Determinants of international payment service quality in banking sector: A comparison study between state-owned joint-stock commercial banks and enterprise joint-stock commercial banks in Vietnam

Abstract

Import and export activities between countries are increasing rapidly in the context of an interconnected global economy, leading to an increase in demand for international payment services at financial institutions, especially commercial banks. Due to the fierce competition, in fact, all banks use many different techniques to improve service quality in order to meet the needs of customers, increase the conversion rate from returning customers. and maintain long-term revenue. The quality of international payment services among banking groups is a topic of interest to users. Many researchers from all over the world have also discussed this topic for many years. However, no research has been conducted comparing the factors’ impact on service quality of international payment of two groups of banks in Vietnam. This study seeks to investigate the effect of factors influencing foreign payment service quality in the case of two groups of banks: state-owned joint-stock commercial banks and private joint-stock commercial banks. This study employs both the quantitative and qualitative methods to obtain both objective and subjective viewpoints. In addition, the authors solicit user feedback through a survey. Based on the result of findings, this topic contrasts the quality of service provided by two groups of banks to support and options for businesses when it comes to selecting banks for international payment transactions. Following 182 valid replies from customers, the study reveals five primary components: RELIABILITY, TANGIBLES, ASSURANCE, EMPATHY, and RESPONSIVENESS, which explain customer perceptions of foreign payment service quality in two groups. It has been discovered that these five components have a positive link with service quality, with RELIABILITY having the most significant impact on service quality