Factors Influencing the Consumer Adoption of Digital Banking Services During the Covid-19 Pandemic in Vietnam

Abstract

AbstractThe Covid-19 pandemic has created an opportunity for Vietnam to digitalize economy faster in many industries, especially banking service. Hence, this research paper aims to discovery the main determinants affecting the digital banking service adoption of Vietnamese people during the Covid-19 time. Conducting an online survey with 513 respondents during the social distancing period owing to the 4th wave of corona virus spreading in Vietnam, the researchers analyze the role of Covid-19 as a reason to create a dilemma situation pushing people to choose digital banking services to keep them be safe in the pandemic. Basing on the theory of consumer behavior models, the study indicates five determinants which influence the adoption of digital banking services in Vietnam in the context of Covid-19 spreading, as follow: banking service safety, online shopping preference, recommendation, bank marketing and acceptant of perceived risk. Basing on the results of data analyzation, the affection of banking service safety and online shopping preference contributes significantly to the rise of digital banking service adoption during the corona pandemic. And to be avoiding to the threat of covid-19 infected, people surveyed intend to accept the risk caused by digital banking services. These findings can contribute to understanding consumer behavior under the affection of situation (such as disaster or pandemic) comprehensively, help Vietnamese banks to build stronger strategies to enlarge their digital banking service market shares.KeywordsDigital bankingDigital banking serviceCovid-19 pandemic