Factors influencing the adoptation of internet banking: Case study of the South of Vietnam

Abstract

Internet banking service (iBanking) is an inevitable trend of commercial banks thanks to its benefit for both
users and banks. It also contributes to reduction of the rate of cash payment in the economy. However, the
rate of iBanking users in Vietnam is still very low: only 4% compared with 12% in Asian emerging markets
and 39% all over the world. This research aims to identify the factors affecting the acceptance of iBanking in
Vietnam, thereby suggesting solutions to increase the acceptance rate of iBanking in Vietnam. The theroretical
model is based on Wadie Nasri’s research (Nasri, 2011). Research data are analyzed by SPSS with the sample
size n= 214. The article uses Cronbach’s Alpha test, the EFA factor analysis, the Pearson test and then runs the
multivariate regression model. The regression results propose that the adoptation of iBanking in the South of
Vietnam is influenced by three factors according to the degree of reduction: information about iBanking, prior
internet knowledge, perceived risks. The model also suggests that demographic factors including gender, age,
occupation, education, and income do not affect the adoption of iBanking in the South of Vienam. Finally, the
article offers four proposals to increase adoption of iBanking in the South of Vietnam.