E-commerce in the Banking Industry of Ghana: An Innovative Approach to Maximize Banking Profit and Market Share

Abstract

This paper seeks to ascertain how e-commerce affect the profit and market shares of banking industry of Ghana, precisely Fidelity Bank.  The motivation of this study include issues of the Ghanaian banking industry acceptance to the innovations of performing electronic banking services. Although the use of e-commerce among the banking industry of Ghana still remain an innovation which has not been fully adopted among all banks in Ghana. The methodology adopted for this paper is the mixed method technique, precisely both qualitative and quantitative methods. Semi-structured interviews as well as survey questionnaires were administered to the respondents who are mainly staff of Fidelity Bank in the Head Office and across the fifty branches of the bank. A total sample size of 250 respondents consisting of some of the employees of the 50 branches of Fidelity Bank in Ghana were used. The study identified a positive significance between e-commerce and all the effects on profit and market share.  The null hypothesizes were thus rejected by the results.  The results of the study generally indicated that, the e-commerce acceptance has contributed positively by enhancing cost effective operations in the bank, reduced operational cost and increased profit margin.