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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/10339

Title: Effect of financial innovation on the performance of Universal Banks in Ghana.
Authors: Peter-Brown, Macnamara
Issue Date: 26-Jan-2017
Abstract: The banking sector in recent times is going through a period of transformation. This process of transformation in the sector is mainly driven by digital innovation steered by technological transformation. Ghana‟s banking sector is no exception to the wave of technological transformation as financial innovations have heralded discourses on Ghana‟s banking industry but as to it being the main determinant of growth in the banking sector remains insufficiently proven. The objective of the study was to specifically evaluate the effect of innovation in relation to management efficiency, liquidity management, interest rate and gross domestic product on number of account holders and profitability. The study employed an explanatory research design and used a multiple regression model with the aid of Statistical Package of Social Sciences (SPSS) to estimate the association of financial innovation to both customer volumes and profitability of banks relative to interest rate, gross domestic product, liquidity management and management efficiency. Data on financial innovation was mainly on expenditure on financial innovation of some selected banks with a market share of 39%. The regression model revealed that financial innovations additional to adopted internal and external factors (i.e. management efficiency, liquidity management, interest rate and gross domestic product) account for 50.4% and 81.0% variations in customer volumes and profitability of banks respectively. The model again estimated positive regression coefficients for financial innovation on both customer volumes and profitability. Consistently, the Pearson‟s correlation analysis revealed a positive and strong relationship between financial innovation and customer volumes as well as profitability of banks. The study concludes that financial innovation unequivocally has a positive and a statistically significant influence on bank performance and therefore recommends that banks accelerate their innovation drive to meet the needs of consumers as well as match up with trend of global competition. Again, the study recommends that banks extensively draw out innovative strategies to meet the changing needs of financial consumers at lower service cost and higher levels of efficiency.
Description: A thesis submitted to the Department of Economics, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Science in Economics, 2016.
URI: http://hdl.handle.net/123456789/10339
Appears in Collections:College of Arts and Social Sciences

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