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  2. Vol 2 Issue 5, 2020
  3. THE EFFECT OF BANK INNOVATION ON FINANCIAL PERFORMANCE. A STUDY OF UNIVERSAL BANKS IN GHANA
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ERIC KYERE-DIABOUR

THE EFFECT OF BANK INNOVATION ON FINANCIAL PERFORMANCE. A STUDY OF UNIVERSAL BANKS IN GHANA

The purpose of the study was to examine the effect of financial innovation on the performance of banks in Ghana. An explanatory research design was adopted for the study. Primary and secondary data were used for the analysis. The primary data was collected using questionnaire administered to employees of banks in Sunyani whereas the secondary data was collected from the Bank of Ghana. The study concluded that the factors that influence the adoption of financial innovation among universal banks in Ghana included the perceived usefulness and how economical an innovation is. It is also concluded that the association between performance of universal banks and the value of ATM transaction is negative and weak one but there is a negative but strong association of between bank performance and the total value of mobile money transactions. Ezwich and bank performance also have a negative but moderate correlation. The study further concluded that the total value of Ezwich transactions has a negative and insignificant effect on the performance of banks in Ghana while the total value of ATM transactions has a positive and significant effect on the performance of banks in Ghana. But mobile money transactions have a negative and significant effect on the performance of universal banks in Ghana. It is recommended that universal banks in Ghana promote the use of Automated Teller Machines among their clients in Ghana. It is also recommended that universal banks need to install more Automated Teller Machines at various vantage points. Other researchers can investigate the effect of electronic banking on economic growth in Ghana as well as the effect of mobile money interoperability on bank performance in Ghana