Impact of technology integration on the performance of commercial banks in Ghana

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
The rapid growth of the internet and smartphone penetration in Ghana has occasioned a new era of banking and financial services across the globe and in Ghana. These trends have pushed commercial banks in Ghana into a race to develop and in some cases partner with telecom service providers and fintech companies to serve the new and evolving market of clients. The purpose of this research is to evaluate the impact of the growth of novel internet-powered financial service delivery on the performance of universal banks in Ghana. Within this context, the researcher specifically sought to examine the use of digital innovations in the Ghanaian banking industry; to examine the effect of digital innovations on bank performance in Ghana; and to assess the challenges of digital innovations to Bank customers. 150 respondents were sampled for data collection purposes; fifty (50) employees and one hundred (100) customers of the selected banks were surveyed for the study. There are nine universal banks currently in good standing. Six (6) employees each from the nine (9) banks, and ten customers each from the banks. The data was collected through interviews and a standardized questionnaire. Secondary data from the published financial statements of the banks were also used. The data analysis revealed that there are major variations in the universal banking model of traditional banks in recent times as opposed to how things were years ago. It was learned that technology-based products give opportunities and significant cost advantages to universal banks in Ghana thus, increasing performance and facilitating lower risk than traditional banking products. The interview responses also indicate that if there is ample consumer demand for technology-based goods, the banks surveyed would receive a strong return on investment in the short term. High cost of implementation, lack of solid technological iv infrastructure in the country and security issues as challenges severely hampers digital banking initiatives of the sampled banks.
A thesis submitted to the college of humanities and social sciences department of accounting and finance in partial fulfilment of the requirements for the degree of master of science in finance