Factors affecting users' intention to use mobile banking in Vietnam

Document Type:Thesis

Subject Area:Finance

Document 1

Initially, the internet was regarded as a resource for gathering information but with the introduction of smartphones, it the internet has become a critical means for banking and other mobile payments because of its convenience to online businesses. Previously, many people as well as financial institutions did not understand the significance of the internet but, for the last few years, the majority of consumers especially the youths have shown a shift and preference to shopping through the internet and as a result, banks have to increase their online banking services to cater for this demand. According to Groenfeldt (2014), mobile banking has simplified the traditional lengthy processes of queuing at the bank to withdraw and pay for goods and services. For instance, currently, an individual in a remote location can access his or her bank account anytime to make a payment provided he or she has a smartphone with internet connectivity (Huong, 2013). Hence, by comparing mobile banking and traditional in-person models, mobile banking is more convenient and time saving than the traditional model. However, despite the growth of mobile banking, commercial banks and financial institutions need to be sure that consumers have accepted their banking apps for this service to expand. Vietnam is great business partner of its neighbors and other world economies with many established commercial banks. Thus, Vietnam has to find possible means to provide their banking services to the large customers who depend on them for banking services. Despite the wide spreads of smartphones in Vietnam, the acceptance of mobile banking in Vietnam is low.

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Problem Statement Mobile banking services in Vietnam were first implemented in 2010, about six years after the adoption of the internet banking services. Research Question Which are the key factors affecting users' intention to use mobile banking in Vietnam? Research Objective To determine key the factors affecting users' intention to use mobile banking in Vietnam. Scope and limitation of the Research This research will be conducted in Vietnam within a period of four weeks starting from February 1, 2018 to March 1, 2018. However, due to financial and time constraints, and despite Vietnam has more than 40 banks, this study will use Vietnamese International Bank only as a case study. This sample may not be a sufficient representative sample for this study and therefore, the findings may be skewed. Research Hypotheses H0: Subjective Norms affect a client’s intention to use mobile banking services.

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Moreover, banks have partnered with technology experts who provide them with security for their assets and thus, this helps them to develop their reliability for clients (Wu, 2005). From a study conducted by Simon (2015), the surveyor established that subjective norms play a critical role in determining whether a customer uses mobile banking services or not. In his view, Pegueros (2014) defines subjective norms as the perceptions of an individual towards the view of other people around him or her whether he or she should not do a certain action in question. With this said, it then means that social influence may affect a client’s intention to use mobile banking. Mainly, subjective norms are reviewed from an external and personal perspective (Wollenberg & Thuong, 2014). Part 3: Research Methodology Introduction After reviewing the previous literature, this part will cover the data collection methods, research design, sample, and population.

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Research design: For the researcher to establish the relationship between intention to use mobile banking and subjective norm, the surveyor will use a descriptive research design in which he will conduct a quantitative research by using Vietnamese International Bank as the case study. Additionally, the surveyor will design a questionnaire to assist in collecting primary data from Vietnamese International Bank clients. The questionnaire will constitute open ended questions which will mainly focus on subjective norms, intention to use mobile banking, attitude towards using the mobile banking services, facilitating circumstances not to use, Data collection According to Neuman (2013) data collection is the process of gathering and measuring targeted attributes of a population in the most fashionable means to assist a researcher to answer research questions. In this study, the surveyor will use questionnaires as a primary source of data collection to conduct this survey.

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There is a causal relationship between enabling factors and customer’s aim to use mobile banking services. References Groenfeldt, T. Forbes - Mobile Phones Set to Reduce Banking Branches. Retrieved from: http://www. forbes. Vnexpress. Ngân hàng chạy đua Mobile Banking. Retrieved from: http://kinhdoanh. vnexpress. net. An empirical investigation of mobile banking adoption: The effect of innovation attributes and knowledge-based trust. International Journal of Information Management, 31(3), 252-260. Neuman, W. L.  Social research methods: Qualitative and quantitative approaches. Thuong, T. T. Consumer Behavior in the Smartphone Market in Vietnam. International Journal of Innovation, Management and Technology, 5(6), 412. Wollenberg, A.

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