ONLINE BANKING: IMPACT ON THE BANKING SECTOR IN GHANA. A CASE STUDY OF ECOBANK GHANA LIMITED

Abstract

This study aims at examining the online banking: impact on the banking sector in Ghana. Specifically, it looks at concerns such as the various banking services available through internet banking in Ghana, factors influencing internet banking adoption in Ghana, factors impacting negatively on customers ‟utilization of internet banking and bank’’ perceptions of Internet banking and its operational value. The study was based on both qualitative and quantitative approaches and questionnaires were administered to some selected Internet banking customers and staff of the selected bank using purposive and simple random sampling techniques. With the aid of the SPSS windows software the data was analyzed using basic statistical tools such as frequencies and percentages. Findings from the study indicate that internet banking services in Ghana include checking of balances and account activity, request for cheque book and same bank funds transfer. The availability of other electronic products, frequency of internet use and managementcommitment to internet banking is some of the factors that affect internet banking adoption. Some level of value in terms of banking operations is derived from internet banking. Improved customer service delivery, lower transaction costs and improved cross-selling opportunities are some of the benefits. Also, customers are to a large extent satisfied with services provided through electronic delivery channels by Ecobank in Ghana. Internet banking is used as a marketing tool to attract and retain customers, expand market reach, and improve service quality, the extent and the intensity of banking products and services offered online is likely to have a significant impact on the bank's overall performance. The study concludes that generally, online banking has a positive and significant influence on the financial performance of commercial banks in Ghana. This is because online banking cut banks costs, increase commission income, reduce staffing levels and make banking more convenient for customers.