The impact of electronic banking on the indigenous banks, the case of the introduction of ezwich The challenges of implementing Electronic Payment Systems – The Case of Ghana’s E-zwich Payment System
Several electronic payment systems have been introduced into the country in recent times with the most significant being e-zwich smart card payment system, a national domestic smart card payment system meant to reduce the large amount of cash held outside the banking system. Despite the progress made, it is estimated that only 20% of the population have bank accounts and 90% of the cash issued by the Bank of Ghana is still held by the non-bank public The study uses primary data collected through deep interviews with Ghana Interbank Payment and Settlement Systems (GHIPSS), the company in charge of the e-zwich payment system in Ghana and senior officials of some of the major banks in Ghana. Questionnaires were also distributed to shops and individuals that use e-zwich and debit cards. The implementation of e-zwich although have challenges is a step in the right direction for national development. The study revealed also that e-zwich has the potential to reduce the unbanked in Ghana and is beginning to show some good signs in terms of some good initiatives by GHIPSS. However, more education of the public and the banks is needed to realise its full potential. For the past years, the banking industry is a way that people usually save their money to invest in their future. It is a good habit to save money and lend for the future expenditures. According to the economists, the save and spend are key player in the cycle of money. They are the basic practices on how to keep and spend money in a wise way. The breadwinner of a family must save at least 20% of his income for the future expenses. And the main domain of the banks comes in. The banking procedures are not that hard to understand and it became an ideal part of one’s livelihood securities. As time evolves and many technologies are introduced, the banking industry became updated in terms of the banking process. The banks let the technology stayed in their system and became part of it. The technology benefited both the bank and their clients. Evolution of Banking Industry
The first electronic banking product was money transferred via telegraph in the mid 1800’s. To answer various questions about the securities and interest of the clients, the banks lend funds to purchase the ideas of innovation of banking industry. The first process in saving money is through the use of passbooks. But the new generation wants a new system that will help them access to their fund in an ease, and at the same time with security. For the busy people, they find it very time consuming to wait in the line just to withdraw or deposit your cash in the teller of the bank. And some of them became so irritated when they were in the last of the long line and they are in hurry. But the clients don’t have to worry no more because the era for the banking procedure already absorbed the fast life cycle of every individual. The introduction of the ATM (Automated Teller Machine) Card is just like you have a full amount of money in a thin plastic. It is ideal to carry anywhere, anytime. The features of it make the clients live at peace for it also have a security pin to make the card only available to the one who owns it. Plus, there are called Electronic Card or often named Credit or Debit Card which automatically charges the purchased product. But still there are many unconvinced clients that are daring the bank to take more advantageous in the time where all the people need convenience. So the start for the Online banking (or Internet banking) came. This allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.1 Advances in microprocessors led to the development...
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