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.

Downloads

Download data is not yet available.

References

Baltagi, B.H. (2005), Econometric Analysis of Panel Data, John Wiley & Sons, Inc., New York.
Google Scholar

Beccalli, E. (2007), Does IT investment improve bank performance? Evidence from Europe, “Journal of Banking & Finance”, 31 (7), pp. 2205–2230, https://doi.org/10.1016/j.jbankfin.2006.10.022
Google Scholar DOI: https://doi.org/10.1016/j.jbankfin.2006.10.022

Buchak, G., Matvos, G., Piskorski, T., Seru, A. (2018), Fintech, regulatory arbitrage, and the rise of shadow banks, “Journal of Financial Economics”, 130 (3), pp. 453–483, https://doi.org/10.1016/j.jfineco.2018.03.011
Google Scholar DOI: https://doi.org/10.1016/j.jfineco.2018.03.011

Cheruiyot, K.J. (2017), Determinants of Technical Efficiency in Kenyan Manufacturing Sector, “African Development Review”, 29 (1), pp. 44–55, https://doi.org/10.1111/1467-8268.12237
Google Scholar DOI: https://doi.org/10.1111/1467-8268.12237

Daniyan-Bagudu, H., Khan, S.J.M., Roslan, A.-H. (2017), The Effect of Mobile Banking on the Performance of Commercial Banks in Nigeria, “International Research Journal of Management, IT & Social Sciences”, 4 (2), pp. 74–80.
Google Scholar

De Leon, M.V., Atienza, R.P., Susilo, D. (2020), Influence of self-service technology (SST) service quality dimensions as a second-order factor on perceived value and customer satisfaction in a mobile banking application, “Cogent Business & Management”, 7 (1), pp. 1–17, https://doi.org/10.1080/23311975.2020.1794241
Google Scholar DOI: https://doi.org/10.1080/23311975.2020.1794241

Demirguc-Kunt, A., Klapper, L., Singer, D., Ansar, S., Hess, J. (2018), The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution, World Bank, Washington, https://doi.org/10.1596/978-1-4648-1259-0
Google Scholar DOI: https://doi.org/10.1596/978-1-4648-1259-0

FindeXable (2020), The Global Fintech Index 2020, https://findexable.com/wp-content/uploads/2019/12/Findexable_Global-Fintech-Rankings-2020exSFA.pdf (accessed: 2.06.2021).
Google Scholar

Genc-Nayebi, N., Abran, A. (2017), A systematic literature review: Opinion Mining studies from mobile app store user reviews, “Journal of Systems and Software”, 125, pp. 207–219, https://doi.org/10.1016/j.jss.2016.11.027
Google Scholar DOI: https://doi.org/10.1016/j.jss.2016.11.027

Gómez Salmerón, R., Rodríguez Sánchez, A., García, C.G., García Pérez, J. (2020), The VIF and MSE in Raise Regression, “Mathematics”, 8 (4), pp. 1–28, https://doi.org/10.3390/math8040605
Google Scholar DOI: https://doi.org/10.3390/math8040605

Gujarati, D.N., Porter, D.C. (2009), Basic Econometrics, Douglas Reiner, McGraw-Hill/Irwin, New York.
Google Scholar

Hu, H., Wang, S., Bezemer, C.P., Hassan, A.E. (2019), Studying the consistency of star ratings and reviews of popular free hybrid Android and IOS apps, “Empirical Software Engineering”, 24 (1), pp. 7–32, https://doi.org/10.1007/s10664-018-9617-6
Google Scholar DOI: https://doi.org/10.1007/s10664-018-9617-6

Ito, T., Sasaki, Y.N. (2002), Impacts of the Basle Capital Standard on Japanese Banks’ Behavior, “Journal of the Japanese and International Economies”, 16 (3), pp. 372–397, https://doi.org/10.1006/jjie.2002.0509
Google Scholar DOI: https://doi.org/10.1006/jjie.2002.0509

Jisha, R.C., Krishnan, R., Vikraman, V. (2018), Mobile Applications Recommendation Based on User Ratings and Permissions, 2018 International Conference on Advances in Computing, Communications and Informatics (ICACCI), Bangalore, pp. 1000–1005, https://ieeexplore.ieee.org/document/8554691 (accessed: 10.06.2021).
Google Scholar DOI: https://doi.org/10.1109/ICACCI.2018.8554691

Kang, Y., Cai, Z., Tan, Ch.W., Huang, Q., Liu, H. (2020), Natural language processing (NLP) in management research: A literature review, “Journal of Management Analytics”, 7 (2), pp. 139–172, https://doi.org/10.1080/23270012.2020.1756939
Google Scholar DOI: https://doi.org/10.1080/23270012.2020.1756939

Kapoor, A.P., Vij, M. (2020), How to Boost your App Store Rating? An Empirical Assessment of Ratings for Mobile Banking Apps, “Journal of Theoretical and Applied Electronic Commerce Research”, 15 (1), pp. 99–105, https://doi.org/10.4067/S0718-18762020000100108
Google Scholar DOI: https://doi.org/10.4067/S0718-18762020000100108

Kumar, S., Lim, W.M., Pandey, N., Westland, J.Ch. (2021), 20 Years of “Electronic Commerce Research”, “Electronic Commerce Research”, 21 (1), pp. 1–40, https://doi.org/10.1007/s10660-021-09464-1
Google Scholar DOI: https://doi.org/10.1007/s10660-021-09464-1

Le, T. (2019), The interrelationship between liquidity creation and bank capital in Vietnamese banking, “Managerial Finance”, 45 (2), pp. 331–347, https://doi.org/10.1108/MF-09-2017-0337
Google Scholar DOI: https://doi.org/10.1108/MF-09-2017-0337

Le, T.D. (2020), Market discipline and the regulatory change: Evidence from Vietnam, “Cogent Economics & Finance”, 8 (1), pp. 1–12, https://doi.org/10.1080/23322039.2020.1757801
Google Scholar DOI: https://doi.org/10.1080/23322039.2020.1757801

Lee, I., Shin, Y.J. (2018), Fintech: Ecosystem, business models, investment decisions, and challenges, “Business Horizons”, 61 (1), pp. 35–46, https://doi.org/10.1016/j.bushor.2017.09.003
Google Scholar DOI: https://doi.org/10.1016/j.bushor.2017.09.003

MBSecurities (2018), Vietnam Fintech Report, https://mbs.com.vn/media/g5edvk1i/1_-vietnam-fintech-report_22102018.pdf (accessed: 9.06.2021).
Google Scholar

Meena, M.R., Parimalarani, G. (2020), Impact of Digital Transformation on Employment in Banking Sector, “International Journal of Scientific & Technology Research”, 9 (1), pp. 4912–4916.
Google Scholar

Mostafa, R.B. (2020), Mobile banking service quality: a new avenue for customer value co-creation, “International Journal of Bank Marketing”, 38 (5), pp. 1107–1132, https://doi.org/10.1108/IJBM-11-2019-0421
Google Scholar DOI: https://doi.org/10.1108/IJBM-11-2019-0421

Nguyen, D.D., Dinh, H.C., Nguyen, D.V. (2020), Promotion of Fintech Application for the Modernization of Banking-Finance System in Vietnam, “The Journal of Asian Finance, Economics and Business”, 7 (6), pp. 127–131, https://doi.org/10.13106/jafeb.2020.vol7.no6.127
Google Scholar DOI: https://doi.org/10.13106/jafeb.2020.vol7.no6.127

Nguyen, D.P., Ho, V., Vo, X. (2018), Challenges for Vietnam in the Globalization Era, “Asian Journal of Law and Economics”, 9 (1), pp. 1–3, https://doi.org/10.1515/ajle-2018-0002
Google Scholar DOI: https://doi.org/10.1515/ajle-2018-0002

Niemand, T., Rigtering, J.P.C., Kallmünzer, A., Kraus, S., Maalaoui, A. (2021), Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization, “European Management Journal”, 39 (3), pp. 317–326, https://doi.org/10.1016/j.emj.2020.04.008
Google Scholar DOI: https://doi.org/10.1016/j.emj.2020.04.008

Pagano, D., Maalej, W. (2013), User Feedback in the Appstore: An Empirical Study, 2013 IEEE International Requirements Engineering Conference, IEEE, Rio de Janeiro, pp. 125–134, https://ieeexplore.ieee.org/document/6636712 (accessd: 8.06.2021).
Google Scholar DOI: https://doi.org/10.1109/RE.2013.6636712

Pasiouras, F., Tanna, S., Zopounidis, C. (2009), The impact of banking regulations on banks’ cost and profit efficiency: Cross-country evidence, “International Review of Financial Analysis”, 18 (5), pp. 294–302, https://doi.org/10.1016/j.irfa.2009.07.003
Google Scholar DOI: https://doi.org/10.1016/j.irfa.2009.07.003

Pham, P.T., Popesko, B. (2020), Covid–19, A Chance for Mobile Payment, [in:] International Conference on Business and Finance 2020, Ho Chi Minh City, Labor Press, Vietnam, pp. 456–464.
Google Scholar

Pham, P.T., Quddus, A. (2021), The Impact of Innovation Activities on Firm Efficiency: Data Envelopment Analysis, “Journal of Asian Finance, Economics and Business”, 8 (3), pp. 895–904.
Google Scholar

Pham, P.T., Popesko, B., Quddus, A., Nguyen, T.K.N. (2021), Innovation and Bank Efficiency in Vietnam and Pakistan, “Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration”, 29 (2), pp. 1–11, https://doi.org/10.46585/sp29021184
Google Scholar DOI: https://doi.org/10.46585/sp29021184

Plante, T.B., O’Kelly, A.C., Macfarlane, Z.T., Urrea, B., Appel, L.J., Miller III, E.R., Blumenthal, R.S., Martin, S.S. (2018), Trends in user ratings and reviews of a popular yet inaccurate blood pressure-measuring smartphone app, “Journal of the American Medical Informatics Association”, 25 (8), pp. 1074–1079, https://doi.org/10.1093/jamia/ocy060
Google Scholar DOI: https://doi.org/10.1093/jamia/ocy060

Puschmann, T. (2017), Fintech, “Business & Information Systems Engineering”, 59 (1), pp. 69–76, https://doi.org/10.1007/s12599-017-0464-6
Google Scholar DOI: https://doi.org/10.1007/s12599-017-0464-6

Safeena, R., Date, H., Kammani, A., Hundewale, N. (2012), Technology Adoption and Indian Consumers: Study on Mobile Banking, “International Journal of Computer Theory and Engineering”, 4 (6), pp. 1020–1024, https://doi.org/10.7763/IJCTE.2012.V4.630
Google Scholar DOI: https://doi.org/10.7763/IJCTE.2012.V4.630

Sampaio, C.H., Ladeira, W.J., Santini, F.D.O. (2017), Apps for mobile banking and customer satisfaction: a cross-cultural study, “International Journal of Bank Marketing”, 35 (7), pp. 1133–1153, https://doi.org/10.1108/IJBM-09-2015-0146
Google Scholar DOI: https://doi.org/10.1108/IJBM-09-2015-0146

SBV (2020), Annual Report 2020, https://www.sbv.gov.vn/webcenter/ShowProperty?nodeId=/UCMServer/SBV471008//idcPrimaryFile&revision=latestreleased (accessed: 16.05.2021).
Google Scholar

Schumer, H., Amadi, Ch., Joshi, A. (2018), Evaluating the Dietary and Nutritional Apps in the Google Play Store, “Healthcare Informatics Research”, 24 (1), pp. 38–45, https://doi.org/10.4258/hir.2018.24.1.38
Google Scholar DOI: https://doi.org/10.4258/hir.2018.24.1.38

Shaikh, A.A., Karjaluoto, H. (2015), Mobile banking adoption: A literature review, “Telematics and Informatics”, 32 (1), pp. 129–142, https://doi.org/10.1016/j.tele.2014.05.003
Google Scholar DOI: https://doi.org/10.1016/j.tele.2014.05.003

Shanmugam, K.R., Nigam, R. (2020), Impact of technology on the financial performance of Indian commercial banks: a clustering based approach, “Innovation and Development”, 10 (3), pp. 433–449, https://doi.org/10.1080/2157930X.2019.1685792
Google Scholar DOI: https://doi.org/10.1080/2157930X.2019.1685792

Suh, B., Han, I. (2002), Effect of trust on customer acceptance of Internet banking, “Electronic Commerce Research and Applications”, 1 (3–4), pp. 247–263, https://doi.org/10.1016/S1567-4223(02)00017-0
Google Scholar DOI: https://doi.org/10.1016/S1567-4223(02)00017-0

Tam, C., Oliveira, T. (2017), Literature review of mobile banking and individual performance, “International Journal of Bank Marketing”, 35 (7), pp. 1044–1067, https://doi.org/10.1108/IJBM-09-2015-0143
Google Scholar DOI: https://doi.org/10.1108/IJBM-09-2015-0143

Vo, X.V. (2016), Finance in Vietnam – an overview, “Afro-Asian Journal of Finance and Accounting”, 6 (3), pp. 202–209, https://doi.org/10.1504/AAJFA.2016.079311
Google Scholar DOI: https://doi.org/10.1504/AAJFA.2016.079311

Wang, S., Liu, Q., Dinçer, H., Yüksel, S. (2020), Analysis of Innovation Performance for Retail Banking Industry with the Hybrid Fuzzy Decision-Making Approach, “SAGE Open”, 10 (2), pp. 1–13, https://doi.org/10.1177/2158244020927425
Google Scholar DOI: https://doi.org/10.1177/2158244020927425

Xie, X., Fu, Y, Jin, H., Zhao, Y., Cao, W. (2020), A novel text mining approach for scholar information extraction from web content in Chinese, “Future Generation Computer Systems”, 111, pp. 859–872, https://doi.org/10.1016/j.future.2019.08.033
Google Scholar DOI: https://doi.org/10.1016/j.future.2019.08.033

Yan, T.Ch., Schulte, P., Kuo Chuen, D.L. (2018), InsurTech and FinTech: Banking and Insurance Enablement, [in:] D.L. Kuo Chuen, R. Deng (eds.), Handbook of Blockchain, Digital Finance, and Inclusion, Vol. 1, Elsevier, London, pp. 249–381, https://doi.org/10.1016/B978-0-12-810441-5.00011-7
Google Scholar DOI: https://doi.org/10.1016/B978-0-12-810441-5.00011-7

Ye, H.J., Kankanhalli, A. (2020), Value Cocreation for Service Innovation: Examining the Relationships between Service Innovativeness, Customer Participation, and Mobile App Performance, “Journal of the Association for Information Systems”, 21 (2), pp. 294–312, https://doi.org/10.17705/1jais.00602
Google Scholar DOI: https://doi.org/10.17705/1jais.00602

Zachariadis, M., Ozcan, P., Dinckol, D. (2020), The COVID–19 Impact on Fintech: Now Is the Time to Boost Investment, The London School of Economics and Political Science, London.
Google Scholar