The Influence of Reputation for AI Technology on Customer Engagement: The Mediating Role of Perceived Value at TPBank Vietnam

Increasing the modern youthful essence in banking service innovation in the context of AI technology development has become an urgent need. This study aims to examine how AI-based personalized services (LiveBank, ChatPay, and VoicePay) of TPBank Vietnam—a digital bank of a leading technology group in Vietnam—affect customer engagement levels in the young customer segments (Gen Y and Z), based on the Stimulus-Organism-Response (S-O-R) theoretical framework. This study explores how bank reputation (stimulus) affects consumer engagement (response) and how perceived value functions as a partial mediator (organism). The study used a structured survey questionnaire with 362 customers in Vietnam, after each was randomly assigned to watch TPBank’s promotional video about its new AI-based service. Partial least squares structural equation modeling with SmartPLS software was used to analyze data and test the hypotheses. The findings indicate that bank reputation positively and significantly impacts customer engagement, with perceived value as a partial mediator. Although the study is based on the context of a developing country, it provides broader theoretical and practical implications. The study makes a theoretical contribution by showing that AI-driven product personalization innovation can enhance corporate reputation, increase customer perceived value, and increase customer engagement. The findings suggest managerial implications for banks in digitalizing customer-centric services and lessons for small banks to build a competitive advantage. In addition, this study provides a generalizable model that can be applied to financial institutions globally, especially in emerging economies within an increasingly innovative and competitive environment.