a large and stable amount of idle money, they do not need to use this amount of money for a long time, so they will decide to deposit for a longer term to enjoy a higher interest rate. Because in the survey sample, the majority of interviewed customers said that because they were afraid of suddenly needing money, they decided to deposit for a short term and some said that the interest rates between deposit terms were not too different, so they preferred to deposit for a short term, both to get interest faster and to be able to withdraw capital in a short period of time faster.

2.2.3.8: Types of savings deposits at Dong A Commercial Joint Stock Bank - Hue Branch

VND

USD

98%

Chart 2.8: Types of savings deposits at Dong A Commercial Joint Stock Bank - Hue Branch

(Source: Data processing results)

In the survey of 150 customers, the majority of customers save in Vietnamese Dong, only 3 customers save in foreign currency, specifically Australian Dollar (AUD), the reason is that recently since October 2015, Dong A Bank has not paid interest on savings in foreign currency, namely US Dollar (USD), meaning the interest rate for all deposit terms is 0%, the Bank only pays interest on currencies such as Australian Dollar (AUD), British Pound (GBP), Euro (EUR) and Canadian Dollar (CAD) with low interest rates and because the exchange rate is constantly changing, customers rarely save but only keep cash in foreign currency, partly because the amount of foreign currency circulating in the Vietnamese market in general and specifically in Hue is still small, so there is no free time to save like Vietnamese Dong.

120

100

Normally

Prediction

2.2.3.9: Savings deposit form

Maybe you are interested!

Chart 2.9: Savings deposit form at Dong A Commercial Joint Stock Bank - Hue

(Source: Data processing results)

We can see that the number of customers who deposit their accounts in the normal form (99 customers) is larger than the number of customers who deposit in the prize draw form (54 customers). The reason is that first, to be eligible for the prize draw form, the minimum deposit balance at DAB must be 30 million VND to be granted a prize draw code, so many customers are not eligible to participate, as well as some customers who are eligible to participate but think that the probability of winning is not high so they do not participate. On the other hand, because the prize draw program only takes place in 2 phases from 4/1/2016 to 6/2/2016 and from 15/2/2016 to 5/3/2016, many customers who are surveyed after this period should be eligible for this form of deposit.

2.2.4 Evaluate the reliability of the scale before extracting factors affecting the quality of savings deposit services for customers at Dong A Commercial Joint Stock Bank - Hue Branch

Scale reliability is defined as the degree to which the measurement of the investigated variables does not encounter errors and the results of customer interviews are accurate and true to reality. To evaluate the reliability of the scale, we use the Cronbach's Alpha coefficient to evaluate each research concept.

The scale used consists of 5 factors: “ Tangibles”, “Responsiveness”, “Reliability”, “Service Competence”, “Empathy”. The results of the reliability test of the scale are shown in the following table.

Table 2.6: Results of Cronbach's Alpha test 1

Variable

Correlate total variable	Cronbach's Alpha coefficient if the variable is eliminated for the first time
Tangibles (Cronbach's Alpha = 0.629)
Staff uniforms are neat and polite	0.368	0.592
Facilities and equipment at the bank serve customers well.	0.429	0.558
Layout of counters and tables reasonable convenient	0.434	0.549
Convenient bank location	0.487	0.517
Convenient banking hours	0.260	0.653
Responsiveness (Cronbach's Alpha = 0.807)
Bank staff provide complete, accurate and timely information.	0.589	0.775
Simple and quick savings deposit procedure	0.538	0.785
Bank staff proactively advise and are ready to help you in any situation.	0.543	0.783
Interest rates corresponding to deposit terms are reasonable and attractive to customers.	0.529	0.785
QK's complaints are always resolved satisfactorily.	0.522	0.783
NH staff always serve you attentively during peak hours.	0.512	0.786
Attractive promotion policy	0.593	0.771
Reliability (Cronbach's Alpha = 0.771)
The bank provides services at the committed time.	0.526	0.735
The bank performs its operations accurately and without error.	0.472	0.753
The bank ensures the confidentiality of your transactions and personal information.	0.669	0.685
Banks build trust and peace of mind for our customers	0.617	0.702
Honest and trustworthy bank staff	0.439	0.764
Service capacity (Cronbach's Alpha = 0.731)

Bank staff are polite, respectful and friendly to customers.

0.513	0.679
NH staff have sufficient knowledge and professional capacity to advise. Consult and answer your questions	0.504	0.681
Bank staff make customers feel safe during transactions.	0.626	0.635
Bank staff always treat all customers fairly.	0.522	0.681
Attentive bank staff remind customers of issues they need to address note	0.333	0.739
Empathy (Cronbach's Alpha = 0.722)
Staff always listen	0.589	0.612
Staff attentive to customer needs	0.441	0.700
Staff care about the interests of each individual customer.	0.471	0.685
Staff care about customers' individual problems and advise appropriate solutions.	0.547	0.640

From the table above, we see:

(Source: Data processing results)

The factor "Tangible means" has the observed variable "Convenient transaction time" with a total item correlation coefficient of 0.26 < 0.3 and when this variable is removed from the scale of the factor "Tangible means", Cronbach's Alpha increases from 0.629 to 0.653, so I decided to remove this variable from the scale to increase the reliability of this scale.

The factor " Service capacity " has the observed variable " Bank staff attentively reminds customers of issues that need attention" although the total correlation coefficient is 0.333> 0.3 but when removing this variable from the scale for the factor " Service capacity" , the Cronbach's Alpha coefficient increased from 0.731 to 0.739 so I decided to remove this variable from the scale.

Table 2.7: Results of Cronbach's Alpha test 2nd time

Variable

Total variable correlation	Cronbach's Alpha coefficient if variable type 2
Tangibles (Cronbach's Alpha = 0.653)
Staff uniforms are neat and polite	0.349	0.641
Facilities and equipment at the bank serve customers well.	0.484	0.554
Layout of counters and tables reasonable convenient	0.426	0.592
Convenient bank location	0.508	0.533
Responsiveness (Cronbach's Alpha = 0.807)
Bank staff provide complete, accurate and timely information.	0.580	0.775
Simple and quick savings deposit procedure	0.518	0.785
Bank staff proactively consult ready help you in every situation	0.540	0.783
Interest rates corresponding to deposit terms are reasonable and attractive to customers.	0.519	0.785
QK's complaints are always resolved satisfactorily.	0.535	0.783
NH staff always serve you attentively during peak hours.	0.515	0.786
Attractive promotion policy	0.605	0.771
Reliability (Cronbach's Alpha = 0.771)
The bank provides services at the promised time.	0.526	0.735
The bank performs its operations accurately and without error.	0.472	0.753
The bank ensures the confidentiality of your transactions and personal information.	0.669	0.685
The bank builds trust and peace of mind for customers.	0.617	0.702
Honest and trustworthy bank staff	0.439	0.764

Variable

Total variable correlation	Cronbach's Alpha coefficient if variable type 2
Service capacity (Cronbach's Alpha = 0.739)
Bank staff are polite, respectful and friendly to customers.	0.553	0.673
NH staff have enough knowledge and professional capacity to advise and answer your questions.	0.562	0.665
Bank staff make customers feel safe during transactions.	0.594	0.648
Bank staff always treat all customers fairly.	0.466	0.742
Empathy (Cronbach's Alpha = 0.722)
Staff always listen	0.589	0.612
Staff attentive to customer needs	0.441	0.700
Staff care about the interests of each individual customer.	0.471	0.685
Staff care about customers' personal problems and advice appropriate solution	0.547	0.640

(Source: Data processing results)

The factor " Service capacity " has the observed variable " Bank staff always treat all customers fairly" although the total correlation coefficient is 0.466> 0.3, but when removing this variable from the scale for the factor "Service capacity", the Cronbach's Alpha coefficient increased from 0.739 to 0.742, so I decided to remove this variable from the scale and conduct the third Cronbach's Alpha test.

So after eliminating the ineligible observed variables, the Cronbach's coefficient

The alpha of the factors through three reliability tests of the scale are respectively:

Factor “Tangibles”: 0.653 Factor “Responsiveness”: 0.807

“Trust” factor: 0.771

Factor “Service capacity”: 0.742 Factor “Empathy”: 0.722

Table 2.8: Cronbach's Alpha test results for the dependent variable group "General assessment"

Variable

Total variable correlation

Cronbach's Alpha coefficient

if variable type

General assessment of science and technology (Cronbach's Alpha = 0.877)

Are you satisfied with the quality of personal savings service at NH?

0.749

0.839

In the future, will you continue to use personal savings account services at the Bank?

0.768

0.822

Are you willing to recommend others to use the personal savings service at the Bank?

0.775

0.817

(Source: Data processing results) The results of the reliability assessment of the factor "General assessment" for Cronbach's Alpha coefficient = 0.877. The total correlation coefficient of the 3 observed variables is greater than 0.3. Therefore, the "General assessment" scale ensures reliability for implementation.

further testing.

2.2.5 Identify factors affecting the quality of TGTKCN services, combined

Evaluate the reliability of the scale after conducting factor extraction.

Before conducting exploratory factor analysis to extract factors affecting the assessment of customers on the quality of TGTK services at Dong A Commercial Joint Stock Bank - Hue Branch from observed variables, I tested the suitability of the data through two quantities: Kaiser-Meyer-Olkin index (KMO) and Barlett test. The condition for the data to be suitable for exploratory factor analysis is that the KMO value is 0.5 or higher and the Barlet test gives the result

P-Value is less than the significance level of 0.05. From the collected data, the study conducted exploratory factor analysis.

Bartlett's test is calculated based on the Chi-squared quantity and the decision to accept or reject the hypothesis H0 is based on the significance level of the test P-Value. Here, the P-Value = 0.000 allows us to safely reject the hypothesis H0 (H0: Factor analysis is not suitable for the data). The KMO index = 0.823 shows that the model's suitability is quite high.

Table 2.9: KMO and Bartlett test results after running EFA for the first time

KMO and Bartlett's Test

KMO coefficient		0.823
Bartlett test	Chi squared	1119,253
	Standard deviation	253
	Significance level	0.000

(Source: Data analysis results)

To determine the number of factors, this study uses two criteria:

- Kaiser Criterion is used to determine the number of factors extracted from the scale. Less important factors are eliminated, only important factors are retained by considering the Eligenvalue. The Eligenvalue represents the variation explained by each factor, only factors with Eligenvalue greater than 1 are retained in the analysis model.

- Variance Explained Criteria:

Factor analysis is appropriate if the total variance extracted is not less than 50%.

Table 2.10: Total variation explained after the first EFA test

Total Variance Explained

Compo nent	Initial Eigenvalues			Extraction Sums of Squared Loadings
Compo nent	Total	% of Variance	cumulative %	Total	% of Variance	cumulative %
1	6,160	26,781	26,781	6,160	26,781	26,781
2	2,181	9,481	36,262	2,181	9,481	36,262
3	1,708	7,425	43,687	1,708	7,425	43,687
4	1,533	6,663	50,351	1,533	6,663	50,351
5	1,237	5,378	55,729	1,237	5,378	55,729

(Source: Data analysis results) There are 5 factors extracted from the scale, these factors all have Eigenvalue >1, proving that the extracted factors have a better effect of summarizing information than the original variable and are retained in the model. The total extracted variance is equal to

55.729% > 50%, so factor analysis is appropriate.

Table 2.11: Results of the first EFA analysis

Factor Group -

Extracted variance

Variable name notation	Coefficient load factor
Group 1	DU1	0.735
	DU2	0.681
	DU3	0.677
	DU7	0.674
	DU5	0.637
	DU6	0.611
	DU4	0.552

Group 2

TC3	0.787
TC2	0.690
TC4	0.645
TC1	0.618
Group 3	DC1	0.808
	DC2	0.677
	DC3	0.663
	DC4	0.611
Group 4	PV2	0.824
	PV1	0.787
	PV3	0.608
Group 5	HH4	0.796
	HH2	0.682
	HH3	0.635
	HH1	0.585

(Source: Data analysis results)

In the Rotated Component Matrix, there are 5 extracted factors, of which 1 observed variable was removed because it did not meet the conditions for analysis, which is the observed variable: "Bank employees are honest and trustworthy". After removing this variable from the scale, I re-tested the reliability of the factor group "Trust" and the obtained reliability was 0.764 (Table 13, Appendix 3). Thus, removing this variable from the scale is appropriate. After that, I conducted a second EFA factor analysis.

After removing this variable from the scale, I conducted a second EFA factor analysis.

Table 2.12: KMO and Bartlett test results after running EFA for the second time

KMO and Bartlett's Test

KMO coefficient		0.816
Bartlett test	Chi squared	1054,351
	Standard deviation	231
	Significance level	0.000

(Source: Data analysis results)

Bartlett's test is calculated based on the Chi-squared quantity and the decision to accept or reject the hypothesis H0 is based on the significance level of the test P-Value. Here, the P-Value = 0.000 allows us to safely reject the hypothesis H0 (H0: Factor analysis is not suitable for the data). The KMO index = 0.816 shows that the model's suitability is quite high.

Table 2.13: Total variance explained after the second EFA test

Total Variance Explained

Component	Initial Eigenvalues			Extraction Sums of Squared Loadings
Component	Total	% of Variance	Total %	Total	% of Variance	cumulative %
1	5,827	26,485	26,485	5,827	26,485	26,485
2	2,180	9,910	36,394	2,180	9,910	36,394
3	1,703	7,742	44,136	1,703	7,742	44,136
4	1,526	6,937	51,073	1,526	6,937	51,073
5	1,237	5,622	56,695	1,237	5,622	56,695

(Source: Data analysis results)

The total variance extracted is 56.695 > 50%, so factor analysis is appropriate.

Thus, after conducting two exploratory factor analysis (EFA), the number of observed variables retained was 22, all of which met the conditions for analysis.

The results from the Rotated Component Matrix (Table 15, Appendix 3) show that: there are 5 extracted factors, the observed variables all have factor loading coefficients

>0.5, each variable belongs to only 1 factor, so these factors are retained in the research model and are suitable for use in subsequent analyses.

Table 2.14: Results of the second EFA analysis of factors affecting the quality of personal savings deposit services

Factor Group -

Extracted variance

Variable name notation	Coefficient load factor
Group 1: Response level (26.485%)	DU1	0.736
	DU2	0.679
	DU3	0.679
	DU7	0.675
	DU5	0.639
	DU6	0.614
	DU4	0.558
Group 2: Trust (9.91%)	TC3	0.790
	TC2	0.695
	TC4	0.641
	TC1	0.614
Group 3: Empathy (7.742%)	DC1	0.808
	DC2	0.677
	DC3	0.666

Types of Savings Deposits at Dong A Commercial Joint Stock Bank - Hue Branch

Comment