Factors Affecting Savings Deposit Decision of Individual Customers: Empirical Evidence from Vietnamese Commercial Banks

10 Pages Posted: 14 Jul 2020

See all articles by Bui Nhat Vuong

Bui Nhat Vuong

Vietnam Aviation Academy

Dao Duy Tung

Tay Do University

Ha Nam Khanh Giao

Independent

Ngo Tan Dat

Ton Duc Thang University

Tran Nhu Quan

Vietnam National University - Ho Chi Minh City (VNU-HCM)

Date Written: July 8, 2020

Abstract

Capital mobilization is a traditional business of commercial banks and is one of the core foundations for the development of a bank. Capital mobilization is the main input in the operation of a bank, and this is also the basis for generating output for credit activities as well as other banking activities. This study aims to determine the main factors that affect the decisions of individual customers to put savings deposit in Vietnamese commercial banks. Survey data collected from 403 individual customers were analyzed to provide evidence. The results from the multiple regression analysis by using SPSS software revealed that all scales in this study were reliable, and there were six components impacting the savings deposit decision of individual customers from the strongest to the weakest in the following order: the form of promotion, bank brand, service quality, interest rate policy, and employee knowledge and attitude. Besides, the finding showed customers who have high income tend to have a stronger decision on savings deposits in commercial banks. The main findings of this article provide some empirical implications for marketers in banks and serve as a suggestion to improve these factors in order to retain and attract individual customers’ savings deposit decisions.

Keywords: Capital Mobilization, Marketing Promotion, Bank Brand, Service Quality, Interest Rate, Savings Deposit, Vietnam

JEL Classification: G21, G41, M31

Suggested Citation

Vuong, Bui Nhat and Dao, Duy Tung and Giao, Ha Nam Khanh and Dat, Ngo Tan and Quan, Tran Nhu, Factors Affecting Savings Deposit Decision of Individual Customers: Empirical Evidence from Vietnamese Commercial Banks (July 8, 2020). Journal of Asian Finance, Economics and Business, Vol. 7, No. 7, 2020, Available at SSRN: https://ssrn.com/abstract=3650726

Bui Nhat Vuong (Contact Author)

Vietnam Aviation Academy ( email )

104 Nguyen Van Troi
Ward 8, District Phu Nhuan
Ho Chi Minh, HCM 700000
Vietnam

HOME PAGE: http://https://orcid.org/0000-0002-1127-2824

Duy Tung Dao

Tay Do University ( email )

Vietnam

Ha Nam Khanh Giao

Independent

Ngo Tan Dat

Ton Duc Thang University ( email )

19 Nguyen Huu Tho
District 7
Ho Chi Minh City, Ho Chi Minh 0848
Vietnam

Tran Nhu Quan

Vietnam National University - Ho Chi Minh City (VNU-HCM) ( email )

6 Quarter, Linh Trung Ward
Thu Duc District
Ho Chi Minh City
Vietnam

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
168
Abstract Views
609
rank
225,403
PlumX Metrics