1.1 STATEMENT OF THE PROBLEM
The impact of technological innovations is more prominent in certain cycles of the economy, mostly in the urban areas.
Banks operate under the regulation and directives of the bank of Ghana (BoG). The regulation limits the profit making potential and returns on equity as well as meeting the taste of customers.
In spite of a whole range of technological innovations introduced so far, there are problems still with some of these innovations in the banking systems. These problems are as follows:
Inadequate information about the existence of some technological innovations by customerâ€™s means that the usefulness of the innovations is not appreciated and ...view middle of the document...
2 OBJECTIVES OF THE STUDY
The study aims at finding out the impact of technological innovation in the Ghanaian banking system. Specifically the objectives of the study are:
1. To investigate how technological innovations contributes to higher profits in the banks. One of the main objectives of every business entity is to ensure the maximization of profit in all the operations of the business. Most organisations are not able to do that because of basic problems such as lack of logistics, machinery, and other implements that ensures profits in organisations. With financial institutions the use of technology in diverse ways has enhanced customer service and has again strengthened the internal systems. This has in a way boosted the profit margins of banks. This research will ascertain how technological innovations have contributed to higher profits.
2. To study how technological innovations has affected customer needs and satisfaction. Customers of financial institutions in a way have some needs that are expected to be met by the bank they are doing business with. Even though some customers have problems with the increasing development in the banking industry, these problems have not been adequately addressed and that is really affecting customersâ€™ needs and level of satisfaction.
3. To ascertain how technological innovations in the banking sector has improved upon the economy of Ghana. The banking industry indeed plays a major role in the economy. This can not be under estimated. This research work will prove whether the use of technology in the banking industry has really facilitated economic growth.
This research will test the following hypothesis:
1.3.1 Null Hypothesis
a) Technological innovations have a negative impact on the banking system in Ghana.
b) There are other alternatives that can have impact on the banking system in Ghana.
1.3.2 Alternative Hypothesis
a) Technological innovations have a positive impact on the banking system in Ghana.
b) There are no alternatives that can have impact on the banking system in Ghana.
1.4 RESEARCH METHODOLOGY
1.4.1 Data Collection
Two main data collection tools will be used, namely the secondary data and the primary data.
1.4.2 Primary Data
Information from primary source will mainly be taken from questionnaires and interviews. The various underwriting those managers in the banking sector have written on the impacts of technological innovations in the banking sector. Personnel of the ten banks selected will also be interviewed on how the innovations have affected the challenges and prospects of the banking sector in Ghana.
1.4.3 Secondary Data
Information obtained from secondary sources is those which come from banking text books, publications in journals and published reports of the various banks. Other secondary sources of data were the internet, daily graphic and other magazines on banking.
From the general survey that the...