Challenges to Grow Customer Base in the Banking Sector in Time of Digital Transformation – Investigating Driving Factors

DOI

10.2991/978-94-6463-348-1_21How to use a DOI?

Keywords

Digital transformation

Abstract

The objective of this thesis is to examine the factors that affect customers’ decisions in using banking services in the context of digital transformation in the Vietnamese economy. Customers are the main source of revenue for banks, understanding their perception and behavior when using e-banking in the current and changing economic environment is critical to determining the results of the bank’s deposit mobilization initiatives. This research collects survey data from VIP customers who deposit money at commercial banks in Hanoi. We found factors relating to Brand, Diversity of supplemental offers, Security and Privacy, Interest policy, Staff quality, and Technology capability play key roles in attracting and retaining customers.

Research purpose

The main objective of this study is to identify and analyse the factors that influence customers’ decisions in digital banking services.

Research motivation

Bank directors need to understand what factors make a customer choose one bank over another to develop appropriate policies to retain existing customers and attract new customers.

Research design, approach, and method:

We develop a framework based on dimensions of (i) Brand; (ii) Diversity of Supplemental offers, (iii) Security, Safety, Privacy, (iv) Staff quality, (v) Technology quality factors. A survey was implemented, and data was analyzed by EFA and regression model.

Main findings:

We found bank’s brand, supplemental internet-based product/services offers, interest policies, and technology capability of a bank play important roles in the decision making of customers.

Practical/managerial implications:

Understanding which factors influence and which factors have the most impact on bank customers’ decisions helps managers design appropriate policies and programs to retain traditional customers and develop new customers. This research is a necessary reference, providing insights for bank managers and policymakers to make informed decisions about their digital transformation strategies to improve the service quality of their internet banking service and thereby to satisfy their customers.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nguyen P. Hung
AU  - Nguyen Thi Hong Thoa
AU  - V.U. Duc Loi
PY  - 2024
DA  - 2024/02/05
TI  - Challenges to Grow Customer Base in the Banking Sector in Time of Digital Transformation – Investigating Driving Factors
BT  - Proceedings of the 11th International Conference on Emerging Challenges: Smart Business and Digital Economy 2023 (ICECH 2023)
PB  - Atlantis Press
SP  - 253
EP  - 263
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-348-1_21
DO  - 10.2991/978-94-6463-348-1_21
ID  - Hung2024
ER  -