Policy recommendations for digital banking development contributing to sustainable development in Vietnam

Hang, Nga Phan Thi Article Policy recommendations for digital banking development contributing to sustainable development in Vietnam Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Hang, Nga Phan Thi (2024) : Policy recommendations for digital banking development contributing to sustainable development in Vietnam, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-23, https://doi.org/10.1080/23311975.2024.2389459 This Version is available at: https://hdl.handle.net/10419/326478 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 Policy recommendations for digital banking development contributing to sustainable development in Vietnam Nga Phan Thi Hang To cite this article: Nga Phan Thi Hang (2024) Policy recommendations for digital banking development contributing to sustainable development in Vietnam, Cogent Business & Management, 11:1, 2389459, DOI: 10.1080/23311975.2024.2389459 To link to this article: https://doi.org/10.1080/23311975.2024.2389459 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group View supplementary material Published online: 09 Oct 2024. Submit your article to this journal Article views: 2608 View related articles View Crossmark data Citing articles: 1 View citing articles Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2389459 Policy recommendations for digital banking development contributing to sustainable development in Vietnam Nga Phan Thi Hang university of Finance – Marketing (uFM), Ho Chi Minh City, Vietnam ABSTRACT The prolonged period of the COVID-19 epidemic has dramatically impacted the lives of every individual globally, giving rise to social risks and affecting all aspects of operations, including banking activities. Because direct transactions cannot be made, customers must go through the Internet to make their transactions. The Internet creates many channels for consumers to participate in transactions, interact with banks, and conveniently use financial services. This leads to consumers’ habits shifting from offline to online and non-cash payments. This shifting trend pushes banks to change to meet customer needs and the widespread deployment of mobile banking, online banking, and digital banking to satisfy requirements and increase customer experience while competing with financial technology companies. Thus, the article’s goal is to explore critical factors affecting digital banking development, and from that, the author gave policy recommendations for developing digital banking in Vietnam. Based on the article’s goal, the researchers utilized a combination of qualitative and quantitative methodologies with a sample size of 350 managers related to 10 commercial banks in Hanoi and Ho Chi Minh City using SPSS 20.0 and Amos to process the data survey. The study’s contributions help policymakers and banking managers apply research results to develop six policy recommendations for digital banking, an inevitable trend of commercial banks today. The research results also analyzed the significant advantages, difficulties, and challenges. The research paper has presented some advantages, pointed out some problems and difficulties that Vietnamese commercial banks face, and proposed policy recommendations for digital banking and sustainable development. 1. Introduction Concurrently producing smart financial goods and services, such e-wallets, and establishing an appropriate environment. Several areas make up the e-wallet ecosystem, which aims to increase the number of places that accept the payment, overcome technological limitations, and make the system more secure so that users may use it without worry. By encouraging links with retail websites and enabling commerce-integrated purchasing and e-wallet payments, integrating e-wallet payment gateways on sales websites, especially e-commerce sites with a significant following, may successfully expand the customer base and improve consumer engagement (Albanna et al., 2022; Kitsios et al., 2021). In the present day, the majority of clients, particularly the younger demographic, utilize digital technologies for conducting transactions and making payments. Hence, the primary objective of banks is to cater to the requirements of customers and effectively deliver the products and services they anticipate. Implementing digital transformation in the banking sector is an unavoidable and prevailing trend (Li etal., 2023). In addition, digital transformation enables banking institutions to adapt to technological advancements and market fluctuations more expeditiously. Advanced digital technology has revolutionized the functioning of traditional banking. The advent of shopping portals, social media, and integrated mobile applications has provided banks with several opportunities to engage with their clients. Banking institutions must adopt digital transformation to fully grasp the opportunities presented by the new digital era. © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group CONTACT nga Phan thi Hang [email protected] university of Finance – Marketing (uFM), Ho Chi Minh City, Vietnam. this article has been corrected with minor changes. these changes do not impact the academic content of the article. https://doi.org/10.1080/23311975.2024.2389459 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY Received 1 January 2024 Revised 27 July 2024 Accepted 30 July 2024 KEYWORDS Digital; banking; sustainable development; policy; Vietnam SUBJECTS Economics; Finance; Business, Management and Accounting; Testing, Measurement and Assessment; Statistics for Social Sciences AC-DIGITAL REVOLUTION IN ACCOUNTING AND FINANCE | RESEARCH ARTICLE 2 N. PHAN THI HANG In addition, new technology helps realize breakthrough creative ideas, meet increasingly complex customer needs, and help businesses/banks manage and operate effectively. As a whole, all societal and conventional activities are moving online as a result of the digital transition. Cloud computing, artificial intelligence, the internet of things, and big data are the four digital technologies that stand for digital transformation (Naeem & Ozuem, 2021). Besides, blockchain is gradually considered an essential and potential component of digital transformation. Digital banking is the process of transforming traditional banking operations and services into a digital format using modern technologies. The distinguishing feature of the bank is that all its goods and services are only offered in digital format, enabling consumers to freely access information and greatly streamline their life. In other words, this banking model is designed to prioritize immediate connection, and the notion of digitalization guarantees rapid advancements in digital technology (Nga & Tam, 2023; Sharma & Sharma, 2019; Yikun et al., 2023). Understandably, a unified digital banking app streamlines all the services offered by conventional bank locations. Customers may complete all of their banking using this app, eliminating the need to physically visit a branch. Concurrently, many aspects of banking are moving online, including product development, advertising, management sales, capital resources, risk management, and operations (Huang et al., 2021). Banks have been able to rapidly comprehend client wants and psychology due to the prompt and effective use of information technology and innovative management and operational techniques. Simultaneously, it aids banks in reducing expenses, enhancing competitiveness, and advancing compliance and transparency in corporate operations (Alalwan et al., 2017). Digital banking enables clients to simply and securely access banking services, resulting in optimal convenience, cost savings, enhanced financial efficiency, and support for online business growth. The advancement of digital banking necessitates the use of cutting-edge technology, including innovative financial services for clients, as well as strategies for digital apps, mobile banking, and digital banking (Zhu & Jin, 2023). In addition to its benefits, the development of digital banking in Vietnam is confronted with several obstacles and challenges: (1) The legal infrastructure necessary for establishing and advancing digital banking activities is currently insufficient. Technological advancements have led to rapid development in the digital payment sector. However, the lack of corresponding legislative rules has made commercial banks reluctant to adopt new technologies and services outside the permitted framework. (2) Contemporary fraudulent activity associated with digital financial transactions is progressively getting more intricate and sophisticated. Commercial banks consistently prioritize the prevention of fraud in digital banking transactions, while client peace of mind remains elusive. (3) The competition among banks to adopt digital banking projects also leads to several security threats, including the potential loss of user information security. Vietnam currently has weak capabilities to safeguard financial information in the digital realm. (4) Users lack awareness of the risks associated with online banking transactions, neglecting the security of their personal information and the rental information of students and workers. This creates opportunities for criminals to create fake accounts, making it harder to investigate fraudulent transactions. Furthermore, these criminals are becoming more sophisticated in their methods, making it increasingly difficult to detect their tricks. (5) Vietnamese individuals predominantly utilize physical currency for conducting financial transactions. Non-cash payment is now prevalent only in central provinces and cities with well-developed technology infrastructure. In rural locations, non-cash payment is feasible but still in the planning stages. Moreover, the digital transformation of the banking industry is an inevitable trend. Digital transformation integrates digital technologies into all areas of businesses, agencies, and organizations, fundamentally changing how they operate, provide products and services, and bring value to customers. Digital transformation helps resolve the relationship between the State, market, and society. Digital banking development will promote economic growth, improve labor productivity, competitiveness, production, and business efficiency, and reduce costs for people and businesses. The Fourth Industrial Revolution and the digitalization trend have profoundly changed the face of social life and the global economy, substantially impacting all industries, occupations, and fields. Besides, the Fourth Industrial Revolution also opened up many opportunities and challenges for each country, organization, and individual. Digital banking development has become an inevitable trend and a mandatory requirement to help banks adapt and overcome the challenges of the current context. Therefore, the objective of the study is to examine critical factors affecting digital banking development and contributing to sustainable development in Vietnam. In addition, the study’s contributions provide policymakers COGENT BUSINESS & MANAGEMENT 3 and banking managers with the information they need to craft several policy suggestions about digital banking, which is becoming increasingly common among commercial banks. In addition to presenting certain benefits, the study’s novelty lies in its analysis of the major problems and challenges, its identification of those faced by Vietnamese commercial banks, and its policy suggestions on digital banking and sustainable development. 2. Literature review and hypotheses development 2.1. Literature review for digital banking and sustainable development 2.1.1. Digital banking It is an online service provided through mobile applications or websites. Customers can use payment features, transfer money, borrow money, deposit savings, manage personal and business finances, participate in insurance, and invest… via financial applications or websites (Naeem & Ozuem, 2021; Tay et al., 2022). Bank Digital banking brings many benefits to customers, such as saving time and money, diversifying forms of withdrawal and transfer, and keeping information safe thanks to password protection one-time password (OTP) code authentication; diverse forms of withdrawal and transfer help make the transaction process quick and straightforward. Currently, the term digital bank has many different definitions; the article approaches the meaning of the State Bank of Vietnam. Accordingly, digital banking is a banking model that operates based on technological processes to provide all services to customers through digital devices connected to the Internet and mobile telecommunications networks or self-service branches (Islam etal., 2020; Muñoz-Leiva etal., 2017). In recent times, there have been views that equate the nature of digital banking with electronic banking services; however, these are two different concepts. Electronic banking, including Internet banking, SMS banking, and mobile banking services, is a channel that provides services to customers based on the bank’s existing business processes. Digital banks operate based on the digitization of banking activities: From digitizing traditional distribution channels and developing modern distribution channels to automating business processes, applying extensive data analysis to serve the decision-making process and create digital products, and applying innovative products. Thus, digital banking is more comprehensive and modern than electronic banking (Almaiah et al., 2022; Alalwan et al., 2017; Nguyen, 2020). Thus, there are several perspectives about digital banking, which is a banking paradigm that utilizes a digital platform to incorporate all conventional banking activities and services. Furthermore, digital banking is a financial framework in which operations primarily rely on electronic platforms, data, and digital technology, serving as the fundamental basis for banking activities (Chawla & Joshi, 2018). Digital banking is the process of converting all conventional banking operations and services into a digital format. Digital banking encompasses a wider scope than electronic banking, as it is more advanced in its progression and includes electronic banking operations within its framework (Pham, 2023). 2.1.2. Sustainable development It is a new concept that defines development in all aspects of current society while ensuring continued development in the distant future (Achugamonu etal., 2020). This concept is currently a target for many countries worldwide; each country will rely on its economic, social, political, geographical, and cultural characteristics to plan strategies that best suit its needs. Sustainable development has been defined as development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs (Alalwan, 2018; Kumar etal., 2023). The development is characterized by a harmonious integration of economic, social, and environmental aspects. Sustainable development encompasses the comprehensive advancement of present society, addressing the demands of the current generation while safeguarding the interests of future generations from any adverse impact or detriment. Sustainable development necessitates a synergistic integration of economic growth, resolution of social issues, and safeguarding of the environment (Malaquias & Hwang, 2019; Ozili, 2022; Ringle & Sarstedt, 2016). Thus, the digital transformation of the banking system and each bank is closely linked to economics, environment, and social responsibility. Digital transformation is the integration of digital 4 N. PHAN THI HANG technologies into all areas of a bank, leveraging technologies to fundamentally change how it operates the business model and provides new values for customers, as well as speed up business activities without harming the environment, contributing to sustainable development (Malaquias & Silva, 2020). For banking service providers and the banking industry in general, digital transformation in the banking sector is also recognized as an effective method to reduce the possibility of bank collapse by ensuring debt ratios bad debt is lower, and the banking industry operates more efficiently. This result is achieved based on AI and big data technologies, making customer assessment more accurate, objective, comprehensive, and effective for supply organizations. Banking services speed up the appraisal process of green projects and credit disbursement, contributing to sustainable development. In theory and practice, sustainable development is understood as a guarantee for the present but not at the expense of the future. This concept involves three aspects: economics, environment, and social responsibility. In the banking sector, sustainability is recognized by increasing value for owners, environmental protection, and social development through digital transformation. Therefore, in the coming time, Vietnamese banks will develop toward promoting the digital banking model, increasing the convenience of the customer experience, realizing comprehensive financial goals, and contributing to sustainable development. This is based on promoting the application of advanced technology in administration, product, and service supply (Rawashdeh, 2015; Vial, 2019; Zhang et al., 2018). 2.2. Hypotheses development Digital banking is critical in the country’s digital transformation process. In recent years, most commercial banks have seriously invested in expanding digital banking services to serve customer needs better (Nguyen et al., 2020). So, what is the current status of digital banking development. What are the solutions to develop safe and sustainable digital banking, let’s learn about the driving factors in developing digital banking below: LF: Legal framework for digital banking: In the current context of digital solid transformation, having a unified legal framework for e-banking is an urgent need for many credit institutions. The legal framework for digital banking has not kept up with technological development. As we all know, the operations of banks must comply with the provisions of the law, so to develop digital banks, banks must be based on the provisions of the law. It can be seen that in recent times, despite the very drastic and close attention and direction of the Government and the State Bank, with the rapid pace of technological development, the promulgation of legal regulations does not happen overnight but requires a certain amount of time, so it has partly affected the development of digital banking (Lutfi et al., 2021; Oyeleye et al., 2015; Pham, 2023; Zhang et al., 2018). Therefore, the improvement of the legal environment for digital banking development needs to continue to be built to further complete it following relevant legal regulations, as well as the rapid development of science and technology. Based on the above mentioned, the author proposed hypothesis H1: H1: The legal framework for digital banking positively impacts the development of digital banking. IS: Customer information security: Undoubtedly, digital banking offers significant convenience to both users and institutions. However, it also confronts the challenge of safeguarding personal information, since customers and banks are consistently targeted by sophisticated cybercriminals. Indeed, there are several instances in which clients fail to adhere to the provided instructions or provide false information, resulting in their deception and exploitation by criminals who unlawfully seize funds from their accounts (Emara & El Said, 2021; Hanafizadeh et al., 2014; Yuan et al., 2019; Yen & Wu, 2016). Due to many technological limitations, banks, customers, and partners participating in digital banking are subject to many risks and are at risk of cyber-attacks. Meanwhile, many banks still do not pay attention to ensuring data safety and security; this is a significant limitation that has not been appropriately cared for and resolved (Pham, 2023). The bank urgently completes and organizes implementing policies on security, safety, and security of information technology systems and risk management. The bank closely reviews registration processes, activates digital banking services to ensure service provision to the right customers, and equips systems to support electronic transaction monitoring and investigation fraud, step by step COGENT BUSINESS & MANAGEMENT 5 synthesizing and analyzing customer data and building a set of rules to detect and prevent fraud early. Therefore, the author proposed hypothesis H2: H2: Customer information security positively impacts the development of digital banking. FC: Financial capacity: As mentioned above, digital banking transformation is costly and time-consuming. Banks must invest large budgets in technology and a lot in human resource development, marketing, and reforming the entire system. This is a large budget that not all banks in Vietnam can meet. Therefore, banks need to be proactive with their budgets and ensure appropriate resources for the digital banking transformation process to take place smoothly (Blut et al., 2016; Davinson & Sillence, 2014; Giovanis etal., 2019; Li & Wu, 2023). Financial capacity is one of the most critical factors in ensuring the effectiveness of digital banking business activities and is also a tool to demonstrate current and future economic strength. The future potential power of digital banking. The context of deep integration into the world economy is posing many difficulties and challenges for the banking system, primarily commercial banks (Pham, 2023). Hence, enhancing financial capability would enable commercial banks to effectively execute risk mitigation strategies, protect the security of operating capital, and reduce potential client losses in the realm of digital banking advancement. Thus, the author proposed hypothesis H3: H3: Financial capacity positively impacts the development of digital banking. HR: Digital human resources: Banks need high-quality human resources to develop digital banking successfully. In addition to personnel with information technology knowledge and skills to operate the system, banks also need a team of genuinely knowledgeable about digital banking to improve their ability to promote and serve customers (Nguyen, 2020). To meet human resource conditions well, banks must continuously recruit and train quality human resources. In addition, banks also need to improve and innovate their working processes in the digital environment to better meet the needs and increase customer experience on digital banking (Achugamonu et al., 2020; Hanafizadeh et al., 2014). Besides, human resource development determines success or failure in digital banking. Digital transformation is inevitable, bringing economic and social development and giving people a new, more modern life. In that context, banking is one of the leading fields in digital transformation, serving as the foundation for other industries and fields to move forward in innovation. This becomes a challenge for human resource development in digital banks today. Therefore, the author proposed hypothesis H4: H4: Digital human resources positively impact the development of digital banking. CS: Customer care services: Customer care services encompass the range of support activities offered by digital banks to assist consumers before, during, and after their purchase or use of bank services, with the aim of ensuring a positive customer experience. Optimal retail experience. This service targets individuals who have previously used, are now using, or have never used the product. Its purpose is to establish a base of loyal consumers and to attract new customers in the future (Alalwan et al., 2017; Chawla & Joshi, 2018; Huang et al., 2021; Liébana-Cabanillas et al., 2014). Customer service is a crucial and enduring investment that plays a pivotal role in establishing the bank’s performance and market position. With digital banks, customer experience is interaction and complete integration into services and products from the customer’s side. Good customer care will help customers have a positive experience with digital banking (Nguyen, 2020). Positive experiences only appear when the products and services the bank provides meet customer needs, giving customers a feeling of satisfaction and comfort when using the products and services. If customer experience develops positively, they will love the bank and trust digital banking products and services. On the contrary, if the experience becomes terrible, customers will underestimate the quality and organizational structure and will limit or not want to trust anything from digital banking. Building a customer experience strategy is essential for digital banks in the current period. Furthermore, it is necessary to implement good customer care policies, thereby attracting more customers to use digital banking services. Therefore, the author proposed hypothesis H5: H5: Customer care services positively impact digital banking development. 6 N. PHAN THI HANG DM: Digital marketing: Digital marketing is increasingly essential for digital banks, helping them quickly introduce and provide information about their products and services, saving time and human resources (Nguyen, 2020). The emergence of digital marketing has changed the landscape in the field of digital banking with the advantages of speed, simplicity, and efficiency, helping customers use services and products most conveniently. Besides, digital marketing brings more competitive advantages than banks using traditional marketing. Therefore, promoting increased competitiveness in digital marketing for digital banking allows everyone to use digital (Li etal., 2023; Montazemi & Qahri-Saremi, 2015; Naeem & Ozuem, 2021). Most banks believe that it is necessary to increase spending on digital marketing and increase efforts on platforms to increase advertising effectiveness. More competition shows the importance of digital marketing in the banking sector, making it more challenging to stand out. This means banks must take unique approaches, highlight customers and convey success stories, drive value through marketing services, and use promotional campaigns with non-traditional awareness instead of conventional advertising. Furthermore, enhance marketing activities and implement good customer policies. To bring digital banking develop faster for organizations and people, commercial banks need to increase advertising and marketing to introduce to a large number of customers to help customers get updated information, superiority, and help customers have a basic understanding of digital banking services, product benefits, as well as how to use them, thereby helping customers understand and see the benefits, importance, and safety of using digital banking. Therefore, the author proposed hypothesis H6: H6: Digital marketing positively impacts the development of digital banking. Through analysis of the process of implementing digital banking, it can be seen that in the context of the early stages of the 4.0 Industrial Revolution, commercial banks have gradually made efforts to apply digital technology in service activities. Reality has proven that any credit institution that leaps ahead, recognizes, and implements digital transformation early has reaped many sweet fruits, improving the bank’s scale, brand, and services (Nguyen, 2020). It can be seen that the digital transformation of the Vietnamese banking industry in recent times has achieved many positive results, creating a spillover impact and serving the needs of people, businesses, and the economy well. Digital transformation in the banking sector will encourage all other fields and industries to follow suit, and it is a topic of interest to the whole society in which banking plays a vital role in the economy (Hussain etal., 2023; Khémiri etal., 2023; Pradhan etal., 2021). As the industry is considered to be at the forefront of this process, the results of digital transformation in the banking industry will have a pervasive impact on many other sectors in a developed society. This has created remarkable results and is a premise for breakthrough sustainable development in the future. This also demonstrates the correlation between digital banking development and sustainable development. Therefore, the author proposed hypothesis H7: H7: The development of digital banking positively impacts sustainable development. Based on previous research, theory and practical conditions for developing digital banking in Vietnam, the author proposes the research model below. Figure 1 showed that the independent variables include LF: Legal framework for digital banking; IS: Customer information security; FC: Financial capacity; HR: Digital human resources; CS: Customer care services; and DM: Digital marketing. The dependent variable: DBD: The development of digital banking. SD: Sustainable development. Digital banking development is a form of banking that digitizes all traditional banking activities and services by applying new technology. The characteristic is that the products and services provided by the bank are all implemented in digital form, so information users (customers) have free access and significantly simplify their lives. That is, such a banking model is optimized for real-time interaction, and the concept of ‘digitalization’ ensures that changes in digital technology occur at high speed. 3. Research methods The author described the research questionnaire clearly (Appendix Table A1) and in appropriate detail to respondents, explained what data will be collected and how it will be anonymized and stored, and explained how the data collected and the consent was obtained in written form from the respondents COGENT BUSINESS & MANAGEMENT 7 based on questionnaire clearly in Appendix Table A1. The written results will be used to make policy recommendations. All respondents agreed to participate and answer the author’s questions based on their knowledge and experiences, allowing the author to use these data for this research goal only. Besides, questionnaires had ethics approval from the Faculty of Finance and Banking at the University of Finance and Marketing (https://khoataichinhnganhang.ufm.edu.vn/). Thus, the specific content of the steps is as follows. To achieve the research goal, the author used a combination of two research methods: qualitative research and quantitative research as shown in Figure 2. 3.1. Qualitative research From an overview of research on digital banking and factors affecting digital banking development. The author identified the research model, preliminary scale, and research hypotheses. Based on this set of scales, a set of observed variables is built. Due to differences between research contexts in different countries, it is possible that the scales of foreign author may not be genuinely suitable for research in Vietnam, so the set of scales needs to be adjusted and supplemented through qualitative research with in-depth interviews with 25 experts including 15 banking leaders and 10 scientists related to digital banking development in two major cities of Vietnam, namely Ho Chi Minh City, and Hanoi. In addition, the study conducts research on the current status of digital banking development to better explain the research model. Through the results of this qualitative research, the scale was adjusted after adjustment, and the scale was used for quantitative analysis. 3.2. Quantitative research methods Through a survey designed with a nominal scale to describe demographics, observed variables used a 5-level Likert scale to survey 350 employees at the 10 largest commercial banks in Figure 2. These banks have a high conversion to digital banking and provide many digital banking services. The author chose a random sampling method, conveniently selecting 10 large banks in Hanoi and Ho Chi Minh City to represent the banks participating in the investigation. 10 commercial banks have the following names: 1. Vietcombank was established long ago and has undergone more than 50 years of development. It is one of the largest and most prestigious banks in Vietnam. In addition, Vietcombank is also among the top 5 largest state-owned banks today. Figure 1. a research model for six factors affecting digital banking development and sustainable development. Source: the author proposed the model. 14 N. PHAN THI HANG Table 2 shows testing results for six key factors affecting digital banking and sustainable development with sig. 0.01. Besides, digital banking services are penetrating deeper into the market, and the proportion of customers of the commercial bank system in Vietnam using digital banking services accounts for about 55%, according to statistics from the Banking Strategy Institute and the Department of Public Works. Information Technology, State Bank of Vietnam in 2022. Report on banking services – user usage behavior and trends in Vietnam said that in 2022, up to 91% of surveyed users used banking services. Banking solutions compared to the rate of 71% in the 2020 survey. Statistics on data from commercial banks on the system, such as VPBank and Vietnam International Commercial Joint Stock Bank (VIB), also show that most bank transactions take place via electronic channels, in actual form online, through the bank’s software applications. As for VPBank, in 2022, the bank has increased mobilization by more than 9% of the total mobilization of the entire bank, and over-the- counter transactions have decreased by 17–18%. According to VIB, 80% of the bank’s non-cash transactions are currently taking place on MyVIB and internet banking applications, with only 20% of transactions being performed at the counter. The number of customers regularly using MyVIB in 2022 increased by 91% compared to 2021. Table 3 shows testing results for Bootstrap with 5000 samples for factors affecting digital banking and sustainable development with sig. 0.01 and column C.R < 1.96. Compare this CR value to 1.96 (1.96 is the value of the normal distribution at two-sided would be 5%). If the p value < 5%, then the conclusion is that the non-zero Bias hypothesis is statistically significant. Due to the hypothesis: H0: Bias = 0; H1: Bias ≠ 0. If the value of C.R. is more critical than 1.96, then infer a p value of < 5%, accepting H1, concluding a deviation other than 0 is statistically significant at 95% confidence. If the absolute value of C.R. is less than 1.96, infer the p value > 5%, rejecting H1, and accept H0, the conclusion of a deviation other than zero is not statistically significant at 0% confidence, and thus the conclusion can be reliably obtained by the original estimating model. Usually, this is the expected result when analyzing SEM. Besides, Bootstrap testing is a resampling method with replacement in which the original sample acts as the crowd. This method is used to retest the model and evaluate the reliability of the estimates with a correspondingly large sample number of 5000. In the SEM model, Bootstrap testing is conducted to retest the model. This helps evaluate the reliability of estimates with a large sample number. The test results show that the data is consistent with research practice and ensures enough reliability for further analysis and policy implications. Figure 4. testing results for factors affecting digital banking and sustainable development. Source: author’ calculations with sPss 20.0 and amos. COGENT BUSINESS & MANAGEMENT 15 4.4. Research discussions In theory, sustainability is understood as a guarantee for the present, but not at the expense of the future. This concept involves three aspects: economics, environment, and social responsibility. In the banking sector, sustainability is recognized by increased value for owners, environmental protection, and social development. Therefore, evaluating the business performance of a business should not only focus on economic value but also consider the impact of business activities on society and the environment. Based on the testing for SEM, six key factors affecting digital banking and sustainable development with sig. 0.01. Six components need to be considered: LF: Legal framework for digital banking; IS: Customer information security; FC: Financial capacity; HR: Digital human resources; CS: Customer care services; DM: Digital marketing, the following discussions synchronously implemented: First, LF: Legal framework for digital banking: This factor affects digital banking development with a significance level of 0.01, the findings of this investigation are entirely congruent with prior research (Lutfi etal., 2021; Pham, 2023; Zhang etal., 2018). Many legal regulations are unclear and not synchronized, causing difficulties and inadequacies in the digital transformation. In recent years, despite receiving more attention from the Government, the State Bank has issued regulations regulating the digital transformation process in banking operations and has achieved specific successes; however, there are still some regulations that are not clear and consistent, causing difficulties and inadequacies in the digital transformation process at banks today. Some rules on transaction procedures are still conducted directly on paper, causing problems, disruptions, and difficulties in implementation. Furthermore, authenticating customers’ identities through digital platforms is not yet specific, and there is no guaranteed basis for identity authentication. The banks are currently not allowed to have a secure source of information through the population information database to authenticate user identities, which causes many risks to their operations. Therefore, complete the legal corridor to pave the way for digital transformation. Accordingly, the law needs a mechanism to achieve regulations on digital signatures, authenticate the signer’s identity, and recognize the validity of several unregulated contracts and electronic transactions. At the same time, consider amending and supplementing some regulations in banking, criminal proceedings, intellectual property, electronic transactions to promptly follow the rapid growth process of transformation numbers, building a specific legal corridor. From there, create an effective mechanism to monitor and manage digital banking activities to protect organizations and individuals conducting transactions and payments via digital banking platforms. However, to achieve the above goal, deploying in many fields to create seamlessness between regulations is necessary. In intellectual property, it is essential to clearly explain the concept and the protection mechanism for customer information in banking activities, helping banks protect customer information in a confidential business. Table 2. testing six key factors affecting digital banking and sustainable development. Relationships unstandardized estimate standardized estimate s.e C.R P note DBD <— LF 0.125 0.176 0.039 3.233 0.001 accepted DBD <— is 0.096 0.143 0.026 3.668 *** accepted DBD <— FC 0.079 0.107 0.028 2.797 0.005 accepted DBD <— HR 0.082 0.124 0.030 2.740 0.006 accepted DBD <— Cs 0.097 0.140 0.035 2.763 0.006 accepted DBD <— DM 0.480 0.530 0.036 13.284 *** accepted sD <— DBD 0.784 0.659 0.054 14.586 *** accepted Notes: *** 1%; source: author’ calculations with sPss 20.0 and amos. Table 3. testing bootstrap with 5000 samples for factors affecting digital banking and sustainable development. Relationships se se-se Mean Bias se-Bias C.R note DBD <— LF 0.047 0.001 0.123 −0.002 0.002 −1.00 accepted DBD <— is 0.027 0.001 0.094 −0.002 0.002 −1.00 accepted DBD <— FC 0.028 0.001 0.078 0.000 0.001 0.00 accepted DBD <— HR 0.030 0.001 0.083 0.001 0.001 1.00 accepted DBD <— Cs 0.036 0.001 0.097 −0.001 0.002 −0.50 accepted sD <— DBD 0.059 0.002 0.485 0.005 0.003 1.67 accepted Source: author’ calculations with sPss 20.0 and amos. 16 N. PHAN THI HANG Secondly, IS: Customer information security: This factor affects digital banking development with a significance level of 0.01, the findings of this investigation are entirely congruent with prior research (Emara & El Said, 2021; Pham, 2023). Banks must promote investment in technology, upgrade security infrastructure systems to ensure the highest level of safety, and prevent cases where the bank’s server system is attacked to a minimum influence on users. Banks need to be proactive in applying technology in banking operations and boldly invest in innovating equipment and facilities. Accordingly, to solve the situation where Fintech companies are increasingly encroaching on banking activities, which were previously only the playground of banks, it is necessary to be autonomous in applying digital technologies for quick payments and loans while ensuring security and information security issues. To do so, banks need to boldly invest more in training in-depth research on Fintech and try to build and create applications to provide financial services for the banking industry alone, not having to depend on cooperation with Fintech companies. Therefore, it is also necessary to boldly innovate equipment and facilities to build a synchronous, quality digital infrastructure, connect technical standards, unify primary and shared data, and ensure security and confidentiality for customers. Only then can we enhance and promote the digital transformation process and the development of the banking industry. In addition, investing in scientific and technical development requires the banking industry to have considerable investment capital and cannot be completed immediately. Therefore, there is a great need for support from the state in terms of capital sources and effective and practical policies to support the banking industry promptly and quickly in the current digital transformation process. Third, FC: Financial capacity: This factor affects digital banking development with a significance level of 0.01, the findings of this investigation are entirely congruent with prior research (Giovanis etal., 2019; Li & Wu, 2023; Pham, 2023). The investment required for digital technology is substantial due to the rapid pace of technological advancement. Technologies that are quickly developed are swiftly superseded by newer and more advanced ones. Hence, in order to keep up with the advancements in technology, the banking system must consistently enhance, refine, sustain, and reinvent its technological infrastructure to remain competitive, hence generating significant financial strain. Banks, particularly small and medium-sized ones, will face significant financial strain. This is also an issue faced by commercial banks. Therefore, At the same time as they implement digital banking, commercial banks should strengthen their financial capabilities. It is possible to increase financial capacity, operational efficiency, and the ability to update, develop, maintain, and replace technology in order to stay competitive and integrate foreign imports by proactively expanding charter capital. Concurrently, in order to fulfill development and competitiveness demands in a worldwide setting, it is essential to choose technical requirements, technologies, and contractors with enough capacity and reputation to choose optimal technologies at reasonable rates. To take digital banking to the next level, commercial banks must aggressively collaborate with e-commerce companies and logistical infrastructure. Fourth, HR: Digital human resources: This factor affects digital banking development with a significance level 0.01, the findings of this investigation are entirely congruent with prior research (Achugamonu et al., 2020; Giovanis et al., 2019; Pham, 2023). Need to improve the quality of human resources in the banking industry. In the context of the 4.0 Industrial Revolution, the banking industry needs strategies and goals to improve the quality of human resources and attract and retain talents. Accordingly, existing staff must organize in-depth training courses on information technology, foster professional skills, and update knowledge on digital technology operating skills in banking activities and transactions. At the same time, it is also necessary to organize exchange, learning, and training sessions on soft skills, creative and breakthrough thinking, and skills to quickly and effectively solve unexpected situations that may arise. Besides, it is also necessary to build good welfare regimes for employees. From there, creating a team of professional, highly specialized, dynamic, and creative staff, contributing to promoting the digital transformation process in the banking industry. In addition, personnel recruitment needs to be more rigorous, fair, and transparent. Only then will we be able to attract quality, highly qualified human resources compliant with operating procedures for providing banking products and services and have good professional ethics for developing the banking industry. Fifth, CS: Customer care services: This factor affects digital banking development with a significance level 0.01, the findings of this investigation are entirely congruent with prior research (Alalwan et al., 2017; Huang et al., 2021; Pham, 2023). For commercial banks, customer experience is interaction and COGENT BUSINESS & MANAGEMENT 17 complete integration into services and products from customers. Customer experience often exists in two forms: positive experience and negative experience. Positive experiences only appear when the products and services the bank provides meet customer needs, giving customers a feeling of satisfaction and comfort when using the products and services. If customer experience develops positively, they will love the bank and trust in using products and services. If the experience turns out to be wrong, customers will underestimate both the quality and the organizational structure and will limit or not want to trust anything from that bank. Building a customer experience strategy is considered very important for digital banking. Therefore, improving the bank’s customer experience when converting to digital banking is extremely important, helping customers form a bond and feel safe when interacting with their selected bank. A customer experience strategy that helps promote brand incentive programs reduce interest rates in credit activities, and support customers during the banking digital transformation process is about creating new customer experiences in banks, thereby promoting the bank’s brand. A good experience strategy will create loyal customers who stay with the bank for a long time, increasing competitiveness compared to competitors. Finally, DM: Digital marketing: This factor affects digital banking development with a significance level 0.01, the findings of this investigation are entirely congruent with prior research (Li et al., 2023; Naeem & Ozuem, 2021; Pham, 2023). One of the essential channels in today’s marketing strategy is advertising on mobile devices of businesses in general and commercial banks in particular because most Vietnamese people use electricity smartphones. Currently, network operators require user information to be registered to own a phone number – this is considered a source of information data and a channel to help group customers carry out correct advertising campaigns more effectively. The critical thing to do is to ensure that the advertisement reaches the right target audience and must go hand in hand with the consumer’s purchasing process. Therefore, enhance marketing initiatives and develop effective consumer policies. Enhance advertising and marketing efforts to reach a wide customer base, providing them with up-to-date information and a fundamental comprehension of the advantages of digital banking services. This will enable customers to grasp the benefits, significance, and security of utilizing digital banking, ultimately attracting a substantial number of customers to adopt these services. 5. Conclusions and policy recommendations 5.1. Conclusions Digital transformation of the banking industry under the impact of the 4th Industrial Revolution has brought many positive changes. Along with that, thanks to the advantage of a young population and the effect of the COVID-19 pandemic, it further promotes the digital transformation process in the banking sector. Besides favorable conditions, digital banking activities of commercial banks in Vietnam also face significant difficulties and challenges. The study analyzed the current situation of digital banking in Vietnam, exploring the development drivers, challenges, and problems facing the digital transformation process in this field. In addition, the study also surveyed 295 respondents related to the research topic at 10 commercial banks in two major cities in Vietnam. Research results show six factors affecting digital banking development and sustainable development. This study used descriptive statistical tools to measure mean value, standard deviation, and structural equation models. Finally, the study’s contributions help policymakers and banking managers apply research results to develop digital banking policies and sustainable development policies. In addition, management agencies need to closely monitor to identify limitations and determine solutions, including requiring credit institutions to persistently implement sustainable development goals and increase growth. Strengthen the protection of customer information, take responsibility for information technology risks that arise during our operations as well as those of our partners, improve digital capacity for the workforce in the banking sector, and synchronously develop digital infrastructure, creating conditions to support people and businesses in fully exploiting digital banking services. That means that in the current context, to survive and reach out to the big sea, banks need to seriously consider and research the application of digital banking development to contribute to sustainable development. 18 N. PHAN THI HANG 5.2. Policy recommendations The COVID-19 epidemic has fundamentally changed customer behavior and consumption habits, notably financial transactions. This has promoted the digital transformation process of banks in Vietnam more strongly. In fact, thanks to the advances of Industrial Revolution 4.0 and the push from COVID-19, banks have also applied digital quite thoroughly in their operations and become an industry group that welcomes new technology trends. In the future, banks must continue to affirm their leadership position in the digital environment to add value to customers in the new era. To promote the development of digital banking in Vietnam, the following implications to theory and implications to practice need to be implemented synchronously: First, improve LF: Legal framework for digital banking. This factor has an average value of 3.4339; the standardized estimate is 0.176 with sig. 0.01. To stay up with the rapid advancements in science and technology, Vietnam must speed up the process of finalizing the legislative framework for the growth of digital banking. Alternatively, relevant branches and ministries providing feedback on draft documents in specific fields, such as mobile money electronic documents… also need to gradually remove difficulties and obstacles about public relations points, awareness, and approaches to digital banking in Vietnam. For the State Bank to quickly complete the legal framework, the State Bank needs to accelerate the research process on financial technology (Fintech), creating a legal corridor for the application of modern technology in the field of finance and banking. At the same time, establish a research team on digital banking and evaluate the potential and trends of developing/transforming the digital banking model in Vietnam to have policies to support commercial banks in this transition process. The organize international seminars/forums on digital banking, helping commercial banks learn, share, and serve as a bridge for commercial banks to cooperate with researched banks/financial institutions’ digital applications and successfully build/transform digital banks. Completing the legal framework for digital banking development needs to be focused and accelerated. Accordingly, in the immediate future, it is necessary to prioritize regulations related to testing in the financial sector, remove obstacles in current legal regulations, and complete draft guiding circulars when the Decree on non-commercial payment procedures is approved. The Government issues and evaluates revisions to enhance electronic identification and authentication in the banking sector, examining guidance papers pertaining to the storage, protection, and exchange of data, as well as instructions on accessing the national population database for customer service purposes. In particular, in the context that the Law on Credit Institutions is being considered for amendment, it is necessary to focus on reviewing regulations that are no longer appropriate in the context of new industry operations, such as adding regulations on digital banking and payments digital, new products and services on digital platforms, and the Sandbox mechanism on Fintech in various financial service fields not only in the banking sector, online lending, and using cloud services. Second, improve IS: Customer information security. This factor has an average value of 3.0746; the standardized estimate is 0.143 with sig. 0.01. In the digital age, banks are taking advantage of the power of technology to increase marketing efficiency on digital platforms, replacing traditional methods. As the utility ecosystem expands, the number of channels to reach customers becomes larger. Banks target bank-owned channels such as branches, websites… and other media such as partners, client. The most crucial point is when the customer buys a product or service. They care about fast, simple, convenient, and secure experiences; banks need to focus on ensuring seamlessness and speed of processing in all customer operations, as well as service quality when handling incidents. To ensure security, banks must introduce (i) invested technological measures such as formatting and decentralizing access, blocking phishing fraudulent methods of impersonating banks. Banks or financial companies to trick users into sharing financial information, malware, monitoring abnormalities in connection signals; (ii) regularly organize training, propaganda, and warnings to raise awareness, vigilance and experience in dealing with situations for employees and customers; (iii) establish policies and ensure compliance with procedures. In addition, during the product development process, the network security team participates from the design stage to analyze and find security loopholes that can be exploited at every step of operation and every touch point of the customer. However, the most important thing is balancing security issues while ensuring an easy, convenient, and fast experience for bank customers. COGENT BUSINESS & MANAGEMENT 19 Third, improve FC: Financial capacity. This factor has an average value of 3.5729 and a standardized estimate of 0.107 with sig. 0.01. Increasing capital is the top goal of commercial banks because it will help meet Basel 2 standards and upcoming Basel 3 and improve financial capacity, competitiveness, and business opportunities. Allocating resources for the development of new technologies involves commercial banks considering the investment to expense ratio in their yearly budget plan, and reducing unnecessary costs. It is important to additionally take into account the conservation of resources for the purpose of investing in technology. It is crucial to ascertain transparent and valuable investment expenses and anticipate prospective future income projections. Systematically integrate contemporary technology into banking operations, establishing a foundation for transitioning into a digital financial institution. Exploring these technologies takes a substantial amount of time and a well-defined plan. Therefore, one potential approach to examine is to engage in partnerships with technology businesses and/or invest in technology startups. To overcome the above limitations and shortcomings, the banking system, especially commercial banks, in addition to improving financial capacity, needs to focus on some of the following key issues: Increasing equity capital – a decisive factor in financial capacity to expand business: For domestic commercial banks to remain competitive and save costs, it is critical to keep increasing their equity capital. Reduce potential negative outcomes, greatly assist commercial banks in attracting additional funding, train and educate employees, purchase cutting-edge equipment, build stronger infrastructure, broaden their customer base, and gain operational and managerial expertise in accordance with all applicable laws, regulations, and industry standards. Proactively implementing capital increases is a need for commercial banks in the near future. This includes: increasing equity capital to mitigate risk, meeting capital requirements in accordance with the Camel safety framework, and becoming more competitive with other banks in Vietnam, whether they are joint ventures or foreign banks; strictly inspecting investment projects to ensure they adhere to the principle of making a profit before investing; and ensuring compliance with credit principles and the timely recovery of loan capital. Fourth, improve HR: Digital human resources. This factor has an average value of 3.1220 and a standardized estimate of 0.124 with sig. 0.01. In the current period of rapid technological development, many green technologies have been applied that have brought practical effects to life and the environment. Developing green production technology not only helps Vietnam achieve sustainable development goals but also solves the problem of environmental pollution in our country today. In that context, businesses have been implementing sustainable development strategies within their own enterprises and improving the capacity of suppliers and related partners in their value chain to create a sustainable green development ecosystem. Finally, the Government should support the public-private partnership investment approach to maximize the resources of relevant parties, invest in improving the capacity and role of business representative organizations to enhance the ability to gather, dialogue, and contribute suggestions to strengthen institutions and economic policies, disseminate legal policies, and raise propaganda. Raise awareness of the business community about digital banking support businesses in international integration with high standards. In addition to financial readiness, it is essential to have a team of empathetic personnel. Enhance the training programs for bank staff, focusing on knowledge, skills, and fostering a risk management culture. Additionally, ensure effective communication and guidance to clients regarding product usage and risk prevention. When it comes to risk management tools, it is important to invest in stress testing capabilities, establish sufficient lines of defense, prioritize quality, and ensure data reporting satisfies current requirements while also being adaptable for future roles in the realm of digital banking. Fifth, improve CS: Customer care services. This factor has an average value of 3.5695; the standardized estimate is 0.140 with sig. 0.01. Consumers are increasingly moving towards more intelligent, safer, and faster technology, experiencing a series of new technologies. For example, customers can access and manage their accounts through mobile applications and online platforms without going to traditional banks. In addition, artificial intelligence and chatbots provide 24/7 interaction, helping customers answer questions and receive support quickly. Meanwhile, blockchain technology allows transactions to be performed promptly, securely, and transparently. Artificial intelligence and automation technology help reduce manual work and increase productivity. Therefore, simultaneously creating a suitable ecosystem while developing advanced financial goods and services, such as e-wallets, that incorporate intelligent features. The e-wallet ecosystem encompasses several domains, expanding the range of payment 20 N. PHAN THI HANG acceptance locations, surmounting technological constraints, and enhancing security measures to ensure consumers may utilize it confidently. Integrating e-wallet payment gateways on sales websites, particularly e-commerce sites with a large following, may effectively extend the customer base and enhance customer engagement by promoting linkages with retail websites and enabling commerce-integrated shopping and e-wallet payments. To promote the development of new banking products, experts believe it is necessary to amend, supplement, or replace documents on electronic transactions to suit the practical application of digital technology recognizing prices, legal value of electronic data, electronic signatures; recognition of forms of authentication in the case of applying blockchain technology; specific regulations on security and confidentiality in electronic transactions; regulations Specific regulations on signing electronic agreements/contracts; rules on identification and authentication in electronic transactions. Finally, improve DM: Digital marketing. This factor has an average value of 2.5932; the standardized estimate is 0.530 with sig. 0.01. Banks reach the right customers through social networks and social media; building a digital marketing strategy must be methodically planned, get the right customers, and provide customers with products and services as advertised; not only can it increase brand awareness and create public sympathy for banks, but it can also create a brand identity that a website can never do. One of the critical channels in today’s marketing strategy is advertising on mobile devices of businesses in general and commercial banks in particular because most Vietnamese people use electricity smartphones. Currently, network operators require user information to be registered to own a phone number – this is considered a source of information data and a channel to help group customers carry out correct advertising campaigns more effectively. The critical thing to do is to ensure that the advertisement reaches the right target audience and must go hand in hand with the consumer’s purchasing process. To be able to apply and deploy digital marketing effectively, banks need to pay attention to the following points: The human resources team must be strong, with employees knowledgeable about marketing, technology, and digital; Modern infrastructure and equipment, consistent with current trends; Consult, learn, and gain experience from potential partners as well as competitors in the market; Research and survey customers, find out what products and services customers use to determine their strengths and weaknesses. 5.3. The limitations and further research Although the author has made many efforts, due to limitations in data accessibility, survey subjects, and research experience, the article still has some restrictions that need to be overcome in subsequent studies. As follows: (1) Regarding the scope of the research, the author only surveyed some commercial banks in Hanoi and Ho Chi Minh City that represent Vietnam but still do not wholly represent Vietnamese banks. The following research direction needs to expand the survey subjects to many regions for greater representativeness. (2) In terms of sample size, the study surveyed and collected 295 questionnaires corresponding to 295 working employees of 10 banks. Although the number of survey questionnaires is consistent with the research methodology and the number of research variables, it is still small compared to the overall number of banks in Vietnam. Future research directions could increase the number of research samples. (3) The data analysis results show that there are only 6 variables that impact digital banking development. However, there are still other factors affecting the development of digital banking. Future research directions can expand to other factors affecting digital banking and sustainable development in other countries. Acknowledgements The author would like to thank experts, leaders, and bank employees who agreed to participate and answer the author’s questions. Disclosure statement No potential conflict of interest was reported by the author. COGENT BUSINESS & MANAGEMENT 21 Ethical statement The author obtained respondent consent before collecting the data. Funding The author thanks the University of Finance – Marketing (UFM) supported for funding with Grant no. 2217/ QĐ-ĐHTCM, Vietnam. About the author Nga Phan Thi Hang is an Associate Professor, Dean of Science Management Department, University of Finance – Marketing (UFM), Vietnam. I graduated Doctor in Finance and Banking from the Banking University of Ho Chi Minh City. I am teaching banking financial subjects and have published many international papers on credit risk management. I also serve as a reviewer for several accredited and highly-ranked international journals. Moreover, I focus more intensely on improving the competitiveness of tourism enterprises and the management of human resources. 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How does the digital transformation of banks improve efficiency and environmental, social, and governance performance? Systems, 11(7), 328. https://doi.org/10.3390/systems11070328 Appendix Table A1. Research questionnaires. Factors affecting the digital banking development contributing to sustainable development in Vietnam 5-point Likert scale LF: Legal framework for digital banking (1) (2) (3) (4) (5) is: Customer information security (1) (2) (3) (4) (5) FC: Financial capacity (1) (2) (3) (4) (5) HR: Digital human resources (1) (2) (3) (4) (5) Cs: Customer care services (1) (2) (3) (4) (5) DM: Digital marketing (1) (2) (3) (4) (5) DBD: Digital banking development (1) (2) (3) (4) (5) sD: sustainable development (1) (2) (3) (4) (5) Notes: a 5-point Likert scale states the level of agreement in five points. the 5-point Likert scale consists of the below points – (1) strongly Disagree; (2) Disagree; (3) neither agree nor Disagree; (4) agree; (5) strongly agree.