The Impact of E-Banking on Bank Performance: A Case Study of ECObank Ghana
Date
2019-05
Authors
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Journal ISSN
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Publisher
University of Ghana
Abstract
Technological Advancement has over the last decade drastically changed the way of doing
things in many fields of human endeavour, of which the banking sector is no exception.
Expectedly, a number of e-products have been developed and service delivery quality has
witnessed improvements over the period. As a result, today’s bank customer can access bank
accounts on his/her own, transfer funds to other accounts, make payments for bills, buy items
online, print or monitor statement of transactions, and transfer funds to and from mobile phones
among others. In line with their commitment to satisfy the customer, through quality services,
speed and convenience, banks continue to invest massively in ICT infrastructure, including ebanking
terminals. However, the impact these innovations on a bank’s performance largely
remains untested. Given the current ICT penetration level and mobile telephony growth in the
country, this research work sought to ascertain the impact that e-banking has on Ecobank
Ghana’s performance. The study adopted the mixed method approach and primary data was
gathered through interviews of senior executives of the bank. This was augmented with
secondary data from published historical financial statements. The study also gathered financial
data on revenues attributable to the use of the bank’s e-banking terminals from bank officials
for analysis. Simple correlation analysis and trends were employed for the analysis of
quantitative data and the thematic analysis method for the qualitative data. The study identified
the Automated Teller Machine (ATM) and cards (debit, credit), Internet Banking, OMNI
internet banking corporate clients, mobile banking, Ecobank Mobile App and BankCollect as
the bank’s main e-banking channels. The study also found that the implementation of e-banking
in Ecobank has had tremendous impact on its performance by affecting its revenue positively,
increasing its customer base, and enhancing its corporate image. The study found a positive
and significant linear relationship between bank performance (ROE) and Fees & Commissions from ATM and cards. In addition, the study found occasional system malfunctions such as
breakdown of ATM machines, slow or no internet connectivity, and cost of maintenance as
challenges for the implementation of e-banking in Ecobank Ghana. It was recommended that
the bank undertakes massive awareness creation and advertisement for its e-products to attract
more patronage from customers. It was also recommended that the bank installs real time
monitoring systems to ensure that ATMs that run out of cash are quickly attended to minimize
customer discomfort and user apathy.
KEYWORDS
E-Banking, Return on Equity, Information Communication Technology, Bank performance
Description
MBA.
Keywords
E-Banking, Bank Performance, ECObank, Ghana