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
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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