Impact of the Mobile Banking Application Ratings on the Vietnamese Bank Service Income

Tien Phat Pham; Boris Popesko; Sinh Duc Hoang; Tri Ba Tran

doi:10.18778/1508-2008.26.09

Authors

Tien Phat Pham Tomas Bata University in Zlin, Faculty of Management and Economics, Zlin, The Czech Republic Can Tho University, School of Economics, Vietnam https://orcid.org/0000-0001-9472-5878
Boris Popesko Tomas Bata University in Zlin, Faculty of Management and Economics, Zlin, The Czech Republic https://orcid.org/0000-0002-3590-7070
Sinh Duc Hoang Tomas Bata University in Zlin, Faculty of Management and Economics, Zlin, The Czech Republic Ho Chi Minh City University of Foreign Languages – Information Technology https://orcid.org/0000-0001-6382-4056
Tri Ba Tran Can Tho University, School of Economics, Vietnam https://orcid.org/0000-0003-3635-1163

DOI:

https://doi.org/10.18778/1508-2008.26.09

Keywords:

mobile banking application, ratings, service income, bank, Vietnam

Abstract

Based on the relationship between fintech and bank performance and the role of mobile applications in bank operations, we investigate the impact of mobile banking application (MBA) ratings on bank service income. The quarterly data from the 15 biggest Vietnamese commercial banks in 2019–2020 were extracted from the public financial statements and the Google Play Store. The Generalized Least Squares method is applied to process the proposed regression models. We find a positive impact of MBA ratings on bank service income. We additionally explore the MBA quality of a large bank that does not meet customer expectations and how the interaction between MBA ratings and leverage harms bank service income. Finally, users generally appreciate the MBA quality, and COVID–19 does not affect the link between MBA ratings and bank service income. The study provides novel knowledge on customer behavior through MBA ratings and their effect on bank service income in an emerging country.

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