Determinants of Customer Satisfaction and Loyalty in Vietnam’s Retail Banking: The Role of Digital Innovation and CSR

Wissem Ajili Ben Youssef, Najla Bouebdallah and Minh Nghia Pham

Chapter 8 in Innovating Finance for a Sustainable Future:Integrating FinTech, Blockchain and Generative AI, 2026, pp 227-255 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The retail banking sector in Vietnam is undergoing rapid transformation, driven by advancements in artificial intelligence (AI) and financial technology (fintech), particularly in enhancing customer experience and fostering product innovation. This study investigates the key determinants of customer decision-making in Vietnam’s retail banking landscape, with a focus on product pricing, innovation, personalization, and service quality. Data were collected from 202 retail banking customers via a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that product pricing exerts the strongest influence on customer satisfaction and loyalty, followed closely by service quality. Product innovation also contributes significantly to customer satisfaction and loyalty, whereas personalization demonstrates a comparatively limited effect. Additionally, the study highlights the role of corporate social responsibility (CSR) in reinforcing customer trust and advocacy. These insights suggest that banks should prioritize competitive pricing strategies, continuous product innovation, and superior service delivery to enhance customer satisfaction and loyalty in the context of digital transformation. By integrating CSR initiatives into their strategic frameworks, banks can further strengthen customer relationships and foster long-term loyalty. This research contributes to the literature by extending existing consumer behavior models to include both product-related and non-product-related factors, offering practical implications for the strategic management of retail banking services in emerging markets.

Keywords: Generative Artificial Intelligence; Technology–Organization–Environment (TOE); ESG Factors; Sustainability; Blockchain; Supply Chain Finance; Trade Finance; FinTech; Customer Loyalty; Mobile Banking; Perceived Risk; Trust; Personalization; Digital Banking Adoption; Customer Behavior; Digital Innovation; Retail Banking; CSR; Foreign Ownership; Digital Transformation; Bank Performance; Big Four; Auditing; Intention to Use; Risk Assessment; Risk Mitigation; CAMELS-Based Framework; Banking; Qualitative Approach; Quantitative Approach; Case Study; Vietnam Banking Sector (search for similar items in EconPapers)
JEL-codes: G21 G23 G28 O33 Q56 (search for similar items in EconPapers)
Date: 2026
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