The Effects of Digital Banking Platforms on the Profitability of a Bank: The Case of a Private Bank in Ghana

Abstract

Businesses are adapting digital technologies to reach bigger markets, reduce operational costs, improve financial performance or profitability, and gain competitive advantage. The banking sector in Ghana is a very competitive one with most banks adapting one or more forms of digital banking products to facilitate their current operations, gain competitive advantage, and achieve future business goals. While many studies have accessed the impact of digital banking solutions on the profitability of financial institutions mostly in developed economies, the same cannot be said about developing economies. There is, therefore, the need to add to the body of knowledge on how digital banking solutions impact the profitability of banks in developing countries. This paper was underpinned by the updated DeLone and McLean IS success model and used a qualitative approach with purposive sampling of 28 staff and customers to assess a private bank’s digital banking platforms through thematic data analysis. The findings show that system usage and user satisfaction which results in net benefits are positively influenced by information quality, system quality, and service quality. It is therefore concluded that the deployment and use of digital banking solutions improve the profitability of banks. Other implications are also discussed.