An Investigation of Critical Factors Affecting Customers' Trust in Electronic Banking: Empirical Evidence from Vietnam

Abstract

Electronic banking services have gained increased popularity around the world; however in Vietnam these services have put just their first footsteps in the beginning of 2005. Electronic banking is an alternative means of offering customers expedited and self-controlled transactions using the Internet as the medium for the transaction. Nowadays, banks use electronic banking services as a powerful “value added” channel to attract and retain new customers. This research examines the critical factors affecting customers’ trust in electronic banking in Vietnam. The analysis is carried out by answering three research questions: Does customers’ trust in electronic banking affect their intention to use electronic banking in Vietnam? What are the key factors affecting customers’ trust in using electronic banking and subsequently, their intention to use electronic banking in Vietnam? How can banks use these factors to foster customers’ trust in electronic banking? These questions often confront researchers as well as bank managers and policy makers.