The quality of business environment and internal factors affect the competitiveness of retail banking service in VietinBank

Retail banking has always been considered as a core activity of banks because it has the effect of accelerating the cash flow process and creating a mainstream medium and long-term capital source for the bank. Vietnamese commercial banks now are facing great risks. This reality requires banks to improve competitive capability to compete with domestic banks and foreign banks. This study examines the determinants affecting the competitiveness of retail bank service in VietinBank. By using Structural Equation Modelling (SEM) technique, the results show five determinants affecting positively to the competitiveness of the retail banking services including service quality, financial capacity, risk management, organizational culture, and social responsibility. The findings indicate that financial capacity has biggest effect and service quality has smallest effect on competitive capacity of retail banking service in VietinBank. The research also proposes specific solutions to enhance the competitiveness and sustainable development of retail banking services in Vietnam.Competitiveness; retail banking service; VietinBank; vietnamRetail banking has always been considered as a core activity of banks because it has the effect of accelerating the cash flow process and creating a mainstream medium and long-term capital source for the bank. Vietnamese commercial banks now are facing great risks. This reality requires banks to improve competitive capability to compete with domestic banks and foreign banks. This study examines the determinants affecting the competitiveness of retail bank service in VietinBank. By using Structural Equation Modelling (SEM) technique, the results show five determinants affecting positively to the competitiveness of the retail banking services including service quality, financial capacity, risk management, organizational culture, and social responsibility. The findings indicate that financial capacity has biggest effect and service quality has smallest effect on competitive capacity of retail banking service in VietinBank. The research also proposes specific solutions to enhance the competitiveness and sustainable development of retail banking services in Vietnam.