Assessing the Impact of Electronic Banking on the Financial Performance of Commercial Banks in Ghana (original) (raw)
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THE ROLE OF INNOVATIONS ON FINANCIAL PERFORMANCE
Kenya has evolved in innovation over the years, her being the home to an early entrant form of mobile money banking with world class standards. The innovation in financial sector has propel the industry to higher heights. This thesis was to study the role of innovations in the commercial banks in Kenya and especially on KCB groups in Nairobi County. The study focused on the role of innovations on financial performance of commercial banks. The researcher was guided by the following objectives; to determine the role of product innovation, process innovations and ICT integration on financial performance of KCB bank. The scope of the study was in all KCB Group braches in Nairobi County. The sample size was 132 staffs of the target population by using the Loren Morgan formulae; the target population was 200 management staff in KCB Group branches. This research was adopted a descriptive survey design with questionnaire being the basic tool for collection of primary data. Data was collected by use of questionnaires. Data was analyzed and presented using descriptive and inferential statistical tools to determine the relationship between independent and dependent variables. In addition, advanced statistical technique was a used. SPSS (Statistical package for social sciences) version 23 model was used in data analysis. The information was displayed using tables and graphs. The study depicted that there is proper significant positive correlation on product Innovation, ICT integration, Process Innovation and Marketing Innovation to the role of innovations on financial performance of commercial banks in Nairobi County in Kenya.
The Impact of Electronic Banking on the Profitability of Banks: A Case Study of Banks in Ghana
Electronic banking basically refers to performing banking functions or transactions using a smart technologically inclined device or the internet. Information Technology has recently influenced banking operations, transactions and service delivery. It has provided a channel through which banking is done in convenience, thereby, reducing customer queues in banking halls, administrative expenses and the complexities associated with traditional banking. However, the disadvantages of electronic banking are quite significant. They include unauthorized data access, data loss and fraudulent activities. Using the internet, banks display all relevant information regarding their products on their website which is easily accessible to customers. Through modern technology, branches are networked using terrestrial or satellite links such that customers can visit any branch of their bank to transact business and transfer funds both locally and internationally. This paper discusses e-banking, various definitions, examples, advantages and limitations, electronic banking in Ghana and its impact on the profitability of banks in the Ghanaian banking industry. From the study, e-banking adoption was a business strategy the bank used in response to customer needs and the changing marketing trends in the banking industry. Obviously, tremendous benefits such as revenue generation, improved productivity, efficient service delivery and cost savings accrue from e-banking. The lack of a solid technology infrastructure was identified as a major challenge of e-banking adoption in the country.
EFFECTS OF TECHNOLOGY INNOVATION ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA
Sub-Sahara African Journal of Management Science & Entrepreneurship, 2020
This study examines the effect of banking innovations on financial performance of listed commercial banks in Nigeria. This study adopted correlational research design, Secondary data was collected from all listed Commercial Banks in Nigeria between the period 2008 to 2019. The data was extracted from the annual reports of the listed Commercial Banks in Nigeria. Correlation analysis used to measure the relationship between variable. Specifically, the researcher used multiple regression analysis to establish if the relationship between the independent variable and the dependent variables. The study found that ATM has a significant impact on the FP, IB has a significant impact on the FP and MB has a strong significant impact on the FP. Based on the findings the study concludes that technology innovation has a positive impact on the financial performance of listed Commercial Banks in Nigeria. Based on the foregoing findings and conclusions, the research recommends that Commercial Banks managers and government should properly adopt strategy that will encourage businessmen and general public in using automated teller machine which will improve effectiveness and efficiency of the banking sector and therefore financial deepening and Internet banking should easily accessible by customers, so that quick service and convenience is maintained hence improving financial deepening. At the same time constantly serviced in order to provide reliability of the services. Keywords: Financial Performance; Technology innovation; Internet Banking; Mobile Banking; ATMs.
ASSESSING THE ROLE OF FINANCIAL INNOVATIONS IN ENHANCING BUSINESS PERFORMANCE
zenith
The purpose of the study is to measure the impact of financial innovations on business performance of commercial banks. In this regard, the present study includes three important financial innovations in banking sector i.e. internet banking, mobile banking and agency banking. Two hundred managers of J&K Bank (one one branch manager and one assistant branch manager of each branch) were contacted for data collection. Census method was used to contact the managers of J&K Bank for data collection and examination. Exploratory Factor Analysis, Confirmatory Factor Analysis and SEM were used to analyse the impact of financial innovations on business performance. The study results reveal that internet banking, mobile banking and agency banking is significantly and positively related to business performance. The present study also found that internet banking is the most important financial innovation followed by mobile banking and agency banking. The study is limited to employee perception of J&K Bank only. Other stakeholder’s perception like customers and front line officers in commercial banks needs to be explored. In order to improve the business performance of commercial banks, the banks should give greater emphasis on customer satisfaction by ensuring the safety and security of customers
Financial Innovations and Financial Performance : Perceptions of Commercial Bank Executives
2019
The emergence of technology in the Ghanaian banking sector has had a huge impact in the development of financial innovative products today. The introduction of these financial innovative products has transformed and continues to revolutionize banking today, and banks in Ghana are no exception to this transformation. This study aims at examining the impact of financial innovations on the financial performance of selected banks in Ghana in terms of their income or revenue generation, efficiency, liquidity, profitability and general patronage of banking services in Ghana. This work is a survey of bank executives from universal banks in Accra and Kumasi. Questionnaires were administered to find out the opinions of bank executives on the impact of financial innovations on financial performance. From the study, it was discovered that financial innovations improve significantly the efficiency, liquidity and profitability of the banks. In addition, its recommended that corporate banks must ...
Research Journal of Finance and Accounting, 2013
Internet banking (IB) allows functional banking activities online. Adoption of IB varies significantly across commercial banks. Banks with large size tend to adopt IB earlier. In 2006, 96 percent of banks with assets over Kshs 24 billion had a website, compared to only 51 percent with assets under Kshs 8 billion. These observations raise important questions: what explains these variations of diffusion rates across banking groups? This study reports the results of a descriptive survey on factors causing variations in adoption of IB. A structured questionnaire was administered to all financial managers in all 46 commercial banks with a response rate of 70%. The SPSS was used to run simultaneous-equation regressions on data collected. Factors driving adoption of IB include increase average bank assets, non adopters imitating early adopters and loan specialisation in consumer lending. Factors hindering IB adoption include competition among banks and average age of a bank. The study recommends that to enhance IB adoption, banks should; strive to increase their average assets size, non adaptors to carefully study early adaptors, specialize in consumer lending, feed off competition by forming strategic alliances finally new banks have the advantage of installing IB technology in a package with other computer facilities compared to old banks. The study is important because banks have been blamed for not initiating programmes that adequately satisfying demand for financial services. The research contributes to the debate on how to enhance access to financial services in Kenya.
2017
The study intended to establish the relationship between E-banking innovations on the financial performance of the banks within Kisii County. The study was restricted to the effects agency banking innovations, mobile banking innovations, internet banking innovations and automatic teller machine innovations on the financial performance of banks within Kisii County. The research study in question found research important because it offered out ways of improving the e-banking innovations at the banks, its operations and strategies in providing the services to its customers. The specific objectives of the study were to establish the effect to which ATM innovations, mobile banking innovations, agency banking innovations and internet banking. Innovations Contribute to the financial performance of banks. The target population which was the totality of the cases comprised of 220 respondents of which were 20 operational managers and 200 employees of banks within Kisii County. The sample size...
Journal of business and strategic management, 2022
The current study sought to establish the relationship between strategic adoption of technological innovations and competitive advantage of commercial banks in Kenya. Specific objectives were to establish the influence of E-Money transfer technologies, telephone banking technologies, internet banking technology and internal controls on competitive advantage of Commercial Banks in Kenya. Theories adopted include: Resource-Based View Theory, Innovation diffusion theory, Competitive advantage theory and Disruptive Innovation Theory. The study design employed was descriptive research design. The target population comprised of 43 commercial banks operating in Kenya where the unit of analysis comprised of 1 Branch Manager, 1 Head of Customer Service, 1 Head of IT Support and 2 Relationship officers from each bank making a total of 215 respondents. The primary data collection instruments used was a semi-structured questionnaire containing both closed and open-ended questions and issued to 215 study population respondents. The collected data was analyzed by employing both inferential analysis and descriptive statistics using Statistical Package for Social Science (SPSS) V25 and Microsoft Excel. A random pilot study carried on 21 respondents was done to assess the data collection instrument on validity and reliability. Out of the issued 215 questionnaires to the respondents, 192 were completed and successfully returned. This equates to 89.3% response rate, an appropriate for conducting analysis and making inferences. Tables and figure formats were used in presenting the study results and findings. The study findings were that the adoption of innovative technologies (E-Money transfer, Telephone banking, Internet banking and, Internal controls) had positive and significant influence on competitive advantage of Commercial banks in Kenya. The study recommended the use of credit cards to make online transactions like Cardless payments to improve access to financial services, Commercial banks to consider adapting mobile-based innovative Fintech to increase overall reach of the banking services to the populace, commercial banks to incorporate automated alert systems in case of theft at the ATMs and finally, appropriate systems authenticating user identity be put in place in remote areas to enhance security and increase user confidence in using internet technologies.
Effect of Technology Based Financial Innovations on Non-Interest Income of Commercial Banks in Kenya
Technology based financial innovation has had a great impact on the financial industry as a whole over the past few decades. It has presented the banking sector with an opportunity to increase the revenue base. This study intended to identify the impact of technology based financial innovation on non-interest income in Kenyan commercial banks. The study investigated how the adoption of ATMs and Cards, Internet and Mobile Banking and use of Funds Transfer Systems such as RTGS and EFT has impacted the non-interest income of commercial banks in Kenya. Descriptive research design was utilised. The study found that technology based financial innovation has significant effect on the non-interest income earned by commercial banks in Kenya. It recommends all stakeholders in commercial banks to take any investments made towards technology based financial innovation products as a strategy to improve non-interest income.
International Journal of Academic Research in Business and Social Sciences, 2021
With the increasing competition, commercial banks are not just expected to offer traditional products and services such as checking and savings accounts, certificates of deposit and safe deposit boxes, but to provide services and product that meet customer's satisfaction and competition. The overall objective of this study was to determine the effect of technology adoption as a system lock-in strategy on financial performance of commercial banks operating in Narok town. The study used a cross-sectional design. The study targeted a population of 10 commercial banks operating in Narok town. The study used census because the population was not vast. Data was collected using a questionnaire. The questionnaire was tested for validity and reliability to ensure that it provided the data that was required for the study. The data was analyzed using descriptive statistics for frequency and percentages, Pearson correlation analysis and simple linear regression analysis to summarize and classify data, to establish the relationship between the variables and to determine the strength of association between the technology adoption and financial performance of commercial banks operating in Narok town. On the correlation between technology adoption and financial performance of commercial banks operating in Narok town, it was noted that there was a statistically significant correlation when tested using Pearson correlation (r = 0.373; p-value = 0.002). On the magnitude of the effect of technology adoption on financial performance of commercial banks operating in Narok town it was established that the (R 2 = 0.139). The hypothesis was tested using the t-values, where the null hypothesis was rejected based on the t-value (3.896) which was greater than the critical t-value. The study therefore concluded that commercial banks that seeks to improve their financial performance should embrace technology as it improves service delivery.