Influencing Factors of the International Payment Service Quality at Joint Stock Commercial Bank for Investment and Development of Vietnam

Abstract

International payment is an essential part of the economy, which is beneficial to both commercial banks and trading enterprises. Moreover, service quality, which has been a key point of discussion for decades, relates to customer satisfaction. This study aims to investigate the factors influencing international payment service quality at the Join Stock Commercial Bank for Investment and Development of Vietnam (BIDV) from 2015 through 2019. This research deploys both quantitative and qualitative methods to discuss the effects of these components. Statistical data was examined through different tests, including reliability analysis, correlation, and regression analysis by SPSS 16.0. The authors obtain and analyze 157 valid responses from customer surveys, then by applying an integration SERVPERF and PSQM model, identify five main components: Reliability, Tangibles, Assurance, Convenience, and Responsiveness, which explain how the customer perceives the service quality of international payment activities at BIDV. The results show that these five factors have a positive relationship with service quality, in which, Reliability has the most significant impacts on service quality level. Besides, the findings not only contribute to the literature but also give some practical implications for BIDV to improve its international payment service quality and help them to obtain customer satisfaction in the fast-changing environment. After becoming an official member of the WTO-World Trade Organization in 2007, Vietnam's economy has progressively integrated into the world economy. The opening economy leads to a higher demand for trading transactions related to the international payment field. Moreover, there are more private joint-stock banks, foreign banks, and financial companies providing international payment services, in order to foster the rapid growth of both domestic and international trades. Customers are seen as banks' survival and growth. Therefore, the provision of high-quality services increases the rate of customer retention, attracts new customers through word-of-mouth communication, increases productivity, expands the market share, reduces staff turnover and operating costs, and improves employee morale, financial performance, and profitability (Hinson et al., 2006). Based on these facts, it is essential to find out the main factors that impact on the quality of international payment activities, for further development and enhancement. This research investigates international payment service quality at BIDV, BIDV is the longest established