Dissertation

Quality of retail banking services of ANZ Vietnam

Table of Content
List of Figures ............................................................................................................................ 3
List of Tables ............................................................................................................................. 4
Chapter 1.

Introduction .......................................................................................................... 5

1.1

Rationales for chosen topic ......................................................................................... 5

1.2

Research objectives ..................................................................................................... 6

1.3

Research significance .................................................................................................. 6

1.4

Research structure ....................................................................................................... 7

Chapter 2.
2.1

Literature Review................................................................................................. 8

Overview of retail banking services ............................................................................ 8

2.1.1 Definition of retail banking services .................................................................... 8
2.1.2 Services of retail banks ...................................................................................... 10

2.2

Service quality of retail banking ............................................................................... 13

2.2.1 Concept of service quality ................................................................................. 13
2.2.2 Relationship between service quality and customer satisfaction ....................... 15
1

2.3

Hypothesis development ........................................................................................... 18

2.4

Summary ................................................................................................................... 19

Chapter 3.

Research Methodology ...................................................................................... 20

3.1

Research strategy....................................................................................................... 20

3.2

Research Model ......................................................................................................... 21

3.3

Data collection and analysis ...................................................................................... 22

Chapter 4.
4.1

Results and Discussion ...................................................................................... 24

Retail banking service quality at ANZ Vietnam ....................................................... 24

4.1.1 Comparison with other banks ............................................................................ 24
4.1.2 From customers perspective ............................................................................. 25

4.2

Discussion on retail banking service quality at ANZ Vietnam ................................. 29

4.2.1 Achievements ..................................................................................................... 29
4.2.2 Limitations ......................................................................................................... 31
4.2.3 Causes for limitations ........................................................................................ 32
4.2.4 Solutions to improve the quality ........................................................................ 33

4.3

Summary ................................................................................................................... 38

Chapter 5.

Conclusion ........................................................................................................... 1

Reference ................................................................................................................................... 1

List of Figures
Figure 2-1 Hypothesis development ................................................................................... 18
Figure 4-1 Comparing retail banking service at ANZ and some banks .............................. 24
Figure 4-2 Results of descriptive statistical analysis .......................................................... 25
Figure 4-3 Results of Cronbachs alpha scale ..................................................................... 26
Figure 4-4 Customer service triangle .................................................................................. 34

List of Tables
Table 3-1 Components in retail banking service quality at ANZ Vietnam......................... 22
Table 4-1 Comparing retail banking service at ANZ Vietnam and other banks ................. 24
Table 4-2 Statistical pattern classification .......................................................................... 25
Table 4-3 Model summary of the degree of appropriateness .............................................. 27
Table 4-4 Results of multiple linear regression analysis .................................................... 28

Introduction

Chapter 1.

1.1 Rationales for chosen topic

International integration has opened up many opportunities but also many challenges to
banking service organizations when they have to face fierce competition with foreign banks
which are not only strong in finance but also very experienced in the development of modern
banking services (Berger and Smith, 2003). Following to report of Lam et al. (2013),
Vietnams economy during the period of 2007-2012 has been undergoing through extremely
complicated movements with unusual changes of the stock market, real estate, gold and
especially the spreading impact of the global financial crisis derived from the U.S. During the
recent global crisis, while most of the commercial banks have their strategy focusing on retail
withstand, lots of banks with huge investment go bankrupt such as Merrill Lynch and Lemon
Brothers or have lots of difficulties and have to switch to retail banking development (Taylor
et al., 2012). Therefore, Roe (2012) indicated that the trend is that almost every commercial
bank in the world today promotes their retail banking development. Experiencing such
volatility, the bank executives have been acutely aware of the instability of group of the
corporate clients when economic crisis happens. Individual customers are aimed as the very
potential strategic market. Practice and theory have pointed out the role, the stability and
sustainability of this group for banking operations, among others (Barr, 2001; Davis, 2009;
Festic and Beko, 2009; Woo and Zhang, 2010; Pinprayong and Wongsurawat, 2012).
According to the General Statistic Office (GSO), Vietnam has a population of over 88 million
people, estimated to increase up to 90 million in 2011 and every year Vietnams population
increases by 1million people. However, only 10 percent of the population opens their bank
account, which is very clear that the room for banking service development is really huge
(Vierra and Vierra, 2010). Therefore, the trend to promote retail banking activities has been
increasingly busy since 2007 (Dinh and Kleimeier, 2007; Pincus, 2009; Thanh and Hung,
2011; Blanger et al., 2012; Truitt, 2012).
The term retail banking has appeared in Vietnam for a long time; however a standard
model is still a difficult question that needs further discussion (Thanh and Hung, 2011). ANZ
Vietnam is one of the first foreign banks to operate in Vietnam since 1993. with 10 branches
5

and transaction offices in Vietnam, ANZ now offers full range of banking services, including
personal banking, commercial banking (for medium and small companies and potential
enterprises) and wholesale banking services. ANZ Vietnam has been awarded Best retail
bank in Vietnam in the category of International Excellence in Retail Financial Services
2013 by Asian Banker Magazine To (2013). ANZ Vietnam has been awarded thanks to their
remarkable business performance in retail banking segment. The performance was achieved
thanks to the success of improving sales and operation efficiency, and better control of costs
and risks. In addition, the outstanding advantage of ANZ compared to other banks is their
continuously leading position in the field of investment and finance management as well as
increasingly development of mortgage services and credit card services. What make ANZ
different are their clear business strategy and focus as well as the implementation plan with
the key target aiming at high class group of customers and potential customer group in
Vietnam (Stockport et al., 2012). 2012 marks the major steps in achieving their targets,
creating solid foundation for the development of ANZs ambitious business plans in 2013 and
the following years (To, 2013). In 2013, ANZ continues their investment in personnel,
technology and business processes in order to bring outstanding products and services to their
customers (ANZ Oficial Website). From the fact above, the assessment of the actual quality
of banking retail service of ANZ Vietnam and suggestion of solutions to improve the retail
service in the coming time, to increase the level of customer satisfaction, which has drawn
attention and concern to choose the research matter.

1.2 Research objectives

The objectives of this dissertation are listed as following:

Assessing the quality of retail banking services of ANZ Vietnam

Proposing recommendations to improve quality of retail

1.3 Research significance

Based on the evaluation of actual state of quality of retail banking in ANZ Vietnam,
unsatisfied and satisfied factors in management of retail banking services are analyzed, thus
recommending solutions to improve retail services in ANZ Vietnam in the future.

1.4 Research structure

Apart from the Introduction of the content and the conclusion, structure of the research
including three chapters with the specific content is as followed:
Chapter 2: Literature review on theoretical and empirical studies related to retail banking.
Chapter 3: Research methodologies used in order to achieve the study purposes.
Chapter 4: Results observed through the study on the actual state of quality of retail
banking in ANZ Vietnam.
Chapter 5: Conclusions conducted as well as solutions suggested to improve quality of
retail banking in ANZ as well as in Vietnamese banking sector.

This document is provided by:

VU Thuy Dung (Ms.)
Manager

Center for Online Writing Resources

Facebook
Email
Blogger
Website

: https://www.facebook.com/vu.thuydung.5076
: assignmentsource@gmail.com
: http://assignmentsource.blogspot.com/
: http://assignmentsource.com/

Reference
Alfansi, L., & Sargeant, A. (2000). Market segmentation in the Indonesian banking sector: the
relationship between demographics and desired customer benefits. International Journal of
Bank Marketing, 18(2), 64-74.
Argent, N. (2002). A global model or a scaled-down version?: geographies of convergence and
divergence in the Australian retail banking sector. Geoforum, 33(3), 315-334.
Athanassopoulos, A. D. (1997). Service quality and operating efficiency synergies for
management control in the provision of financial services: evidence from Greek bank
branches. European Journal of Operational Research, 98(2), 300-313.
Balistierri, D. F., Bateson, P., Cunescu, A., Lomax, C., Lundequist, J., & Pendel, D. (2011). U.S.
Patent Application 13/085,989.
Barr, C. (2001). Banking on sustainability: structural adjustment and forestry reform in postSuharto Indonesia. Washington, DC: WWF Macroeconomics Program Office.
Blanger, D., Drummond, L. B. W., & Nguyen-Marshall, V. (2012). Introduction: Who Are the
Urban Middle Class in Vietnam?. In The Reinvention of Distinction (pp. 1-17). Springer
Netherlands.
Berger, A. N., & Smith, D. C. (2003). Global integration in the banking industry. Fed. Res.
Bull., 89, 451.
Bravo, R., Montaner, T., & Pina, J. M. (2010). Corporate brand image in retail banking:
Development and validation of a scale. The Service Industries Journal, 30(8), 1199-1218.
Canner, G. B., Luckett, C. A., Cook, W. C., & Peirce, M. A. (1992). Developments in the
pricing of credit card services. Fed. Res. Bull., 78, 652.
Consoli, D. (2005). The dynamics of technological change in UK retail banking services: an
evolutionary perspective. Research Policy, 34(4), 461-480.
Davis, E. P. (2009). Financial Stability in the United Kingdom: Banking on Prudence.
Organisation for Economic Co-operation and Development.

Dibb, S., & Meadows, M. (2001). The application of a relationship marketing perspective in
retail banking. Service Industries Journal, 21(1), 169-194.
Dinh, T. H. T., & Kleimeier, S. (2007). A credit scoring model for Vietnam's retail banking
market. International Review of Financial Analysis, 16(5), 471-495.
Festic, M., & Beko, J. (2009). The sustainability of banking sector results in three new European
Union members. International Journal of Sustainable Economy, 1(2), 186-197.
Garland, R. (2005). Segmenting retail banking customers. Journal of Financial Services
Marketing, 10(2), 179-191.
Gonzlez, M. E. A., Comesaa, L. R., & Brea, J. A. F. (2007). Assessing tourist behavioral
intentions through perceived service quality and customer satisfaction. Journal of Business
Research, 60(2), 153-160.
Gorla, N., Somers, T. M., & Wong, B. (2010). Organizational impact of system quality,
information quality, and service quality. The Journal of Strategic Information Systems, 19(3),
207-228.
Gounaris, S., Dimitriadis, S., & Stathakopoulos, V. (2010). An examination of the effects of
service quality and satisfaction on customers' behavioral intentions in e-shopping. Journal of
services marketing, 24(2), 142-156.
Grnroos, C. (1984). A service quality model and its marketing implications. European Journal
of marketing, 18(4), 36-44.
Gronroos, C. (1988). Service quality: the six criteria of good perceived service quality. Review
of business, 9(3).
Grnroos, C., & Ravald, A. (2011). Service as business logic: implications for value creation
and marketing. Journal of Service Management, 22(1), 5-22.
Hasan, I., Schmiedel, H., & Song, L. (2012). Returns to Retail Banking and Payments. Journal
of Financial Services Research, 41(3), 163-195.
Ibrahim, E. E., Joseph, M., & Ibeh, K. I. (2006). Customers' perception of electronic service
delivery in the UK retail banking sector. International Journal of Bank Marketing, 24(7),
475-493.
9

Johnston, R. (1995). The determinants of service quality: satisfiers and dissatisfiers.

International journal of service industry management, 6(5), 53-71.
Johnston, R. (1997). Identifying the critical determinants of service quality in retail banking:
importance and effect. International Journal of bank marketing, 15(4), 111-116.
Kleimeier, S., & Sander, H. (2007). Integrating Europe's retail banking market: where do we
stand? (Vol. 38). Ctr for European Policy Studies.
Lam, N. B., Trinh, B., & Phong, N. V. (2013). Measuring the Effective Rate of Protection In
Vietnams Economy after Five Years Joining WTO (An Input-Output Analysis Approach).
Global Journal of Human-Social Science Research, 13(1).
Lawlor, M. P., & Carmody, T. E. (1993). U.S. Patent No. 5,220,501. Washington, DC: U.S.
Patent and Trademark Office.
Lewis, B. R., & Spyrakopoulos, S. (2001). Service failures and recovery in retail banking: the
customers perspective. International Journal of Bank Marketing, 19(1), 37-48.
Leyshon, A., Burton, D., Knights, D., Alferoff, C., & Signoretta, P. (2004). Towards an ecology
of retail financial services: understanding the persistence of door-to-door credit and insurance
providers. Environment and Planning A, 36(4), 625-646.
Meepadung, N., Tang, J., & Khang, D. B. (2009). IT-based banking services: Evaluating
operating and profit efficiency at bank branches. The Journal of High Technology
Management Research, 20(2), 145-152.
Mehta, S. C., Lalwani, A. K., & Han, S. L. (2000). Service quality in retailing: relative
efficiency of alternative measurement scales for different product-service environments.
International Journal of Retail & Distribution Management, 28(2), 62-72.
Mols, N. P., Bukh, P. N. D., & Nielsen, J. F. (1999). Distribution channel strategies in Danish
retail banking. International Journal of Retail & Distribution Management, 27(1), 37-47.
Muoz-Leiva, F., Luque-Martnez, T., & Snchez-Fernndez, J. (2010). How to improve trust
toward electronic banking. Online Information Review, 34(6), 907-934.
Nagar, V., & Rajan, M. V. (2005). Measuring customer relationships: The case of the retail
banking industry. Management science, 51(6), 904-919.
10

Oh, H., & Parks, S. C. (1997). Customer satisfaction and service quality: a critical review of the
literature and research implications for the hospitality industry. Hospitality Research Journal,
20, 35-64.
Olorunniwo, F., Hsu, M. K., & Udo, G. J. (2006). Service quality, customer satisfaction, and
behavioral intentions in the service factory. Journal of Services Marketing, 20(1), 59-72.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality
and its implications for future research. The Journal of Marketing, 41-50.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1994). Alternative scales for measuring
service quality: a comparative assessment based on psychometric and diagnostic criteria.
Journal of retailing, 70(3), 201-230.
Pepur, M., MIHANOVI, Z., & Pepur, S. (2009). Service quality and customer satisfaction.
International Journal of Management Cases, 11(2), 391-400.
Pincus, J. (2009). Vietnam: Sustaining growth in difficult times. ASEAN Economic Bulletin,
26(1), 11-24.
Pinprayong, B., & Wongsurawat, W. (2012). Strategic change for sustainability in Thai
Commercial Bank.
Roe, M. (2012). Derivatives Markets in Bankruptcy. Available at SSRN 2040864.
Sangeetha, J., & Mahalingam, S. (2011). Service quality models in banking: a review.
International Journal of Islamic and Middle Eastern Finance and Management, 4(1), 83-103.
Schneider, B., & Bowen, D. E. (2010). Winning the service game (pp. 31-59). Springer US.
Scott, J. (2012). 1. Capital mobilization, transnational structures, and capitalist classes.
Financial Elites and Transnational Business: Who Rules the World?, 1.
Sivadas, E., & Baker-Prewitt, J. L. (2000). An examination of the relationship between service
quality, customer satisfaction, and store loyalty. International Journal of Retail &
Distribution Management, 28(2), 73-82.

11

Stockport, G. J., Godley, M., Guagliado, D., Leung, O., Mercer, B., Varma, G., & Wong, S.
(2012). ANZ Bank: Building a Strategy for Asia. South Asian Journal of Business and
Management Cases, 1(1), 31-41.
Sureshchandar, G. S., Rajendran, C., & Anantharaman, R. N. (2002). The relationship between
service quality and customer satisfactiona factor specific approach. Journal of services
marketing, 16(4), 363-379.
Talluri, S., Kim, M. K., & Schoenherr, T. (2012). The relationship between operating efficiency
and service quality: are they compatible?. International Journal of Production Research,
(ahead-of-print), 1-20.
Taylor, S. A., & Baker, T. L. (1994). An assessment of the relationship between service quality
and customer satisfaction in the formation of consumers' purchase intentions. Journal of
retailing, 70(2), 163-178.
Taylor, S., Tzeng, C. F., & Widdicks, M. (2012). Bankruptcy probabilities inferred from option
prices. Available at SSRN 2135340.
Teas, R. K. (1994). Expectations as a comparison standard in measuring service quality: an
assessment of a reassessment. The Journal of Marketing, 132-139.
Thanh, N. N., & Hung, N. T. (2011). Ownership changes in Vietnamese banking system and
their impacts.
To, M. (2013). Credit risk management and bad debt controlling: case: ANZ Vietnam. Lahti
University of Applied Science
Truitt, A. (2012). Banking on the Middle Class in Ho Chi Minh City. In The Reinvention of
Distinction (pp. 129-141). Springer Netherlands.
Urban, W. (2013). Perceived quality versus quality of processes: a meta concept of service
quality measurement. The Service Industries Journal, 33(2), 200-217.
Vierra, K., & Vierra, B. (2010). Vietnam Business Guide: Getting Started in Tomorrow's Market
Today. John Wiley & Sons.

12

Woo, W. T., & Zhang, W. (2010). Time for China to move from macro-stability to macrosustainability: making macro-stimulus work and maintaining its effects. Journal of the Asia
Pacific Economy, 15(4), 349-368.
Woodside, A. G., Frey, L. L., & Daly, R. T. (1989). Linking service quality, customer
satisfaction, and behavioral intention. Journal of health care marketing, 9(4), 5.

13