Bank’s brand, social influence, and its impact on the decision on using mobile banking services of individual customers: An empirical study

Vo Thi Phuong Lan,Nguyen Thanh Giang

doi:10.5267/j.ac.2021.1.015

Abstract

In the context of fintech and industrial revolution 4.0, the banking system worldwide has significantly developed mobile banking services at a great pace in order to promote economic performance. The aim of this analysis is to estimate factors that impact on the customers' use of mobile-banking services in the typical case in Vietnam nowadays. Using a sample data of 420 questionnaires covering in 2020, the results indicate that brand and social influence have greatly impacted on the customers' use of mobile-banking services. A greater bank’s brand and social influence is positively related to a greater the customers' use of mobile-banking services. In addition, transaction risk has a negative impact on decisions to use mobile-banking services. Vietnam should enhance the risk management in the banking sector in order to maintain sustainable development in the long run.

Highlights

The banking sector is an important channel through which financial development impacts on economic growth and sustainable development in both developed and developing economies (Tran & Tran, 2020)
Using a sample data of 420 questionnaires covering in 2020, the results indicate that brand and social influence have greatly impacted on the customers' use of mobile-banking services
In the trends of fintech and industrial revolution 4.0, online payment via electronic banking such as internet banking, mobile banking, web banking has significantly grown at a great pace in recent years

Summary

Introduction

The banking sector is an important channel through which financial development impacts on economic growth and sustainable development in both developed and developing economies (Tran & Tran, 2020). To contribute to the development of the banking system, mobile-banking services have significantly created great strides. According to the development of revolution 4.0, the increase in the number of internet users has totally created a wealth of opportunities for individuals and organizations, and especially financial institutions. Banks are likely to implement internet tools and technology to capture its advantages regarding revolution 4.0. Mobile banking uses internet tools as a channel to provide services, for example, money transfers, and bill payment. As suggested in Li et al (2020), Nguyen and Nguyen (2017), Do (2013) the cost of a transaction that does not involve cash at a bank is relatively higher than a similar transaction through electronic banking

Results

Discussion

Conclusion