THE PROPOSED POLICY IN DIGITAL FINANCIAL SERVICE ENHANCEMENT OF KRUNG THAI BANK IN THAILAND

Abstract

The rapid changing landscape of digital technology makes financial institutions,
service-based businesses, develop digital system to support financial service providing. Bank
customers always expect excellent service quality, especially for ‘fintech’ platform as this
business model affecting customer perceived value and the choice of bank. Most financial
institutions in Thailand have realized the digitalized world and offered new technology to
securely provide financial transactions. Digital financial service of Krung Thai Bank, called
‘Krung Thai Next’, has launched to promote digital financial service through accessible and
convenience application. This research was designed to investigate two antecedent factors,
digital service quality and digital customer perceived value, affecting on customer decision
behavior on digital financial service of Krung Thai Bank in Sakon Nakhon Province, Thailand.
This research further proposed enhancement policy in digital financial service of public
financial institutions in Thailand. This research was a quantitative research method. The
samples of 400 Krung Thai Bank Customers were determined by simple random sampling. Data
were collected through 5-point Likert scale questionnaire surveys with Cronbach’s alpha
coefficient of 0.972. Data were analyzed by descriptive statistics and inferential statistics
including the Pearson Product-Moment Correlation and Multiple Regression Analysis. The
results of the research revealed that customers’ opinion on digital service quality, digital
customer perceived value, and customer decision behavior on digital financial service were at
the highest levels with mean scores of 4.25, 4.27 and 4.23, respectively. The research results
from hypotheses testing found that digital service quality and digital customer perceived value
predict customer decision behavior on digital financial service up to 76.20% (Adjusted RSquare 0.762) at 0.05 significant levels. The digital service quality and digital customer
perceived value were two antecedent factors that significantly affected on customer decision
behavior on digital financial service of Krung Thai Bank in Thailand. The enhancement policies
in digital financial service of public financial institutions in Thailand were to create digital
channel, enable environment, and provide excellent service quality for digital financial service
as well as to develop financial consumer protection rule and regulations in order to ensure the
security of digital technology platform.