Study of the factors affecting the decision to use digital banking services of students at university of economics in Ho Chi Minh City

Abstract

Globalization represents an inevitable trend in the contemporary world, profoundly impacting various facets of economic and social life, notably the banking sector. In Vietnam, the globalization phenomenon has brought forth a plethora of opportunities and challenges for banks, necessitating their integration of technology and digitalization of processes to streamline operations, enhance customer experience through effective data utilization, and foster customer engagement. Using expert contributors' insights, this study investigates the factors that affect students' decisions to use digital banking, specifically students at University of Economics Ho Chi Minh City. Multivariate data analysis techniques (Cronbach‟s Alpha test, Confirmatory Factor Analysis, Structure equation model) are used for the survey data collected from 300 customers who have access to digital banking. The analysis results show that only two factors Convenience and Perceived security have a strong impact on Intention to use digital banking, but two factors Customer support and Social influence do not. And only the Trust factor affects Attitude towards the digital banking, while surprisingly Perceived usefulness, Perceived ease of use and Perceived risk do not show an impact. From the results of this study, perceived usefulness has a positive effect on attitude and intention to use the service. Therefore, research to know how to create good experiences is very important for Digital banking to continue its long-term development and application in Vietnam. In terms of application, this study provides empirical evidence that experience strongly influences customer satisfaction and attitudes. It outlines the factors that banks should consider to assist customers in experiencing new technology more effectively. Furthermore, future research may seek to replicate the findings of this study in different contexts to evaluate model robustness. The findings of the study can offer guidance to entrepreneurs, researchers, and policymakers in comprehending and effectively implementing digital banking growth strategies, which are essential for enhancing business reputation and acquiring customers