1 TABLE OF CONTENTS ABSTRACT ACKNOWLEDGEMENTS Chapter Thesis introduction 1.1 Chapter introduction 1.2 Background 1.3 Motivation and research questions 10 1.4 Data and methodology 11 1.5 Contribution and implication 12 1.6 Chapter Conclusion 12 Chapter Literature review 13 2.1 Chapter introduction 13 2.2 Internet banking and overview of Vietnam case 13 2.2.1 Internet banking 13 2.2.2 Overview of Vietnam internet banking 16 2.3 Literature gap 19 2.4 Hypothesis development 26 2.4.1 Variable Y: Internet banking using intention 26 2.4 The variables X 27 2.4.3 Demographic factors 35 2.5 Chapter conclusion 38 Chapter Data and Methodology 39 3.1 Chapter introduction 39 3.2 Variables and sample procedure 39 3.3 Model testing 45 3.4 Chapter conclusion 46 Chapter Result analysis 48 4.1 Chapter introduction 48 4.2 Demographic result 48 4.3 Variable result 50 4.4 Reliability analysis result 53 4.5 Exploratory Factor Analysis (EFA) 55 4.6 Linear regression result 56 4.7 Discussion on the hypotheses and 58 4.8 Discussion on hypothesis 62 4.9 Discussion on the research questions 64 4.10 Chapter conclusion 65 Chapter Thesis conclusion 67 5.1 Chapter introduction 67 5.2 Review of research questions, hypotheses and result 67 5.3 Contribution 68 5.4 Implication 69 5.5 Limitation 70 5.6 Future work 70 REFERENCE 72 APPENDIX 75 A1 Detail table of mean and standard deviation of items 75 A2 Data result from SPSS solution for Variable Y 78 A3 Factor analysis 78 A3.1 KMO and Barlett’s test 78 A3.2 Total variance explained 78 A4 Linear regression analysis 80 A5 Demographic analysis 83 A5.1 One way – ANOVA analysis 83 A5.2 Independent samples T-Test 85 A6 Questionaire 87 LIST OF TABLES Table 2-1: The e-banking service of some banks in Vietnam 17 Table 2-2: Research model 37 Table 3-1: The summary of items of variables 40 Table 3-2 : Content of demographic factors 45 Table 3-3: Sample procedure 47 Table 3-4: The summary of data and methodology 47 Table 4-1: Demographic profile 49 Table 4-2: The summary compared mean and standard deviation of items 50 Table 4-3: The summary of reliability test 54 Table 4-4: KMO and Bartlett's Test 55 Table 4-5: Total Variance Explained 55 Table 4-6: Rotated Component result 56 Table 4-7: Model Summary 57 Table 4-8: Model ANOVA 57 Table 4-9: The linear relationship result 58 Table 4-10: Demographic impact result 62 Table 4-11: Result on the independent t-test on selected ariables 63 Table 4-12: Research question and hypothesis related 65 ABBREVIATIONS AND SYMBOLS ABBREVIATION Demo Demographic EFA Exploratory Factor Analysis H Hypothesis RQ Research Question Std Dev Standard Deviation TAM Technology Acceptance Model TPB Technology Planned Behavior SYMBOL α Cronbach alpha ≠ Differences ABSTRACT The purpose of this research is to explore extendedly the impact of technology acceptance; and the external environment factors on internet banking using intention in Vietnam Then, the result from this study shows out that all variables have the impact on internet banking using intention in Vietnam The convenience; availability and accessibility and security variables as the technology acceptance have the significant positive impact on internet banking using intention Whereas, the external environment factors all have the considerable impact on internet banking using intention Privacy is the only one which has the negative impact on internet banking using intention with the study Beside the main variables from technology acceptance and external environment categories, the research introduces the significant demographic factors to test their impact on internet banking using intention The result gives out that the age, education level and income level factors have the impact on internet banking using intention Because the key paper does not work on the regression relationship analysis, the study here actually helps extend it by the regression relationship result Moreover, the combination of variables from the different existing studies helps the reader have the interesting view on this topic Furthermore, the research contributes to the academic in term of the impact of many variables on internet banking using intention in Vietnam It certainly indicates the implication for the academic researchers, internet banking users, bank and policymakers However, there are some limitations with the thesis including the method, respondent and sample … ACKNOWLEDGEMENTS I would like to thank my supervisor - Doctor Quoc Pham Phu due to his enthusiasm tutorial, careful guidance, remarkable patience, useful feedback and spiritual encouragement Without his concern, I can’t finish my thesis here Moreover, I would like to thank the comments from the board on my work which helps me revise my paper in the good way Finally, I would like to thanks other individuals and the respondents who contribute to my thesis done April 21, 2014 Hiep Phan Duy Thesis introduction Chapter 1.1 Chapter introduction This study here mentions about the individual users’ intention to use internet banking in Vietnam In term of adoption, it further investigates the impact of variables extracted from technology acceptance and the external environment theory on Vietnam internet banking adoption Specifically, the thesis examines the variables of convenience, availability and accessibility, content and design, speed, security, privacy, bank image and management, fees and charges which are identified in a research about Malaysia internet banking adoption Moreover, it is an attempt to extend more variables by adding two more variables including added service and government support from the other existing research to help introduces the big picture about the impact of the variables on internet banking using intention in Vietnam adoption The content of this chapter includes main parts Part 1.2 is about the background on the variables which are argued to have the impact on internet banking using intention in Vietnam adoption Part 1.3 declares the motivation and the research questions of this thesis Part 1.4 introduces the research objectives and the hypothesis Part 1.5 describes in brief the data, methodology and the result analysis Part 1.6 discusses about the contribution and implication which are expected from this working paper Finally, Part 1.7 summaries the structure of thesis 1.2 Background The variables mentioned in the thesis are the current argument about the impact of the technology acceptance model and external environment factors on the internet banking users’ adoption Actually, the technology acceptance model (TAM), the technology planned behavior (TPB), the external factors or the structural model… are conducted popularly in the previous studies for a purpose of finding out the internet banking preference in many markets including Vietnam market For instance, it comes out here with studies which mentioned about internet banking using intention in Vietnam Chong, Ooi, Lin and Tan (2010) work on the perceived usefulness, the perceived of use, the trust and the government support as the key impacts on internet banking using intention in Vietnam adoption Moreover, Pham, Cao, Nguyen and Tran(2013) investigate about the impact of perceived risk, the perceived ease of use, the perceived benefit, the trust, the perceived risk, the bank image, the subjective norms on the intention to use Vietnam banking adoption Both studies here build up the basic variables which come from the technology acceptance model and the technology planed behavior These ideas are certainly the background for the development of specific variables like the convenience, the availability and accessibility, the content and design, the speed, security, privacy… in the recent studies Actually, these variables appear with the Malaysia studies about internet banking using intention Poon (2008) identifies10 variables including the convenience, the availability, the accessibility, the content, the design, the speed, the security, the privacy, the bank image and management and fees and charges Moreover, Sohail and Shanmugham (2003) explore the variables like accessibility, reluctance, costs, trust, security, convenience and ease of use 10 1.3 Motivation and research questions As mentioned in the part 1.2, the Malaysia authors use the more detail measures to explore the variables with users’ adoption momentum of internet banking in Malaysia This one motivates my attempt to follow this way to find out something for internet banking using intention in Vietnam These more detail variables to the internet banking acceptance bring me out with the question as follow: Research question (RQ1): Do the variables including convenience; availability and accessibility; content and design; speed; security; privacy; bank image and management; fees and charges affect the internet banking using intention in Vietnam? Beside the variables from the Key study, there is an attempt to add some more variables to bring out the bigger picture about the internet banking users’ preference The added ones come from the other existing papers about internet banking using intention in both Vietnam and foreign market as an extension with this research Research question (RQ2): Do the added variables including government support and added service affect the internet banking using intention in Vietnam? Finally, Demographic factors are mentioned in this thesis; however, they are the selected ones which are supposed to be the suitable factors with internet banking using intention in Vietnam situation Research (RQ3): Do the demographic factors including gender; age; education level; income level and internet accessibility have the impacts on the internet banking using intention in Vietnam? 76 Degree of agreement (%) Item content Total mean Speed Transition is efficient and no waiting time Respond speed to complaint Speed of e-transactions flow is faster than traditional banking channels Total mean Security The authorized username and password Banks' reliability in correcting erroneous transactions Trust the bank will compensate for losses due to security reasons Total mean 39.33 43.76 Mean 8.75 4.80 3.36 4.11 Std Dev 0.98 20 42 29 3.70 0.96 19 47 30 3.82 0.81 16 50 30 3.78 0.79 29.62 3.12 2.04 3.76 0.85 18.47 46.76 29 41 17 3.71 1.21 37 42 7 3.93 1.18 37 42 3.92 1.18 6.71 11.15 6.59 3.85 1.19 22 4.21 0.93 12 4 4.10 0.97 17 4.06 1.07 17.03 4.08 3.60 4.12 0.99 34.17 41.37 Privacy Confidential information is delivered safely from banks 22 49 to customers Clients' financial information may be passed 36 44 on to other companies among the banks Third parties are able to 36 40 assess Total mean 31.18 44.12 Added service Site has permission to pay the public service (electricity, water supply…) Site has permission to conduct the other finacial 45 38 11 4.21 0.93 40 41 13 4.10 0.97 77 products: mortgate, securities… Site has timetable of public transportation Total mean Government support The government is driving the development of ebanking The government invests in the infrastructure and facilities of internet The government has regulars and rules on internet banking Total mean Management and Image Cost of investment Sufficient advertising Sufficient promotion Good reputation Continuous improvement on customer services Total mean Charges and Fees Prices of computer and internet connection are reasonable and affordable E-banks charge lower transaction fees Price of service fees is acceptable Total mean 42 35 42.45 37.77 13 4.06 1.07 12.23 4.56 3.00 4.12 0.99 49 34 4 4.21 1.02 43 35 10 4.04 1.14 38 39 11 6 3.99 1.12 9.95 4.92 5.28 4.08 1.09 43.65 36.21 37 42 35 41 42 36 45 37 14 13 14 15 4 3 4.05 4.07 4.08 4.08 1.01 1.04 0.89 0.99 49 36 11 4.27 0.89 13.17 4.24 2.66 4.11 0.96 40.58 39.35 49 34 14 4.27 0.85 36 40 21 4.05 0.89 52 30 10 4.22 1.04 14.75 3.48 1.80 4.18 0.93 45.32 34.65 Note: The means here calculated based on the Likert scale: (5) strongly agree; (4) agree; (3) neither agree nor disagree; (2) disagree; (1) strongly disagree 78 A2 Data result from SPSS solution for Variable Y: Case Processing Summary N % 278 100.0 Valid a 0 Cases Excluded 278 100.0 Total Between People Between Items Within People Residual Total Total A3 Factor analysis: Reliability Statistics Cronbach's Alpha N of Item 906 ANOVA Sum of Squares df 375.803 277 Mean Square 1.357 8.317 4.158 71.017 79.333 455.137 554 556 833 128 143 546 F Sig 32.439 000 A3.1 KMO and Barlett’s test: KMO and Bartlett's Test 668 Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of Sphericity 6702.261 666 000 df Sig A3.2 Total variance explained: Total Variance Explained Com pone nt Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total 5.447 14.722 14.722 5.447 % of Variance Cumulative % 14.722 14.722 79 4.063 10.980 25.702 4.063 10.980 25.702 3.287 8.884 34.586 3.287 8.884 34.586 2.780 7.515 42.100 2.780 7.515 42.100 2.565 6.933 49.034 2.565 6.933 49.034 2.283 6.169 55.203 2.283 6.169 55.203 1.899 5.132 60.335 1.899 5.132 60.335 1.668 4.509 64.845 1.668 4.509 64.845 1.531 4.138 68.983 1.531 4.138 68.983 10 1.427 3.857 72.840 1.427 3.857 72.840 11 1.063 2.872 75.712 1.063 2.872 75.712 12 774 2.093 77.805 A3.3 Rotated component matrix: XB2 XB3 XB1 XB4 XB5 XI4 XI2 XI3 XI5 XI1 XE2 XE3 XE1 XD2 XD3 XD1 XH2 XH1 XH3 857 855 852 831 803 Table 9: Rotated Component Matrixa Component 812 755 752 718 704 887 864 803 918 911 757 931 918 778 10 11 80 XC1 906 XC2 896 XC3 800 XA1 879 XA2 829 XA3 798 Y1 Y2 Y3 XG2 XG1 XG3 XJ2 XJ1 XJ3 XF1 XF2 XF3 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations .840 799 795 882 862 837 836 831 781 821 811 801 A4 Linear regression analysis: Model Summaryb Model R 654a R Adjusted R Square Square 428 406 Std Error of the Estimate Change Statistics R Square Change F Change df1 1.555 428 19.944 10 Model Summaryb Model Change Statistics df2 Sig F Change 267a 000 Durbin-Watson 1.933 81 a Predictors: (Constant), XI, XJ, XH, XD, XG, XF, XC, XA, XB, XE b Dependent Variable: Y ANOVAa Model Sum of Squares df Mean Square F Sig Regressio n 482.056 10 48.206 19.944 000 b Residual 645.354 267 2.417 Total 1127.410 277 a Dependent Variable: Y b Predictors: (Constant), XI, XJ, XH, XD, XG, XF, XC, XA, XB, XE Coefficientsa Model Unstandardized Coefficients B (Constant) -2.061 Std Error Standardized Coefficients t Sig Beta 1.320 -1.562 119 Collinearity Statistics Tolerance VIF XG 074 037 095 1.998 047 944 1.059 XJ 101 043 118 2.344 020 853 1.172 XB 119 024 250 4.971 000 850 1.176 XE 132 032 205 4.195 000 895 1.117 XC 099 039 129 2.549 011 834 1.199 XA 322 051 314 6.330 000 869 1.151 82 XD 095 043 106 2.234 026 961 1.041 XF -.121 040 -.146 -3.040 003 932 1.073 XH 085 034 126 2.455 015 821 1.219 XI 075 027 135 2.795 006 922 1.085 a Dependent Variable: Y 83 A5 Demographic analysis: A5.1 One way – ANOVA analysis: Y/ Gender Sum of Squares df Mean Square F Sig 3.502 3.502 860 355 Within Groups 1123.908 276 4.072 Total 1127.410 277 Sum of Squares df Mean Square F Sig Between Groups 153.538 76.769 21.678 000 Within Groups 973.872 275 3.541 Total 1127.410 277 Between Groups Y/ Income level 84 Y/ Education level Sum of Squares df Mean Square F Sig 45.246 22.623 5.749 004 Within Groups 1082.164 275 3.935 Total 1127.410 277 Sum of Squares df Mean Square F Sig 93.511 46.756 12.436 000 Within Groups 1033.899 275 3.760 Total 1127.410 277 Sum of Squares df Mean Square F Sig 15.290 15.290 3.795 052 Within Groups 1112.120 276 4.029 Total 1127.410 277 Between Groups Y/ Age Between Groups Y/ Internet access Between Groups 85 A5.2 Independent samples T-Test: Independent Samples Test Levene's Test for Equality of t-test for Equality Variances of Means XA/ Income level Equal variances assumed F Sig t df 717 398 -2.136 276 -2.139 272.547 Equal variances not assumed Independent Samples Test t-test for Equality of Means XA/ Income level Sig (2tailed) Mean Difference Std Error Difference 95% Confidence Interval of the Difference Lower Equal variances assumed 034 -.503 236 -.967 Equal variances not assumed 033 -.503 235 -.966 Independent Samples Test Levene's Test for Equality of t-test for Equality Variances of Means XA/ Education level Equal variances assumed Equal variances not assumed F Sig t df 067 796 -2.186 274 -2.143 23.258 86 Independent Samples Test t-test for Equality of Means XA/ education level Sig (2tailed) Mean Difference Std Error Difference 95% Confidence Interval of the Difference Lower Equal variances assumed 030 -.967 442 -1.838 Equal variances not assumed 043 -.967 451 -1.900 Independent Samples Test Levene's Test for Equality of t-test for Equality Variances of Means XA/Age Equal variances assumed F Sig t df 373 542 -4.060 276 -4.094 140.027 Equal variances not assumed Independent Samples Test t-test for Equality of Means XA/Age Sig (2tailed) Mean Difference Std Error Difference 95% Confidence Interval of the Difference Lower Equal variances assumed 000 -1.044 257 -1.551 87 Equal variances not assumed 000 -1.044 255 -1.549 A6 Questionaire: Ngân hàng trực tuyến (NHTT) e-banking Thang tỉ lệ(Scale): Rất không đồng ý(Strongly disagree) Không đồng ý(Disagree) Không có ý kiến(No idea) Đồng ý(Agree) Rất đồng ý (Disagree) Phần 1: Xin đánh dấu (X) vào chỗ thích hợp (Mark X on the suitable space): Các biến nghiên cứu(Item content) A Bạn có sẵn lòng sử dụng dịch vụ NHTT: The intention to use e-banking - Tôi sữ dụng dịch vụ NHTT I once dealt with the e-banking service - Tôi thỏa mãn việc sử dụng NHTT mang lại lợi ích cho I am satisfied with using e-banking if I get benefits from it - Tôi tin sử dụng NHTT tương lai I believe that I will use e-banking service in the future B Các yếu tố sau ản hưởng đến định sử dụng NHTT: Variables X Sự thuận tiện Convenience - Tôi sử dụng NHTT đâu chỗ I can access anytime and anywhere - Sử dụng NHTT tiết kiệm thời gian so với dịch vụ truyền thống Save times as compared to conventional banking - Tôi kiểm tra giao dịch thường xuyên với NHTT I can check my transaction details and statement regularly Sự sẵn có tính tiếp cận Availability and accessibility 88 - Dịch vụ NHTT không bị gián đoạn No service break-down - Trang dịch vụ NHTT có công cụ tìm kiếm Site has a search engine - Trang dịch vụ NHTT có đa dạng có tính Diversity of feature availability - Dịch vụ NHTT cung cấp chi tiết giao dịch Site has detail on transaction - Trang dịch vụ NHTT có giải đáp phản hồi chi tiết Site has detail on feedback Nội dung thiết kế Content and design - Màn hình giao diện trang dịch vụ rõ ràng đơn giản Clear and easy guidance screen - Nội dung trang dịch vụ cập nhật thường xuyên Content is updated regularly - Thiết kế trang dịch vụ cần thiết Website design is important Tốc độ Speed - Giao dịch NHTT thực hiệu thời gian chờ Transaction is efficient and no waiting time - Tốc độ trả lời yêu cầu phàn nàn thỏa mãn Respond speed to complaint is satisfactory - Tốc độ xử lý giao dịch nhanh dịch vụ truyền thống Speed of e-transactions flow is faster than traditional banking Sự an toàn Security - Phải có tên tài khoản mật đăng nhập The authorized username and password - Dịch vụđảm bảo uy tín việc xử lý giao dịch lỗi Bank’s reliability in correcting erroneous transactions - Có sách bồi thường thiệt hại lỗi dịch vụ Trust the bank will compensate for losses due to security Tính riêng tư Privacy - Thông tin khách hàng truyền tải cách bảo mật Confidential information is delivered safely - Thông tin tài khách hàng chia cần Clients’ financial information is shared - Bên thứ ba tiếp cận tài khoản khách hàng Third parties are able to access Dịch vụ gia tăng Added service 89 Các biến nghiên cứu(Item content) - Trang dịch vụ cho phép toán dịch vụ công Site permission to pay the public service - Cho phép thực giao dịch tài chính: chứng khoán … Site has permission to conduct the other financial products: securities… - Trang dịch vụ cung cấp lịch trình phương tiện công cộng Site has timetable of public transportation Sự hỗ trợ phủ Government support - Chính phủ định hướng khuyến khích NHTT The government is driving the development of e-banking - Chính phủ đầu tư hạn tầng internet mạng viễn thông The government invests in the infrastructure and facilities - Chính phủ có luật lệ, qui định cho việc sử dụng NHTT The government has regulars and rules on e-banking Quản trị hình ảnh ngân hàng Management and image - Chi phí đầu tư cho dịch vụ NHTT Cost of investment - Thực quảng cáo dịch vụ NHTT đầy đủ Sufficient advertising - Thực khuyến dịch vụ NHTT hiệu Sufficient promotion - Ngân hàng xây dựng danh tiến tốt Good reputation - Ngân hàng cải tiến phát triển dịch vụ NHTT Continuous improvement on customer services Phí lệ phí Charges and Fees - Chi phí cho máy vi tính kết nối internet hợp lý Prices of computer and internet connection are reasonable - Chi phí cho dịch vụ NHTT thấp dịch vụ truyền thống E-banking charge is lower than than transaction fees - Phí dịch vụ chấp nhận Price of service fees is acceptable Phần 2: Các thông tin cá nhân bạn (Your private information); Giới tính bạn(Gender): Nhóm tuổi bạn(Age): < 25 Nam (Male) Nữ(Female) 90 25 -45 > 45 Trình độ học vấn(Educational level): 12/12 (Diploma) Đại học (Graduate) Trên đại học (Post graduate) Thu nhập tại(Income level): < 15 triệu đồng ( mil VND) 15 – 35 triệu đồng (mil VND) > 35 triệu đồng (mil VND) Loại kết nối internet (Internet accessibility): Wifi 3G ... determinant Therefore, Speed here in the study has a positive impact on internet banking using intention in Vietnam H 1d: Speed has the positive impact on internet banking using intention in Vietnam. .. on internet banking using intention in Malaysia Based on this literature, Security has a strong impact on internet banking using intention in Vietnam H 1e: Security has the positive impact on internet. .. and internet banking using intention in Vietnam The result from the regression analysis gives out that there are variables which have a positive impact on internet banking using intention in Vietnam