Adoption of electronic banking services in Vietnam Luận văn thạc sĩ

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HCMC



Prepared by Vo Thi Thuy Linh






MASTER THESIS






Ho Chi Minh City, 2010

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HCMC



Prepared by Vo Thi Thuy Linh

Department of graduate program
Division of Banking, code no 60.31.12


MASTER THESIS
Supervisors: Dr. Le Thai Thuong Quan



Ho Chi Minh City, 2010




Abstract

With the development of IT, e-commerce and international trade, e-payment
becomes an indispensable payment trend in a modern society. E-payment has
been developed and introduced in many developed countries for a long time, but
it is still the phase of developing in Vietnam. E-payment in Vietnam has been
applied for more than 10 years, marking a significant development in recent
years.
E-banking services development is inevitable and objectivity tendency in the
modern economy, in international economic integration. Benefits of electronic
banking services is very large for customers, banks and the economy, thanks for
convenient, fast, accurate and secure. Therefore, the primary purpose of this
study is to examine the factors affecting to the adoption of e-banking using in
Vietnam.

The study based on the Technology Acceptance Model (TAM) and adding
personal characteristics of the adopters, those factors to have huge impact on the
e-banking adoption in Vietnam. The study uses quantitative approach to survey
over 500 Vietnamese customers in Ho Chi Minh. This study exploits and analysis
the factors affecting to e-banking services adoption in Vietnam, a developing
country case. We expect to provide banks with more information about the
adoption of e-banking services in Vietnam.





Acknowledgement

This thesis was written during year 2010 at Economics University in fulfillment
of the Master program in banking. Many people have helped me with the
completion of this study and made this work possible.
First of all, I would like to express my sincere gratitude to my supervisor, Dr. Le
Thai Thuong Quan for his valuable supervision and intelligent guidance
during the whole process of the thesis writing. Second, I would like to express
my sincere gratitude to Dr. Dao Trung Kien, my senior master, for his strong
support, encouragement and his helpful comments on my thesis.
I would also like to show my sincere appreciation to managers of customer
services division in Viet Nam Eximbank – District 10 branch for their kind
support and cooperation.
Finally, I would like to express my thanks to the branch staffs of Eximbank –
District 10 branch who helped me a lot in distributing and collecting the
questionnaires of this research.
I wish to take this opportunity to express my deepest thanks to my dear
parents for the love and never-ending support they have extended me in every

step of my life.

December 2010





Commitment

I
declare that
the thesis entitled “A
doption of electronic
banking services in Viet Nam” contains no results and data
that has been submitted previously under any form by
anybody. This thesis is my own work. I take full
responsibility to the board of examiners for my commitment.

December 10
th
, 2010
Author’s signature


TABLE OF CONTENTS
LIST OF TABLES Page 01
LIST OF FIGURES
Page 03

GLOSSARY OF E-BANKING T ERMS
Page 04

ABBREVIATIONS
Page 06

Chapter One: Introduction and Research problem Page 07
1.1 Introduction Page 07
1.2 The Research Problem Page 08
1.3 Outline of the Thesis Page 10
Chapter Two: Theoretical Review Page 12
2.1 Electronic Banking Page 12
2.1.1 The History of Electronic Banking Page 12
2.1.2 Benefits of Electronic Banking Page 13
2.1.3 Kinds of Electronic Banking Page 16
2.2 Diffusion of Innovations Theory Page 18
2.3 Technology Acceptance Model (TAM) Page 21
2.3.1 Perceived Usefulness Page 22
2.3.2 Perceived Ease of Use Page 23
2.3.3 Perceived Risk Page 25

2.3.4 Perceived Cost Page 25

2.3.5 Information on e-banking Page 26

2.3.6 Personal Trial Page 2
6
2.3.7 Personal characteristics of the adopters Page 26

Chapter Three: Research des ign and methodology Page 27

3.1 Research Model Page 27
3.2 Hypotheses development Page 29
3.2.1 Hypotheses related to personal characteristics Page 29
3.2.2 Relationships Hypotheses Page 29
3.3 Methodo logy Page 30
3.4 Sampling and Questionnaire Page 31
3.5 Data Analysis Procedures Page 33
3.5.1 Descriptive statistics analysis Page 34

3.5.2 Purification and Reliability of the M. Variables Page 34


3.5.2.1 Factor analysis Page 34

3.5.2.2. Reliability analysis Page 34

3.5.3. t-test Page 35
3.5.4. One way analysis of variance ANOVA Page 35
3.5.5. Structural Equation Model Page 35
Chapter Four: Data analysis and results Page 36
4.1 Descriptive Analysis Page 36
4.1.1 Characteristics of Respondents Page 36
4.1.2 Measurement Results for Relevant Research V. Page 38
4.2 Factor Analysis and Reliability Test Page 40
4.2.1 Perceived usefulness Page 40
4.2.2 Perceived Ease of use Page 41
4.2.3 Perceived risk Page 42
4.2.4 Perceived cost Page 42
4.2.5 Information on E-banking Page 43
4.2.6 Personal Trial Page 44

4.3 Independent Sample t-tests Page 45
4.3.1 Gender Respondents Page 45
4.3.2 One-way ANOVA Page 46
4.3.2.1 Age Respondents Page 46
4.3.2.2 Education Respondents Page 48
4.3.2.3 Position Respondents Page 50
4.3.2.4 Income Respondents Page 52
4.4 Structure Equation Model Page 53

4.5 Results of research Page 59
Chapter Five: Conclusions and Implications Page 62
5.1 Conclusions Page 62
5.2 Contribution and Managerial Implications Page 63
5.3 Limitations of the study Page 66
5.4 Recommendations for further research Page 66
REFERENCES
Page 68

APPENDIX I
Page 69
APPENDIX II
Page 75




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LIST OF TABLES

Table 1-1: Electronic banking service provided by Vietnam banks Page 09
Table 3-1: The questionnaire items for measurements factors Page 31
Table 4-1: Descriptive Analysis of personal characteristics Page 37
Table 4-2: Measurement Results for Relevant Research Variables Page 39
Table 4-3: Factor Analysis and Reliability for Perceived usefulness Page 41
Table 4-4: Factor Analysis and Reliability for Perceived Ease of use Page 41
Table 4-5: Factor Analysis and Reliability for Perceived risk Page 42
Table 4-6: Factor Analysis and Reliability for Perceived cost Page 43
Table 4-7: Factor Analysis and Reliability for Information Page 44
Table 4-8: Factor Analysis and Reliability for Personal Trial Page 45
Table 4-9: T-Test results of Gender Respondents Page 46
Table 4-10: ANOVA test results of Age Respondents Page 47
Table 4-11: ANOVA test results of Education Respondents Page 49
Table 4-12: ANOVA test results of Position Respondents Page 51
Table 4-13: ANOVA test results of Income Respondents Page 52
Table 4-14: Standardized Regression Weights (Default model) Page 55
Table 4-15: Fit Measures for Model Page 58
Table 4-16: Standardized Regression Weights (Causality model) Page 58
Table 4-17: Results of the testing Hypotheses Page 60
Table II.1: Correlation Matrix for Perceived usefulness Page 75
Table II.2: Correlation Matrix for Perceived Ease of use Page 75
Table II.3: Correlation Matrix for Perceived risk Page 75
Table II.4: Correlation Matrix for Perceived cost Page 76



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Table II.5: Correlation Matrix for Information Page 76
Table II.6: Correlation Matrix for Personal Trial Page 76
Table II.7: Regression Weights (Default model) Page 77
Table II.8: Model Fit Summary (Default model) Page 78
Table II.9: Regression Weights (Causality model) Page 80
Table II.10: Model Fit Summary (Causality model) Page 81




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LIST OF FIGURES

Figure 1.1: Outline of the research Page 11
Figure 2-1: Adoption Process Page 20
Figure 2-2: Technology acceptance model (TAM) Page 22
Figure 2-3: Chronological Progress of TAM Research Page 24
Figure 3-1: The research framework of this study Page 28
Figure 3-2: Data Analysis Procedures Page 33
Figure 4-1: Measurement model Page 54
Figure 4-2: Structural Equation model Page 57
Figure II.1: Structural Equation model (Causality model) Page 82



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GLOSSARY OF E-BANKING TERMS

E-banking. Electronic banking is an umbrella term for the process by which a
customer may perform banking transactions electronically without visiting bank.
Automated teller machine. An electronic terminal provided by financial institutions
and other firms that permits consumers to withdraw cash from their bank accounts,
make deposits, check balances, and transfer funds.
Computer banking. Banking services that consumers can access, by using an
Internet connection to a bank’s computer center, in order to perform banking tasks,
receive and pay bills, and so forth. Many other financial services can be accessed
via the Internet (for example, paying credit card bills on a credit card issuer’s web
site), but those services may not be classified as computer banking.
Debit card. A card used at an ATM or a point-of-sale (POS) terminal that enables a
consumer to have funds directly debited from his or her bank account (usually a
checking account). Some financial service providers (such as check cashers and
currency exchanges) may market a so-called debit card that is not tied to a deposit
account but instead functions as a stored-value card.
Direct deposit. A form of payment by which an organization (such as an employer
or a government agency) pays funds (such as pay or benefits) via an electronic
transfer. The funds are transferred directly into a consumer’s bank account.
Direct payment (also electronic bill payment). A form of payment that allows a
consumer to pay bills through electronic fund transfers. Funds are electronically
transferred from the consumer’s account to the creditor’s account. A direct payment
differs from a preauthorized debit in that the consumer must initiate each direct
payment transaction.
Electronic bill presentment and payment (EBPP). A form of bill payment by which
bills are presented to a customer online, via either e-mail or a notice in an e-banking

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account. After presentment, the customer may pay the bill online when convenient.
The payment is electronically deducted from the customer’s account.
Payroll card. A type of stored-value card issued by an employer instead of a
paycheck that enables an employee to access his or her pay at ATMs or point-of-
sale terminals. The employer adds the value of the employee’s pay to the card
electronically.
Smart card. A type of stored-value card in which one or more chips or
microprocessors are embedded, making the card capable of storing data, performing
calculations, or performing special-purpose processing (to validate personal
identification numbers, authorize purchases, verify account balances, and store
personal records). The memory in some smart cards is updated when the card is
used. The chip or microprocessor physically stores records, such as the value of
funds remaining on the card. These cards can be used in ‘‘closed’’ systems (for
example, a transit system) or ‘‘open’’ systems (for example, MasterCard or Visa
networks).
ATM cards. ATM cards, which consumers can use to access their bank accounts at
an electronic terminal, were introduced in the late 1960s to help consumers make
cash withdrawals from their deposit accounts.



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ABBREVIATIONS

ANOVA is the abbreviation of One way analysis of variance.
AVR is the abbreviation of Automatic voice response.
E-banking is the abbreviation of Electronic banking.
EBPP is the abbreviation of Electronic bill presentment and payment.
ID is the abbreviation of Identifier.
INF is the abbreviation of Information.
Intranet is the abbreviation of Internal network.
IT is the abbreviation of Information Technology.
PC is the abbreviation of Perceived cost.
PDA is the abbreviation of Personal digital assistant.
PEU is the abbreviation of Perceived ease of use.
PIIT is the abbreviation of Personal innovativeness in IT.
PIN is the abbreviation of Personal identification number.
POS is the abbreviation of Point of sale.
PR is the abbreviation of Perceived risk.
PTR is the abbreviation of Personal trial.
PU is the abbreviation of Perceived usefulness.
S.D is the abbreviation of Standard deviation.
SEM is the abbreviation of Structural Equation model.
SMS is the abbreviation of Sending messages.
TAM is the abbreviation of Technology acceptance model .
TRA is the abbreviation of Theory of reason action.
WTO is the abbreviation of World Trade Organization.

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HCMC

Department of graduate program, Division of Banking, code no 60.31.12
Prepared by Vo Thi Thuy Linh
Supervisors: Dr. Le Thai Thuong Quan

Master thesis entitled “Adoption of electronic banking services in VietNam”

The thesis has achieved some results such as clarifying the concept of e-banking
services, present the advantage and disadvantage of e-banking. This researchers
also presents the necessity to develop e-banking and focuses on the adoption of
electronic banking services by customers in Vietnam. The research problem for this
research can be formulated as: What are the main factors, which influence the
adoption of electronic banking services? From that point, this study provides some
proposals aimed at developing e-banking in Vietnam.
The research model is built based on TAM model and Diffusion of Innovations
Theory. Those factors are divided into two kinds. Factors under the control of bank:
perceived usefulness, perceived ease of use, perceived risk, perceived cost,
information on e-banking and factors not under the control of banks are personal
characteristics (gender, age, education level, position and income).
Methods of data analysis used in this study include T-test, one way ANOVA and
especially Structural Equation Model which made the analysis results was accurate
and meaningful both theoretically and practically. From theoretical perspective, this
study has proved that the important role of TAM in predicting the acceptance of
new technology. Practically, this study find that in order to encourage people adopt
e-banking system in Vietnam, banks should concern more on the system
characteristics, increase awareness of customer about the system by providing more
involved information and make them easily manipulate and manage the system and
make it more convenient.
If do so, e-banking is the key to success for commercial banks in particular and the
international business activities of Vietnam in general.



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CHAPTE R ONE: INTRODUCTION AND RESEARCH PROBLEM

1.1 Introduction
Over the last few decades information technology has affected the banking industry
highly and has provided a way for the banks to differentiate their products and
services. For more than 200 years, banks were using branch-based operations but
the advent of multiple technologies and applications diversified the ways delivered
services to customers. For instance, automated teller machines (ATM) displaced
cashier tellers, telephones represented by call centers replaced the bank branch,
the Internet replaced mail, credit cards and electronic cash replaced bank
transactions. The reason was the numerous key advantages that banks could gain
by providing electronic banking services. By this way, they had lower transaction
costs, 24 hour trading, more extended business territory and also increased
efficiency in daily banking processes. Today banks are faced with a competitive
environment. In order to succeed in such marketplace, they must offer a wide array
of products with the latest technology. At present, many banks and financial
institutions are actively developing new electronic banking products for their
customers throughout the world.
In Vietnam, most transactions are dominated by cash, since the bulk of personal
consumption is done through the medium of cash. Cash remains as the main method
of payment, especially among individuals and it is making up more than 90 percent
retail payment. According to statistics of State Bank of Vietnam in 2008, of total
population of 84 million, less than 15 percent are estimated to have used bank
services regularly and less than 30 percent have savings with banks, and most
account users are high-income earners in urban areas or in large companies.
However, under the liberalization, globalization and the process of Vietnam
integration into WTO are opening many opportunities and threats for economic
sector in general and in particular the banking sector. To participate in the stage of

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world, Vietnam has to change payment transaction habits to adapt the general trend
of the world. Recent integration into WTO are opening many opportunities and
threats for general Vietnam economic and banking industry. To participate in the
stage of world, new models of business have been appeared such as e-commerce, e-
business. Thus, IT has to be equipped in banking system to enhance their quality of
service.
Besides, since almost banks offer same service, the application of new technology
in bank becomes the determinant factor deciding the success of bank in compete
customer’s belief. Hence, many kinds of modern banking applications are now
applied in Vietnamese banks. The State Bank of Vietnam has made efforts to reduce
the volume of cash payment transactions by issuing non-cash project and expect to
finish this project on 2020. Besides, banks alliances are formed and develop
quickly, e-payment forms are more and more diversified. Thereby, it is time to
enhance customer awareness and disseminate the e-payment system in society.
Despite of the preference to cash over e-payment, the attitude of the public towards
e-payment has been encouraged over the past few years with the increase of bank
card users and the expansion of ATM and Point-of-sale (POS) networks. According
annual report of the State Bank of Vietnam as e-payment makes progress, the
importance of cash is on the decline over the past three years. However, the public
is still concerned about the security, information on e-banking forms, hesitate
changing from traditional and simple method to automatic and electronic ones,
which are matters this study purpose to research.

1.2 The Research Problem
It will save significant costs if Vietnam banks develop e-banking services instead of

opening more branches and transaction offices. In terms of economy, the bank will
raise the efficiency use of capital. In terms of social, E-banking contributes to
economic and commercial activities, services and tourism development. This is a



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benefit that traditional services hard to reach.
E-banking service is the most perfect banking service that gains the highest utility,
but requires security of payment because the risk of this activity is not trivial.
However, commercial banks in Vietnam have only developed this service in certain
degree and offer the same services.
Table 1-1: Electronic banking service provided by Vietnam banks

Bank Services
EximBank
AT M, Credit Card, Debit Card, POS, SMS Banking, Home
Banking, Phone Banking, Internet Banking
Asia commercial Bank
AT M, Credit Card, Debit Card, Internet Banking, Home
Banking, POS, SMS Banking, Phone Banking
Agribank AT M, SMS Banking, Credit Card, Debit Card, POS
BIDV AT M, SMS Banking, Credit Card, Debit Card, POS
East Asia Bank AT M, SMS Banking, Credit Card, Debit Card, POS, Internet
Banking
An Binh Bank
AT M, SMS Banking, Credit Card, Debit Card, POS, Internet
Banking

TechcomBank
AT M, Credit Card, Debit Card, POS, Internet Banking, Home
Banking
Gia Dinh Bank SMS Banking, Phone Banking
Phuong Nam Bank ATM, SMS Banking, POS, Internet Banking, Phone Banking
SacomBank AT M, SMS Banking, Credit Card, Debit Card, POS, Internet
Banking, Phone Banking
VietcomBank
AT M, SMS Banking, Credit Card, Debit Card, POS, Smartcard,
Home Banking, Internet Banking, Phone Banking
VietTinBank
AT M, SMS Banking, Credit Card, Debit Card, POS, Internet
Banking
HSBC
AT M, Credit Card, Debit Card, POS, Internet Banking, Phone
Banking
ANZBank
AT M, Credit Card, Debit Card, POS, Internet Banking, Phone
Banking
IndoVinaBank AT M, Debit Card, POS, SMS Banking, Internet Banking




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Customers use these services to reach out only counseling, reference and search
information mainly. E-banking has not exploited the strengths and the absolute
advantage agains bank is provided new products and services, diversity and

convenience, high utility, quickly and accurately.
This study presents the necessity to develop e-banking and focuses on the adoption
of electronic banking services by customers in Vietnam. The research problem
for this research can be formulated as:
What are the main factors, which influence the adoption of electronic banking
services?
From that point, this study provides some proposals aimed at developing e-banking
in Vietnam.

1.3 Outline of the Thesis
This thesis consists of five chapters. In the first chapter, an introduction to the
research is given and the research problem is stated. The next chapter the theoretical
review framework relevant to the purpose of this study will be presented. In the
third chapter, research design and cover the methodology used in this research will
be discussed. In the chapter four, the data which have been collected through the
survey is analyzed statistically and the results are presented. In the last chapter,
contribution of this study is brought up under conclusions as well as implications
for commercial banks in Vietnam and future researches.



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Chapter 1 presented an overview of e-banking services and presented the research
problem that will be study in the next chapters.
Chapter one
Introduction and Research Problem

Chapter two
Theoretical review

Chapter Three
Research design and method
ology

Chapter Four

Analysis and results

Chapter Five

Conclusion and implications

Figure 1.1: Outline of the research



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CHAPTE R TWO: THEORETI CAL REVIEW

The previous chapter provided the background and problem area for this
research. I n this chapter, the theoretical framework relevant to the purpose of this
study will be presented

2.1 Electronic Banking
Electronic banking is the automated delivery of new and traditional banking
products and services directly to customers through electronic, interactive
communication channels. Electronic banking includes the systems that enable
financial institution customers, individuals or businesses, to access accounts,
transact business, or obtain information on financial products and services through a
public or private network, including the Internet. It should be noted that electronic
banking is a bigger platform than just banking via the Internet. Electronic
banking can also be defined as a variety of platforms such as Internet banking (or
online banking), telephone banking, TV-based banking, mobile phone banking,
and PC banking (or offline banking) whereby customers access these services using
an intelligent electronic device, like a personal computer, personal digital assistant
(PDA), automated teller machine (ATM), point of sale (POS), kiosk, or Touch
Tone telephone, computer banking, direct deposit, direct payment, payroll card,
electronic bill presentment and payment, …

2.1.1 The History of Electronic Banking
Electronic innovation in banking can be traced back to the 1970s when the
computerization of financial institutions gained momentum. However, a visible
presence of this was evident to the customers since 1981, with the introduction of
the automatic teller machine (ATM). Innovative banking has grown since then,
aided by technological developments in the telecommunications and Information



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Technology industry. The early decade of the 1990s saw the emergence of
automated voice response (AVR) technology. By using the AVR technology, banks
could offer telephone banking facilities for financial services. With further
advancements in technology, banks were able to offer services through personal
computers owned and operated by customers at their convenience, through the
use of Intranet proprietary software. The users of these services were, however,
mainly corporate customers rather than retail ones. The Security First Network
Bank was the first Internet banking in the world that was built in 1995, USA.
After that some famous banks introduced their Internet banking one after another,
such as Citibank and Bank of America.

2.1.2 Benefits of Electronic Banking
Electronic banking services have provided numerous benefits for both banks and
customers.
On the side of bank,
 The first benefit for the banks offering electronic banking services is better
branding and better responsiveness to the market. Those banks would be
perceived as leaders in technology implementation. Therefore, they would enjoy a

better brand image.
 E-Banking is a solution for commercial banks to improve service quality and
operational efficiency, thereby improving their competitiveness. More important is
E-Banking helps banks to implement the strategy "globalization" without opening
more branches in the country and abroad. E-Banking is also a promotional tool,
promoting trade name of commercial banks in a effective way.
 E-banking services fees are assessed as very low compared to traditional
transactions, especially transactions over the Internet, thereby contributing to
increased income for the bank. According to a survey by Booz, Allen and Hamilton,
an estimated cost providing the routine business of a full service branch in USA is



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$1.07 per transaction, as compared to 54 cents for
telephone
banking, 27 cents for
ATM (Automatic Teller Machine) banking and 1.5 cents for Internet banking.

It is the utility gained from the application of technology, from software,
from network service providers, e-banking service has attracted customers to use
and maintain relationship with banks, become loyal customers of the bank. With
modern banking model, the development capabilities, providin g services to many
customer types, many areas of E-banking is highly.
 The special features of e-banking services are able to provide full service.
Whereby, banks can link with other insurance companies, securities firms, other
financial companies to offer utility products to meet the basic needs of a client or a
customer groups for services related to banking, insurance, investments, securities

On the side of customer,
 E-Banking is a trading channel which allowing customers to contact the bank
quickly and conveniently to do some banking services at any time (24 hours a day,
7 days a week) and at anywhere. Th is is particularly significant for customers who
have little time to go directly to the banks, small and medium customers, individual
customers who have the volume of transactions and the amount of each transaction
is not large. These are benefits that banks offer the traditional style can hardly be
achieved with speed and accuracy than electron ic banking.
 E-Banking will help improve the efficiency of capital use. Through the
services of electronic banking, the payment order, collection of customers is done
quickly, giving facilities for circulating capital fastly, implementing transactions
well. Thus it speeds up the circulation of commodities, currencies, raising the
efficiency of capital use.
Besides the benefits, e-banking also have a lots of disadvantages.
On the side of bank
, t
o build a system of E-Banking requires a large initial
investment to choose a modern technology, the correct orientation, not include the



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cost of backup systems, costs maintenance, system development, technological
innovation. Simultaneously requires a team of engineers and qualified technical
staff to manage, operate a system But some commercial banks are available. The
investment is effective or not depended on the communications infrastructure of the
country, or otherwise depends on the efforts of the whole country and not only do

the commercial banks.
On the side of customer, customers can not receive information through e-banking
as a full staff in charge of the bank. Customers will lose the opportunity to exchange
information with bank staff, capture new situation, "hot" at the bank's transaction.
Both of bank and customer side,
 Capital and technology is not an easily problem, but they can be overcome.
More problem is that safety and security of E-Banking system. Risks of services is
not small, the customer may lose access password account or was "Hacker" stolen
by high technology. So that, money in the account of customers lost without
knowing in myself or in commercial banks. Also on the commercial banks in
Vietnam, mainly due to technology "imports", they can not seize the high
technology, to detect and correct the flaws of the software purchased from foreign
countries can not be done fully. It takes time and money to offer the professor.
 Virus, computer worms, spyware is the danger of standing to attack the
system through fraud, theft of customer data. Computer criminals use to attack
website is probably happening. Risk management policies for e-banking activities
of commercial banks are in the first step, there is no storage data, lack of risk
management tools. (Trn Hoàng Ngân & Ngô Minh Hi, 2006)




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2.1.3 Kinds of Electronic Banking
Base on the level development of the country and the state of the banking system,
the degree of e-banking use is differs. When mention to e-banking services, many
Vietnamese customers immediately think about ATM, credit or debit cards. But e-
banking services not only ATM, credit card, debit card, but also internet banking,

mobile banking, phone banking and so on. However, card services was setting up
and developing since the beginning development of e-banking services and has
dominated the e-banking market.
 Internet banking: this services help customers transfer money through online
accounts as well as control the operation of this account. To participate, customers
access the bank's website and make financial transactions, query necessary
information. Information is abundant, from the transaction details of customers to
other information about the bank. Customers can also visit other sites to purchase
and make payments to the bank. However, when the Internet is connected, the bank
must have security systems strong enough to deal with risks on a global scale.
 Home banking: with the bank at home, customers can deal with transactions
through online banking but the internal network (Intranet) by a bank to build its
own. Transactions are conducted at home, office, company through computer
systems connected to the computer systems of banks. Through home banking
service, customers can perform transactions on the remittance, list the transactions,
exchange rates, interest rates, debt notice, newspapers are To use the home
banking service, customers should have computer (at home or headquarters)
connected to the computer systems of banks through modem - dial telephone line.
Customers must register the phone number and address to connect Home banking
system of banks.
 Phone banking: This product supply bank information over the phone fully
automated. The information should be assigned first, including information on
exchange rates, interest rates, stock prices, personal information such as customer
account balances, transactions listed in the last account, the latest notice The



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system also automatically send fax when customers ask for other information
above.
 Mobile banking: a form of online payment via mobile phone networks. This
method was invented to solve the needs of payment transactions with small value
(micro payment) or the automated service, no service. For using this service,
customers must register to become an official member of which is important
information such as phone numbers, personal account number used in payment.
After that, customers are received of a code identifier (ID) through this network.
With identifier codes, customers are given a personal number (PIN) to confirm
customer payment transactions when providers of payment services requested. After
completing the necessary procedures, the customers will be an official member and
eligible for payment through mobile.
 Call center: As data is centrally managed, customers have account at any
branch can call a fixed number of centers to provide all information. Differences
from Phone banking just provide the type of information is programmed, call center
can provide information or answer questions of customers flexible. Disadvantage of
call center is having staff available 24/24.
 Card payment: A bank card is a plastic card that provides an alternative
payment method to cash when making purchases. Functionally, it can be called an
electronic cheque, as the funds are withdrawn directly from either the bank account
or from the remaining balance on the card. In some cases, the cards are designed
exclusively for use on the Internet, and so there is no physical card. For consumers,
the difference between a "debit card" and a "credit card" is that the debit card
deducts the balance from a deposit account, like a checking account, whereas the
credit card allows the consumer to spend money on credit to the issuing bank. In
other words, a debit card uses the money you have and a credit card uses the money
you don't have. "Debit cards" which are linked directly to a checking account are
sometimes dual-purpose, so that they can be used as a credit card, and can be
charged by merchants using the traditional credit networks.