Networking on the financial performance Essay

Chapter ONE


Computer webs emerged comparatively late in the 1960 ‘s. They inherited many utile belongingss of their predecessors, viz. older and more widely adopted telephone webs. It is hence non surprising that both computing machines and telephones are cosmopolitan instruments of modern communications systems. However, computing machine webs have brought something new to the universe of communications – practically unlimited shop of information, anon. entree to information and real-time communicating through the usage of cyberspace and the World Wide Web ( World Wide Web ) . Some administrations have seen this as an chance to make a wholly new bringing channels and markets for their merchandises and services. Others have used the web engineering to switch the footing of competition off from quality, characteristics, and service toward monetary value ( Porter, 2001 ) . It provides consumers with easier entree to information about merchandises and providers. And besides a new and efficient agencies to order goods and services, therefore bolstering purchaser bargaining power ( Porter, 2001 ) . In this survey, web engineering ( Networking ) refers to the application and deployment of cyberspace, intranet and extranet by concern administrations. Network banking is embodied in cyberspace based computer science and wired and radio networking which is supported by a criterion protocol – TCP/IP ( Wu et al. , 2006 ) . By trusting on the unfastened substructure and standardised protocol, the cyberspace provides inter operable, world-wide and high velocity networking theoretical account capable of conveying informations, voice and multimedia cheaply.

Arguably, the cyberspace is the most powerful tool available today for heightening operational effectivity. Because it is an unfastened system, companies that have adopted the engineering do non merely hold entree to local and national markets but planetary markets and more significantly, non bound by office hours. As a consequence, most concerns have clients virtually everyplace in the universe. Businesses both big and little driven by the fright of losing out on worldwide concern chance have adopted this new engineering.

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The banking industry is among the taking industries that have been greatly influenced by the I.T. revolution in recent old ages. About all Bankss in have all their subdivisions networked and on-line and clients can entree their histories anytime. Network engineering in the banking sector has facilitated the development of legion new bringing channels including Automated Teller machines ( ATM ) , Internet Banking and Mobile Banking in add-on to supplying solutions to their accounting and back office demands ( Rahman,, 2007 ) . With of all time increasing client demand for better quality, faster and cheaper services, and ferocious competition, Bankss are forced to go on to put to a great extent in the latest engineering to better function bing clients and besides pull possible clients.

Background history of Ghana Commercial Bank ( G.C.B. ) Ltd

Ghana Commercial Bank Ltd was incorporated as a bank of the Gold Coast in 1953 to supply banking services to the emerging state for socio-economic development. It was to supply fiscal services to autochthonal bargainers, concerns and husbandmans who could non arouse support from foreign Bankss that existed at the clip. The bank was renamed Ghana Commercial bank to concentrate entirely on commercial banking services after independency in 1957 when the name of the state was changed from Gold Coast to Ghana.

The bank was wholly authorities owned until 1996 when portion of the authorities ownership was divested under the Economic recovery programme ( ERP ) . Institutional and single retentions account for 78.64 % and the staying being Ghana authorities retentions.

The bank has branches in all the 10 parts of the state and as at the terminal of 2009, the bank has 157 subdivisions


The purpose of set abouting this survey is to happen out the extent to which the banking industry in Ghana is following the progresss in networking engineerings in their operations by concentration on the instance of Ghana Commercial Bank ( G.C.B. ) . The specific aims are:

To measure the effectivity of networking in traditional banking services bringing ;

To place how the acceptance of networking engineering has facilitated the bank ‘s new merchandise development scheme ;

To measure the degree of client satisfaction towards the usage I.T driven merchandises and services on offer by the bank ;

Make recommendations to better the position quo.


The use of information engineering, loosely mentioning to computing machines and peripheral equipments has seen enormous growing in the banking industry around the universe and the rate of growing is forecast to go on in the old ages in front. Harmonizing to Ho and Mallick ( 2006 ) , information engineering can better a bank ‘s public presentation in two ways ;

It can cut down its operational cost ( cost consequence )

It can ease dealing among clients within the same subdivision web ( web consequence )

Second, the altering landscape of fiscal services proviso as a consequence of the outgrowth I.T. in banking requires that Ghana Commercial Bank ( G.C.B. ) alteration its traditional brick and howitzer banking scheme towards a engineering driven scheme such as cyberspace and online banking to accomplish competitory advantage.

The construct of competitory scheme as suggested by Porter ( 1980 ) emphasised the usage of houses ‘ capablenesss to accomplish competitory advantage. He argued that engineering being of a house ‘s capablenesss would enable it stand out in competition.

In the context of fiscal services bringing, following information engineerings present an chance to better service quality, incorporate bing bringing channels and to develop close client relationship. It besides facilitates back office maps such as analysis of client information associating to merchandise use, minutess behaviour and besides sectioning clients. This analysis enables Bankss to better on their merchandise offers, service bringing and finally increase market portion and profitableness.

It is therefore imperative to measure G.C.B. ‘s networking engineering scheme and place ways to maximize its strategic benefits.


The bank ‘s extended subdivision web is no longer equal and efficient in supplying cost effectual fiscal services to run into its turning clients demand and vie efficaciously hence, the execution of the web scheme. G.C.B. has 153 subdivisions spread over 10 parts and 170 territories of Ghana. Its retail banking arm which provides fiscal services to corporate clients, Small and Medium Scale Enterprises ( SMEs ) , and single clients would be the focal point of this survey. The range of the survey would be limited to the bank ‘s retail operations in merely one of the 10 parts – Kumasi part.

Administration OF THE STUDY

This survey study is organised into six chapters. The first chapter is the general debut sketching intent of this survey, job statement, and significance of the survey, range and restriction. Chapter two is devoted to reexamine of literature on banking in general, traditional banking, web banking, benefits and barriers to web banking acceptance. Chapter three discuses the background profile of G.C.B. , its mission statement, merchandises and services profile. Chapter four outlines the research methodological analysis adopted for this survey. Chapter five analysis informations collected and eventually, chapter six summarises the findings and recommendations to the survey.

Restriction OF THE STUDY

The major restriction of this survey is the geographical spread of G.C.B. subdivision web. It would be really expensive in footings of cost and clip to cover all the 10 parts and 153 subdivisions therefore, merely one of the parts 10 parts would be the focal point of the survey.

Second, the responses from some employees of the bank exhibit “ response prejudice ” for case adopting the corporate position of the bank. Besides, some directors were loath to give out certain public presentation informations which they classified as “ company secrete and confidential ” .

Finally, some of the clients were non corporative and others refused to react to the questionnaire.

Chapter TWO



This chapter aims to reexamine some of the published literature on bing positions, remarks, cognition and relevant information in other Fieldss relevant to this survey. This literature reappraisal will function as a usher to the research aim and more significantly assist determine the research methodological analysis in a better conceptual model. It is hoped that this reappraisal will uncover the research spread in this country and besides supply penetrations for future research. In this respect the reappraisal will concentrate on: shaping web engineering, development of web engineering in banking, benefit impact and challenges in web acceptance in banking industry.


Network in I.T can be defined as a group of computing machines and other peripheral devices connected together. Networking is a construct of affiliated computing machines and assorted devices or the intent of sharing resources.

Computer webs emerged comparatively late in the sixtiess. In 1969, the U.S. Department of Defence initiated a research into fall ining the computing machines of defense mechanism and research Centres into a web. This web which became known as ARPANET served as the starting point for the development of Wide Area Network ( WAN ) now known as the cyberspace.

Desktop calculating began to emerge the concern universe in the 1980s and this was intended to let employees to work independently. The calculating thought at the clip was summed up in one phrase “ one user, one computing machine ” . Small concerns in peculiar benefited from the usage of these computing machine systems in information direction services that few old ages before, was available to merely affluent corporations. Vast sum of information became stored on these standalone computing machines. Soon sharing of this big volume of information became impossible, for case go throughing difficult transcripts around to be re-entered and processed by other users. The solution was the development of Local Area Networks ( LAN ) . As new engineerings become available, concerns bit by bit started linking their stray LANs together utilizing WAN as the linking media.

Types of Networking

Local Area Network ( LAN ) can be defined as a connexion of two or more computing machines and other peripheral devices running specialized communicating package through external informations way in a individual location, for case, in an office block. LAN has the undermentioned features:

  • Screens comparatively little geographic country, normally no longer than a individual edifice
  • Direct high-velocity connexion between all workstations and waiters
  • Share hardware resources and informations files
  • Centralized direction of resources and web security

Wide Area Network ( WAN ) on the manus, expand the basic LAN theoretical account by associating LANs over rental communications lines such as telephone and orbiter from suppliers. WAN suffer from highly limited bandwidth. The fastest commercially executable WAN links are many times slower than the slowest LAN links. A typical LAN transmits at 10Mbps and a T1 line which is considered as a fast WAN nexus transmits at 1.5Mbps. This makes the sharing of resources over WAN more hard. By and large, WAN links are used merely for inter-process communicating to route short messages such as electronic mails or web traffic.

Convergence of LANs and WANs

From the mid 1980s, standard engineerings for linking computing machines to a web such as Ethernet, Arc cyberspace, Tokin Ring and cyberspace protocol ( IP ) emerged. Faster digital informations transmittal along fiber-optic communicating lines was besides developed. These improved significantly informations transmittal over WAN to over 155Mbps. The coming of broadband has made informations transmittal over WAN and the cyberspace even faster. In U.K premises with entree to unbundled local exchange rose to 82.6 % in the first one-fourth of 2008 with mean headline velocity of 5.9Mbits/s ( Ofcom, 2008 ) . As a consequence, the differences between LAN and WAN has diminished. Other signifiers of networking engineerings and services such as Campus Area Network ( CAN ) , Metropolitan Area Network ( MAN ) , Intranet, Extranet, Internet and World Wide Web ( World Wide Web ) were developed. However, World Wide Web is now the chief information service conveyance on the cyberspace.

Intranet, Extranet and Internet

An intranet is a private web within an administration that uses the same communicating protocol as the cyberspace. When portion of an administration ‘s intranet is made accessible to providers, clients, and other outside administrations, that portion of the administration ‘s web becomes an extranet ( hypertext transfer protocol: // ) .

Similarly, an cyberspace is a planetary conglobation of smaller webs for illustration, commercial, academic and governmental webs that interact with each other by sharing the web and other services including ftp, e-mail, voice, multimedia, and newsgroup. The cyberspace engineering is rapidly happening many utilizations in concerns instruction and authoritiess.

Harmonizing to Fotsch ( 1997 ) , although the distinct characteristics of these webs are deserving observing, proficient and practical efficiency of unfastened architecture is gnawing these differentiations. Increasingly, in my position, networking has become the most cost effectual platform for concerns in this present epoch because of the undermentioned grounds ;

  1. It is based on unfastened criterions
  2. It can be customised to run into specific concern demands.

In this research, the term “ networking ” is used to depict the usage and application of cyberspace, intranet and extranet in banking and the focussing on placing how Ghana Commercial Bank is using networking architecture to run into its strategic and operational demands.

Information and Communications Technology ( ICT ) as a Driver in emerging signifiers of Business Organisations

Franke ( 2001 ) argues that is ICT nervous system and driving force of inter-organisational communicating. The increasing popularity of utilizing engineering in concern is as a consequence of the enlargement of the “ information expressway ” – a sophisticated web of computing machines and peripheral devices that Fosters and accelerates physical and temporal restraints ( Byne et al. , 1993 ) . Network engineering is a powerful tool that can be deployed in about any industry as portion of virtually any scheme. The cardinal inquiry is non whether to deploy this engineering – administrations have no pick if they want to remain competitory – but how to implement it efficaciously. The internet engineering provides better chances for administrations to set up typical strategic places than did old coevalss of information engineering ( Porter, 2001 ) . Nowadays, we talk about “ e-business ” , and “ e-commerce ” schemes. These new constructs emerged as a consequence of the application of ICT within concern administrations.

The term e-business has a really wide deduction and its relationship with e-commerce is a beginning of many dissensions among research workers in this field ( Melao, 2008 ) . Some writers view e-business as development of e-commerce hence, a subset of the latter ( Turban et al. , 2006 ) . Whiles some argue that they are distinguishable constructs ( Laudon and Traver, 2008 ) , others use both footings interchangeably ( Schneider, 2002 ) . A much clearer differentiation between e-commerce and e-business is provided by Kalakota and Robinson ( 2000 ) . They argue that e-business is non merely about e-commerce minutess or purchasing and merchandising over the cyberspace but the scheme of utilizing engineering to redefine old concern theoretical accounts to maximize client value and net incomes. As such e-commerce is a subset of e-business. E-business includes the creative activity of new markets and clients every bit good as the optimum ways of utilizing computing machines, the web and package applications ( Hamel, 1999 ) . E-business besides uses web engineering and ICT tools ( such as telephones, cellular webs ) to broaden the house ‘s communicating channels doing it possible to incorporate and portion information, leting staff, clients and providers to pass on in real-time ( Hamel, 2001 ) . As a consequence at that place has been a dramatic alteration in the manner most administrations communicate with their clients. Gunasekaran and Ngai ( 2005 ) argued that understanding the deduction of e-commerce, implementing and using ecommerce would hold an impact on organizational fight and innovativeness.

The cyberspace has created new concerns such as Amazon and EBay and other digital markets. However, its greatest impact has been enabling the reconfiguration of bing administrations that has been constrained by high cost of communicating, garnering information or carry throughing minutess.

State of Telecommunication Infrastructure in Ghana

Telecommunication substructure refers to the installations and equipments that are owned and operated by the assorted service suppliers in the communications sector of the Ghanese economic system. These installations and equipments include dedicated telephone lines, overseas telegrams links, fibre ocular overseas telegram links, wireless and orbiter ( VSAT ) and dial-up substructure which form the anchor of web connectivity links to run expeditiously.

Ghana has been at the head of the information and communicating revolution in the Sub-Saharan Africa for more than a decennary ( NCA, Ghana ) . The communications sector was deregulated in 1994 when the authorities initiated the Accelerated development programme ( ADP ) – a five twelvemonth programme for reconstituting the communications industry. As a consequence, the communicating industry grew quickly led by the private sector. Currently ICT infrastructure/services available include the followers:

  • set downing point for the SAT-3/WASC fiber-optic pigboat overseas telegram that provides connectivity to Europe and Asia
  • satellite Earth Stationss – 4 Intelsat ( Atlantic Ocean )
  • microwave wireless relay nexus to Panaftel system connects Ghana to its neighbors
  • 800km national fiber ocular anchor which is being extended to 4000km to link 23 sites countrywide
  • 130 VSAT installing nationwide
  • 2 fixed line telecom operators
  • 5 cellular telecoms operators

( NCA, Ghana 2009 ; hypertext transfer protocol: // )

Following the debut of competition in the telecoms sector, the figure of telephone subscriptions has increased unusually. Ghana Telecom now Vodafone Ghana histories for over 73 % of fixed lines services proviso ( State of ICT, 09 ) . It is the nomadic telecom sector that has seen the greatest growing, a leap from 0.5 % in 2000 to 51.8 % in 2008 in subscription take up ( province of ICT, 09 ) . However national tele-density still remains really low about 5 % with quality of service about 50 % ( ICT Research, Feb 04 ) .

Many of the nomadic telecom companies besides provide informations and broadband services utilizing engineerings such as GPRS and UMTS which is capable of accomplishing download velocities of up to 2Mbps to the Ghanese market. Electricity Company of Ghana ( ECG ) is besides spearheading field tests with Power line Carrier ( PLL ) engineering that if successful, would raise the tele-density to about 50 % within the following decennary ( ICT Info, Dec, 04 ) .

Internet and informations services proviso by Service Providers ( ISPs ) has besides improved significantly. Presently, there are about 35 ISPs operating in the state ( ITU,09 ) . Some of the ISPs besides provide web connexion direction services nationally. Vodafone Ghana provides a multi-service web that supports informations, voice and picture applications. The web offers managed end-to-end, high-speed, digital informations transmittal of up to 2Mbps and Frame Relay package shift services. The web ‘s anchor is based on Asynchronous Transfer Mode ( ATM ) conveyance engineering which is fast, dependable and unfastened web with immense capacity of about 2.5Gbps ( ) .

Voltacom web dwelling of a fiber-optic cringle links 3 major metropoliss in the southern portion of the state ( ICT, Feb 04 ) . This fiber-optic web was ab initio intended to be used to pull off the state ‘s electricity grid is besides being used as portion of a high-velocity web substructure anchor for the state. This web uses Synchronous Digital Hierarchy ( SDH ) engineering and has a capacity of 150Mbps. There are 11 SDH units and 19 entree points on the web ( ICT Inf, Feb 04 ) . Some ISPs including ThirdRail uses Voltacom capacity to function its clients. Plans are underway to widen the web to all territory capitals in the state ( ICT Inf. Feb 04 ) .

Another service supplier, K-Net offer managed networking and industry specific end-to-end, tested and tested hardware solutions that combine the right solutions and high-value services with 24×7 direction, monitoring, alteration control and networking support for their clients ( CTN ) . K-Net besides has experience in web design and execution, integrating, monitoring and secure web operations, and complete web support supplying clients with individual point of duty. This company specialises in supplying telecom services including corporate cyberspace entree, WANs, MANs, LANs, VPNs, Rural Telephony, VSAT and DSL. K-Net has the most comprehensive private telecom substructure in Ghana ( CTN ) . It has over 30 base Stationss in all the regional capitals and several towns throughout state.


Banking, by and large involves supplying fiscal services to consumers and concerns for a fee. A bank can be defined as “ an administration normally a corporation chartered by a province or a federal authorities, which does most or all of the followers: receives demand sedimentations and clip sedimentations, honours instruments drawn on them, and pays involvement on them ; price reductions notes, makes loans and investings in securities ; collects cheques, bill of exchanges, and notes ; certifies depositors ‘ cheques ; and issues bill of exchanges and teller ‘s cheques ” ( hypertext transfer protocol: // ) .

Traditional Banking ( Brick and Mortar Banking )

Traditional banking is characterised by the constitution of legion subdivision offices and mercantile establishments in towns and metropoliss where clients visit to transact their banking concern. The extended subdivision web has traditionally been the chief channel for supplying retail banking services to clients. In kernel, traditional banking involves “ face – to – face ” service bringing over the counter. Customers and Bankss need to set up a physical presence in a geographical location in order to transport out minutess ( Wu et al. , 2006 ) . Typical security scheme consists of a combination of casts and signatures ( Wu et al. 2006 ) . Traditional banking is characterized by physical decentalisation, with subdivisions scattered around populated countries supplying an omnipresent presence. The principle behind such branch investing is the demand to administer banking services. A big subdivision web gives clients easier geographic entree and the reassurance that the bank has significant resources and hence offers security for their nest eggs ( Lockett and Littler, 1997 ) . The extended subdivision web has enabled Bankss to capture market portion. Therefore the spacial component is cardinal to current bringing schemes. Such a construction allows these establishments to supply homogenous merchandises and services at the cost of a big figure of staff with high fixed and variable costs.

Further subdivision web has traditionally been the chief distribution channel for retail banking services. This is a map of the fact that it was the most convenient manner of treating the myriad minutess which resulted from a mostly cash-and cheque-based society. Besides, the fiscal service of retail banking is a typical service offering and as such displays the separating features of services ( Bateson, 1977 ; Shostack, 1982 ) . The subdivision web helps get the better of intangible jobs by supplying touchable grounds of the organisation every bit good as being a convenient location for the client to see and go involved in the service production procedure. It has besides provided the ideal platform for relationships to be formed with clients, assisting further to breed trust and assurance.

However, the subdivision webs of the chief glade Bankss have evolved in a mostly unplanned mode for a figure of grounds. First, the current construction of the retail banking industry has been determined by a figure of amalgamations between organisations, frequently with a grade of communality in subdivision coverage. With cost force per unit areas less intense in the yesteryear, subdivisions were frequently retained but more late rationalisation of subdivision webs to cut down costs is emerging.

Second, in a period of minimum competition, determinations sing subdivision location and feasibleness were frequently driven by organisational instead than market demands. Holocene alterations have forced the major Bankss to re-examine their subdivision webs in footings of the entire figure of subdivisions, the maps carried out in those subdivisions, the effects of functional alteration for staffing degrees and senior status of staff required and the design of subdivisions in relation to selling demands.

Network Banking

Network banking in contrast to traditional banking, is driven by I.C.T through the usage telephones and computing machine webs to supply banking services. That is, the full bank ‘s subdivision web is linked together utilizing I.T substructure web by and large dwelling of client-server architecture and an application platform. A client utilizing personal computing machine ( Personal computer ) can link to the bank ‘s database ( web site ) with appropriate security clearance to acquire entree to bank histories, perform minutess every bit good as send and receive information from the bank. In some cases the bank provides customised package to clients to ease these minutess.

The current web-based web banking ( internet banking ) is the latest of several coevalss of electronic banking such as Personal computer banking, phone banking and Automated Teller Machines ( ATMs ) . The outgrowth of high-velocity broadband cyberspace and computing machine webs has changed the manner most Bankss undertake their operations and besides, opened whole new possibilities in fiscal services proviso. Carlson et Al. ( 2001 ) , argues that because banking involves the aggregation, storage, transportation and processing of information assets, the cyberspace is an improbably powerful and efficient tool for managing information procedures. Internet banking applications are often multifunctional systems that must incorporate with bing front office, back office and bequest information systems within the bank ( Wu et al. , 2006 ) . Therefore shiping on cyberspace banking requires the development of a web site with appropriate content and user interface ( Vidgen, 2002 ) , unafraid database and efficient direction information system.

Telephone Banking

Telephone banking is a signifier of practical banking through which fiscal services are delivered by the usage of telecommunication devices such as fixed line telephones and nomadic phones. This medium is seen as one of the most of import agencies of presenting banking services. With telephone banking, clients transact concern by utilizing a compatible French telephone to link to the bank ‘s system and have the option of utilizing the touch tone services or talk to a client service adviser. The touch tone service is normally available 24hours and 7 yearss a hebdomad whiles the client service adviser option is available during specific times advertised by the bank. The scope of services available at the touch of a button includes look intoing history balance, listening to recent minutess and transportation of financess between histories.

The coming of nomadic telephone has farther improved the range of banking services that fiscal establishments can be provide through the usage of telephones. “ Mobile is the cardinal revolution. This whole perceptual experience that e-commerce peers the computing machine is, one think misguided. The hereafter of e-commerce is in nomadic telephone ” ( Jean_Paul Votron, caput of International Consumer Banking and E-commerce Operations, ABN Amro, quoted in Graham, 200b ) . Harmonizing to Graham ( 200b ) , because the nomadic phone is a more personal device than a personal computing machine, it may besides give Bankss the advantage of maintaining clients and avoiding the disintermediation that the cyberspace has brought. It is estimated that one million millions of people around the universe deficiency bank histories but owns a nomadic phone therefore would be an ideal channel to present fiscal merchandises and services and besides to pull the unbanked. In Africa, 1000000s of people are already are already utilizing their nomadic phones to pay measures, travel hard currency and purchase basic mundane points. In Kenya, a nomadic phone can be used to pay for everything from beer to cattle and harmonizing to a Masai husbandman, when he sells his cattles, he so load the money onto his nomadic phone to guarantee that robbers can non steal his had earned hard currency ( BBC Africa Business Report, 2009 ) . Furthermore, puting up a bank history on a nomadic phone is reasonably consecutive frontward. All u demand to make is to register with an sanctioned agent, supply your phone along with personal designation and lodge some hard currency in your history.

Mobile phones besides offer a path to internet banking. With more beforehand French telephones such as the Apple Iphone and other smartphones, most of the popular cyberspace banking can be accessed via the phone ‘s browser. The Wireless Application Protocol ( WAP ) , the unfastened criterion browser for accessing the cyberspace on most nomadic phones is likely to be the most widely adopted format for associating informations with nomadic phone French telephones ( Tylecote and Tarhan 2000 ) . Some analysts at Celent are even foretelling that from this twelvemonth ahead, nomadic phones would go portable ATM ( eMarketer, 2008 ) . They argued that by the terminal of 2008, 10 % of all on-line banking minutess would be done through the usage of nomadic phones and projected that in 2010 about 30 % of overall banking minutess would be through the usage of nomadic devices ( MMA, 2009 ) . Following these statements, it can be said that in non excessively distant hereafter, the nomadic phone would be the device that brings about a truly cashless society. Presently, banking services available through nomadic banking include:

  • Histories qui vives
  • Security qui vives and reminders
  • Account balances, updates and history
  • Branch and ATM location information
  • Bill payments
  • Fundss transfer
  • Transaction confirmation
  • Mortgage qui vives

Automated Teller Machine ( ATM )

An ATM machine besides known as “ cashpoint ” is a computerised telecommunication device that consist of a picture show, keyboard, pressman ( to supply a record of dealing or a drumhead ) , and other package and hardware that enables persons utilizing debit and recognition cards undertake some fiscal minutess at a convenient location without the aid of a clerk or bank Teller ( Revell, 1983, McAndrews, 1991 ) . ATMs devices by and large identify clients by the interpolation a specially design card with a magnetic band or a bit that shops alone security identifier and other history information. The client enters a personal designation figure ( PIN ) to derive unafraid entree to account information. Customers can so set about several minutess including hard currency backdowns, look into history balances, balance transportations ( between histories of the same client, the client and the bank or the client and a 3rd party history ) , request bank statements, check books every bit good as other services for which clients may be charged a dealing fee ( cited in Batiz-Lazo, 2007 ) .

In developed states such as U.K. and the U.S. , most Bankss have their ATMs inter-linked therefore clients of any of the associated Bankss can entree their history from the nearest ATM point. For case, harmonizing to Batiz-Lazo ( 2007 ) , at terminal of 2000, there was merely one ATM web in the U.K. due to the merger of all the webs and it attained a threshold capableness of retail fiscal services proviso as a consequence of the inclusion of non-financial services such as topping-up balances of nomadic phones. Presently, most bank clients with ATM cards such as VISA, Master Card, Maestro and American Express can entree their bank histories anyplace in the universe at the nearest cashpoint exposing the Son of their several service suppliers because of planetary inter-connectivity of these webs.

Personal Computer Banking ( PC Banking )

Personal computer banking is a fiscal services solution offered by Bankss to their clients to enable so transport out some of the banking dealing at the comfort of the places or offices via a proprietary web utilizing the Bankss customised package or the cyberspace. Personal computer banking besides has the advantage of being accessible 24 hours a twenty-four hours, quick, flexible and nomadic. Most Personal computer banking services are provided free o charge to clients.

Internet Banking

Internet banking, besides known as online banking is an invention of Personal computer banking. Unlike Personal computer banking, a web site is developed and the cyberspace is used as the window for selling and presenting wider banking services to clients. For case, clients can shop through virtually all merchandises and services offered by the bank on its web site, undertake banking dealing such as instant financess transfer, pay measures, cheque histories, purchase fiscal instruments and certification of sedimentations ( Haque et al. , 2009 ) . Large Bankss tend to offer a much wider array of services on their web sites than smaller Bankss. Some analysts argue that the larger Bankss will retain their lead over little Bankss due to the big fixed costs of developing information direction systems and making trade name acknowledgment among consumers ( Keeton, 2001 ) . Others argue that these little are merely being cautious and would catch up with the bigger Bankss by outsourcing their information direction map.

Banks are non the lone fiscal establishment taking advantage of the cyberspace. In recent old ages, other fiscal establishments such as securities firm houses have enjoyed rapid growing through on-line trading by leting investors to purchase and sell single stocks on their web sites via the cyberspace. Some houses besides allow their online clients to switch financess among a broad assortment of investing vehicles including stock financess, bond financess, and money market common financess ( Keeton, 2001 ) .

In the U.S more than 6.5 million families bank online and it is estimated that the figure would transcend 32 million by the terminal of 2003 harmonizing to a study by International Data Corporation ( cited in Pastore, 1999 ) . Finland is among the taking states in footings of the rate of cyberspace banking acceptance. About 70 % of the population presently pay their measures over the cyberspace ( Laukkanen et al. , ) . Harmonizing to senior analyst at IDC, the rapid addition in the figure of cyberspace users is a consequence of the proliferation of low-priced Personal computers and other networking devices in the place market.

Benefit Impact of Network Banking

The spread of inexpensive high-velocity broadband cyberspace connexions and the rapid growing in the population of cyberspace users is of peculiar involvement to most concern administrations because of the possible productiveness deductions of the deployment of networking in concern maps. Generally companies use ICT in their concern procedures for three chief grounds ; to cut down cost, to better function their clients and to back up growing schemes ( e.g. increasing market share/reach and new merchandises development ) .

The chief economic statement for networking in the banking industry has been cost decrease. Traditionally, bank history care is labour intensive because of the volume of paperss that need to be processed and stored. This translates into higher processing cost for Bankss particularly where sedimentations held in these histories are low but attracts high degrees of minutess. In such state of affairss, Simpson ( 2002 ) argues that it makes sense to implement electronic banking.

Technology has facilitated the development of new, more sophisticated fiscal merchandises every bit good as the debut of alternate bringing channels to traditional subdivision web ( White, 1998 ) . It has besides led to reengineering virtually all the banking processes conveying down the operating costs. As a consequence, most Bankss can now supply more diverse services with less work force. For case, in the 1960 ‘s if you had a personal banker so you might likely be a high valued client with a bank such as JP Morgan holding a concern traffics of more than $ 10million with the bank because the cost of a personal banker could merely be rationalised by person making that much concern with the bank. However, with the application of modern engineering, the figure of clients that a personal banker can function has increased dramatically ( Bank Systems and Technology, September 2003, cited in Osho, 2008 ) . Additionally, the cyberspace allows Bankss to carry on standardized value added minutess such as measure payments, balance questions, inter and intra bank financess transfer firmly through their webs while concentrating their resources on high value added minutess, personal trust services and investing banking through their subdivisions ( Mallick and Ho, 2006 ) .

Customers besides benefit from the fact that they are able to carry on real-time and distant banking anyplace 24hours a twenty-four hours without the demand to see the bank hence avoiding banking hall waiting lines, unpleasant conditions conditions and route traffic ( Quanddus and Intrapairot ) .

Traditionally, the relationship between a bank and its clients has been through the physical subdivision web ( brick and howitzer banking ) . The bank ‘s caput office had the overall duty for all the subdivisions. Directors at the caput office proctor the Bankss public presentation through the periodic information received from the subdivisions and specify the bounds for determination for the assorted subdivisions. However, the information available to each subdivision is merely what is held on clients of that subdivision ( Gandy and Chapman, 1996 ) . Therefore client information is barely shared across the subdivision web. With the of all time increasing client demand for better entree to information, service bringing and convenience, investing in incorporate client/server web substructure is indispensable. This would give ready entree to consolidated client information database across the subdivision web. This would enable Bankss to function clients via the subdivision web, ATM web, cyberspace banking, and telephone banking. In add-on, this would help the rapid development and selling of new banking merchandises and services.

Again, new engineerings allow Bankss to turn their dorsum on the fast moving consumer goods mass selling manner of selling merchandises and have made it possible to develop alternatively a more targeted attack to covering with client demands ( Tylecote and Tarhan, 2000 ) . This attack generates higher net incomes and at the same clip maximize client satisfaction and experience with the bank. Thus the bank ‘s merchandises and services becomes customer-oriented ( Smith and Walter, 1997 ) . Most Bankss harmonizing to Tylecote and Tarhan ( 2000 ) , now develop, construction and market their merchandises and service offering harmonizing to a chiseled client groupings by making separate sections for

  • Retail banking for little concerns and persons
  • Corporate banking
  • Institutional investors
  • Corporate finance
  • Investing banking

alternatively of the old product-based construction such as

  • Lending activities
  • Payment services
  • Brokerage services

Challenges related to the acceptance of Networking in Banking

The potency for modern engineerings to supply chances for concerns and consumers are frequently exaggerated pieces the drawbacks such as security concerns are given less prominence ( Bynoe, 2002 ) . Harmonizing to Thornton Consulting ( 1996 ) , the chief obstruction to the growing of online banking users is the sensed deficiency of security. Hackers, phisers and other fraudsters are all seeking to assail banking webs and web sites to steal or damage client history inside informations and financess. Harmonizing to the Federal Trade Commission, it received 301,835 fraud complains and 214,905 individuality larceny complains in 2003 ( Computers and Banking ) . Bank fraud accounted for 17 % of individuality larceny complains which represents a little fraction of victims who really filed a ailment with the bureau ( Computers and Banking ) . These hazards and menaces in the digital universe appear to mirror those in the physical universe ( Carlson et al, 2001 ) . Poor security precautions may besides make reputational and/or legal hazards for Bankss that are seen to supply unequal protection for clients ‘ personal informations. These hazards would be compounded if distant entree hallmark processs are besides unequal. Therefore as a fiscal establishments hunt for new and more convenient ways of utilizing engineering to open on-line bank histories alternatively of make fulling out a paper application signifiers they must besides turn to how to forestall fraud and security exposures ( Carlson et al, 2001 ) . Security issues are non ever triggered by the banking systems themselves but as a consequence of single client use and computing machine literacy. Banks hence need to education and promote their clients to protect their individuality information such as login watchwords and other fiscal information that may present security menace. Again any security failure at a peculiar bank would non merely do big losingss for that establishment but could engender into general deficiency of assurance in the whole electronic banking system.

For bank to harvest the benefit of web banking they have to put in substructure, better the accomplishments of employees and continuously better their security systems ( Kivel and Ruben, 1996b ; Monroe, 1996 ; Smith 1997 ) . This would take to an addition in runing cost of Bankss which can merely be mitigated by the closing of high street subdivisions every bit good as retrenchment of staff. The general consensus is that the fixed cost of web banking is much greater than the variable costs and in entire it becomes much cheaper when a critical mass is achieved ( Shah and Clarke, 2009 ) . Research suggest that Bankss following e-banking have so far made small economy ( Young 2007 ) and this implies that any efficiency nest eggs are offset by higher that mean rewards paid to extremely skilled labour force required to run the more sophisticated banking services bringing system.

Network banking systems consist of interconnectivity of computing machines and other peripheral devices and package constituents. Therefore failure in any of these constitutional parts may convey down the whole system. Most frequently computing machines and devices are concentrated at one or few topographic points increasing their exposure ( Risks in Computers and Telecom systems, 1989 ) . Normally whenever any catastrophe or breaks occurs the usual redress is to return back to manual procedures that computing machine systems are suppose to replace and in bulk of instances this process is unrealistic due to the volume of informations buried in these systems. Second, due to the heavy trust of computing machine systems really few establishments can run without the usage of computing machines. Hence the consequence of computing machine systems and webs traveling offline is highly dearly-won and really riotous particularly on real-time and on-line banking procedures such as the usage of ATMs, electronic financess transportations and inter-bank automated uncluttering systems. Hence the eventful cost of a serious systems failure can far transcend the costs of replacing the damaged device, informations or package constituents housemans of lost client assurance and trust in electronic banking.

Having effectual eventuality programs in topographic point is one certain manner to extenuate the impact of unanticipated operational jobs. Such programs should be integrated into the establishments internal control and security agreement systems. This should include catastrophe recovery process, off-site informations backup of critical operational informations every bit good as alternate agencies of informations processing. This eventuality program should besides be evaluated continually to guarantee that it is ever up-to-date.

Chapter THREE

Research Methodology


This chapter discusses the theological background of research methodological analysis. In order to reply the inquiries raised by the research job, the research worker has to device a more appropriate methodological analysis to garner empirical grounds. Broadly, there are two chief research methodological analysiss – qualitative and quantitative methodological analysiss. These methodological analysiss have their ain ideological underpinning and research tools. The pick of methodological analysis is mostly influenced by the research job and the research inquiries to be investigated because a research methodological analysis can non be true or false but merely more or less utile ( Silverman, 2003 ) . Naslund ( 2002 ) argued that a good, sound and logical research end product should be governed by a chiseled research methodological analysis based on scientific rules.

Epistemic Consideration

Epistemology is derived from the Grecian word episteme, which means “ cognition ” ( Myers, 2009 ) . It refers to the premises about cognition and how it can be obtained ( Hirschheim, 1992 ) particularly with respect to its methods, cogency and range ( Soanes and Stevenson, 2004 ; cited in Myers, 2009 ) . Most research workers argue that prior to get downing a research survey, it is imperative that the research worker choose an epistemic stance. Literature on epistemology is dominated by three positions ; positivism, interpretivism and critical pragmatism.

Positivism adopts the philosophical stance of a natural scientist ( Saunders et Al, 2003 ) . Supporters of this position assume that world is objectively given and can be described by mensurable belongingss, which are independent of the research worker and the instruments used ( Myers, 2009 ) , therefore formulates propositions that portray the capable affair in footings independent variables, dependent variables and the relationships between them ( Myers, 2009 ) . Those critical of positivism harmonizing to Saunders et Al, ( 2003 ) argue that insight into this complex universe are lost if such complexness is reduced wholly to a series of law-like generalizations.

Intepretivism attack purposes at understanding a societal phenomenon from the point of view of the participants who are straight involved topics under survey. Supporters of this attack assume that entree to world is merely through societal buildings such as linguistic communication, consciousness, shared significances and instruments ( Myers, 2009 ) therefore, do non predefine dependant and independent variables but focus alternatively on the complexness of human sense-making as the state of affairs emerges ( Kaplan and Maxwell, 1994 ; cited in Myers, 2009 ) . The strongest statement for intepretivist attack is the necessity to detect what Remenyi et Al, ( 1988 ) name “ the inside informations of the state of affairs to understand the world or possibly a world working behind them ” ( cited in Sunders et Al, 2003 ) .

Critical pragmatism is based on the belief that world exists that is independent of human ideas and beliefs ( Saunders et al, 2003 ) . For critical realist, the most of import driver for determination on methodological attack is ever the intransitive dimensions the mark being to unearth the existent mechanisms and constructions underlying sensed events ( Dobson, 2002 ) . That is, disputing the prevailing beliefs, values, and premises that might be taken for granted by recognizing the importance of understanding peoples ‘ socially constructed readings and significances ( Saunders et al, 2003 ; Myers, 2009 ) .

From the above treatment, the philosophical stance of a research worker is greatly influenced by what the research worker want to bring out. “ What one wants to larn propose how 1 should travel about it ” ( Trauth, 2001 ) . Therefore an interpretive attack would be adopted for this survey in order to detect the impact of networking on the public presentation of G.C.B.

Quantitative Research Method

Quantitative research method trades with numerical measurings ( i.e. measures ) . This method involves fundamentally, the application of mainstream scientific attack to research in societal scientific disciplines such as sociology psychological science and concern surveies. They are normally the preferable methodological analysis for empirical, deductive and experimental research in societal scientific disciplines because of it accent on process and statistical step of cogency. Quantitative attacks to research purpose to prove hypothesis and to place numerical quantifiable differences or fluctuations. In societal scientific discipline research, informations aggregation is chiefly through interviews hence, quantitative informations aggregation methods may sometimes be less precise or less certain as a measuring of what the research worker really wants, therefore sabotaging the cogency and dependability of the research attack used ( Remenyi and Williams 1996 ) .

Qualitative Research Method

Qualitative research method is aimed at look intoing human behavior and apprehension of their experiences ( i.e. qualities ) within their societal and cultural context. Denzin and Lincoln ( 2000 ) depict qualitative research as an attack that surveies the societal universe, and seeks to depict and analyze the civilization and behavior of worlds and their groups from the point of position of those being studied. The chief statement in support of this attack in societal scientific disciplines is thought of analyzing societal phenomena in its natural scenes or environment. Hence this attack does non put accent on measuring and quantification but to understand societal phenomena through observation and/or engagement ( Irani et al. , 1999, Weick, 1984 ) . Qualitative research workers argue that it is impossible to understand societal phenomena without speaking to people. However, understanding the societal phenomenon from the point of position of participants within its societal and institutional context is mostly lost when textual information is quantified ( Kaplan and Maxwell, 1994 ) . Therefore, to get an in-depth apprehension of any societal phenomena, qualitative research is more appropriate.

From the treatment, qualitative research attack would be adopted for this survey because the chief purpose is to understand why G.C.B implemented networking engineering by speaking to stakeholders.

Research Scheme

Research scheme describes the general program of how the research inquiries would be answered. Myers ( 2009 ) , defines research scheme as a scheme of question which moves from underlying philosophical premises to research design and information aggregation. Saunders et Al ( 2003 ) , identified 8 research schemes that may be employed in any research. They are as follows:

  • Experiment
  • Survey
  • Case survey
  • Grounded theory
  • Ethnography
  • Action research
  • Cross-sectional and longitudinal surveies
  • Exploratory, descriptive and explanatory surveies

Harmonizing to them, what affairs is non the label attached to the peculiar scheme, but whether it is appropriate for your peculiar research inquiries and aims.

A instance survey method is adopted for this survey. A instance survey as a research method involves an empirical probe of a peculiar coeval phenomenon within its existent life context utilizing multiple beginnings of grounds ( Saunders et al. , 2003 ) . A more recent definition of instance survey in concern research by Myers provinces that

“ Case survey research in concern utilizations empirical grounds from one or more administrations where an effort is made to analyze the capable affair in context. Multiple beginnings of grounds are used, although most of the grounds comes from interviews and paperss ” ( Myers 2009:76 ) .

Myers ( 1997 ) recommended the usage of instance survey in information systems ( IS ) research reasoning that “ this method is peculiarly well-suited to IS research since the object of our subject is the survey of information systems in administrations, and ‘interest has shifted to organisational instead than proficient issues ‘ ( Benbasat et al, 1987 ) ” . Therefore, since the purpose of this survey is to happen out why G.C.B. adopted the networking scheme and how it has impacted on its public presentation and clients, instance survey attack would be more appropriate for this survey. Yin ( 1994 ) recommended instance survey method in a research enterprise that seeks to reply the inquiries “ how ” and “ why ” . In order words, “ the instance survey research worker seeks to understand how and why a peculiar concern determination was made, or how and why a concern procedure works the manner it does ” ( Myers, 2009 ) . Again it enables an in-depth survey of issues relevant to the capable affair and besides the relationships between variables under survey. Last, this scheme provides an all circular position of the survey country supplying readers with a three dimensional image which illustrate relationships, micro political issues and form of influences in a peculiar context ( Bell, 2005 ) .

Data aggregation method

Data would be collected from both primary and secondary beginnings. Primary informations harmonizing to Myers ( 2009 ) , add profusion and credibleness to qualitative research survey because it is alone to the research worker and the peculiar undertaking. Primary informations beginnings include senior directors, subdivision directors, cardinal I.T staff, and clients of the bank. Datas from this beginning would be collected chiefly by face-to-face utilizing interviews and questionnaire. The purpose is to roll up empirical informations from respondents by beging responses relevant to the survey. Secondary information refers to any informations collected from antecedently published beginning such as published books, diaries, intelligence paper articles, and presents web portals such as Emerald Insight. For this survey, secondary information beginnings would include Ghana Institute of bankers, Bank of Ghana, G.C.B one-year studies, and prognosiss, scholarly diaries articles, web portals such as Emerald Insight, cyberspace hunt engines such as Google, and cardinal sources in the banking industry.

Primary Data Collection


An interview is a purposeful treatment between two or more people ( Kahn and Cannell, 1957 ; cited in Saunders et Al, 2003 ) . There are several types of interviews and all of them can be grouped into three chief classs viz. , structured, unstructured and semi-structured interviews.

A structured interview harmonizing to Myers ( 2009 ) , involve the usage of pre-formulated inquiries in the interview procedure and is purely regulated with respects to the order of the inquiries. It is besides regulated sometimes with respect to the clip available. During the interview procedure itself, the function of the research worker is minimised because there is no demand for improvisation.

Unstructured interview is the direct antonym of structured interviews. However, in some cases, really few pre-formulated inquiries are used if non at all and respondents have the freedom to state anything they want to state the research worker. Normally, there is no clip bound on the length of the interview procedure.

Semi-structured interview procedure involves fundamentally a mix of the above reference types. That is, it involves the usage of some pre-determined inquiries but there is no rigorous attachment to them because in the class of the interview procedure, new inquiries might emerge hence improvisation is greatly encouraged harmonizing to Myers ( 2009 ) . As a consequence, there is no consistence across interviews. Saunders et Al ( 2003 ) recommended the usage of unstructured interviews to research in deepness a general country in which a research worker is interested.

Following the above statements, face-to-face interview attack is adopted for this survey utilizing some pre-determined inquiries a usher. The chief ground for using this method is to roll up equal empirical informations from respondents which are relevant to replying the research inquiries and besides to forestall the possibility of misconstruing by respondents which sometimes occur when an unstructured interview method is deployed. Again, Gephart and Rynes ( 2004 ) encourages the usage of interviews in research surveies because of its ability to assist research workers understand the manner in which persons develop their significance and significance of the state of affairs they face in the workplace. Additionally, this method gives respondents the flexibleness to show themselves free in their ain words.

Therefore, by utilizing the semi-structured method to roll up primary informations from direction of G.C.B who have good cognition of how the bank is utilizing the web engineering to its competitory advantage, an in-depth cognition of the impact of the engineering is obtained by the research worker. It besides helps to convey to light issues where the research worker has no cognition about the state of affairs under survey.


A questionnaire is a agency of arousing the feelings, beliefs, experiences, perceptual experiences or attitudes of a sample of persons ( Key, 1997 ) . It is designed to roll up specific informations about pertinent subject which a research worker wishes to look into and respondents answer the same set of inquiry in a pre-determined order. Therefore utilizing a questionnaire has the advantage of beging a standardised response because each respondent receives the same set of inquiries phrased in precisely the same manner ( Key, 1997 ) .

In this survey a questionnaire is used to roll up informations from clients of G.C.B. Ltd. The purpose is to look into their attitudes, experiences and perceptual experiences towards the merchandises and services offered by the bank.

Sample choice

The pick of trying technique is mostly dependent on the feasibleness and sensitiveness of the informations that would be collected. For this survey, non-probability trying method was used. An electronic mail was sent to 100 subdivision directors in two of the 10 parts in which the G.C.B. has subdivisions located. Those who responded were selected for the survey, therefore utilizing self-selection for this class of respondents. Key I.T directors were purposively selected for this survey.

The rational for utilizing these choice techniques to try employees of the bank is that those selected occupy places of authorization and duty in the establishment hence would hold in-depth cognition of the capable country under survey. Secondly, some sources are “ richer ” than others ( Marshall, 1996 ) therefore are more likely to supply more insight and understanding for this research survey.

Convenience trying technique was used to roll up informations from 50 respondents at each subdivision location visited as they exit the bank ‘s premises. This method was the most appropriate method of obtaining a sample of clients of G.C.B for this survey.

Primary Data Access

One of the most of import facets of this research survey was acquiring blessing and entree to senior directors of the bank to roll up informations. This was anticipated to be rather hard. Using web contacts within the establishment, an blessing for this survey was obtained. However, set uping meetings with senior directors and identify IT staff to carry on interviews was turn outing hard. One of my contacts managed to procure a private weekend run intoing 4 of cardinal directors I needed to interview and staying an out of office hr ‘s assignment was required to procure an interview.

Second, the research worker got permission to administrate questionnaire for this survey to the bank ‘s clients within the banking hall and at the forecourt. Lone clients who were prepared to reply the questionnaire were given one.

Secondary informations Collection

Datas obtained from these beginnings are largely publically available information. They include Ghana Institute of bankers, Bank of Ghana, G.C.B one-year studies, and prognosiss, scholarly diaries articles, web portals such as Emerald Insight, cyberspace hunt engines such as Google, and cardinal sources in the banking industry. Confidential and sensitive information obtained provided an in-depth apprehension of the implicit in subject for this survey nevertheless this information has non been reproduced for ethical grounds.

Ethical Consideration

Ethical behavior is recommended to research workers in any field to guarantee that participants are informed about the intent of the research, and protected from any error from the research worker ( Cooper and Schindler, 2006 ) . To turn to these ethical concerns in this survey, the research worker would explicate to the participants the followers:

  1. The intent and benefits of the survey ;
  2. Their rights to protection such as namelessness and confidentiality where required ;
  3. Obtain their voluntary engagement in the survey by guaranting that at the terminal of the survey feedback on the survey consequences can be obtained on petition ;
  4. That information collected for this survey can non be used for any other intent than this survey merely ;
  5. That secrete information related to competitory advantage of the administration can non be given to other administrations ;
  6. That information collected would be destroyed after publication of this survey to guarantee that no 1 can entree them illicitly.

Datas analysis

Restrictions of this survey

Despite the argued cogency of utilizing interviews in this type of research, the informations collected may be delusory, espouse corporate position or the position that the respondent wants the research worker to cognize. Second, the presence of the research worker might impact the responses of interviewees ( Hawthorne effects ) . Besides it takes a batch of clip and resources to carry on interviews. A individual interview for this survey took on norm, one hr and rather disputing acquiring senior directors to give that much clip and besides the research worker demand to be skilled plenty to recognize what is relevant and to examine in-depth those facets that are relevant to this survey.

Planing a good questionnaire and interview usher for this survey proved to be a hard undertaking ( Saunders et al, 2003 ) . A


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