E-Banking System in Vietnam

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1. INTRODUCTION

1.1 Background of the study

The expansion and the growing advance that is being experienced in “the Information and Communication Technology” have brought about a lot of changes in almost all facets of life (Gbadeyan and Akinyosoye, 2011, p.1). Furthermore, because of the fast-speed development of globalization, the 21st century is considered as the era of IT boom and the advent of the World Wide Web in the mid - 1990s also brought information to our fingertips. Thanks to the Internet, we can do online shopping, read newspaper, hear international reports, pay bills, play games or even manage our bank accounts by E-banking systems.

In the period of IT boom, which every sector in business can be driven by technology innovations, the attitude of customers is oriented to another way. This revolution not only changed the mode of propensity to use but also changed continuously the products and services applying in business management of commercial banks. In present, one of the most effective strategies of the company is to upgrade information technology into banking industry. It is true that banking industry is one of the major industries using technology advances as a means to take advantages amongst competing banks. Therefore, both Internet-based and traditional brick – and - mortar banks have set up the online banking system, which allows their customers to send, receive and monitor money in their personal accounts. E-banking is very popular and has become a necessary in this modern century, Electronic banking services are being used with increasing frequency in most countries, including Vietnam. Following up the globalization of markets and productions, E-banking plays as an intermediate role that supports customers and companies in different areas complete their business transactions perfectly without meeting each other. In addition, Dr. Ala and Hasan (2011) stated, “Public awareness of e-banking among users has been increased and thus people are ready to migrate to technology applications” (Dr. Ala`Eddin and Dr. Hasan Ali, 2011, p.50). With the population of approximately 92 million in Vietnam (World population review’s statistic, 2014), it is very easy to understand why the current usage trend of e-banking system has been increased dramatically.

1.2 Statement of the problem

Given the fact that banks invest billions in developing e-banking infrastructure in order to satisfying, attracting more customers and establishing long-term customer relationships, it is still not effective enough. According to Hans (2005), these discoveries have led to the development of simple banking web sites into complete e-banking portals contribution a great multiplicity of facilities in addition to traditional bank products and thereby allowing customers to gain financial guidance from just one source. Though e – banking started in 1980s in America, the revolution has taken place in 20th century and Vietnam is one of the countries in the World, which adopted these high-tech services to develop the country’s banking systems.

With nearly 40% population that use the Internet, Vietnam is considered as one of the most potential markets that can apply these banking electronic payments to Vietnam bank networks. Moreover, to meet the customers’ demands for Internet banking that are now growing higher and higher is the biggest purpose of banks in Vietnam.

1.3 Research objectives and scope of the study

The main purpose of this study is to examine the customers’ attitudes toward e-banking system in Vietnam. By interviewing the Vietnamese customers who are effected directly, will involve in and Vietnam where carries out this research, it will help to avoid culture effect as well as to understand more the reasons why customers use e-banking systems, their expectations of changing in e-banking in the future and make customers feel more satisfied in some extent.

1.4 Organisation of the study

This research includes five parts. The first chapter will be conducted to represent the background of the study, statement of the problem, the main objectives and the structure of this study for the customers’ attitudes toward e-banking system. After that, the theoretical review, literature review and research methodology are discusses in chapter two, three and four, respectively. The final chapter will present the data analysis and some conclusions about the research topic. The study hope to contribute to the literature by understand deepen about the advantages and disadvantages when using e-banking system of customers in Vietnam in order to search for more efficient ways to improve e-baking system and help customers more ensure about deciding to use e-banking.