Card service: is a multi-utility banking service born on a new technology platform. Card is considered a non-cash payment method, issued by banks and financial institutions that cardholders can use to pay for goods and services, transfer money, ask questions. balance or withdraw cash and countless other facilities at banks, bank agents, card payment establishments or ATMs.
Currently, in the world as well as in Vietnam, there are many different types of cards, with very diverse and rich features and uses. Tags can be classified according to some of the following criteria:
+ Classification by production technology: there are three types of cards: Braille engraved cards, magnetic tape cards and smart cards.
+ Classification by issuer: there are two types of cards: bank-issued cards and cards issued by non-banks.
+ Classification by credit limit: there are two types of cards: gold card and standard card.
+ Classification according to scope of use: there are two types of cards: domestic cards (ATM cards) issued by domestic banks, used only within the territory of a country, and international cards circulated in the world. worldwide and very popular in developed countries.
+ Classification according to the payment nature of the card: there are two types of cards: credit card and debit card:
- Credit card: is a card used to pay for goods and services or withdraw money with the outstanding feature that the card issuer lends money to consumers to pay the seller, and then returns it later.
- Debit card: is a card used to pay for goods and services or withdraw cash with the amount used being the balance on the personal account.
The issuance and payment of cards by commercial banks make an important contribution to commercial banks in mobilizing capital, increasing service revenue, and can concentrate deposit capital in banks, minimizing risks…
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– Electronic banking services:
With e-banking services, customers have the ability to remotely access to inquire about their accounts, make payment transactions, request savings or other requests related to their accounts through connecting your computer network with your account management bank.
If banks are considered as a component of the electronic economy, the most general concept of electronic banking can be expressed as follows: “E-banking is a bank where all transactions between Banks and customers (individuals and organizations) rely on the processing and transfer of digitized data to provide banking products and services”.
Currently, e-banking exists in two forms: online banking (only existing based on the internet environment, providing 100% services through the network environment) and a combination model between commercial banks and commercial banks. traditional services and electrification of traditional services, i.e. distribution of old services over new distribution channels.
E-banking services include some typical types of services as follows:
+ Call center: is a service that provides a fixed phone number of the center for customers to open an account at any branch. Customers can call this phone number to get information and answer questions related to their account and other information.
+ Phone banking: is a service that helps customers to be able to listen to information about banking services and personal account information anytime, anywhere, using an automatic answering system by email. telephone. Customers only need a simple means of connecting to the phone banking system to listen to information about the bank on demand anywhere.
+ Mobile banking: is a form of online payment via mobile phone network, this method is to help customers make payment orders for small amounts of money and update relevant information. accounts, exchange rates, interest rates, promotion policies… without having to go directly to the bank.
+ Home banking: customers transact with the bank via the internal network built by the bank. Transactions are conducted at home through a computer system connected to the bank’s computer on the basis of a pre-registered phone number with the bank. Through this service, customers can make money transfers, view account statements, inquire about exchange rates, interest rates, etc.
+ Internet banking: is a service with the same utility as home banking, except that customers can use this service via the common internet. Therefore, it is very convenient for customers. However, to develop this service safely, it is required that the banking system have a strong enough security system to be able to deal with risks on a global scale.
1.7.1. The concept of banking service quality
Chang (2008) describes the concept of service quality that must be approached frequently from the customer’s point of view as they may have different values, different evaluation backgrounds, and different circumstances.
Grönroos (2007) focuses on a comparative model between customers’ expectations of services and their experiences of services they have received in the past.
Parasuraman et al. (1985, 1988) and Asubonteng et al. (1996) defined service quality as the difference between customers’ expectations about the service to be provided and their evaluation after using the service.
Gefan (2002) also defines service quality as the subjective comparison of customers about the quality of service they want to receive with what they actually receive.
Although there are many definitions, but in general, service quality is the ability of a service to meet customer expectations, or in other words, quality is the gap between customer expectations and their perception. after using the service.
1.7.2. Characteristics of banking service quality
The quality of banking services has the following five characteristics:
- The first characteristic: the service must have basic expectations. This is a feature that customers do not mention, but they consider it natural to have. If the customer’s basic expectations are not met, the service will be rejected and removed from the market due to customer frustration.
- The second characteristic: the higher the service response, the more satisfied customers are.
- The third characteristic: attractive factor. This is the element of surprise that sets itself apart from competitors’ services of the same type. However, this factor is not constant, over time it will gradually become the basic expectations that the service must meet.
- Fourth characteristic: specific market conditions. Any business process, any type of product must be associated with a defined market. A service is appreciated in case it meets the existing needs of the market as well as the requirements of interested parties.
- The fifth characteristic: measure the satisfaction of customers’ needs. This is a key characteristic of service quality. Service quality is measured by customer satisfaction. Therefore, the most important part of any business process is to listen to the voice of the user of the product.
1.7.3. The effectiveness of banking service quality
Under the pressure of globalization, competition from non-banking financial institutions and ever-changing markets, commercial banks are constantly looking for new ways to increase service value. As financial services compete in the market with generally undifferentiated products, service quality will become a major competitive weapon. Technological changes are forcing banks to rethink their strategy of providing services to corporate and individual customers. In addition, banks with outstanding service quality may have a distinct marketing advantage because service quality improvements are associated with higher revenue, increased cross-sell rates, and greater customer retention. and expand market share. Therefore, banks should focus on service quality as a core competitive strategy. Service quality is becoming more and more important for banks to maintain market share. In order to succeed and survive in the banking sector, providing high quality services is necessary to meet customer requirements, attract new customers, increase market share and profits. Service quality has become a major competitive weapon in the banking industry (H.VasanthaKumari and S.Sheela Rani, 2011).
In short, the effectiveness of banking service quality is measured through attracting many new customers, retaining old customers, creating customer loyalty to the bank’s brand, and maintaining and increasing market share. In addition, more profit and achieving the profit target is also an important indicator to effectively measure the quality of banking services.
1.8. Customer satisfaction about banking service quality
1.8.1. Customer Satisfaction
Boshoff and Gray (2004) have shown that satisfaction is not inherent in the product or service. Satisfaction mainly depends on the customer’s perception of the attributes of the relevant product or service. Therefore, different customers will show different levels of satisfaction for the same service provided (Ueltschy et al., 2007). Customers’ perceptions are formed from their experience of the services provided. In addition, the customer’s experience of some services provided by other companies can influence the customer’s perception of service quality. Researchers believe that perception and expectation are two closely related concepts (Parasuraman et al. 1985). Customer perception is the result of how customers perceive service quality. However, customer expectations can be formed through the influence of others (Abed and Majid, 2011).
Verhoef et al. (2002) stated that customer satisfaction in banking services is how the services provided meet or exceed customer expectations. It is important for the bank to be more profitable and achieve the profit target.
According to Kotler et al. (2005), customer satisfaction is a customer’s perception that is obtained from comparing the results obtained when consuming a product/service with that customer’s expectations. The level of satisfaction depends on the difference between the results received and the expectations. If the service quality is very high, the level of satisfaction exceeds expectations, the customer will be very satisfied. Service quality is high, the level of satisfaction will meet expectations, customers feel happy and satisfied. On the contrary, if the service quality is low, the satisfaction level is lower than the expected value, the customer will be disappointed.