MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HCMC - - Prepared by Vo Thi Thuy Linh MASTER THESIS Ho Chi Minh City, 2010 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HCMC - - Prepared by Vo Thi Thuy Linh Department of graduate program Division of Banking, code no 60.31.12 MASTER THESIS Supervisors: Dr Le Thai Thuong Quan Ho Chi Minh City, 2010 Abstract With the development of IT, e-commerce and international trade, e-payment becomes an indispensable payment trend in a modern society E-payment has been developed and introduced in many developed countries for a long time, but it is still the phase of developing in Vietnam E-payment in Vietnam has been applied for more than 10 years, marking a significant development in recent years E-banking services development is inevitable and objectivity tendency in the modern economy, in international economic integration Benefits of electronic banking services is very large for customers, banks and the economy, thanks for convenient, fast, accurate and secure Therefore, the primary purpose of this study is to examine the factors affecting to the adoption of e-banking using in Vietnam The study based on the Technology Acceptance Model (TAM) and adding personal characteristics of the adopters, those factors to have huge impact on the e-banking adoption in Vietnam The study uses quantitative approach to survey over 500 Vietnamese customers in Ho Chi Minh This study exploits and analysis the factors affecting to e-banking services adoption in Vietnam, a developing country case We expect to provide banks with more information about the adoption of e-banking services in Vietnam Acknowledgement This thesis was written during year 2010 at Economics University in fulfillment of the Master program in banking Many people have helped me with the completion of this study and made this work possible First of all, I would like to express my sincere gratitude to my supervisor, Dr Le Thai Thuong Quan for his valuable supervision and intelligent guidance during the whole process of the thesis writing Second, I would like to express my sincere gratitude to Dr Dao Trung Kien, my senior master, for his strong support, encouragement and his helpful comments on my thesis I would also like to show my sincere appreciation to managers of customer services division in Viet Nam Eximbank District 10 branch for their kind support and cooperation Finally, I would like to express my thanks to the branch staffs of Eximbank District 10 branch who helped me a lot in distributing and collecting the questionnaires of this research I wish to take this opportunity to express my deepest thanks to my dear parents for the love and never-ending support they have extended me in every step of my life December 2010 Commitment I declare that the thesis entitled Adoption of electronic banking services in Viet Nam contains no results and data that has been submitted previously under any form by anybody This thesis is my own work I take full responsibility to the board of examiners for my commitment December 10th , 2010 Author s signature TABLE OF CONTENTS LIST OF TABLES - Page 01 LIST OF FIGURES Page 03 GLOSSARY OF E-BANKING T ERMS Page 04 ABBREVIAT IONS Page 06 Cha pt er One: Introduction and Research proble m -Page 07 1.1 Introduction - Page 07 1.2 The Research Problem Page 08 1.3 Outline of the Thesis Page 10 Cha pt er Two: The oretical Review - Page 12 2.1 Electronic Banking Page 12 2.1.1 The History of Electronic Banking - Page 12 2.1.2 Benefits of Electronic Banking - Page 13 2.1.3 Kinds of Electronic Banking Page 16 2.2 Diffusion of Innovations Theory Page 18 2.3 Technology Acceptance Model (TAM) Page 21 2.3.1 Perceived Usefulness - Page 22 2.3.2 Perceived Ease of Use Page 23 2.3.3 Perceived Risk - Page 25 2.3.4 Perceived Cost - Page 25 2.3.5 Information on e-banking Page 26 2.3.6 Personal Trial Page 26 2.3.7 Personal characteristics of the adopters Page 26 Cha pt er Three: Res earch des ign and methodology Page 27 3.1 Research Model Page 27 3.2 Hypotheses development - Page 29 3.2.1 Hypotheses related to personal characteristics Page 29 3.2.2 Relationships Hypotheses Page 29 3.3 Methodology - Page 30 3.4 Sampling and Questionnaire - Page 31 3.5 Data Analysis Procedures Page 33 3.5.1 Descriptive statistics analysis Page 34 3.5.2 Purification and Reliability of the M Variables Page 34 3.5.2.1 Factor analysis Page 34 3.5.2.2 Reliab ility analysis - Page 34 3.5.3 t-test Page 35 3.5.4 One way analysis of variance ANOVA - Page 35 3.5.5 Structural Equation Model Page 35 Cha pt er Fo ur: Dat a analysis and r esults - Page 36 4.1 Descriptive Analysis - Page 36 4.1.1 Characteristics of Respondents Page 36 4.1.2 Measurement Results for Relevant Research V Page 38 4.2 Factor Analysis and Reliability Test Page 40 4.2.1 Perceived usefulness Page 40 4.2.2 Perceived Ease of use - Page 41 4.2.3 Perceived risk Page 42 4.2.4 Perceived cost Page 42 4.2.5 Information on E-banking Page 43 4.2.6 Personal Trial Page 44 4.3 Independent Sample t-tests - Page 45 4.3.1 Gender Respondents Page 45 4.3.2 One-way ANOVA Page 46 4.3.2.1 Age Respondents - Page 46 4.3.2.2 Education Respondents Page 48 4.3.2.3 Position Respondents - Page 50 4.3.2.4 Income Respondents - Page 52 4.4 Structure Equation Model Page 53 4.5 Results of research - Page 59 Cha pt er F ive: C onclusions and Im plications - Page 62 5.1 Conclusions - Page 62 5.2 Contribution and Managerial Implications - Page 63 5.3 Limitations of the study - Page 66 5.4 Recommendations for further research - Page 66 REFERENCES Page 68 APPENDIX I - Page 69 APPENDIX II Page 75 Page LIST OF TABLES Table 1-1: Electronic banking service provided by Vietnam banks - Page 09 Table 3-1: The questionnaire items for measurements factors - Page 31 Table 4-1: Descriptive Analysis of personal characteristics Page 37 Table 4-2: Measurement Results for Relevant Research Variables Page 39 Table 4-3: Factor Analysis and Reliability for Perceived usefulness Page 41 Table 4-4: Factor Analysis and Reliability for Perceived Ease of use Page 41 Table 4-5: Factor Analysis and Reliability for Perceived risk Page 42 Table 4-6: Factor Analysis and Reliability for Perceived cost - Page 43 Table 4-7: Factor Analysis and Reliability for Information Page 44 Table 4-8: Factor Analysis and Reliability for Personal Trial Page 45 Table 4-9: T-Test results of Gender Respondents. - Page 46 Table 4-10: ANOVA test results of Age Respondents Page 47 Table 4-11: ANOVA test results of Education Respondents - Page 49 Table 4-12: ANOVA test results of Position Respondents - Page 51 Table 4-13: ANOVA test results of Income Respondents Page 52 Table 4-14: Standardized Regression Weights (Default model) - Page 55 Table 4-15: Fit Measures for Model - Page 58 Table 4-16: Standardized Regression Weights (Causality model) - Page 58 Table 4-17: Results of the testing Hypotheses Page 60 Table II.1: Correlation Matrix for Perceived usefulness - Page 75 Table II.2: Correlation Matrix for Perceived Ease of use Page 75 Table II.3: Correlation Matrix for Perceived risk Page 75 Table II.4: Correlation Matrix for Perceived cost Page 76 University of Economics HCMC - Master thesis Page Table II.5: Correlation Matrix for Information - Page 76 Table II.6: Correlation Matrix for Personal Trial Page 76 Table II.7: Regression Weights (Default model) - Page 77 Table II.8: Model Fit Summary (Default model) - Page 78 Table II.9: Regression Weights (Causality model) - Page 80 Table II.10: Model Fit Summary (Causality model) - Page 81 University of Economics HCMC - Master thesis Page LIST OF FIGURES Figure 1.1: Outline of the research - Page 11 Figure 2-1: Adoption Process - Page 20 Figure 2-2: Technology acceptance model (TAM) Page 22 Figure 2-3: Chronological Progress of TAM Research Page 24 Figure 3-1: The research framework of this study - Page 28 Figure 3-2: Data Analysis Procedures - Page 33 Figure 4-1: Measurement model Page 54 Figure 4-2: Structural Equation model - Page 57 Figure II.1: Structural Equation model (Causality model) Page 82 University of Economics HCMC - Master thesis Page 68 REFER ENCES PGS.TS Tr àng Ngân & Ngô Minh H -banking) t am S Davis, F D (1989) Perceived usefulness, perceived ease of use, and user acceptance of information technology MIS Quarterly, Vol.13 No.3, page 319-340 Hair, J.F., Anderson, R.E Tatham, & Black (2006) Multivariate data analysis New York: Macmillan Publishing Company Robinson, J.P., & Shaver, P.R (1973) Measures of psychological attitudes Ann Arbor, MI.University of Michigan Rogers (1995) Diffusion of Innovations New York Venkatesh, V., Morris, M.G & Davis, F D (2003) User acceptance of information technology: Toward a unified view, page 425-478 Younghwa Lee, Kenneth A Kozar, Kai R.T Larsen (2004) Communications of the Association for Information Systems (Volume 12, Article 50), page 752-780 Zhao, A L., Hanmer-Lloyd, S., Ward, P., & Goode, M M H (2008) Perceived risk and Chinese consumers' internet banking services adoption International Journal of Bank Marketing, page 505-525 University of Economics HCMC - Master thesis Page 69 APPENDIX I CUSTO MER SURVE Y/PHI KHÁCH HÀNG Dear Mr/Mrs, / Xin chào An h/Ch , Electronic banking is the automated delivery of banking products and services directly to customer, enables customers to access accounts, transact business, or obtain information on financial products and services through electronic, interactive communication channels vi ,d cho khách hàng, cho phép khách hàng truy c ài kho ài d àng tr , giao d , kênh truy I am conducting research on factors affecting the adoption of E-Banking services Would you take some time to answer questionnaire below Please note that there is no right or wrong opinion, all your suggestions are valued for my research ành nghiên c Banking Kính mong anh ch C ýv ành chút th khơng có quan ki sai, t ên c We hope to receive the enthusiastic collaboration from you Please provided personal information and offer comments on opinions following: R c ình c Anh/Ch ịng cung cho ý bi University of Economics HCMC - Master thesis Page 70 A Personal In for ma t ion: What age group you belong to? / B From 18 to under 30 / T From 30 to under 45 / T From 45 to over / Trên 45 tu Gender/G i : Male/Nam Female/N Level of Educa tion /H : Under Secondary/Trung h Junior College/ Bachelor Degree/C Masters/Th Ph.D/Ti Others/B Position/Ngh : Manager/Qu Officer/ Student/Sinh viên Worker/Công nhân Trader/Kinh doanh Other/Khác How much is your monthly income?/ Thu nh àng tháng c òng bao nhiêu? Less than million VND From to below 10 million VND From 10 to below 20 million VND T From 20 million VND to over T 10 tri T 20 tri 20 tri What kind of e-banking services have you ever used?/B tr ên ã t v ? Phone banking Mobile banking Internetbanking Home banking Card/ Th Others/ Khác Non-using/ Không s If you use one of these services, please fill in section B If non-using, thank you for your support./N ên, vui lòng ph xin ãh University of Economics HCMC - Master thesis Page 71 B Your opinions to using e-banking-services: Listed below are a number of attitude statements Please tick one box only for each statement/ Li hi òng ch What are the benefits of using e-banking services followings which prompt you to use it? Các l NH d Strongly disagree Disagree Hồn tồn khơng Neutral Trung dung Agree ý S trongly agree Hoàn toàn gý Not having to carry and count cash/ Không ph , Easy and safe payment/ Nhanh chóng an tồn I can easily check my finance information anywhere when I u se ebanking services / Tơi có th àng ki tin tài c ình b banking Enhance e ffectiveness payme nt transac tions / giao d on Benefit from prizes/ Có l i mua s festivals shopping the The simplicity of using e-banking services / S Strongly disagree Ho àn to àn không Disagree Neutral Trung dung A gree S trongly agree Hoàn toàn I felt the procedure of services are simple / Tôi c d The ways to use the service are simple / Cách th University of Economics HCMC - Master thesis Page 72 It is easy to remember how to use epayment./ Tôi d àng ghi nh I find it easy to get the e-payment to conduct banking transaction or ecommerce transactions./ Tôi nh th hàng ho m qua 10 My interaction with e-banking is clear and understandable./ Tôi nh àd Risks of using e-banking services / R s Strongly disagree Ho àn to àn không Disagree àng Neutral Trung dung A gree S trongly agree Hoàn toàn 11 When I use credit card I feel it is safer than paying by cash / Khi s th b 12 E-banking service is high security / D v cao 13 I am not worried if one person know my P IN./ Tôi không lo l -banking c 14 I am not wo rried about the security of ebanking services./Tôi không lo l b àng t 15 Matters of security have no influence on using e-payment./ Nh ro khơng d ình th University of Economics HCMC - Master thesis Page 73 Cost of using e-banking services / Chi phí vi Strongly disagree Disagree Ho àn to àn khơng àng Neutral A gree S trongly agree Hồn toàn Trung dung 16 E-banking service charge is reasonable / Phí s àng h 17 Using e-banking not have to pay more mobile charge, internt charge, computer, S -banking không t nhi , internet, máy vi tính, 18 E-banking save more time than direct transaction at the Bank / E-banking ti ki giao d àng 19 Using e-baking save cash managerment cost / S ti 20 E-banking saving cost due to discounting than payment by cash/ Ebanking ti so v The informations relating to e-banking services / NH Strongly disagree Ho àn to àn không Disagree Neutral Trung dung A gree S trongly agree Hoàn toàn 21 E-banking services are new, but I have much information about this service /D NH ịn m , có nhi ày 22 Bank staff usually introduce this service to me/ Nhân viên NH ên gi thi ày University of Economics HCMC - Master thesis Page 74 23 Bank staffs are enthusiastic, initiative explaining, consulting services/ Nhân viên ngân hàng giao d ình, ch , 24 I have received enough information about the benefits of using e-payment./ ã có ích c ình th 25 Customer complaints quickly, satisfactorily / quy , th are resolved b Your ideas relating to e-banking services / Strongly disagree Disagree Ho àn to àn không Neutral Trung dung d v A gree S trongly agree Hoàn toàn 26 If you hear about a new technology information, I would look for a ways to experiment with it / N nghe thơng tin v , b ìm cách dùng th 27 information technology / B ng ùng th tin m 28 You feel the need to use services is essential / B d -banking c 29 banking services./ B dùng th m 30 You like to use e-banking services./ B thích s ngân hàng Thank you for taking time to complete the questionnaire / àn thành b ày ã dành th University of Economics HCMC - Master thesis Page 75 APPENDIX II Table II.1: Correlation Matrix for Perceived usefulness Correlation Matrix PU1 Correlation PU2 PU3 PU4 PU5 PU1 1.000 433 377 305 188 PU2 433 1.000 521 493 293 PU3 377 521 1.000 600 277 PU4 305 493 600 1.000 408 PU5 188 293 277 408 1.000 Table II.2: Correlation Matrix for Perceived Ease of use Correlation Matrix PEU1 Correlation PEU2 PEU3 PEU4 PEU5 PEU1 1.000 756 659 513 593 PEU2 756 1.000 755 569 655 PEU3 659 755 1.000 646 699 PEU4 513 569 646 1.000 672 PEU5 593 655 699 672 1.000 Table II.3: Correlation Matrix for Perceived risk Correlation Matrix PR1 Correlation PR2 PR3 PR4 PR5 PR1 1.000 535 317 388 332 PR2 535 1.000 503 618 457 PR3 317 503 1.000 708 632 PR4 388 618 708 1.000 633 PR5 332 457 632 633 1.000 University of Economics HCMC - Master thesis Page 76 Table II.4: Correlation Matrix for Perceived cost Correlation Matrix PC1 PC3 PC4 PC5 PC1 1.000 596 467 373 351 PC2 596 1.000 507 452 392 PC3 467 507 1.000 550 357 PC4 373 452 550 1.000 543 PC5 Correlation PC2 351 392 357 543 1.000 Table II.5: Correlation Matrix for Information Correlation Matrix INF1 Correlation INF2 INF3 INF4 INF5 INF1 1.000 592 509 588 498 INF2 592 1.000 719 637 602 INF3 509 719 1.000 635 614 INF4 588 637 635 1.000 649 INF5 498 602 614 649 1.000 Table II.6: Correlation Matrix for Personal Trial Correlation Matrix PTR1 Correlation PTR2 PTR3 PTR4 PTR5 PTR1 1.000 742 392 621 403 PTR2 742 1.000 449 720 461 PTR3 392 449 1.000 533 640 PTR4 621 720 533 1.000 592 PTR5 403 461 640 592 1.000 University of Economics HCMC - Master thesis Page 77 Table II.7: Regression Weights (Group number - Default model) PC1_V_CHRRES < - PC INF1_V_NEWMREINF < - INF PR3_V_OTHKPIN < - PR PR4_V_NOWRYSEC < - PR PR5_V_MATINFSEC < - PR PTR2_V_TRYNEWINF < - PTR PU4_V_ENEFF < - PU PU1_V_NOCSH < - PU PEU4_V_ESYGET < - PEU PEU5_V_CLRUND < - PEU PEU3_V_RMBPMT < - PEU PEU1_V_PROCSMP < - PEU PC2_V_PNOMRE < - PC PC5_V_SAVBYDISCNT < - PC PTR4_V_TRYNEWSER < - PTR PTR1_V_EXPERIT < - PTR PU3_V_EASYCHK < - PU PR1_V_SFETCSH < - PR INF4_V_REVENOBEN < - INF INF3_V_CNSLTSER < - INF Estimate S.E 1.000 1.000 2.195 210 2.285 216 1.933 188 1.057 044 1.984 196 1.000 1.034 056 1.086 056 1.089 054 1.000 857 049 557 049 965 046 1.000 2.115 210 1.000 1.047 059 982 061 C.R 10.447 10.589 10.280 23.882 10.131 P Label *** *** *** *** *** 18.553 *** 19.512 *** 20.345 *** 17.390 *** 11.457 *** 21.134 *** 10.087 *** 17.637 *** 16.061 *** University of Economics HCMC - Master thesis Page 78 Table II.8: Model Fit Summary (Default model) CMIN Model Default model Saturated model Independence model NPAR 55 210 20 CMIN 408.921 000 6279.044 DF 155 190 P 000 CMIN/DF 2.638 000 33.048 RMR, GFI Model Default model Saturated model Independence model RMR 049 000 416 GFI 931 1.000 240 AGFI 907 PGFI 687 160 217 Baseline Comparisons Model Default model Saturated model Independence model RFI rho1 920 NFI Delta1 935 1.000 000 IFI Delta2 959 1.000 000 000 TLI rho2 949 CFI 958 1.000 000 000 Parsimony-Adjuste d Measures Model Default model Saturated model Independence model PRATIO 816 000 1.000 PNFI 763 000 000 PCFI 782 000 000 NCP Model Default model Saturated model Independence model NCP 253.921 000 6089.044 LO 90 197.824 000 5833.529 HI 90 317.686 000 6350.903 FMIN Model Default model Saturated model Independence model FMIN 710 000 10.901 F0 441 000 10.571 LO 90 343 000 10.128 HI 90 552 000 11.026 University of Economics HCMC - Master thesis Page 79 RMSEA Model Default model Independence model RMSEA 053 236 LO 90 047 231 HI 90 060 241 PCLOSE 186 000 University of Economics HCMC - Master thesis Page 80 Table II.9: Regression Weights (Group number - Causality model) PEU < - INF PU < - PEU PU < - INF PR < - PEU PC < - PEU PC < - PU PC < - INF PR < - INF PR < - PU PTR < - PC PTR < - PR PTR < - PU PTR < - PEU PTR < - INF PU1_V_NOCSH < - PU PEU3_V_RMBPMT < - PEU PEU5_V_CLRUND < - PEU PR1_V_SFETCSH < - PR INF4_V_REVENOBEN < - INF INF3_V_CNSLTSER < - INF PEU4_V_ESYGET < - PEU PC1_V_CHRRES < - PC PEU1_V_PROCSMP < - PEU PC5_V_SAVBYDISCNT < - PC PC2_V_PNOMRE < - PC INF1_V_NEWMREINF < - INF PTR1_V_EXPERIT < - PTR PTR4_V_TRYNEWSER < - PTR PTR2_V_TRYNEWINF < - PTR PR4_V_NOWRYSEC < - PR PR3_V_OTHKPIN < - PR PR5_V_MATINFSEC < - PR PU4_V_ENEFF < - PU PU3_V_EASYCHK < - PU Estimate 642 416 010 219 608 126 375 262 -.173 -.069 -.182 555 232 397 1.000 1.089 1.081 1.000 1.038 979 1.030 1.000 1.000 555 865 1.000 1.000 965 1.057 2.225 2.126 1.856 2.163 2.308 S.E C.R P 052 12.438 *** 049 8.415 *** 024 402 688 106 2.068 039 174 3.494 *** 358 352 725 062 6.080 *** 043 6.039 *** 220 -.786 432 103 -.672 501 092 -1.981 048 346 1.603 109 182 1.274 203 079 5.013 *** 053 20.430 055 19.476 *** *** 059 17.628 061 16.083 056 18.548 *** *** *** 049 11.309 050 17.327 *** *** 046 044 201 195 174 227 244 Label *** *** *** *** *** *** *** 21.125 23.874 11.090 10.919 10.693 9.511 9.475 University of Economics HCMC - Master thesis Page 81 Table II 10: Model Fit Summary (Causality model) CMIN Model Default model Saturated model Independence model NPAR 55 210 20 CMIN 393.660 000 6279.044 DF 155 190 P 000 CMIN/DF 2.540 000 33.048 AGFI 911 PGFI 690 160 217 RMR, GFI Model Default model Saturated model Independence model RMR 050 000 416 GFI 934 1.000 240 Base line Comparisons Model Default model Saturated model Independence model NFI Delta1 937 1.000 000 RFI rho1 923 000 IFI Delta2 961 1.000 000 TLI rho2 952 000 CFI 961 1.000 000 RMSEA Model Default model Independence model RMSEA 052 236 LO 90 045 231 HI 90 058 241 PCLOSE 320 000 University of Economics HCMC - Master thesis Page 82 16 e1 e3 62 e4 39 PU3 PU1 2.31 1.00 79 PU4 47 e11 PR1 e13 e14 51 e15 38 PR3 53 PR4 PR5 1.00 2.22 1.86 2.13 2.16 02 12 -.17 e31 e21 e34 PR PU e26 28 68 62 e33 INF1 26 55 PTR1 1.00 98 INF3 1.06 40 INF 42 1.04 55 -.18 1.00 1 e23 01 22 PT R 13 29 INF4 e27 PTR2 96 16 PTR4 38 64 -.07 23 e35 e24 e29 35 17 31 31 e32 PEU1 PEU3 e6 49 PC PEU 1.00 1.09 1 61 e8 26 1.03 1.08 PEU4 1.00 PEU5 PC1 1 e9 41 e10 35 86 PC2 48 PC5 1 e16 e36 55 e17 43 e20 69 Chi-square = 393.660; df=155; P= 000; Chi-square/df=2.540; GFI=.934;T LI=.952;CFI=.961; Figure II.1: Structural Equation Model (Causality Model) University of Economics HCMC - Master thesis ... Internet Electronic banking can also be defined as a variety of platforms such as Internet banking (or online banking) , telephone banking, TV-based banking, mobile phone banking, and PC banking. .. Banking, Home Banking, Phone Banking, Internet Banking Asia commercial Bank AT M, Credit Card, Debit Card, Internet Banking, Home Banking, POS, SMS Banking, Phone Banking Agribank AT M, SMS Banking, ... also internet banking, mobile banking, phone banking and so on However, card services was setting up and developing since the beginning development of e -banking services and has dominated the e-banking