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NATIONAL ECONOMICS UNIVERSITY

Bachelor of Business and Administration in Entrepreneurship Management

INDIVIDUAL ASSIGNMENT REPORT

TOPIC: Factors affecting savings deposit decisions of individual

customers in Bank for Investment and Development of Vietnam-Hung
Vuong Branch, Viet Tri City

Name : Khong Dieu Ha

ID Student : 11219177

Class : BBAEi4A

Lecture : Mr. Dinh Duc Truong

Ms Nguyen Dieu Hang

Hà Nội, 09/2024
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TABLE OF CONTENT
1. Introduction: ...................................................................................................................... 3
2. Research Objective: .......................................................................................................... 3
3. Research questions: ......................................................................................................... 4
4.Research subjects and scope: ........................................................................................... 4
4.1. Research Subjects: .................................................................................................. 4
4.2. Research Scope: ...................................................................................................... 5
5. Literature Review: ............................................................................................................. 5
6. Research Methodology: .................................................................................................... 6
6.1. Sample Selection Method: ....................................................................................... 6
6.2. Sample size: .............................................................................................................. 6
6.3. Data collection: ......................................................................................................... 7
6.4. Constructing Hypothesis: ........................................................................................ 7
6.5. The conceptual model: ............................................................................................. 8
5. Work Plan and Timeframe:................................................................................................ 8
Reference: ............................................................................................................................ 9
Appendix 1: Questionnaire content ..................................................................................... 10
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1. Introduction:
Savings deposits are a fundamental component of financial management
worldwide, offering a safe and accessible way for individuals to store and grow
their wealth. Traditionally, savings deposits provide a secure place for funds with
the added benefit of earning interest, though returns are often modest compared
to other investment vehicles. In recent years, the global landscape of savings
deposits has evolved, influenced by low interest rates in developed economies,
rising inflation in emerging markets, and the rapid adoption of digital banking
technologies. The amounts of savings deposits of banks significantly decreased,
and capital mobilization has been more difficult due to the mentioned reasons
(Vuong & Suntrayuth, 2020). Despite these changes, savings deposits remain
vital for individuals looking to invest securely and banks seeking to bolster their
refinancing efforts.
In Vietnam, the economy is increasingly developing, so the amount of
capital needed for production and business activities of the economy is also
growing. Thus, the bank’s deposit mobilization activities also need to increase
accordingly. All commercial banks always have the specific planning of deposit
mobilization for each period, objectively and practically, to achieve high efficiency.
It means that the deposits must meet the requirements of the bank with the lowest
cost, and acceptable risks (Banna, Ahmad, & Koh, 2017). In addition, the
depositors’ demands are increasingly diverse, requiring bank administrators to
study the markets and factors affecting the customer’s savings deposit decision.
In recent years, the capital mobilization rate from organizations accounts
for 70% of total mobilized capital, while individual customers account for only 30%
at the BIDV Hung Vuong branch, creating a significant imbalance. This can cause
great risks in capital management, especially when organizations have sudden
capital withdrawal needs.
2. Research Objective:
The primary goal of this study is to identify and examine the factors that
influence individual customers' decisions to maintain savings deposits at BIDV
Hung Vuong Branch in Viet Tri City. By analyzing these elements, the study aims
to provide valuable administrative insights and actionable recommendations that
could help the branch attract a larger base of individual customers to invest their
savings in deposits.
• Specifically, the study seeks to map out the key factors influencing
themdeposit behavior of individual customers at BIDV Hung Vuong
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Branch, providing a clear and comprehensive view of what drives

deposit decisions.
• Additionally, the research intends to assess the current level of
customer satisfaction with the branch’s savings deposit services,
identifying both strengths and areas for improvement.
• Furthermore, the study aims to disseminate its findings as a case
study showcasing BIDV Hung Vuong Branch as an example of how
banks can strategically enhance deposit mobilization among
individual customers by addressing various influential factors.
Through this approach, the study hopes to contribute not only to the growth
of BIDV Hung Vuong Branch but also to the broader understanding of effective
bank mobilization strategies within the industry.
3. Research questions:
To achieve the research objectives outlined above, this study will seek to
answer the following research questions:
• What factors influence the decision to maintain savings deposits of
individual customers at BIDV Hung Vuong Branch, Viet Tri City?
• How are the factors influencing the decision to deposit savings of
individual customers at BIDV Hung Vuong Branch assessed and
classified?
• What is the current level of customer satisfaction with savings deposit
services of BIDV Hung Vuong Branch, and what are the strengths
and weaknesses that need to be improved?
• How can the findings from the study at BIDV Hung Vuong Branch be
applied to build a strategy to attract individual customers to deposit
savings?
• What management recommendations can help BIDV Hung Vuong
Branch attract more individual customers to deposit savings?
4.Research subjects and scope:
4.1. Research Subjects:
• Research subject: Individual customers have been depositing
savings at BIDV Hung Vuong branch.
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4.2. Research Scope:

• Spatial scope: BIDV Hung Vuong branch, Viet Tri city, Phu Tho
province.
• Time scope: from September 30, 2024 to October 30, 2024.
• Content scope: Factors affecting individuals' decisions to deposit
• savings (brand recognition, convenience, bank staff, interest rate
policy,
• etc.);
5. Literature Review:
Loyalty reflects the attitudes of customers, if they trust and have a great
impression of a brand, they will prioritize buying products of that brand (Yoo et
al., 2000). Ky and Hung (2007) said that customer loyalty is a combination of
customer interests, customer attitudes towards the service their intention to
continue to use the service, and the intention to stay with the supplier and to
recommend the supplier to others. Loyalty to a bank brand represents that
customers continue to use the bank’s services and always consider the bank for
their future intentions. Loyalty focuses on the customer's value to the brand
(Schultz & Bailey, 2000).
Bank brand is the image of the bank in the hearts of the customers, the
trust of customers in the bank, an intangible asset, but the most valuable in the
operation of the bank. From the features of bank activities that are based on
public trust, the more the bank’s brand is known and trusted, the more favorable
the capital mobilization of the bank will be (Bui Nhat Vuong et al., 2020). Another
factor that impacts individual customers’ decisions is the convenience of
transactions. The convenience represents the location, timing, and convenient
transactions between the bank and customers. Research results of
Hedayatnia and Eshghi (2011); Tam and Thuy (2010) have confirmed that
convenience is an essential factor, affecting customers’ decision to choose a
bank. According to Dabone et al. (2013), in research on factors affecting
customers' choice of a bank, convenience is the most significant element.
A professional and friendly bank image with social security activities will
be highly considered when customers put their savings in the bank (Kamenidou
et al.,2013). Mokhlis et al. (2011) showed that the attractive appearance of a bank
staff has the greatest influence on customer choice. Trust is an important element
when choosing a bank of individual customers. According to Dabone et al. (2013),
security is a major factor affecting the customer's choice of a bank. The safety of
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savings deposits has a positive impact on customers' bank choice is also a finding
of Mokhlis et al. (2011).
Hoang (2017) identified the influencing factors as brand reputation,
financial benefits, the influence of relatives and employees. The individual deposit
amount is influenced by (1) Gender & (2) Age (Helani & Kumari, 2018). According
to Banqui et al. (1987), some analysts argue that demand for deposits is
influenced by education level and awareness of customers related to banking
activities. The rural people have more knowledge of banking and banking
services, they develop confidence in bank deposits. This is expected to increase
demand for deposits (Khalily, 1987).
With the above scientific arguments, this study was carried out to identify
factors that affect the decision to keep savings deposits of individual customers
at BIDV Hung Vuong Branch, Viet Tri City.
6. Research Methodology:
6.1. Sample Selection Method:
To suit the study, the random sampling method was used to deliver the
questionnaire among the randomly selected deposit account holders in BIDV
Hung Vuong Branch, Viet Tri City. However, the sample is limited to Tien Cat,
Tho Son, Tan Dan, Gia Cam, Nong Trang, Van Co, and Au Co wards. These are
areas where BIDV's main branches and transaction offices are located in Viet Tri
City, where the population is densely concentrated and income is relatively high
and stable. Therefore, samples were selected from these areas using the
convenience sampling method.
6.2. Sample size:
Considering the cost and the limited time, the sample size is determined
by the researcher by considering the objectives of the present study. Therefore,
a total sample size of 535 respondents was thought to be adequate for the nature
and the scope of the present study.
This sample size was determined according to Cochran (1977): 𝑛 = 𝑍 2 ∗
𝑝(1−𝑝) 0.5(1−0.5)
= 1.962 ∗ = 384.16. Thus, the minimum sample size is 385
𝑒2 0.052
elements. To improve the representativeness of the sample, the research team
selected a sample size of 535 elements from 7 banking transaction points in Viet
Tri.
Viet Tri area has a great representative of the BIDV banking system with
1 main branch (Hung Vuong Branch) and 6 transaction offices. According to
statistics of the State Bank of Vietnam, Phu Tho province branch, in Viet Tri by
the end of 2023, there were 7 transaction points of BIDV. Due to the lack of a
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sample frame for the list of individual customers depositing savings in Viet Tri, I
used a sample frame of 7 bank transaction points.
6.3. Data collection:
Research data is collected by quantitative research method through an
online survey with individual customers having savings deposits in BIDV Hung
Vuong Branch, Viet Tri City using a questionnaire from 30/9/2024 to 30/10/2024
with a sample size of 535 elements. The interview method is random at the
bank's transaction locations.
At each transaction point, after interviewing the screening questions to
select the right research object, I conduct an internet-based interview with 02
customers using an online survey questionnaire (QR).
6.4. Constructing Hypothesis:
Based on the theoretical research, I have looked at the model of the theory
of consumer behavior. I have selected models in many countries in the world,
including from several studies regarding the savings deposit decision. Besides,
the research is based on empirical studies that are related to the savings deposits
of individual customers. Based on the same research decision to deposit money,
this will provide a solid theoretical basis, helping to research and apply the model
in accordance with the research conditions at BIDV Hung Vuong Branch Viet Tri
City. Also, based on qualitative research results, I agreed on seven factors: (1)
Bank brand, (2) Convenience, (3) Bank Staff, (4) Security, (5) Influence of
acquaintances, (6) Interest rate policy, and (7) Customer characteristics (Gender,
Age, Education Level). These are sufficient to influence the decision of individual
customers to deposit savings money at commercial banks in Vietnam (see Figure
1).
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6.5. The conceptual model:

Figure 1: The conceptual model

5. Work Plan and Timeframe:

No. Task Deliverables Time

1 Task 1. Literature review to Inception report 27 September
collect secondary data and gain 2024
an overview of what are BIDV
Hung Vuong Branch, Viet Tri City
that the imbalance between
individual and institutional
fundraising and develop a
methodology to examine the
factors affecting deposit
decisions of individual
customers.
2 Task 2. Conduct a survey of Draft Report From 30
individual customers about their September 2024 to
preferences and deposit 30 October 2024
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behavior at BIDV Hung Vuong

Branch, Viet Tri City.
3 Task 3. Prepare a report on Final report and 05 November 2024
savings deposit decisions of PPT
individual customers in BIDV presentation
Hung Vuong Branch, Viet Tri City
based on the proposed,
surveyed and researched
factors.

Reference:
1. Bui Nhat Vuong, Dao Duy Tung, Ha Nam Khanh Giao, Ngo Tan Dat, Tran
Nhu Quan. 2020. Factors Affecting Savings Deposit Decisions of
Individual Customers: Empirical Evidence from Vietnamese Commercial
Banks. Journal of Asian Finance, Economics and Business Vol 7 No 7
(2020): 293 – 302.
2. Nguyen Ngoc Quang, Dao Cam Thuy, Tran Hong Nhung. 2022. “View of
factors affecting the customer satisfaction and Bank brand loyalty of
depositing savings individual customers in Vietnam”. Journal of Positive
School Psychology.
https://mail.journalppw.com/index.php/jpsp/article/view/7617/4977.
3. Helani Udara Gunasekara & Prasansha Kumari. 2018. “Factors Affecting
for Deposit Mobilization in Sri Lanka”. International Review of
Management and Marketing, 2018, 8(5), 30-42.
https://www.researchgate.net/publication/327570396_Factors_Affecting_
for_Deposit_Mobilization_in_Sri_Lanka.
4. Pham Dang Thuy Linh, Nguyen Quoc Nghi. 2021. Factors Affecting the
Decision on Savings Deposits of Individual Customers at Agribank O Mon
Branch, Can Tho City. International Journal of Research and Review
Vol.8; Issue: 3.
5. Võ Xuân Đức, Vũ Mạnh Cường, Bùi Hồng Đăng, Huỳnh Quang Linh.
2021. Yếu tố ảnh hưởng đến quyết định gửi tiền tiết kiệm của khách hàng
cá nhân tại BIDV – Trà Vinh. “Tạp chí tài chính online - Bài đăng Tạp chí
Tài chính kỳ 2 tháng 6/2021”.
https://tapchitaichinh.vn/yeu-to-anh-huong-den-quyet-dinh-gui-tien-tiet-
kiem-cua-khach-hang-ca-nhan-tai-bidv-tra-vinh.html.
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Appendix 1: Questionnaire content

Please indicate your level of agreement with the following statements on a scale of 1 to 5, using the following
convention:

1: Strongly disagree to 5: Strongly agree

(Circle the answer you think is most appropriate for each statement)

PART A: SURVEY OF FACTORS

Order Stated Level of

agreement

PART A: BRAND AWARENESS

1 BIDV will be my first choice. 1 2 3 4 5

2 I can quickly visualize the logo or symbol of BIDV. 1 2 3 4 5

3 When I think of a bank I can deposit money in, I immediately think of BIDV. 1 2 3 4 5

4 I can recognize BIDV among other banks. 1 2 3 4 5

5 I am interested in BIDV services. 1 2 3 4 5

6 I can recognize BIDV when I see the logo or brand symbol. 1 2 3 4 5

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PART B: CONVENIENCE

7 BIDV bank transactions and ATM system is widely covered. 1 2 3 4 5

8 BIDV Mobile Banking application has many functions. 1 2 3 4 5

9 BIDV supports customers through many transaction channels. 1 2 3 4 5

10 BIDV provides online money deposit service 24/7. 1 2 3 4 5

11 BIDV regularly has promotions and special incentives for depositors. 1 2 3 4 5

PART C: BANK STAFFS

12 BIDV staff always maintain a friendly and enthusiastic attitude. 1 2 3 4 5

13 BIDV staff have extensive knowledge of financial products. 1 2 3 4 5

14 BIDV staff address customer requests quickly. 1 2 3 4 5

PART D: SECURITY

15 BIDV ensures customer rights in case of risks. 1 2 3 4 5

16 BIDV applies advanced technologies to help protect customer personal information. 1 2 3 4 5

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PART E: INFLUENCE OF ACQUAINTANCES

17 When friends/family recommend BIDV services, I am willing to use them. 1 2 3 4 5

18 My friends all deposit money at BIDV, I also deposit money at BIDV. 1 2 3 4 5

PART F: INTEREST RATE POLICY

19 BIDV offers deposit packages with flexible interest rates. 1 2 3 4 5

20 BIDV stable interest rate policy ensures I feel secure about my deposit profits. 1 2 3 4 5

21 BIDV offers attractive interest rates compared to many other banks. 1 2 3 4 5

PART G: DEPOSIT DECISION OF INDIVIDUAL CUSTOMERS

22 I choose to deposit money at BIDV because I trust the bank long-standing reputation. 1 2 3 4 5

23 I feel completely secure when depositing money at BIDV. 1 2 3 4 5

24 I am satisfied with the dedicated advice from BIDV staff. 1 2 3 4 5

25 I trust BIDV because they have a high security system. 1 2 3 4 5

26 I am completely satisfied with the interest rate policy at BIDV. 1 2 3 4 5

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27 I chose to deposit at BIDV because a friend had a positive experience and recommended 1 2 3 4 5
it.

28 I'm satisfied with BIDV due to the convenience of 24/7 transactions. 1 2 3 4 5

PART B: PERSONAL INFORMATION

Please select the items relevant to your personal information by checking x
the boxes of the following statements.
Question 1: Please tell us your gender? 1 ꣐Male 0 ꣐ Female
Question 2: What age group are you in?.........................................
Question 3: Please tell us your current occupation?
1. ꣐ Officers and Public employee.
2. ꣐ Business.
3. ꣐ Housewife, retired.
4. ꣐ Student.
5. Other (Specify):.........................................................................
Question 4: How often do you deposit money at BIDV?
1. ꣐ Sometimes 2. ꣐ Frequent 3. ꣐ Very often
Question 5: How many times have you used BIDV's direct deposit service?
1. ꣐ Less than 3 times 2. ꣐ From 3 to 5 times 3. ꣐ More than 5 times
Question 6: When was the last time you deposited money at BIDV?
1. ꣐ Less than 1 week 2. ꣐ About 2 weeks 3. ꣐ About 3 weeks 4. ꣐ Over 3 weeks
Question 7: Will you continue to deposit money at BIDV?
1. ꣐ Yes 2. ꣐ No
………………………………………………………………………………………………………………..
Question 8: What do you care about when depositing money at BIDV (multiple answers can be selected)?
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1. ꣐ Bank brand 2. ꣐ Interest rate policy 3. ꣐ Bank staffs 4. ꣐ Service quality

5. ꣐ Deposit service information 6. ꣐ Convenient 7. ꣐ Introduction from an acquaintance
8. ꣐ Security 9. ꣐ Fees and Charges 10. ꣐ Other (Specify):........................
Question 9: Please tell us your education level?
1. ꣐ Intermediate 2. ꣐ College
3. ꣐ University 4. ꣐ Postgraduate 5. ꣐ Other ((Specify):....................................
Question 10: Please indicate which group your monthly income belongs to below:
1. ꣐ Under 10 million 2. ꣐ From 10 to 20 million
3. ꣐ From 20 to 30 million 4. ꣐ Over 30 million 5. Other (Specify):...............................