Impact of online services on bank competitiveness in Vietnam

Abstract

This study determines and measures the impact of online services on the competitiveness of
Vietnamese commercial banks. The authors use the Generalized Least Squared method and data from
33 Vietnamese commercial banks from 2016 to 2022 to estimate the relationship. The results show that
banks with high online service indexes demonstrate higher competitiveness. Internet banking activities
for corporate and individual customers positively impact the competitiveness of state-owned and private
commercial banks. Online services do not show a significant impact on listed banks. Meanwhile, e-banking
activities have positive effects on unlisted banks. In addition, the study also provides recommendations
on enhancing brand image, developing technology platforms, and enhancing security and connectivity of
online service provision activities to improve the competitiveness of commercial banks.