International Journal of Science and Engineering Applications

Volume 5 Issue 6, 2016, ISSN-2319-7560 (Online)

Accessing the Impact of Information and

Communication Technology (ICT) On the
Performance of Banks in Ghana: A Case Study of
Ghana Commercial Bank Limited
Abukari Abdul Aziz Danaa Enoch Dugbanor Sappor Mumin Diyawu
Dept. of Computer Science GT Bank Dept. of Computer Science
Tamale Polytechnic Head Office Tamale Polytechnic
Tamale, Ghana. Accra, Ghana. Tamale, Ghana.

Abstract: The study sought to examine the impact of Information and Communication Technology (ICT) on the performance of
Ghanaian banks with a case study at Ghana Commercial Bank Limited. Information and Communication Technology (ICT) is at the
centre of this global change curve. The application of ICT concepts, techniques, policies and implementation strategies to banking
services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global
competitiveness. The main objectives of the study were to assess the impact of ICT on the financial performance of Ghana
Commercial Bank Limited (GCB), to find the contribution of ICT based products to customer satisfaction, to examine how ICT has
helped reduce operational cost of GCB and to determine the effect of information technology on the liquidity of GCB. Qualitative data
was collected using purposive sampling technique. SPSS was used in the descriptive analysis of one-hundred (100) administered
interview guide and open-ended questionnaires. The study revealed that ICT Capital has accelerated growth in the bank. Also, ICT
facilitated the absorption of high and medium skilled labour. This has a positive effect on the labour output at the bank. The study
findings revealed that the bank’s use of ICT also enabled the bank to offer a broad variety of services to customers, coordinate branch
activities, and meet up with changes in government regulations and policies. The study observed by concluding that the bank’s use of
ICT has had an impact on the performance of the bank by way of increasing the bank profitability and also reducing the operational
cost of the bank.
Keywords: Information; Performance; Financial; Administered; Operational

electronic banking system as useful and easy to use (Adesina

1. INTRODUCTION and Ayo, 2010). Transactions worth billions of dollars can only
take place in seconds in the electronic circuit throughout the
In recent times, Information and Communication Technology globe by pressing a single button. The Ghana economy yearns
(ICT) has in particular brought a complete paradigm shift on for serious development. Irrespective of the fact that she is
bank’s customer service delivery and financial performance in blessed with massive natural resources such as Gold, Oil,
the banking industry. In a bid to catch up with global Cocoa and Timber, she remains one of the poorest countries in
development, improve the quality of customer service delivery, the world [1]. Banks today are looked upon as stated above as
reduce transaction cost and increase shareholders wealth, banks vehicle of change for a much needed economic growth and
have invested heavily in ICT, and have widely adopted ICT development as it behoves on banks to develop the most
software, hardware and networks for delivering a wide range of effective means of delivering effective, efficient and quality
value added products and services. The ICT development has a service that will help drive our much awaited economic
significant effect on development of more flexible and user success. These can be made possible if and only if ICT is
friendly banking services. Today, ICT has become the heart of properly put to use in the Ghanaian banking sector.
banking sector, while banking industry is the heart of every
robust economy. If it collapses so will the economy. It is It is believed that the application of ICT in banking has the
absolutely evident from the current financial downturn in most tendency to stimulate economic growth by bringing borrowers
of the European banks’ crises, and in turn. ICT has created a and lenders of financial resource together more efficiently than
new infrastructure for the world economy to become truly if they had to relate directly with one another. ICT has been
global and also provided the users of new technology a acknowledged as the backbone of banks in the financial sector
competitive advantage over their rivals. Services like electronic as it promotes and facilitates the performance (Financial and
banking and ATMs have become the main technology driven Operational) of banks in the country. These therefore call for a
revolution in conducting banking financial transactions. Banks pre-requisite need to embrace information technology. It is in
have made huge investments in telecommunication and view of this that the research work attempts to examine the
electronic systems, users have also been validated to accept

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Volume 5 Issue 6, 2016, ISSN-2319-7560 (Online)

impact of Information and Communication and Technology Finally, the study has served as a source of reference by
(ICT) on the performance (operational and financial) of banks building upon previous researches and as well as enriching the
in Ghana. scientific knowledge on the subject. It will also serve as basis
for future research relating to ICT by researchers and students
2. STATEMENT OF THE PROBLEM
Almost all banks worldwide are now using ICT at the various
5. METHODOLOGY
levels of operations. They are also offering ICT based products
and services as part of the service delivery to customers. In In research there are two basic approaches, these are qualitative
general, ICT has been integrated into banking systems so as to and quantitative. The quantitative research approach makes use
enhance service delivery, reduce operational cost and improve of statistics and numbers which are mostly presented in figures
efficiency in banks. This is expected to have appreciably whiles qualitative approach relies on describing an event with
positive effects on bank’s productivity, general operations, the use of words. A research approach chosen should be done
market share and services delivery to customers. according to the research questions in that particular situation
Despite the use of information technology in banking sectors since each approach has its own merit and demerit and how
today with its numerous objectives, observation has shown empirical data is collected and analysed [14]. Additionally, the
that, not all the objectives have been realized and felt by banks degree of focus on either contemporary or historical event as
and users. However customers have expressed their disgust well as the type of questions asked should be the main basis on
through customer feedback forums, about the frequent ATM which a research approach should be chosen. In conducting this
breakdowns, breakdown in network, the inability to access study a comparison of both quantitative and qualitative
funds at other branches, referrals to branches due to research approaches was made and the quantitative research
breakdown, identity theft and high charges on visa transactions approach was used for the study.
thereby disadvantaging shareholders, potential investors among
other users. In light of this that the researcher deems it fit and
appropriate to examine the impact of ICT on the performance 5.2 Study Area
(Financial and Operational) of Ghana Commercial Bank
Limited. The research focused on Ghana Commercial Bank Limited.
Ghana Commercial Bank established some decades ago has
remained one of the greatest pillars in the banking sector of
Ghana.
3. OBJECTIVES OF THE STUDY The bank has a large customer base and branches in the
country. The services of the bank continue to be felt in every
The general objective of this study was to examine the impact community in the country. With regard to its large deposit
of Information and Communication and Technology (ICT) on base, there is ever-growing pressure on its service delivery
the performance (Financial and Operational) of Ghanaian across the country. Thus the need to introduce ICT has become
Banks. paramount. Ghana Commercial Bank Limited like every
responsive organization is dynamic to changing trends in
Specifically this study aims; business transactions.
Apart from the traditional bank products such as savings,
1. To assess the impact of ICT on the financial current accounts, fixed term deposits which were sourced
performance of Ghana Commercial Bank Limited through traditional practices such as going to the bank premises
(GCB). to transact business, technology has changed the practice of
2. To find the contribution of ICT based products to this bank significantly. Now Ghana Commercial Bank Limited
customer satisfaction. has products or services such as the Ready Cash, MasterCard,
3. To examine how ICT has helped reduce operational Smart-Pay, Tansflow and SMS banking, and E-Loans,
cost of GCB. technologically-driven products or services which are affecting
4. To determine the effect of information technology on the way the bank carries out its business. Personal banking is
the liquidity of GCB. now mobile, thanks to wireless technology and cellular phones,
which were introduced into the system a couple of years ago.
An individual can now access his or her account any time
4. SIGNIFICANCE OF THE STUDY anywhere. Investors can now buy and sell stocks and other
securities using their mobile phones and Personal Computers
The study is significant because the adoption of ICT might be without even facing their bankers or brokers.
instrumental in helping improve the performance base of the
banking industry. This work would be of great assistance to the 5.3 Research Design
management of the banks under study and other players in the
Ghanaian banking industry to improve upon their ICT
This study made used of survey method on which data was
deployment to enhance performance.
collected once across the population through sampling. The
The extent of utilizing information technology in banks will be
study used descriptive research methods to assess the impact of
measured by the volume of investment in equipment, and the
Information, Communication and Technology (ICT) on the
volume of investment in the software and the use of Internet
performance (Operational and Financial) of banks. The
Banking, Phone Internet, the number of ATM, the use of Cyber
rationale behind the use of the descriptive research method
Branch and Banking via SMS.
helps the researcher to obtain first hand data from respondents
It would also contribute to existing literature by identifying the
in order to describe what exists. This technique gave a valuable
major barriers to the adoption of this innovation on banking
insight into the question under study. The research used a case
operation in Ghana and suggest how to address them.
study approach and due to the descriptive nature of the study

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qualitative technique was considered. The qualitative research The iterative progress of qualitative research means that data
was based on in-depth interview with respondents. management and data analysis are integral to each other.
For better analysis, the data was arranged under themes which
were developed from the literature and the prevailing issues
5.4 Population and Sampling from respondents taken into cognizance the study objectives.

Staffs of Ghana Commercial Bank Limited were used as the 5.7 Ethical Issues
population for this study. This research adopted sampling,
which according to Newman (2004) is a set of cases a
researcher selects from a larger pool and generalizes to the The research contributed to the knowledge of ICT in an
population. Using sampling in this way reduces cost and makes organisation and the impact on performance. It maintains
it possible to gather useful information quickly and where the utmost confidentiality about the respondents. The research
samples are properly selected accurate result are guaranteed. ensured that all respondents were given a free will to
Due to the focus of this study, 100 questionnaires were participate and contribute voluntarily to the study. In addition,
administered to 100 staffs from five different branches of the the researcher made sure that necessary research authorities are
bank, a total of 20 respondents from each branch. The selected consulted and permission granted and due explanations given
branches were Head office, Circle branch, Legon branch, to the respondents before commencement of the study.
Madina branch and Osu branch

It was impractical to collect data on the whole population, 6. LITERATURE REVIEW

considering the size, as well as the time, available to the
researcher, hence there was a need to select a sample to
represent the whole population. Simple random sampling was The literature explains that information and communication
used to select the branches at Accra Metropolis that the technology (ICT) related to banks and expanded to include
questionnaires were administered to, by assigning numbers and both optimistic and pessimistic views as well as different
choosing without replacement. Purposive sampling technique opinions of changes and forces driving them. The literature
was employed to select the staffs. This category was shows that ICT generates many benefits and is a key to develop
purposively selected because they are knowledgeable in the the concern employees in organizations (Venkatesh & Davis,
study setting and the subject area study. The sample size 2000). There is a significant resistance to accepting and using
covered 33% of the target population of the study (thus, 100 computer resources in banks [3]. A lot of banks experience
out of 300). Thus 100 questionnaires were given out to help struggle and even more failure in moving ICT into practice
sample views of staffs of GCB even with spending billions of dollars (Hill et. al, 2002). The
problems appear to be worst in developing countries [10]. The
aim of every bank is by using information and communication
technology is to improve employee performance, and this
5.5 Data Collection Instruments performance efficiency is only achieved when ICT is installed
correctly. The slow ICT diffusion in banks could be from the
In order to gain access to contemporary data, a case study was poor infrastructure, sociopolitical, language barriers, cultural,
carried out with the help of an interview guide. Thus, the economic risks and conflicts. Many banks put a hope by using
interview guide was employed to collect primary data. ICT. And the challenges of ICT in these banks are by no means
One-on-one in depth-open-ended interview was conducted with identical to the ones in the other institutions. And the
all the study participants. This help in generating relevant challenges faced by banks in exploitation the full potential of
qualitative data to shed more light on issues relating to the ICT don’t appear many differences from those of that are faced
impact of information, communication and technology on the by the other institutions.
performance of Ghanaian Banks in Ghana already contained in Today ICT is the best choice in all the banks to upgrade their
the unstructured interview guide. This technique allowed the performance and come to be competitive in the global market
study participants to share more freely their experiences in the place [2]. The ICT based economies has simplified the most
ICT performance and also offers the advantage of allowing the complex economies of the world and improved the productivity
researcher to uncover previously unforeseen information. This to the level where some banks have made its way out of the
method or instrument also allowed the researcher to probe for entire banking industry deficit and turned into a surplus in
clarification and better understanding, especially on issues recent years [5]. The world economy now has moved from
about paraphrasing, reflection and laddering to explore the low-value basic industries to a fast paced high-value
issues in depth. information based economy [12].

5.6 Data Management and Analysis 6.1 ICT Concepts and Definitions

Data management is a challenging, integral, and vital part of Information Technology (IT) is the automation of processes,
qualitative research. Data handling and management has been controls, and information production using computers,
identified as necessary for facilitating the coherence of a telecommunications, software and ancillary equipment such as
research project. automated teller machine and debit cards [6]. It is a term that
To achieve the research objective, information received generally covers the harnessing of electronic technology for the
through the interviews were first recorded, transcribed before information needs of a business at all levels. Communication
they were typed out. Technology deals with the Physical devices and software that
Besides, the researcher planned from the outset to sort, link various computer hardware components and transfer data
summarize, analyze, and store project data, including their from one physical location to another [8]. ICT products in use
process of working with the data through the iterative process. in the banking industry include Automated Teller Machine,
Smart Cards, Telephone Banking, MICR, Electronic Funds

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Transfer, Electronic Data Interchange, Electronic Home and any time through automated teller machine (ATM), or direct
Office Banking. It is not easy to find a definition that clearly deposit of pay-cheques into checking or savings accounts.
describes the difference between IT and ICT. In short, the Electronic banking also known as electronic funds transfer
definitions of both IT and ICT talk about hardware, software (EFT), uses computer and electronic technology as a
and networks by which information is retrieved, recorded and substitutes for cheques and other paper transactions. Many
displayed. The World Bank, which is working on providing banks and financial institutions use ATM or debit cards and
help to the developing countries with funds and proficiency personal identification number (PIN) for this purpose. The
needed to exploiting ICT, defines IT and ICT as following: various electronic delivery channels are discussed below.

Information technology “Information Technology refers to the

creation, storage and processing of data, including hardware
6.3.1 Automated Teller Machine (ATM)
(computer networks, servers, storage devices, and desktop
computers), system software (operating systems, middleware, Automated teller machine is an electronic terminal that let
programming languages), and software applications” World customer banks almost anytime. It’s a computerized
Bank (2002, p.3). telecommunication device that provides the customer of a bank
Another of World Bank’s definitions says that: “Information or financial institutions with access to financial transaction in
Technology is the use of technology, such as computing and public space without the need of bank teller. On modern,
software, in support of information processing “World Bank automated teller machines (ATM) the customers are identified
(2005, p.6). by inserting a plastic ATM cards with magnetic stripes or a
ICT consists of all technical means used to handle information plastic smartcard with a chip, that contains a unique card
and aid communication, including computer and network number and some security information such as expiring date, or
hardware as well as necessary software. In other words, ICT CVV. Security is provided by customer entering a personal
consists of IT as well as telephony, broadcast media, and all identification number (PIN). To withdraw cash, make deposit
types of audio and video processing and transmission. The and transfer funds between accounts, customers generally
expression was first used in 1997 in a report by Dennis insert an ATM card and enter their personal Identification
Stevenson to the UK government and promoted by the new number (PIN).
National Curriculum documents for the UK in 2000. ICT is Some financial institutions, banks and ATM owners charge a
often used in the context of "ICT roadmap" to indicate the path fee, particularly to customers who don’t have accounts with
that an organization will take with their ICT needs. The term them. ATM tells the customers the charge fee and its amount
ICT is now also used to refer to the merging (convergence) of on the screen before transactions are completed. In Ghana the
telephone networks with computer networks through a single Trust Bank is the first bank to installed ATM in the country in
cabling or link system. There are large economic incentives 1995. Ghana Commercial Bank started its ATM offering in
(huge cost savings due to elimination of the telephone network) 2001 in collaborations with Agricultural Development Bank.
to merge the telephone network with the computer network Not long after, most of the major banks began their ATM
system. networks at competitive position. Due to technological
advancement in technology, ATM are able to provide a wide
6.2 Commercial Application of ICT in the range of services such as cash withdrawal, change pin, account
balance enquiry, funds transfer, print mini statement, request
Banking Industry for bank statement and cheque book, make a cheque request,
and pay utility bills.
The rapid advancement in ICT has had a profound effect on the
banking industry and the wider financial sector over the last 2
decades. ICT is now a tool that facilitates the bank’s
6.3.2 Telephone Banking
organizational structures, business strategies and customer
services [14]. ICT enables the development of sophisticated Telephone Banking is a service provided by banks, which
products, better market infrastructure, and implementation of allows its customers to transact banking business over the
reliable techniques for control of risks and helps the banks to telephone. Telephone Banking is a very convenient, fast and
reach geographically distant and diversified markets. easy method of gaining access to your bank account at any
Today, the effective use of ICT is assisting bank to be more time from any location, seven days a week, and twenty four
customer centred in their operations by building a solid hours a day using any touch tone telephone. Most telephone
foundation for customer relationship management. The system banking uses an automated phone answering system with
also helps to grow a range of products or services while phone keypad response or voice recognition capability. For
mitigating fraud levels and improving risk management, reduce security reasons, the customer must first authenticate through a
transaction and operational cost and to remain competitive. In numeric or verbal password or through a security question
sum, technology has changed the contours of the three major asked by live customer care personal. Telephone banking has
functions performed by banks: access to liquidity, numerous benefits for both banks and their customers [9]. On
transformation of assets and monitoring risks [7]. the part of the customers, it provides increased convenience,
expanded access and significant time saving. With respect to
the banks, the cost of delivering telephone-based service is cost
6.3 Forms of Information Technology saving than those of branch based services.
Innovation (Electronic Delivery Channels) With telephone banking, customers cannot make cash
withdrawals and deposit but other transactions like account
Technological innovation has been identified to contribute to balance information, electronic bill payment, funds transfers
the distribution channels to banks. The electronic delivery between a customer’s accounts. Its saves customers from
channels are mostly referred to as electronic banking. number of hours spent in the banking hall, making the banks to
Electronic banking allows customer to have easy access to their give good quality of services to their customers and making
money and also control their financial business anywhere at time to attend to other issues. Telephone banking offers retail

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banking service to customers at their office/home as an 6.4 ICT and Banks Competitiveness
alternative to going to the banking hall or to the ATM for
transactions.
Flexibility is considered to be a major source of
competitiveness for banks compared to larger enterprises. The
6.3.3 Internet Banking use of ICT could now on the one hand increase the
competitiveness of banks as they enable the creation of more
The idea of internet banking was to give customers access to flexible links with trading partners because of faster and more
their personal account online anytime, anywhere. It’s the reliable communication channels. On the other hand ICTs
perfect way for customers to do their banking transaction could help banks to increase their flexibility through a
whether from home, the office or when travelling because the restructuring of the banks which will enable them to adapt
service is available 24 hours a day seven days a week. Internet quicker to changing conditions. Therefore the competitive
banking gives the customers the opportunity to choose their advantage of banks could also decline. In general banks rely
own banking hours giving them greater control of their much more on formal information systems than smaller
finances. It’s secure, fast and easy to use. Customers have enterprises. To get the relevant information that is needed for a
access to their latest balance, statement, view account details, rational decision is costly especially as in banks usually there
customise, print, download statement and obtain history of all are major decision makers. External transaction costs are
their account. associated with the initiation, negotiation and enforcement of
Internet banking gives customers the chance to check their contracts. Especially the internet helps to screen the banks
balance and transaction details, transfer money to business environment for relevant information and thereby get
partners, family and friends, pay utility bills, enquire of daily information about its customers that were previously out of
forex rate, request for cheque book and statement of account reach [11]. However for the actual delivery of service and the
from the comfort of their home or offices without having to transmission of payments also other infrastructure like
visit the bank. With internet banking customers need to log in transport and a reliable banking system has to be in place.
with their log in ID and password in order to access their However, for bigger banks that are growth oriented, belong to
account. Banks like Barclays Ghana, Standard Charted Bank the formal sector etc. information becomes more important and
Ghana, Ecobank Ghana, Prudential Bank and other banks have therefore more advanced ICTs can be helpful for building
all launched their internet banking services. business linkages. The survey banks in Botswana revealed the
biggest information gap in market information pertaining to
new customers and the need to expand into other markets.
Information is also lacking about external finance and sources
6.3.4 Personal Computer Banking of skills and training. This lack of information was found to
raise costs and reduce income. “ICTs can reduce time and
A personal Computing Banking let customers handles many money costs of business processes and can improve the
banks transactions via their personal computers, with the help certainty and quality of those processes.” These benefits occur
of proprietary software installed on their computers. Once mainly in banks with bigger size (with annual turnover of a few
access is gained, the customer can perform a lot of retail tens of thousands of US$) where the Internet can be used as a
banking services. The increasing awareness of the importance marketing tool. However for 90 % of the survey banks lack of
of computer literacy has resulted in increasing the use of finance and skills are the main constraints and they cannot
personal computers. This certainly supports the growth of afford to buy a computer or make efficient use of it in the short
personal computer banking which virtually establishes a branch or even medium term [4].
in the customer’s home or office and offers 24 hours service,
seven days a week.
7 ANALYSIS OF FINDINGS, RESULTS
AND DISCUSSIONS
6.3.4 Branch Networking This section contains the analysis and report of the responses
ascertained from the questionnaires distributed on the subject
Networking of branches is the computerization and inter- of “The impact of information, communication and technology
connection of geographically scattered stand-alone bank on the performance of Ghanaian Banks”. The analysis was
branches, into one unified system in the form of Wide Area done in five (5) parts; the first part contained the demographic
Network (WAN) or Enterprise Network (EN), for the creating characteristics of the respondents who formed the sample
and sharing of customer information and records. It offers population of the project, the other four parts were on four
quicker rate of inter-branch transactions as the consequence of objectives of the study. The study was organized under themes
distance and time are eliminated. Also, with the several to coincide with the study objectives. The presentation was
networked branches serving the customer populace as one analyzed with the results obtained from the data gathered from
system, there is simulated division of labour among banks interviews held with one-hundred (100) staff at all levels at
branches with its associated positive impact on productivity Gh.ana Commercial Bank Limited.
among the branches. With this system customers can transact
banking business in any branch of their without travelling to
their bank where they have their account.
7.1 Demographic Characteristics of the
Respondents
The study first presents the distribution of the respondents. A
total of one-hundred (100) questionnaires were distributed and

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administered among the staffs of the bank. The study revealed 7.3 Expression on the importance of
that the majority of the respondents 55% were males and the
rest 45% were females. The study age division results revealed Information and Communication
that staff 18% was aged from 18-30 years. In addition, the Technology
study aged from 31-40 shows 45%, 41-50 depicts 25% with the
remaining 7% and 5% were aged 51-60 years and 61 years The study made way for the respondents to share and express
above respectively. their opinion on the importance of information and
The study revealed that the majority of the staff representing communication technology (ICT) to the performance of Ghana
60% of the staff had First Degrees. In addition, the Masters Commercial Bank Limited (GCB), the study revealed that 93%
Degree represents 15% as their educational background and of the respondents were affirmative whereas 7% stated that
HND holders representing 10% of the staff while PhD and they do not know the importance of information and
other professional certificate represented 15%. The findings communication technology to the performance of the bank
revealed that majority of the staff have at least First Degrees, under study. The study shows that information and
which indicated that the staffs are well educated and communication technology was indicated by the respondents as
knowledgeable in the field of Information, Communication and important to the performance of the bank, even though 7%
Technology (ICT). indicated that it does not.
The study shows the number years the respondents has been
working with Ghana Commercial Bank Limited. The study
shows that 6% of the staff of the sampled population had
worked for the institution for less than a year. In addition, 10% 7.4 The Importance of Information and
of the staff of the sampled population has worked for the
institution between 1-5 years. Furthermore, 30% of the staff
Communication Technology (ICT) to the
had worked with the bank for 5-10 years. Moreover, 40% of Performance of Ghana Commercial Bank
the sampled population had worked for the bank between 10- Limited
15 years and lastly, 15% of the sampled population are over 15 The study findings concerning the importance of information
years and over. The above findings illustrates that majority of and communication technology to the performance of Ghana
the employees are very experienced because they had worked Commercial Bank Limited revealed that ICT helps to increase
at the Department for a very long time. productivity with a percentage of 35%. This is followed by
simplifying and making work easier at the bank indicated by
the respondents as one of the importance of ICT to the
performance of the organisation with a percentage of 30%.The
7.2 The Meaning of Information and next of importance was the enhancement in product quantity,
Communication Technology (ICT) quality and speed of work was indicated by the respondents
with a percentage of 20%. Lastly, the least of the importance of
information and communication and technology was to
The study respondents were asked to explain the meaning of
facilitate the acquisition of realistic plans in the organisation
information and communication technology in their own views.
with a maximum percentage of 15%. The study findings
The study findings indicated a total expression of one- hundred
revealed that ICT has been a great importance to the
100 respondents of which most of them shared a common view
performance of Ghana Commercial Bank Limited because
on the meaning of information and communication technology.
through the use of ICT, productivity of the bank has been
The study shows that the majority of the respondents which
improved since its facilitate and make the banking activities
indicated a percentage of 40% shared their views on ICT as an
very easy and simple to operate.
electronic means of capturing, processing, storing and
communicating information. Secondly, the respondents shared
other views on ICT as a form of tool for information collection
storage and management to facilitate communication and 7.5 Expression from respondents concerning
decision making process with a maximum percentage of 30%. impact of ICT on the financial performance
Moreover, the respondents did express the meaning of
information and communication technology as the use of
of the Bank
technology such as computer and software in support of
information processing with a maximum percentage of 15%. The study findings concerning the impact of information and
Furthermore, the respondents shared their view on the meaning communication technology on the financial performance of the
of ICT as automation of processes, controls and information bank indicated by the respondents shows that more than two-
production using computer telecommunication software with a third of the sample population representing 97% indicated that
percentage of 10%. Lastly, the respondents expressed their information and communication technology has an impact on
view on the meaning of ICT as the means by which technology the financial performance of the Ghana Commercial Bank
helps in improving the efficiency and effectiveness of services Limited, but the remaining 3% indicated that the introduction
offered to customers, improve business process as well as of information and communication technology does not have
enhancing managerial decisions making and workgroup any impact on the financial performance of the Ghana
collaboration with a percentage of 5%. The study findings Commercial Bank Limited. The study revealed that majority of
revealed that information and communication technology is the respondents expressed that ICT has an impact on the
expressed as the process of using technology in a diverse ways financial performance of the bank and this implies that ICT has
to help in facilitating the activities of the organisation through been of great benefit to the staffs and the bank as a whole
technological means in order to communicate information through their job activities at the bank.
across the organisation.

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7.6 The Impact of Information and changes, and the impact the use of (IT) through supply chain
agility has had on the bank performance. The study revealed
Communication Technology (ICT) on the that the bank used of Information Technology (IT) increases
Financial Performance of Ghana the supply chains ability to sense market changes by improving
Commercial Bank Limited information quality in terms of adequacy, accuracy,
accessibility, and timeliness. The study also shows that IT has
increased the supply chains ability to respond to market
The study findings concerning the impact of information and
changes by developing and executing a coordinated plan with
communication technology on the financial performance of
the supply chain in terms of cost, quality, and timeliness. This
Ghana Commercial Bank Limited of which most of the
implies that the supply chain agility has improved the bank
respondents shared a common view on the subject. The study
performance in terms of sales, market share, profitability,
revealed that the majority of the respondents indicated an
speed to market, and customer satisfaction.
increase in productivity representing 30%. This next of ICT
Lastly, the study finding shows that the use of Information and
impact on financial performance was innovation dynamics with
Communication Technology (ICT) by the bank paved way for
a maximum percentage of 27%. This is followed by increases
fraudulent activities at the bank. The study revealed
in market structure with an average percentage of 24%
information technology made it possible for fraudsters to hack
indicated by the respondents. Furthermore, supply chain was
into the system of the bank by way of having access to the
one of the impact of ICT on bank performance were shared by
information of the bank clients and customers of which these
the respondents with a total percentage of 10%. Lastly, the
fraudsters managed to freeze and defaulted some of the
respondents shared opinion on increases in fraudulent activities
customer’s accounts. This implies that instead of the use of the
as one of views the respondents indicated as an impact of ICT
information and communication technology having a positive
on bank performance.
impact on the bank financial performance, it slightly had a
The study findings revealed that the use of information and
negative effect on the bank performance through the activities
communication technology (ICT) has had an impact on the
of fraudsters taking advantage of the weakness in the system.
financial performance of the Ghana Commercial Bank Limited
(GCB) by way of increasing productivity and this has had an
effect on labor productivity and total factor productivity of
GCB. The study shows that the banking industry of GCB has 7.7 The contribution of ICT based products
been enjoying the largest productivity growth effect of ICT by to customer satisfaction
way through which ICT has helped the cahiers of the bank to
be more productive in their duties and banking operations The study showed the contribution of information and
which turns to speed and brings efficiency in the job, however, communication technology based products to customer
increasing the turn-around time at the banking the hall which satisfaction. The study revealed that 45% of the respondents
increases savings, hence profitability increases. The study indicated branch network as one of the ICT based product.
shows that the bank used of computers and peripherals Secondly, 25% of the respondents indicated the use of
simplifies the task of getting customers' data and counting Automated Teller Machine (ATM) as part of the ICT based
money to effect transaction. This enables a single cashier to product used by the bank to satisfy its customers. Moreover,
serve thousands of customers in a day which would have cost 18% of the respondents indicated electronic banking as part of
the bank enormous staff strength and large building operating ICT based product offered by the bank to its clients and lastly,
cost. 12% of the respondents indicated that SMS Alert as part of
In addition, the study revealed that the bank used of ICT has the ICT products used by the bank.
had a positive impact on the financial performance of Ghana The study findings shows that the management and the staff of
Commercial Bank Limited through technological innovative Ghana Commercial Bank Limited had made it possible for the
products and process such as SMS alert, ATM, mobile banking customers of the bank to experience the quality of service
and electronic banking. The study shows that the bank used of through ICT based products offered to its numerous customers
technological change had a massive diffusion of ICT across the country of which the products has been a key
innovation strategies at the bank which helps in easy strategic component to the bank customer satisfaction.
mobilization and transfer of funds thereby increasing the The study finding shows that the bank branch network has been
deposit mobilization hence, improving the financial one of the powerful tools used by the bank through the
performance of the GCB. This implies that the bank did information based technology. This implies that the customers
frequently introduced products or production processes based of bank under study still finds it useful to visit their bank
on a new technology which did drive the bank into new market branches regularly every month to transact some banking
in the banking industry. The bank ICT innovation has helped in business such as detailed bank statement requests, loan
to reduce the cost of banking which made the process of application, foreign funds transfer, deposits etc. This signified
transaction easier and more convenient. The study shows that the importance of the customer’s satisfaction that they have
through the used of ICT, the bank made its customers to enjoy been experiencing by way of having access to their funds
the fastest information updates about the bank and their daily anywhere at the branch and it saved them time and cost visiting
transactions through SMS and email alerts which enhance their original branches.
customer’s loyalty and confidence and also the study shows The study findings revealed that the bank innovative used of
that the bank encouraged the use of other ICT media such as Automated Teller Machine (ATM) has helped in the
the internet and POS which enhances cashless banking which contribution of reducing the bank customers frequent visits to
proved productive in the sales of the bank hence, improving the the banking hall and also with the fact that the study shows that
financial performance of the bank. ATM reduced the time involved in the bank transactions,
reduced long queues in the banking hall and enhanced access to
Moreover, the study shows the extent to which Information funds anywhere the ATMs were located.
Technology (IT) had improved supply chain agility as The study shows that the importance of ICT based products
measured by the ability to sense and respond to market service delivery and its impact on improving customer

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satisfaction and retention of customers had improved the bank The study revealed that the bank used of ICT has had a positive
sales and market share, and also improved the corporate image impact on the financial performance of Ghana Commercial
of the bank. The study revealed that ICT based products has an Bank Limited through technological innovative products and
appreciable positive effects on customer service. This affects process such as SMS alert, ATM, mobile banking and
the growth of the bank positively because customers can now electronic banking.
collect money from any branch of the bank. Also, customers do
not need to move about with large sums of money, and The study shows that the bank used of technological change
customers are being attended to within a short period of time. had a massive diffusion of ICT innovation strategies at the
New technologies have created unparalleled wired economy bank which helps in easy mobilization and transfer of funds
and that the transfer of money from point ‘A’ to point ‘B’ has thereby increasing the deposit mobilization hence, improving
resulted in turning the actual money into bits and bytes through the financial performance of the GCB. This implies that the
satellite transponders, fibre optic cables or regular telephone bank did frequently introduced products or production
[13]. processes based on a new technology which did drive the bank
into new market in the banking industry.
7.8 Contribution of ICT to the reduction of The study revealed that information technology made it
operational cost of the bank possible for fraudsters to hack into the system of the bank by
way of having access to the information of the bank clients and
customers of which these fraudsters managed to freeze and
According to the respondent’s opinion concerning Information
defaulted some of the customer’s accounts. This implies that
and Communication Technology (ICT) and contribution to the
instead of the use of the information and communication
reduction of operational cost at Ghana Commercial Bank
technology having a positive impact on the bank financial
Limited. The study shows that more than half representing 87%
performance, it slightly had a negative effect on the bank
indicated that ICT had contributed to the reduction of
performance through the activities of fraudsters taking
operational cost of the bank, but the remaining 13% pointed
advantage of the weakness in the system.
out that the reduction of operational cost at the bank does not
The study finding shows that the bank branch network has been
necessary involves the bank application of information and
one of the powerful tools used by the bank through the
communication technology.
information based technology. This implies that the customers
of bank under study still finds it useful to visit their bank
7.9 Expression from respondents concerning branches regularly every month to transact some banking
the effect of ICT on the liquidity of the Bank business such as detailed bank statement requests, loan
application, foreign funds transfer, deposits etc. This signified
According to the respondent’s opinion concerning the effect of the importance of the customer’s satisfaction that they have
Information and Communication Technology (ICT) on the been experiencing by way of having access to their funds
liquidity of Ghana Commercial Bank Limited. The study anywhere at the branch.
findings indicated that more than half representing 96% shared The study findings revealed that the bank innovative used of
an opinion that ICT has an effect on the liquidity of Ghana Automated Teller Machine (ATM) has helped in the
Commercial Bank Limited, but the remaining 4% indicated contribution of reducing the bank customers frequent visits to
that Information and Communication Technology (ICT) does the banking hall and also with the fact that the study shows that
not have any effect on the liquidity of the bank. ATM reduced the time involved in the bank transactions,
reduced long queues in the banking hall and enhanced access to
funds anywhere the ATMs were located.
7.10 Expression on satisfaction of the The study revealed that ICT based products has an appreciable
respondent’s concerning the impact of ICT positive effects on customer service. This affects the growth of
the bank positively because customers can now collect money
on the performance of Ghana Commercial from any branch of the bank. Also, customers do not need to
Bank Limited move about with large sums of money, and customers are
being attended to within a short period of time. The study
The study sought the expressions concerning the satisfaction of shows that the bank ICT based products had hold the promise
the respondents concerning the impact of Information and of a new commercial revolution by offering an inexpensive and
Communication Technology (ICT) on the performance of direct way for its customers to exchange information and to sell
Ghana Commercial Bank limited. The study finding shows that or buy products and services. This revolution made it possible
the respondents shared a common view that the Information for the bank to create a market place which has turned to set in
and Communication Technology (ICT) has had positive impact motion a revolution in the banking sector for the provision of a
on the performance of the bank with majority of the payment system that is compatible with the demands of the
respondents thus, 82% were fully satisfied with the impact of electronic marketplace.
ICT on the performance of the bank and 18% were dissatisfied. The study finding shows that Information and Communication
Technology (ICT) helped to provide supportive role for the
human resources (staff) activities at the bank. This implies that
8. SUMMARY OF THE MAIN FINDINGS the bank operations and activities concerning providing
services to its numerous customer are been done through the
human resources at the bank, hence, through ICT at the bank
The study findings revealed that the use of information and had made Ghana Commercial Bank Limited to reduce the
communication technology (ICT) has had an impact on the number of staffs who are responsible for the daily operations of
financial performance of the Ghana Commercial Bank Limited the bank thus cutting the wage bills of the bank in terms of the
(GCB) by way of increasing productivity and this has had an cost involved in paying the huge staff in undertaking the
effect on labour productivity and total factor productivity of operations at the bank.
GCB.

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The study findings also shows that the bank made used of study observed by concluding that the bank used of
Information and Communication Technology of which this Information and Communication Technology (ICT) has had an
helped the bank to saved time in their operations at the bank. impact on the performance of the bank by way of increasing
This implies that bank activities were mostly facilitated by the the bank profitability and also reducing the operational cost of
use of ICT machines which made the bank to provide its the bank. The results suggest that improving the service quality
services to its customers on time made it faster. This means through ICT experience had improved the overall customer
that the budget that was allocated to the running of the perception of the quality of service provided by the bank. The
operational activities of the bank was been cut off through the study observed that the customers of the bank appear generally
bank technological used of ICT at the bank satisfied with the technological aspects of the bank. In other
The study findings shows that the bank made used of words, the bank customers are now familiar with the basic
Information and Communication Technology (ICT) service provided by ATMs and bank websites through which
contributed to the reduction of operational cost of Ghana the customer’s satisfaction for these ICT devices has been great
Commercial Bank Limited by way of the bank using ICT to of benefit to the bank. They revealed that the bank has taken
fasten the decision making process at the bank. This implies their ICT to the next level in order to stay one step ahead of the
that the bank made used of ICT which did support the decision competition.
making process at the bank. The operational cost involved in
Ghana Commercial Bank Limited is very huge due to its 10. RECOMMENDATIONS
largest coverage across the country; hence, the bank used ICT
to help in making decision through video conferencing, CCT
cameras and telephones. The study recommends that the bank should research and have
The study findings concerning the effects of Information and better feasibility studies on their customers to know the kind of
Communication Technology (ICT) helped to improve the bank information technology that will be suitable for the bank and its
monetary reserve. This implied that information technology customers to help in the bank financial performance.
was used as medium to channel and assisted in mobilizing The study also recommends that the bank should involve itself
deposit from the bank numerous customers and also shows that more in the use of electronic banking rather than the traditional
the bank made used of ICT as form of technology which did way of customers always having to visit the banking hall of
help the bank turnaround time at the banking hall because of which it will fasten and will encourage deposit mobilization
the kind of technology that were used by the banking staff in because of the convenience and easy way of assessing
providing better services to the customers. This encouraged the transactions.
customers to save much of their income with the bank hence, The study recommends that the bank’s management should be
increasing the bank profitability and its liquidity at large. well advised to conduct periodic marketing research studies on
The study finding shows that the bank used of Information and their own customers, to include developing a database
Communication Technology (ICT) helped in improving the containing both the demographic and psychographic profiles of
bank fixed assets at the bank. This means that the bank made its customer base. Such a database would then allow the
used of information technology in its products and services to management to make a more informed decision about the level
its customers which made the bank to have access to modern of technological services needed at any one time in relation to
fixed assets in their disposal for providing and assisting the the level of personal staffing to ensure adequate service
bank in their services. delivery.
The study findings shows that the bank technological The study recommends that the bank should concentrate their
advancement through the used of Information and efforts on those areas customers feel are most important (i.e.
Communication Technology (ICT) helped in protecting the accuracy, timeliness, and convenience). These are areas in
bank liquidity either in the form of money or property. The which technology (capital expense) has been well utilized to
study revealed that the bank used information technology to replace more costly labour resources to accomplish essentially
helped in protecting the banking hall through the use of modern those services that the customer is accustomed.
CCTV cameras in detecting fraud. The study also shows that
the bank used modern technology in encryption their
confidential information on the bank data from allowing
fraudsters from hacking into the banking system and
defrauding the bank.

9. CONCLUSION

In conclusion, the study observed by drawing its conclusion

from the findings of which the results of the research indicate
that investment on ICT systems has become a key element in
the performance at Ghana Commercial Bank Limited. The
study revealed that ICT-Capital has accelerated growth in the
bank. Also, ICT facilitates the absorption of high and medium
skilled labor. This has a positive effect on the labor output at
the bank. The study findings revealed that the bank used of ICT
also enabled Ghana Commercial Bank Limited to offer a broad
variety of services to customers, coordinate branch activities,
meet up with changes in government regulations and policies
as well as adjust to market demands and competition. The

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11. FURTHER STUDIES [5] Jayamaha, O (2008). Assessment of Impacts of Information

Technology on Selected Service Industries in South
Western Nigeria, MSc. Thesis in technology
There are a number of research opportunities to explore in the
Management, Obafemi Awolowo University, Nigeria.
future based on this study. The following recommendations are
therefore made for future research.
[6] Khalifa , G (2000). Deploying internet Banking and e-
 Future research should look at Information and
Commerce: Case Study of a Private Sector Bank in
Communication Technology (ICT) and its
India, Information Technology for Development, Vol.
contribution to the development of the country at
11, No. 4,pp. 363-379.
large.
 Future research should also take into consideration a [7] Khanna, S (2003). The Use of Information Technology to
larger sample size upon which better conclusion can Transform the Banking Sector in Developing Nations,
be drawn from them. Information Technology for Development, Vol.11, No.
 Future research should aim to improve impact of 4, pp. 305-312.
ICT, by examining whether ICT usage or adoption
varies in importance across the banking sector in the [8] Laudon, D.P. & Laudon, J.P. (1991). Business Information
country. System: A Problem Solving Approach, New York, HBJ,
College Publishers.

[9] Leow, H. B. (1999). New Distribution Channels in banking

12. REFERENCES Services. Banker’s Journal Malaysia, 110, 48-56.

[10] Mehta Kamlesh T. & Shah Vivek (1998). “Workforce,

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