Abstract:
Innovation is a household term in businesses. Innovation aid in performance. The
banking industry is one of the most dynamic sectors in any economy, as it plays a
vital role in the financial intermediation process. Banks are important players in the
economy as they mobilize funds from surplus sectors of the economy and channel
them to deficit sectors for investment purposes. The purpose of the study was to
identify the effect of bank innovations on the financial performance of the Ghanaian
Universal Banks. The study adopted the descriptive survey design and purposive
sampling technique to sample 15 Universal Banks for the sample frame. Based on the
inclusion criterion set, a sample size of 250 participants were drawn from these banks
for the study. The participants were banking staffs. The staffs were made up of both
junior, senior staff and senior members of the 15 selected Universal Banks. The
instrument for the data collection were self-designed survey questionnaire. The
questionnaire was deployed to all participants electronically using Google forms. The
data were coded and analysed using tables, frequencies, percentages and bar graph
whereas path analysis was carried out to evaluate causal relationship between the
dependent variables and independent variables with the aid of SPSS software Version
20. The findings reveal that banks that effectively respond to customer demands for
digital innovations tend to achieve higher customer satisfaction and, subsequently,
increased profitability. Another finding revealed the challenges including, customers
being resistant to change, preferring to stick with the familiar products and services
they are accustomed to. Additionally, customers may be hesitant to use new
innovations if they perceive them as risky or insecure. Despite the challenges,
implementing bank innovations also presents opportunities for banks. One significant
opportunity is the potential to attract and retain customers. The study recommends
among other things that in recognition to the impact of internal factors such as
organizational culture and management support on innovation adoption, there is a
need for universal banks to cultivate an organizational culture that values innovation.
Additionally, implementing robust change management strategies will help address
resistance from employees and ensure a smooth transition to innovative practices.
Description:
A Dissertation in the Department of Accounting,
School of Business, Submitted to the School of
Graduate Studies, in partial fulfilment
of the requirements for the award of the degree of
Master of Business Administration
(Accounting)
in the University of Education, Winneba