The Effects of Electronic Banking on Financial Services in Ghana

Abstract

Electronic banking has redefined the way banking is conducted across the globe and Ghana was not left out. Electronic banking has created a financial supermarket where many different financial services like insurance, investment, loans and current and savings accounts could be provided.  Over the last three decades banks have designed and rolled out many different electronic banking products and services in Ghana. In this study an attempt is made to examine the effects of electronic banking products and services on financial services delivery in Ghana.  The study was conducted using the case study approach. Data was collected from the administration of open ended questionnaires to customers and staff of banks in Ghana. Additional data was also collected through interviews conducted with customers and staff of case study institutions. A purposive and simple sampling technique was used to select the case study banks, customers and staff who participated in the study.Results of the study revealed that electronic banking has successfully transformed banking in Ghana. Banks now provide a one stop-shop for various financial services thereby creating what can be termed as financial shopping mall. Electronic banking has made banking easier and convenient. Customers can now transact banking business from the comfort of their homes and offices. Other benefits of electronic banking include; increased customer base, reduced cost in accessing and using the banking services, increased comfort and time saving-transactions can be made 24-hours a day, without requiring the physical interaction with the bank, quick and continuous access to information. Customers have easier access to information as they can check their accounts at the click of a button.Despite these benefits electronic banking also creates its own problems including; additional cost to acquire computer, internet connectivity and absence of human touch, Keywords:Electronic-business, electronic commerce, electronic banking, and electronic banking products and services