Technology Affecting the Service Quality of Commercial Banks in Vietnam

Abstract

Purpose: The study studies the factors affecting the quality of banking services of commercial banks, commercial bank branches operating in Vietnam. The authors proposed policy implications based on research results that improve the quality of commercial banking services. Theoretical framework: Service quality measurement is difficult because of its characteristics: intangibility, heterogeneity, and inseparability. The concept of service quality has been researched and developed in many recent decades through customer satisfaction. Design/methodology/approach: The authors conducted quantitative research in 2 phases. Phase 1 is a preliminary quantitative study: collecting data to check the reliability of the scales in the research model and completed in October 2022. Phase 2 is the official quantitative research: collecting data on a large scale after building and perfecting the appropriate scales, to be carried out from November to February 2023. Processing data by statistical methods, analyzing EFA and CFA, using the structural equation model analysis (SEM) method to test the fit of models and hypotheses with SPSS 20.0 software and Amos. Findings: The article’s findings showed that technology factors affect commercial banks’ service quality in Vietnam. At the same time, it introduces some changes in Vietnamese banks in the context of current technological breakthroughs. Research, Practical & Social implications: Practical implications enhanced the service quality of commercial banks in the context of digital technology breakthroughs. The amount of information that can be encoded and the tools were available to process it has increased dramatically. Originality/value: The paper’s originality and value help bank managers invest in digital technology as the way forward to better serve their customers. Besides, the article has systematized the theory of service quality and factors affecting the quality of commercial banking services.