1.1 Background to the Study
The banking sector continues to play pivotal roles in the growth of the world’s economy (World Bank, 2008). Their services include clearing and settlement systems to facilitate trade, channelling financial resources between savers and borrowers, and various products to deal with risk and uncertainty (Bollard, 2011). Governments, international financial firms and donors across the world have continually acknowledged that access to financial services can play a key role in poverty alleviation and reducing hopelessness of poor people (World Land Trust, 2013). Despite the efforts of the World Bank and other financial institutions to expand the financial inclusion of all especially the poor, estimated 4 billion people
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Mobile banking is seen as the most effective and cost efficient way of expanding the customer base of the banking industry to include the poor and even those in hinterlands (USAID, 2009). Most banks in Ghana now transact business with clients through their mobile phones (Obuobi, 2012). As at October 2014, there were 30219162 mobile phone subscribers in Ghana according to the National Communication Authority (NCA). Due to 100% mobile phone penetration in Ghana, mobile banking will make banking services accessible to most people. Most Ghanaians especially Small and Medium Scale Enterprises (SMEs) owners like to do business with non-banking financial institutions such as microfinance and savings and loans companies through the daily deposits system call susu (Akers, …show more content…
This is expected to take banking to the doorstep of people and make financial services more accessible and increase financial inclusiveness especially among low income earners and rural dwellers. However, there has not been any empirical studies on the contribution of mobile banking on financial service accessibility in the municipality, thus whether mobile banking has contributed to financial service inclusionof low income earners or not is unknown. Saving practices among people especially low income earners is very significant towards their welfare; however it has not been established by empirical evidence the influence of mobile banking on saving practices of GN Bank customers in the municipality. It is anticipated that banks operating mobile banking face some risks; however the kind of risk faced by GN Bank in the municipality as a result of operating mobile banking has not been identified and analysed by any study.It is in line with the above crucial issues of concern that the study seeks to investigate the effects of mobile banking on the prospects of the banking industry in Ghana: evidence from GN Bank-Wa Municipality.
1.3 Objectives of the study
The general objective of the study is to assess the effects of mobile banking on the prospects of the banking industry
Seibel, Hans Dieter and Fabrizio Felloni. 2005. “Mainstreaming Banking with the Poor in the Philippines.” Internationales Asienform 36(3/4): 361-375.
Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business.
The study concentrated more on Ecobanks and most banks in Accra. But also took into consideration the input of the people at the managerial level because they form the decision-making body which has a direct effect on the performances of
The bank failure in Jamaica illustrates how negative mindsets and behaviors can devastate the financial system and disrupt economic growth. The primary role of any bank is to safeguard its customer’s money, offer interest rate on deposits, lend money to creditworthy individuals, and make sound investment decisions to maximize shareholder value. Because of rapid economic growth between the late 1980s and early 1990s in Jamaica, the Central National Bank (CNB) and Worker’s Savings and Loans Bank (WSLB) loosened their monetary policies, provided preferential interest rates and extended credit beyond what was reasonable to members of its own board of directors, managing directors, and officers of the bank. These actions posed significant risks to the bank and its future.
Moukarzel, N. (2012, December 31). Ghana Business Media. Retrieved Apil 6, 2014, from Ghana Business Media: http://www.ghanabizmedia.com/
The International Monetary Fund and the World Bank were created as a result of the Bretton Woods Conference. Both provide assistance to countries suffering economically. While the IMF is a cooperative institution that aims to create an organized global system of payments and receipts, the World Bank is an institution that aims to help developing countries (Driscoll 1). Both play a part in the economies of struggling nations with the goal of reducing their burden and helping them to survive in the global economic system. Unfortunately, in many cases their practices within developing nations have been seen to create more harm than good. This is possibly because both institutions use a one size fits all approach when aiding countries rather than gaining a deep understanding of each country they are involved in and catering their approach as a result. In this paper I will examine the practices of the IMF and World Bank in developing nations that have led to failure and the effects the policies had on these countries.
Changing consumer behavior and rising expectations – Today’s customer is a lot more knowledgeable and demanding than he was a decade ago. He needs convenient access to banking through multiple channels, greater control over his personal finance and decisions through customized advisory services and data analytics tools and an optimal customer experience across channels. According to a survey of nearly 4000 retail banking customers in US and Canada conducted by Accenture in 2014, 71% consider their banking relationship to be transactional rather than relationship driven while 51% want their bank to proactively recommend products and services for their financial needs. Internet and mobile banking has long been considered as a differentiating factor and constitutes an integral part of every banks digital strategy. However, in today’s context, consumers just do not expect high quality service through these platforms but also seamless integration between
Velde,D.K (2008). The global financial crisis and developing countries. Available at: http://www.odi.org.uk/resources/download/2462.pdf (Accessed: 5th August 2010).
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified
The study is primarily designed to find out the continuous issue of the banking system in
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
Financial Inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products. Financial inclusion broadens the resource base of the financial system by developing culture of savings among large segment of rural population and plays its own role in the process of economic development. Further, by bringing low income groups within the perimeter of formal banking sector; financial inclusion protects their financial wealth and other resources in exigent circumstances. Financial inclusion also mitigates the exploitation of vulnerable sections by the usurious money lenders by facilitating easy access to formal
Financial inclusion has several direct advantages and benefits to poor families who have taken loans or are using savings to see them through difficult situations like health issues or they even make investments in household durable goods, education etc. Insurance, another financial product can help the poor manage risks as well. Various studies and researches have showed that financial inclusion promotes women empowerment. Studies and researches also show that economies with deeper financial inclusion have a tendency to grow faster and reduce
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
It is true, that Internet Banking is useful for customers as well as for the banks. On the one hand, it helps people have direct and quick access to their bank accounts, on the other hand, helps the banks to save costs. ‘Clearly, in order to conti...