Impact of Ict on the Banking Industry a Case Study on First Capital Plus

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  • Topic: Bank, Online banking, Banking
  • Pages : 17 (4770 words )
  • Download(s) : 887
  • Published : November 13, 2011
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ABSTRACT

The study is a comprehensive evaluation of the impact of ICT on the banking industry (a case study of FIRST CAPITAL PLUS). Three categories of variables that relate to the adoption and implementation of information technology devices were used for the study. These include the nature and degree of adoption of innovative technologies, degree of utilization of the identified technologies, and the impact of the adoption of ICT devices on banks operation. These developments in technology have resulted in new delivery channels for banking products and services such as Automated Teller Machines (ATMs), Telephone Banking, Speed Banking, and Electronic Funds Transfer at Point of Sale. This study evaluates the views of banking customers regarding the effects of technological innovations on banking services in Ghana. The main research instruments used are questionnaire and personal interview with customers of the bank, using qualitative method to analyze the data collected. The study revealed that Information Technology has been the main driving force of competition in the banking industry and the results of the study generally indicate that, technological innovation has contributed positively to the provision of quality banking services. However, there are some challenges which need to be addressed.

Keywords: IT (Information Technology), First Capital Plus, Electronic delivery Channels.

Introduction
In Sub-Saharan Africa, developments in information and communication technology are radically changing the way business is done. The usage of information technology (IT), broadly referring to computers and peripheral equipment, has seen tremendous growth in service industries in the recent past. The most obvious example is perhaps the banking industry, where through the introduction of IT related products in internet banking, electronic payments, security investments, information exchanges (Berger, 2003), banks now can provide more diverse services to customers with less manpower. Seeing this pattern of growth, it seems obvious that IT can bring about equivalent contribution to profits and customer satisfaction. Our research was narrowed down to First Capital Plus, a newly established savings and loans institution in Ghana. First Capital Plus (FCP) is a wholly-owned Ghanaian Savings and Loans institution, duly Licensed by the Bank of Ghana (License Certificate No. FNB 0050) under the Financial Institutions (Non-Banking) Law 1993 (P.N.D.C L 328).The company commenced operations as a savings and loans institution on October 29, 2009. This marked a major transition in operations, having operated for two years as a financial NGO specializing in micro finance. As a savings and loans institution, the company is authorized to provide a wide variety of banking service to the public including checking accounts, savings accounts, investments, e-banking services such as ATMs, SMS Banking, Electronic Bill Payments, Funds Transfers and Speed Banking etc. The Importance of the study

This study has become important to us in that over time, information technology has helped increase the customer base, reduce transaction costs, improve the quality and timeliness of response, enhance opportunities for advertising and branding, facilitate self-service and service customization, and improve customer communication, profits and competitiveness in the banking industry of which first capital plus is no exception. However, ‘speed banking’ which is a special service peculiar to first capital plus is what informed our decision to study the bank.

OBJECTIVES OF THE STUDY
* How Ghanaian banks are using ICT to improve their services * Response of customers to usage of ICT
* Impact of ICT on small scale businesses e.g. Market women, taxi drivers, mechanics etc. * Problems associated with ICT in the banking industry
Literature review
Business organizations, especially the banking industry of the 21st century operates in...
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