The impact of electronic banking on the profitability and growth of the Ghanaian banking sector: (a case study of Fidelity Bank)
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Date
2019-11
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KNUST
Abstract
Electronic delivery channels such as Automated Teller Machines (ATMs), telephone
banking and online banking are options that have been made available by banks to serve
their customers better. Customers do not have to transact business with their banks only
through face to face contact. Information technology has brought about changes that
have transformed the structure of the banking industry. With the transformation,
customers have become more sophisticated, and new products have been made
available. This has also resulted in changes in cost structure and an improvement in
competition among banks profitability. Therefore, this study examined the impact of
electronic banking on the profitability and growth of the Ghanaian banking sector. To
explore the perceptions of employees about the introduction of electronic banking
services, to determine the extent to which electronic banking contributes to profitability
and growth in the banking sector, to determine the challenges encountered with the use
of electronic banking in Banks in Ghana and to determine the types of electronic
banking services provide by Fidelity bank.
In achieving the above objectives, a survey was carried out using well-structured
questionnaires, targeting the banks as the population, however, fidelity bank was used
as the case study with a sample size of 83 using quantitative approach. Statistical
Package for the Social Sciences (SPSS) and Microsoft excel were used for the data
entry and analysis. After the analysis the findings indicated that the employees have a
perception that Quality of services and products have improved with the use of
electronic banking systems, customers are satisfied with services provided through the
use of electronic banking system and the competition among banks has intensified with
more banks adopting the use of electronic banking systems. Secondly, electronic
banking contributes to profitability and growth in the banking sector. E-banking system
has increased the productivity of the bank, customers have fewer complaints with the
use of electronic banking system. E-banking system has positively impacted on the
growth of the bank and the availability of electronic banking system (ATM, Mobile
banking etc.) has reduced the number of customers that come to the banking hall.
Furthermore, the challenges that are encountered with the use of electronic banking in
banks in Ghana were frequent service interruptions and system failures, security
features delaying access to e-banking services and issues with access to internet
connection. Finally, the use of electronic banking has a significant impact on
profitability and growth of Banks.
Description
A thesis submitted to the Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirement for the award degree of
Master of Science Degree