The Impact of Electronic Banking on the Profitability of Banks: A Case Study of Banks in Ghana

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DOI: 10.21522/TIJMG.2015.04.02.Art011

Authors : Nii Kwartei Perry Quartey


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.

Keywords: Electronic Banking, Efficient Service Delivery, Modern Banking, Convenient Banking, Customer Satisfaction, Banking Services.


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