Journal Search Engine
Search Advanced Search Adode Reader(link)
Download PDF Export Citaion korean bibliography PMC previewer
ISSN : 2288-4637(Print)
ISSN : 2288-4645(Online)
The Journal of Asian Finance, Economics and Business Vol.7 No.3 pp.303-310

Factors Affecting the Intention to Use Digital Banking in Vietnam

Oanh Thi NGUYEN**
*The authors would like to express sincere gratitude towards Dr. Vinh Tan Nguyen – Lecturer at Academy of politics region II for his guidance, advice and support in completion of this paper.
**First Author and Corresponding Author. Academy of Politics Region II, Ho Chi Minh City, Vietnam [Postal Address: 99 Man Thien Street, Hiep Phu, Q9, Ho Chi Minh City, 700000, Vietnam] Tel: +84 972188451. E-mail:;

© Copyright: The Author(s)
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
November 16, 2019 February 9, 2020 February 11, 2020.


The study aims to evaluate the factors affecting the intention to use digital banking in Vietnam. Multivariate data analysis techniques (Cronbach’s Alpha test, Confirmatory Factor Analysis, Structure equation model) are used for the survey data collected from 201 customers who have access to digital banking. The analysis results show that: (1) attitude towards the service, perceived usefulness has a positive impacts on the intention to use; (2) convenience does not affect the intention to use digital banking services; (3) perceived usefulness factor has a positive effect on the attitude towards the service; (4) The perceived risk has a negative impact on attitude towards the service; (5) trust has no effect on the attitude towards the service; (6) ease of use has a positive impact on perceived usefulness; (7) trust has a positive effect on perceived risk. From the results of this study, perceived usefulness has a positive effect on attitude and intention to use the service. Therefore, it is necessary to enhance the sense of the usefulness of customers through media advertising and consulting so that customers fully understand the benefits brought about by using digital banking services. Perceived risk has a negative impact on attitude towards the service.

JEL Classification Code : C38, D70, M21


1. Introduction


The advent of digital services has greatly affected the operations of businesses (52% of companies of Fortune 500 have gone bankrupt or have been acquired since 2000) (State Bank, 2019). In addition, the application of the digital banking system was estimated to bring profits from 43% - 48% (State Bank, 2019). In Vietnam, the banking industry has witnessed rapid growth and intense competition among banks in recent years. To increase the competitiveness and attract customers, new utility services such as digital banking is being implemented. This has made the application of digital banking necessary for banks in Vietnam today.

Digital banking is an important service in increasing customer loyalty to the bank. A survey shows that nearly 20% of customers are willing to switch to another financial institution if their current bank does not provide online banking services (Guru, Shanmugam, Alam, & Perera, 2003). Therefore, research on the intention to use digital banking services is considered necessary (Lee, Cai, & O’Leary, 2006). For new technology services such as digital banking, researchers often rely on the frameworks of theory of reasoned action model (TRA) (Fishbein & Ajzen, 1975), technology acceptance model (TAM) (Davis, 1989, 1993) and its variants (Kulviwat, Ii, Kumar, Nasco, & Clark, 2007; Venkatesh, 2000; Venkatesh, Morris, Davis, & Davis, 2003)

In Vietnam, although there have been many studies related to the intention to use internet banking services. However, no research has been conducted on the scope of digital banking services (digital banking services are more extensive and broader than electronic banking services). In order to ensure that commercial banks in Vietnam can switch to the digital banking business model, it is required to study the factors affecting digital banking development in Vietnam. Stemming from the above reasons, the author have chosen the topic "Factors affecting the intention to use digital banking in Vietnam".


2. Literature Review


2.1. Overview of Digital Banking


Digital banking is a transformation of all traditional banking activities and services into a digital environment (Sarma, 2017). Digital banking is a highly technologically demanding including innovation in financial services for customers and commercial customers around mobile, digital, AI and payment strategies, regtech, data, blockchain, API, distribution channels and technology (Sarma, 2017). In general, digital banking is an operating model based on a technology platform to exchange information and conduct transactions between banks and customers. This process is done through digital devices which are connected to computer software in the internet environment. Customers do not have to come to physical branches of banks to make transactions and vice versa, banks also do not have to meet with customers to complete transactions (e.g., signing documents, tracking records)

According to Davis (1993) and Venkatesh (2000), the intention to use technology services is the awareness of ability to use services of customers. Customers’ intentions to use the service, will be influenced by several motivating factors leading to the intention (Fortes & Rita, 2016). Research on the intention to use technology services service is often anchored on technology acceptance model (TAM) and the various models developed from the TAM model (King & He, 2006) . In the TAM model, the intention to use through the lens of theory of rational action and  theory of planned behavior is affected by factors such as: ease of use, perceived usefulness, attitude to service (Davis, 1989). In addition, the TAM model has also been extended to include a number of new factors such as perceived risk, trust and convenience (Fortes & Rita, 2016). This study is intended to investigate the intention to use digital banking services using the following factors: (1) ease of use; (2) perceived usefulness; (3) perceived risk; (4) trust; (5) convenience; and (6) attitude towards service.


2. 2. Hypothesis


Perceived usefulness is a customer's perception of the ability to improve work efficiency, for example by saving time, when accessing services to services in multiple ways (Davis, 1993). When customers feel the service useful they have a positive attitude towards the service (Fortes & Rita, 2016) and directly increase their intention to use the service (Davis, 1993; Pavlou, 2003; Pavlou & Fygenson, 2006). At the same time, the good attitude with service will increase the intention to use customer services (Fortes & Rita, 2016). Therefore, hypothesis is proposed as follows:


H1b: Perceived usefulness has a positive impact on the intention to use the service.


Ease of use is a customer's level of trust in using the service that will bring freedom and comfort (Davis, 1989, 1993). Digital banking services make it easier for customers to access and use banking services than traditional counter services. Many existing studies show that the ease of using the service affects customers' perceptions of the service's usefulness  (Phan & Bui, 2019; Venkatesh, 2000; Venkatesh et al., 2003) and their attitude towards the service (Davis, 1993; Venkatesh, 2000). Therefore, hypothesis is proposed as follows:


H2a: Perceived ease of use has a positive impact on perceived usefulness.

H2b: Perceived ease of use has a positive on attitude towards the service.


Risks are perceptions of the damages that customers may incur when using the service. The risk of losing personal information or transactions creates a barrier to electronic services (Fortes & Rita, 2016; Glover & Benbasat, 2010; Nguyen, Nguyen, Dang, & Nguyen, 2016). Therefore, reducing the perceived risk will increase the positive attitude of customers to the service. Hypothesis is given as follows:


H3: Perceived risk has a negative impact on attitude towards the service


Trust of customers is a factor showing that customers feel secure when using the service without having to care about risks or other issues (Gefen, Karahanna, & Straub, 2003; Nguyen, Nguyen, & Vo, 2019). Page and Luding (2003) think that a high level of trust is an important motivation for using digital banking services (Page & Luding, 2003). Stewart (2003) also suggests that at a sufficient amount of trust, customers find a website or an application more useful. Therefore, Hypothesis is stated as follows:


H4a: Trust has a positive impact on perceived risk.

H4b: Trust has a positive impact on attitude towards the service.


Convenience improves access to services easily with the efficiency equal to or better than other services. Convenience can be demonstrated by saving transaction time and reducing technical errors (Chen, Sun, & Xu,2016; Seiders, Voss, Godfrey, & Grewal, 2007). There are studies that show how convenient it is to find or access services. Increasing convenience will help increase customers' intention to use the service by minimizing time and reducing errors during transactions (Chang & Polonsky, 2012). Therefore, Hypothesis is stated as follows:



Attitude towards the service affects the customer's decision to use the service. For digital banking services, customers who have a positive view of the service are more likely to accept it.Various studies have shown that positive customer views or attitudes influence the intend to use  (Kulviwat et al., 2007; Nguyen et al., 2016; Nguyen et al., 2019; Sousa & Farhangmehr, 2018; Venkatesh et al., 2003). Therefore this study hypothesizes:


H6: Attitude towards the service has a positive on intention to use the service.


Research model and hypothesis are shown in Figure 1.




3. Research Method


3.1. Research Design


The questionnaire (see Tale 1) used to measure the factors in the proposed model was referenced from previous studies (Chang & Polonsky, 2012; Davis, 1993; Fortes & Rita, 2016). The time during which the survey was conducted was from 10/2018 to 1/2019. Likert 5-point scale was chosen in which: 1 – strongly disagree and 5- strongly agree.





3. 2. Sample and Data


The research sample was identified as customers using digital banking services in Vietnam. Convenient sampling methods was then applied to collect data. The official survey results obtained 201 responses. This sample size was demonstrated to reach reliability according to most sampling rules (Tabachnick & Fidell, 2006). The demographic description of respondents showed that the percentage of women participating in the survey was higher than that of men (113 women made up 56.2% while the number of men was 88 comprising 43.8%). About education, a majority of respondents held college degree (155 people, at 77.1%). In contrast, there were only 39 graduates and 7 respondents of high school level, comprising about 19% and 3.5% of the sample, respectively.





3. 3. Data Analysis


Research data was analyzed using multivariate analysis methods. Firstly, scale reliability of the constructs in the research model was assessed through Cronbach's alpha coefficient , the value of which was required to be greater than 0.6 (Hair, Black, Babin, Anderson, & Tatham, 2006) and the item-total correlation greater than 0.3 (Nunally & Burstein, 1994). To assess the appropriateness of the research scales: confirmatory factor analysis (CFA) is used to convergence validity and discriminant validity. Structural equation modelling (SEM) was applied (SEM) to find out impacts of the factors on the intention to use digital banking services at the 5% significance level. CFA, critical and SEM analyses were reliable when the Chi - square / df conditions were less than 3; the value of CFI, TLI, IFI were all greater than 0.9; RMSEA’s coefficient was less than 0.05 (Hair et al., 2006; Hooper, Coughlan, & Mullen, 2008). A construct with all factor loadings of items greater than 0.5 was considered to have convergent validity and the one having the squared root of the variance greater than the correlation with other constructs was deemed to reach discriminant validity (Hair et al., 2006)


4. Results


4. 1. Evaluating Reliability


As mentioned above, the two criteria to deem a construct reliable were Cronbach’s alpha greater than 0.6 and the item-total correlation greater than 0.3. The items with an item-total correlation coefficient less than 0.3 would be excluded from the scale and considered as unnecessary item. This item would thus not be included in subsequent analyses (see Table 3).





The results of scale reliability indicated that perceived usefulness (PU) could be reliably measured through the three items: PU2, PU3 and PU4. PU1 was excluded as its item-total correlation coefficient (0.238) was less than 0.3. The remaining constructs all were all deemed reliable using the original items items (Cronbach’s alpha greater than 0.6 and the item-total correlation coefficients greater than 0.3). Therefore, the items in these constructs would be included in analysis in the next steps.


4. 2. Analysis Results




The results of confirmatory factor analysis showed that: Chi-square / df = 1.69, less than 3; CFI = 0.922; TLI = 0.922; IFI = 0.923 greater than 0.9; RMSEA = 0.059 less than 0.08. This suggested that the data was compatible with the proposed model. The factor loadings of items were all greater than 0.5 (Table 4), so it was possible to see the convergent validity.

The results of general reliability analysis and average extracted variance (AVE) showed that the factors are the scales with load factor greater than 0.5, reaching the convergence validity. For each construct, the composite reliability was above 0.7 and AVE was greater than 50%. This indicated that the scales used for the constructs achieved the necessary reliability (see Table 4).

Table 5 showed that square root of AVE of each construct was greater than its correlation with one another showing the scales satisfied discriminant validity.





4. 3. Structural Equation Modeling


The analysis results using SEM showed that the model was suitable for the survey data (Chi-square / df = 1.84 less than 3, CFI = 0.915; TLI = 0.90, IFI = 0.916 greater than 0.9, RMSEA = 0.065 less than 0.08). After testing the reliability and validity of the constructs, structural analysis was conducted to find out the factors affecting the intention to use digital banking services. As the significance level of 5% was selected, p-values would be compared with 0.05 to see which factors have significant impacts on the dependent variable. The combined results were presented in Figure 2.

Structural analysis results showed that ease of use had a positive effect on perceived usefulness, which in turn had a positive effect on the attitude towards the service. It was also found that trust had a positive impact on perceived risk and perceived risk as expected negatively affected attitude towards the service. Trust, however, had no direct effect on the attitude towards the service. Furthermore, perceived usefulness and attitude was found to positively affect intention to use, while the impact of convenience was found not significant. In other words, the results accepted hypotheses H1a, H1b, H2a, H3, H4a, H6 and rejected hypotheses H2b, H4b, H5 (see Table 6).







5. Discussion


The results showed that attitude towards the service and perceived usefulness had positive effects on intention to use the service, which is in accordance with the theory of reasoned action model (TRA) (Fishbein & Ajzen, 1975), theory of planned behavior (TPB) (Ajzen, 1985). Specifically, perceived usefulness reported a stronger impact than attitude towards the service on customer's intention to use. This implies that banks can take advantage of technological advances to enhance the usefulness of their services, focusing on promoting the development of their digital banking services. Customers increasingly appreciate the advantages of digital services, such as time-saving nature and diversity of services compared to performing transactions at counter.

In addition, the result that perceived risk had an indirect effect on intention to use through attitude towards the service supports the proposed hypothesis and is also found in the study of Fortes and Rita (2016). A high level of perceived risks often leads to a negative attitude towards the service, which means that poor perceptions of the information or transaction security when using digital banking services will make customers have a bad attitude to the service. Fortes and Rita (2016) also suggest customers always react negatively to issues that bring risks or damages to themselves.

In contrast, trust did not directly affect the attitude to the service but had an indirect effect through perceived risk. The negative impact of trust on perceived risk indicates when customers trust the service they feel more secure and their perceived level of risk is reduced. Research by Fortes and Rita (2016) also shows the same result. When banks gain customers' confidence in digital banking services, they no longer feel insecure when using the service, and vice versa if the customer's confidence is reduced due to the information or perceived insecurity or poor service quality, they will tend to increase the level of precautions and think about risks when using the service.

Finally, convenience reported insignificant impact on intention to use digital banking services. This result can be explained by the Kano theory positing that in case of utility services using high technology like digital banking, convenience is considered a must. Customers, therefore, no longer consider the convenience as a criterion when making their decisions to use the service. At the same time, the trust of customers does not directly affect the attitude to the service, meaning that when customers have confidence in digital banking, they will not appreciate or have a good attitude towards the service. They tend to first seek belief that the service poses no risks or harms to themselves and then have their attitude changed accordingly.


6. Conclusion


The study shows the necessity of digital transformation of traditional banking activities today. With the rapid development of technology in the financial industry, especially Fintech businesses, it is imperative that banks develop electronic banking services to facilitate easier management and operation. At the same time, the use of digital banking services enables customers to use more value-added services with flexibility, reducing the technical errors that can be encountered when doing other traditional transactions. With an extensive review of previous studies, the authors have constructed a research model to investigate the factors affecting the intention to use digital banking services in Vietnam. Drawing on the research results, several recommendations are provided to help improve the intention to use digital banking services in Vietnam.

Perceived usefulness has a positive effect on attitude and intention to use the service. Therefore, it is necessary to enhance the sense of the usefulness of customers through media advertising and consulting so that customers fully understand the benefits brought about by using digital banking services. Perceived risk has a negative impact on attitude towards the service. Therefore, banks need to build information security layers to insure customers, but at the same time the services need ease of use to avoid annoying customers.




  1. Ajzen, I. (1985). From Intentions to Actions: A Theory of Planned Behavior. In J. Kuhl & J. Beckmann (Eds.), Action Control: From Cognition to Behavior (pp. 11–39). Berlin, Germany: Springer.
  2. Chang, Y.-W., & Polonsky, M. J. (2012). The influence of multiple types of service convenience on behavioral intentions: The mediating role of consumer satisfaction in a Taiwanese leisure setting. International Journal of Hospitality Management, 31(1), 107–118.
  3. Chen, X., Sun, Y., & Xu, X. (2016). Free cash flow, over-investment and corporate governance in China. Pacific-Basin Finance Journal, 37, 81–103.
  4. Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319–340. JSTOR.
  5. Davis, F. D. (1993). User acceptance of information technology: System characteristics, user perceptions and behavioral impacts. International Journal of Man-Machine Studies, 38(3), 475–487.
  6. Fortes, N., & Rita, P. (2016). Privacy concerns and online purchasing behaviour: Towards an integrated model. European Research on Management and Business Economics, 22(3), 167–176.
  7. Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in Online Shopping: An Integrated Model. MIS Q., 27(1), 51–90.
  8. Glover, S., & Benbasat, I. (2010). A Comprehensive Model of Perceived Risk of E-Commerce Transactions. International Journal of Electronic Commerce, 15(2), 47–78.
  9. Guru, B., Shanmugam, B., Alam, N., & Perera, J. (2003). An Evaluation Of Internet Banking Sites In Islamic Countries. Journal of Internet Banking and Commerce, 8, 1–11.
  10. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis 6th Edition. Pearson Prentice Hall. New Jersey. Humans: Critique and Reformulation. Journal of Abnormal Psychology, 87, 49–74.
  11. Hooper, D., Coughlan, J., & Mullen, M. R. (2008). Structural Equation Modelling: Guidelines for Determining Model Fit. Electronic Journal of Business Research Methods, 6(1), 53–60.
  12. King, W. R., & He, J. (2006). A meta-analysis of the technology acceptance model. Information & Management, 43(6), 740–755.
  13. Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling, Fourth Edition. New York, NY: Guilford Publications.
  14. Kulviwat, S., Ii, G. C. B., Kumar, A., Nasco, S. A., & Clark, T. (2007). Toward a unified theory of consumer acceptance technology. Psychology & Marketing, 24(12), 1059–1084.
  15. Lee, G., Cai, L. A., & O’Leary, J. T. (2006). WWW.Branding.States.US:An analysis of brand-building elements in the US state tourism websites. Tourism Management, 27(5), 815–828.
  16. Nguyen, N. D., Nguyen, T. H., Dang, B. N., & Nguyen, V. D. (2016). Factors affecting consumer’s buying behaviour toward tourism products on internet: An empirical investigation of Hanoi Consumers. Journal of Economics and Development, 245, 77–88.
  17. Nguyen, P. N. D., Nguyen, V. T., & Vo, N. N. T. (2019). Key Determinants of Repurchase Intention toward Organic Cosmetics. The Journal of Asian Finance, Economics and Business, 6(3), 205–214.
  18. Page, C., & Luding, Y. (2003). Bank managers’ direct marketing dilemmas – customers’ attitudes and purchase intention. International Journal of Bank Marketing, 21(3), 147–163.
  19. Pavlou, P. A. (2003). Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model. International Journal of Electronic Commerce, 7(3), 101–134.
  20. Pavlou, P. A., & Fygenson, M. (2006). Understanding and Predicting Electronic Commerce Adoption: An Extension of the Theory of Planned Behavior. MIS Quarterly, 30(1), 115–143. JSTOR.
  21. Phan, D. T. T., & Bui, T. A. (2019). Going beyond Border? Intention to Use International Bank Cards in Vietnam. The Journal of Asian Finance, Economics and Business, 6(3), 315–325.
  22. Seiders, K., Voss, G. B., Godfrey, A. L., & Grewal, D. (2007). SERVCON: Development and validation of a multidimensional service convenience scale. Journal of the Academy of Marketing Science, 35(1), 144–156.
  23. Sousa, A., & Farhangmehr, M. (2018). An Empirical Study about the Influence of Country Personality and Product Involvement on Consumer’s Purchase and Visit Intentions. The Journal of Asian Finance, Economics and Business, 5(3), 65–72.
  24. Tabachnick, B. G., & Fidell, L. S. (2006). Multivariate analysis of grouped data (Palm Springs). In Invited workshop presented to the meeting of the Western Psychological Association.
  25. Venkatesh, V. (2000). Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model. Information Systems Research, 11(4), 342–365.
  26. Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425–478. JSTOR.