ACKNOWLEDGEMENTS First and foremost, I would like to express my gratitude to my supervisor PhD Phan Thuc Anh, who directed me through the path I should take as regards to this dissertation and had valuable on my research study. Secondly, I would like to thank all of the MBA professors from Business School, National Economic University. Thanks to Program Directors, Coordinators of the program as well as class teachers who did try their best to provide me valuable and precious knowledge. Thirdly, the author also do appreciate the kindness from all my friends and all classmates at EMBA 9A who gave me the help and shares to encourage me throughout the dissertation. My sincere thanks are also addressed to Head of Management at VCBBD for their assistance in this research. I am very thankful to the cooperation of my friends and colleagues who let me interview and gave me very useful information. Last but not least, the author would like to express my appreciation to my dear parents, my brothers and my sister in law who gave me enthusiastic support and shared housework with me during my study of MBA course at BS – NEU. Author Nguyen Huu The i i TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTENTS ii ACKNOWLEDGEMENTS xvi ABBREVIATIONS xvii LIST OF TABLES xvii LIST OF FINGURES xvii EXECUTIVE SUMMARY xvii CHAPTER 1: INTRODUCTION xvii 1.1. RATIONALE xvii 1.2. RESEARCH OBJECTIVES xvii 1.3. RESEARCH QUESTIONS xvii 1.4. RESEARCH METHODOLOGY xvii 1.4.1.Research process xvii 1.4.2. Data collection xvii 1.4.3. Data Analysis xvii 1.5. RESEARCH SCOPE xvii 1.6. THESIS STRUCTURE xvii CHAPTER 2: THEORETICAL BACKGROUND ON QUALITY OF INTERNET BANKING SERVICE AT COMMERCIAL BANK xvii 2.1. COMMERCIAL BANKS AND BANKING SERVICES xvii 2.1.1. Commercial banks xvii 2.1.2. Banking services xvii 2.2. INTERNET BANKING IN COMMERCIAL BANK xviii 2.3. INTERNET BANKING SERVICE QUALITY IN COMMERCIAL BANK xviii 2.2.1. Nature of internet banking service xviii 2.2.2. Internet Banking service in commercial bank xviii ii ii 2.2.3. Model applied for Internet Banking service quality xviii 2.2.4. Dimensions to measure internet banking service quality xviii 2.4. FACTORS AFFECTING INTERNET BANKING SERVICE QUALITY xviii CHAPTER 3: OVERVIEW OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE xviii 3.1. OVERVIEW ON VIETCOMBANK BA DINH xviii 3.1.1. VIETCOMBANK BA DINH'S introduction xviii 3.1.2. VIETCOMBANK BA DINH’S business performance 2009 – 2012 xviii 3.2. VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE IN THE PERIOD 2009 – 2012 xviii 3.2.1. Types of internet banking service at VIETCOMBANK BA DINH xix 3.2.2. Performance of internet banking service at VIETCOMBANK BA DINH xix CHAPTER 4: FINDINGS ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY xix 4.1. EVALUATION ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY xix 4.1.1. Safety dimension under customer’s view xix 4.1.2. Responding time dimension under customer’s view xix 4.1.3. Staff dimension under customer’s view xix 4.1.4. Issues relating to finance dimension under customer’s view xix 4.1.5. Tangible dimension under customer’s view xix 4.1.6.Variety of service under customer’s view xix 4.2. GAPS OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY xix 4.2.1. Summarize of findings on the gaps between customer’s expectation and perception xix iii iii 4.2.2. Causes of gaps on internet banking service quality at Vietcombank Ba Dinh xix CHAPTER 5: RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE xx 5.1. VIETCOMBANK BA DINH ’S ORIENTATION ON INTERNET BANKING SERVICE DEVELOPMENT UP TO 2020 xx 5.2. RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE xx 5.2.1. Improving staff quality xx 5.2.2. Improving management competence and completing internet banking business performance organizational model xx 5.2.3. Developing infrastructure and investing modern technology xx 5.2.4. Diversifying variety of internet banking service xx 5.2.5. Enhancing customer care service xx 5.2.6. Improving competitiveness by service fees and charges xx 5.3. CONDITIONS TO APPLY THESE RECOMMENDATIONS xx 5.3.1. Supports from the State of Vietnam xxi 5.3.2. Suggestions to the State Bank of Vietnam xxi CONCLUSION xxi LIST OF REFERENCES xxi APPENDICES xxi ACKNOWLEDGEMENTS xxi First and foremost, I would like to express my gratitude to my supervisor PhD Phan Thuc Anh, who directed me through the path I should take as regards to this dissertation and had valuable on my research study xxi Secondly, I would like to thank all of the MBA professors from Business School, National Economic University. Thanks to Program Directors, Coordinators of the program as well as class teachers who did try their best to provide us me valuable and precious knowledge xxi iv iv Thirdly, the author also do appreciate the kindness from all my friends and all classmates at EMBA 9A who gave me the help and shares to encourage me throughout the dissertation xxi My sincere thanks are also addressed to Head of Management at VCBBD for their assistance in this research. I am very thankful to the cooperation of my friends and colleagues who let me interview and gave me very useful information xxi Last but not least, the author would like to express my appreciation to my dear parents, my brothers and my sister in law who gave me enthusiastic support and shared housework with me during my study of MBA course at BS – NEU. xxi Author xxii Nguyen Huu The xxii ABBREVIATIONS xxii LIST OF TABLES xxiv LIST OF FINGURES xxvi EXECUTIVE SUMMARY xxviii - Enhancing customer care service 1 CHAPTER 1: INTRODUCTION 2 1.1. RationaleRATIONALE 2 1.2. Research objectivesRESEARCH OBJECTIVES 3 1.3. Research questions 3 1.4. Research methodology 4 1.4.1.Research process 4 1.4.2. Data collection 5 1.4.3. Data Analysis 7 1.5. Research scopeESEARCH SCOPE 8 1.6. Thesis structureTHESIS STRUCTURE 8 v v CHAPTER 2 : THEORETICAL BACKGROUND ON QUALITY OF INTERNET BANKING SERVICE AT COMMERCIAL BANK 10 2.1. Commercial banks and banking services2.1. COMMERCIAL BANKS AND BANKING SERVICES 10 2.1.1. Commercial banks 10 2.1.2. Banking services 11 2.2. Internet Banking service in Commercial bank 16 NTERNET BANKING SERVICE IN COMMERCIAL BANK 16 2.2.1. Definition of internet banking service 16 2.2.2. Type of internet banking service 16 2.2.3. Benefits of internet banking service in commercial bank 18 2.3. Internet banking service quality in commercial bankNTERNET BANKING SERVICE QUALITY IN COMMERCIAL BANK 20 2.3.1. Service quality 20 2.3.2. Model applied for Internet Banking service quality 21 CHAPTER 3 : OVERVIEW OF VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE 30 3.1. Overview on vietcombank Ba DinhOVERVIEW ON VIETCOMBANK BA DINH 30 3.1.1. VCBBD introduction 30 3.1.2. Vietcombank Ba Dinh Branch’s business performance 2009 – 2012 33 3.2. Vcbbd’s internet banking service in the period 2009 – 2012VCBBD’S INTERNET BANKING SERVICE IN THE PERIOD 2009 – 2012 37 3.2.1. Types of internet banking service at VCBBD 38 3.2.2. Developing internet banking service at VCBBD 41 CHAPTER 4 : FINDINGS ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY 45 vi vi 4.1. Evaluation on vietcombank Ba Dinh’s internet banking service qualityEVALUATION ON VIETCOMBANK BA DINH’S INTERNET BANKING SERVICE QUALITY 45 4.1.1. Tangibles dimension under customer’s view 47 4.1.2. Responsiveness dimension under customer’s view 50 4.1.3. Reliability dimension under customer’s view 52 4.12.34. Staff Assurance dimension under customer’s view 60 4.1.5. Empathy dimension under customer’s view 63 4.12.64. Issues relating to financeFinancial aspect dimension under customer’s view 65 4.1.7Source: Author’s Survey 69 In term of “Web design is friendly, easy to use and multi language for customer”, 8.5% customers evaluate 2 mark, 3 mark with 15% and 4 mark for 26% customers, wonderful having 50.5% customers think high level(5 mark), mean average is 4.04 mark, meanwhile customer’s expectation is 4.93mark, the gap is 0.89. The web of Direct Banking has designed to be friendly to user with the choice of language including Vietnamese and English. Therefore, it’s so convenient for all kind of customers 69 The second “VCBBD is up to date technology and latest equipment” 15% customers evaluated 2 mark, 30% customers think 3 mark , following 43.5% customers for 4 mark, but only 12.5% give 5 mark. Thus we see that the distance is further large on feel and expect, it proves that the VCBBD technology still not to meet customer, thus to better compete, VCBBD will also need to up to date modern technology to limit errors happen 69 With “VCBBD with multiple channel customer contact center (customer service, online)” The customer’s perception with percentage as follows, 4.5% for 2 mark, 13.5 % for 3 mark and 4 mark with 20.5 % customers, high level(5 mark) having 61.5 % customers But customer’s expectation is 4.44 mark. The gap is 0.05. vii vii VCBBD is the customer service center for 24/24 hours and 7 days / a week to answers all questions and complaints or advice 69 With “Registration form is simple, easy to understand” , attribute, have 22.5% customers evaluated 2 mark, 28 % customers evaluated 3 mark, and 32.5% customers think 4 mark, only 17% customers give 5 mark. This is the reason why the gap between customer expectation and perception is 1.56. The registration form of Internet banking service is so complicated which requires customer fill many information like: Name, Date of Birth, Number of ID Card, Address, Telephone number, etc. VCBBD need to simplify the procedure of sign up internet banking service and can upload the registration form to the bank’s official website: www.vietcombank.com.vn 70 70 Figure 4.5: Gap (P-E) of Tangible dimension 71 Source: Author’s survey 71 4.2.6.Variety of service under customer’s view 71 4.23. EVALUATING ON FINDING Gaps of vcbbd’s internet banking service qualityAPS OF VCBBD’S INTERNET BANKING SERVICE QUALITY 75 6 Demensions 76 Perception 76 Expectation 76 Gap (P-E) 76 SAFETY DIMENSION 76 4.57 76 4.82 76 - 0.25 76 RESPONDING TIME DIMENSION 76 3.84 76 5.0 76 - 1.16 76 viii viii STAFF DIMENSION 76 3.63 76 4.99 76 - 1.36 76 ISSUES RELAITNG TO FINANCE DIMENSION 76 4.58 76 4.99 76 - 0.41 76 TANGIBLE DIMENSION 76 3.85 76 4.74 76 - 0.89 76 VARIRTY OF SERVICES DIMENSION 76 4.24 76 4.9 76 - 0.66 76 4.23.1. Summarizery of finding the gap between customer’s expectation and perception 76 4.32.32. Causes of gaps on internet banking service quality at VCBBD 82 CHAPTER 5 : RECOMMENDATIONS TO IMPROVE THE QUALITY OF VCBBD’S INTERNET BANKING SERVICE 85 5.1. Vcbbd’s orientation on internet banking service development up to 2020VCBBD’S ORIENTATION ON INTERNET BANKING SERVICE DEVELOPMENT UP TO 2020 85 5.2. Recommendations to improve the quality of vcbbd’s internet banking serviceRECOMMENDATIONS TO IMPROVE THE QUALITY OF VCBBD’S INTERNET BANKING SERVICE 87 5.2.1. Improving staff quality 87 5.2.2. Improving transaction channels between the bank and customers 88 ix ix 5.2.3. Developing infrastructure and investing in modern technology 88 5.2.4. Diversifying variety of internet banking service 90 5.2.5. Enhancing customer care service 90 5.3. Conditions to apply the recommendationsONDITIONS TO APPLY THESE RECOMMENDATIONS 91 5.3.1. Supports from the State bank of Vietnam 91 5.3.2. Suggestions to the State Bank of VietnamSupports from the Headquarter93 CONCLUSION 96 LIST OF REFERENCES 97 APPENDICES 99 APPENDIX A: QUESTIONS FOR THE IN DEPTH INTERVIEW 99 APPENDIX B: QUESTIONNAIRE 100 RESEARCH QUESTIONS 3 What are dimensions for measuring quality of internet banking service at VCBBD? 3 1.4.1.Research process 4 RESEARCH METHODOLOGY 4 1.4.1.Research process 4 1.4.2. Data collection 5 1.4.3. Data Analysis 7 2.1.1. Commercial banks 10 2.1.1.1 Definition of Commercial banks 10 2.1.1.2 The role of Commercial banks in the economy 10 2.1.2. Banking services 11 2.1.2.1 Definition of banking services 11 2.1.2.2. Characteristics of banking services 12 x x [...]... performance 2009 – 2012 3.2 VIETCOMBANK BA DINH S INTERNET BANKING SERVICE IN THE PERIOD 2009 – 2012 xviii xix 3.2.1 Types of internet banking service at VIETCOMBANK BA DINH 3.2.2 Performance of internet banking service at VIETCOMBANK BA DINH CHAPTER 4: FINDINGS ON VIETCOMBANK BA DINH S INTERNET BANKING SERVICE QUALITY 4.1 EVALUATION ON VIETCOMBANK BA DINH S INTERNET BANKING SERVICE QUALITY 4.1.1 Safety dimension... service 2.2.2 Internet Banking service in commercial bank 2.2.3 Model applied for Internet Banking service quality 2.2.4 Dimensions to measure internet banking service quality 2.4 FACTORS AFFECTING INTERNET BANKING SERVICE QUALITY CHAPTER 3: OVERVIEW OF VIETCOMBANK BA DINH S INTERNET BANKING SERVICE 3.1 OVERVIEW ON VIETCOMBANK BA DINH 3.1.1 VIETCOMBANK BA DINH' S introduction 3.1.2 VIETCOMBANK BA DINH S business... RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH S INTERNET BANKING SERVICE 5.1 VIETCOMBANK BA DINH ’S ORIENTATION ON INTERNET BANKING SERVICE DEVELOPMENT UP TO 2020 5.2 RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH S INTERNET BANKING SERVICE 5.2.1 Improving staff quality 5.2.2 Improving management competence and completing internet banking business performance organizational... 1.4.2 Data collection 1.4.3 Data Analysis 1.5 RESEARCH SCOPE 1.6 THESIS STRUCTURE CHAPTER 2: THEORETICAL BACKGROUND ON QUALITY OF INTERNET BANKING SERVICE AT COMMERCIAL BANK 2.1 COMMERCIAL BANKS AND BANKING SERVICES 2.1.1 Commercial banks 2.1.2 Banking services xvii xviii 2.2 INTERNET BANKING IN COMMERCIAL BANK 2.3 INTERNET BANKING SERVICE QUALITY IN COMMERCIAL BANK 2.2.1 Nature of internet banking service. .. recommendations and solutions to improve quality of internet banking service at VCBBD 1.3 Research questions RESEARCH QUESTIONS What are dimensions for measuring quality of internet banking service at VCBBD? 3 4 • What are customer’s expectations of the quality of internet banking service at VCBBD? • What are customer’s perceptions of the quality of internet banking service at VCBBD? • What are the...xi 2.1.2.3 Type of banking services 13 2.2.1 Definition of internet banking service .16 2.2.2 Type of internet banking service .16 2.2.3 Benefits of internet banking service in commercial bank 18 2.3.1 Service quality 20 2.3.2 Model applied for Internet Banking service quality 21 2.3.3 Dimensions to measure internet banking service quality 26 3.1.1 VCBBD... Internet banking operation department: Total Internet Banking service transaction figure like: Banking transfer transaction, Internal transfer transaction, Billing Payment, etc - Newspapers and former research studies related to internet banking services: The development situation of Internet Banking services at Vietnamese banks and foreign banks in Vietnam to compare service quality among Vietcombank. .. banking service quality at Vietcombank Ba Dinh - Analyze current quality level of internet banking service at Vietcombank Ba Dinh to find out the gap between customers’ expectation and customers’ perception - Propose some recommendations and solutions to improve quality of internet banking service at Vietcombank Ba Dinh This thesis has used secondary data gathered from internet websites, libraries, newspaper,... Internet Banking service Therefore, the bank itself is trying its best to overcome this situation by spending xxviii xxix energy to improve internet banking service which is a business area that did not always receive much attention from the managers before The objectives of this research are formulated as follows: - Identify dimenstions to evaluate internet banking service quality at Vietcombank Ba. .. topic: "Improving Internet Banking service quality at Vietcombank Ba Dinh" was selected as a response to this situation There are many researchers who have mentioned about service quality of banking services such as card service, international payment service, etc, which come from National Economics University or articles in newspapers and magazines However, this is the first time the topic Improving Internet . of internet banking service at VIETCOMBANK BA DINH 3.2.2. Performance of internet banking service at VIETCOMBANK BA DINH CHAPTER 4: FINDINGS ON VIETCOMBANK BA DINH S INTERNET BANKING SERVICE QUALITY 4.1 at Vietcombank Ba Dinh xix CHAPTER 5: RECOMMENDATIONS TO IMPROVE THE QUALITY OF VIETCOMBANK BA DINH S INTERNET BANKING SERVICE xx 5.1. VIETCOMBANK BA DINH ’S ORIENTATION ON INTERNET BANKING SERVICE. service quality 2.4. FACTORS AFFECTING INTERNET BANKING SERVICE QUALITY CHAPTER 3: OVERVIEW OF VIETCOMBANK BA DINH S INTERNET BANKING SERVICE 3.1. OVERVIEW ON VIETCOMBANK BA DINH 3.1.1. VIETCOMBANK