THE IMPACT OF INFORMATION COMMUNICATION TECHNOLOGY (AUTOMATED

TELLER MACHINE) ON GHANAIAN BANKS

 CHAPTER ONE
INTRODUCTION
Background To The Study
With the introduction of ICT, the banking business in Ghana has seen significant changes, affecting
procedures and activities such as bookkeeping, retrieval of client information, customer records,
deposit and withdrawal, and cheque processing. (1986, Marilyn).

Problem Statement
Most Ghanaian banks now provide ICT-based administrations at varying degrees of complexity. To
boost administration conveyance and proficiency in banks, ICT is necessary. This must have a
significant positive impact on bank utility, clerks' job, and banking exchange, as well as bank support,
bank administrations conveyance, clients, and bank administrations. This will be necessary in the long
run to improve monetary comprehensiveness by lowering exchange costs, increasing exchange
comfort, accessibility, and practicality, and improving openness for better asset organization. Clients
have expressed their dissatisfaction through client complaint groups, including ongoing ATM
outages, network outages, referrals to other branches due to outages, incapability to access assets at
several branches, outrageous fees on visa exchanges and fraud.

With this in mind, the analyst tries to look into the impact of ICT and how Ghanaian banks use it to
tailor-make their offerings to the satisfaction or delight of their clients, as well as to cross-check from
client feedback on how effectively the ICT products are personalized to match the client.

Objectives of study
By the completion of this research project, a collection of challenges will have been raised, and feasible
solutions will have been proposed when possible for the benefit of the service provider in decision-
making and service enhancement, as well as the consumer to whom the service is provided. Banks in
Ghana are currently functioning in an environment marked by shaky customer loyalty and fierce
rivalry, as they rush to expand their market share and find strategies to cope with rapidly growing
operational costs and shrinking profit margins.
This study will look at the overall impact of ICT on Ghanaian banks. The following are some specific
goals:
I. To gain access to Ghanaian banks' numerous ICT-based offerings.
2.To assess performance following the implementation of the ATM
 3.To determine the impact of the ATM's introduction on customer satisfaction.

Scope of Study
The study's main goal is to find out more about the 'ICT (Automated Teller Machine) on Ghanaian
Banks.' The study was limited to the Barclays Bank Retail Customers in Kumasi, one of the most well-
known banks in Ghana's Ashanti area, due to the numerous banking institutions that operate in the
country. The research at the Barclays Bank was confined to Batama, Santasi, and Kejetia due to time
constraints and the need to combine research activity with routine academic activity.
Research Organization
The research paper is divided in five (5) sections. The first chapter provides the study's history,
problem statement, objectives, scope, and organization. The second chapter provides an outline of ICT
application (ATMs), and customer satisfaction. The research technique is presented in Chapter 3, data
analysis, research investigation, discussion, and findings are discussed in Chapter 4, and the conclusion
and recommendations are presented in Chapter 5, which also includes the dissertation summary.
 CHAPTER TWO
LITERATURE REVIEW
“IT is characterized as the advanced treatment of data by electronic methods, which includes its
entrance, stockpiling, preparing, transportation or move and conveyance” (lge, 1995).
Oliver and Chapman (1996) characterized data correspondence innovation as the innovation which
upholds exercises including the creation, stockpiling, control and correspondence of data, along with
their connected strategies, the executives and application.
Commercial banks have invested heavily in information technology in recent decades to modernize
operations, amplify competitiveness, and expand the number and quality of services available.
Implementation of information technology and communication networking, according to Yasuharu
(2003), has revolutionized the way banks and financial organizations operate. Some think that the
Internet revolution will cause substantial structural changes in the financial services business, while
others predict that current patterns will continue. The ATM is undoubtedly the most revolutionary
electrical invention in the United States and the world. Banks that offer ATM services in Ghana have
them networked, which has enhanced their use to clients. The first ATM was built by the Trust Bank
Ghana in 1995. Shortly after, the majority of the big banks launched their ATM networks, putting them
in a competitive position. In partnership with the Agricultural Development Bank, Ghana GCB Bank
launched its ATM service in 2001. In Ghana, ATMs are currently operated by five (5) banks. In this
county, the most successful delivery mechanism for consumer banking has been the ATM. Customers
place a high value on it when choosing a bank, and banks who wasted time in adopting the use of ATM
systems have suffered huge losses. By being networked, ATMs have been able to settle the one-branch
idea in the county, allowing customers to complete their banking without having to go to their branch.
The many electronic cards that the banks have produced throughout the years are another technological
advance in Ghanaian banking. The first major cash card was presented in May 1997 by Social Security
Bank, renamed Soceite Generale SSB. Their 'Sika Card' is a value card that is electronically loaded
with a monetary amount. Standard Chartered Bank introduced the country's first debit card in the early
part of 2001. Its features have recently been linked to customers' ATM cards, making it more accessible
to the general public by removing the need for a separate application. In November 2001, a partnership
of three (3) banks (Ecobank, Cal Merchant Bank, and The Trust Bank) launched a new electronic card
dubbed 'E-Card.' Due to this card being online in real time, anytime a customer uses it, their card
automatically displays the change.
Automated Teller Machines (ATMs)
"An ATM merges a documentation framework, work station and vault in a single unit, enabling users
to enter the bank's accounting substructure with a card comprising a Personal Identification Number
(PIN) or by inputting a secret code into the work station connected to the bank's modernized records 24
hours a day," according to Rose (1999). When access is granted, it provides consumers with a number
of retail banking services. They are usually located outside of banks, although they can also be located
at retail malls, airports, and other locations not necessarily the clients' mother bank. They familiarized
with work as machines that allocated funds. Nonetheless, due to innovation, ATMs have a wider range
of administrative duties, like putting aside installments, reserves move between two or more records
and bill installments. Banks intend to use this device(ATM) to gain an advantage. The joint governance
of automated and human tellers suggest that the bank will be more beneficial during banking hours.
Likewise, due to it saving clients time in help conveyance as an alternative to lining in bank corridors,
they can put that time saved to better use. ATMs are a less expensive but effective way of generating
more usefulness because it achieves greater efficiency per timeframe than human tellers (Rose, 1999).
Besides, ATMs proceed from where bank tellers end their day, there is a continues efficiency for banks
after banking hours.
CONCLUSION
ICT is now regarded to hold the potential for a new business revolution by providing a low-cost, direct
method of exchanging information and purchasing goods and services.
This financial uprising has sparked a new wave of banking transformation, with the provision of
services and products that are well-suited to ICT requirements. Without a doubt, technological
advancements have opened up new delivery channels in Ghana's banking sector.
 CHAPTER THREE
RESEARCH METHODOLOGY
The methodologies and procedures utilized to investigate, investigate, and assess the impact of
ATMs on Ghanaian banks are presented in this chapter. The methodology explains all the
necessary procedures in detail. A quantitative research approach was employed.
RESEARCH DESIGN
Only one approach was utilized in this study: one of the most used quantitative research approaches,
survey was employed. Data is acquired in survey research by delivering questionnaires to the target
population. Exploratory, explanatory, and confirmatory objectives, as well as evaluation, prediction,
operational research, and the construction of social indicators, can all benefit from survey research.
“It allows researchers to collect data on areas that are wholly personal to the subject, such as
attitudes, opinions, expectations, and intentions. Additionally, it is frequently gathered through the
use of a questionnaire, and these data are standardized, allowing for easy comparison”. (Saundeerset
al, 2009).
DATA POPULATION AND DATA SAMPLING
The study's demographic was made up of Barclays Bank retail customers. Newman (2004) defines sampling
as “a group of instances chosen by a researcher from a larger pool and applied to the full population”. This
type of sampling is cost efficient and enables quicker collection of critical data, and when the samples are
properly chosen, accurate findings are guaranteed. Due to the study's aim, 400 questionnaires were distributed
to clients of different banks.
SAMPLING TECHNIQUES
To choose clients at the various branches, the researcher used a basic random sampling procedure in
all circumstances. This was done to allow the researcher access to all of the respondents during the
data collection process
RESEARCH INSTRUMENT
In order to obtain the necessary information to achieve the study's aims, the researchers adopted a
systematic approach. The structured questionnaire is used in this mode. The questionnaire was the
primary research tool utilized to collect data for the study to help meet the specified objectives while
keeping the sample size in mind. The questionnaire was divided into three parts for ease of
understanding and reading. The demographic component of the respondents was taken into account in
the first pan of the questionnaire. The second part of the survey focused on customer’s satisfaction
with ATM services. The replies ranged from strongly disagree to strongly agree on a Likert scale
questionnaire.
ANALYSIS AND PRESENTATION OF DATA
A field survey provided the data for the analysis. The majority of the analysis was done using descriptive
analysis. The data was analyzed using descriptive statistics in order to determine consumer satisfaction with
Automated Teller Machines. The Microsoft EXCEL application was used to generate the results. The data
analysis was not done using sophisticated statistical approaches because this was an exploratory study.
SOURCES OF DATA
Primary and secondary sources of data were used in this research.
Primary Data
Primary data is information obtained directly from a source, which the researcher examines and
documents at the time of collection. The replies to questionnaires provide the majority of the data for
this study.
Secondary Data
Secondary data were collected through journals, the internet and reports from the banks premises.
LIMITATION OF METHODOLOGY
The survey was limited to Barclays Bank of Ghana's retail clients.
Respondents refused to complete questionnaires out of fear of their confidentially being jeopardized,
and others did not provide accurate information.
 CHAPTER FOUR
DATA ANALYSIS, DISCUSSION AND PRESENTATION OF RESULT
INTRODUCTION
The purpose of this study was to find out more about the impact of ICT on Ghanaian banks. This
chapter presents the results of the tests performed on the data obtained, as suggested by the study
questions.
The study described in Chapter 1 is the foundation for this chapter. A quick evaluation of the data,
survey instrument results, and a discussion of each study issue with a statistical analysis are included
in this chapter.
The researchers analyzed the data acquired during the fieldwork using the study's goals as a guide.
The study's findings were divided into the following categories in accordance with the research
objectives:
• Socio-demographic information
• customer satisfaction and service quality
• Customer pleasure as a result of ICT-based products
The researchers used tables and charts to aid in the interpretation of their findings.
SOCIO-DEMOGRAPHIC DATA
This data was collected to learn about the respondents' personal traits, which could be important in
determining their satisfaction with the bank's ICT advances. Gender, age distribution, marital status,
and income level were among the topics explored.
Gender
The results, as shown in the graph below, demonstrate that half the respondents were male and other
half female. That is 200 each, indicating that both sexes were represented equally at the branches. This
obviously demonstrates that the thoughts of both sexes were equally represented.
Gender of Respondents

Gender

50% 50%

Male Female
Age
The replies were 18 to 25 years, 26 to 30 years, 31 to 40 years, 41 to 50 years, 51 to 60 years, and 61
years or older. The table shows that the greater portion of the respondents were in the 31-40 age
bracket, which is 32% of the total sample size. The age range 26-30 is 30%, followed by 17.25% for
the age range 41-50, 12.5% for the range 18-25, 5% for the ages between 51-60, and 3.25%
representing the ages 61 and beyond.
Response Frequency Percentage
18 - 25 years 50 12.5
26 - 30 years 120 30
31 - 40 years 128 32
41 - 50 years 69 17.25
51 - 60 years 20 5
61 and Above 13 3.25
Total 400 100

Marital Status
Response Frequency Percentage
Single 137 34.25
Married 183 45.75
Separated 22 5.5
Divorced 25 6.25
Widowed 15 3.75
Not Stated 18 4.5
Total 400 100

As shown in the table above, the highest group of respondents were married (45.75%), (34.25%) were
singles, (6.25%) were divorced, widowers were (3.75%), (5.5%) are separated, and (4.5%) did not
identify their status.

Income level
Response Frequency Percentage
Below 1,000 250 62.5
1,001 - 5,000 106 26.5
5,001 - 10,000 38 9.5
10,001 - 20,000 5 1.25
Above 20,000 1 0.25
Total 400 100

(62.5%) of the respondents earned less than Gh 1,000, (26.5%) earned between Gh 1,001-5,000,
(9.5%) earned 5,001-10,000, (1.25%) earned 10,001-20,000, and only (0.25%) more than 20,000.

ATM
After the branch network, the ATM remains the most extensively utilized ICT product. The table below
shows how frequently bank clients use ATMs. According to the analyzed data, ATMs are used for
bank transactions such as checking account balances, transfer of funds, deposits and generating mini-
statements. The 35.5% of the respondents use the ATM twice a week, which represents the majority.
15%, 35.5% and 24.5% that’s a total of 75% of the total respondents visit the ATM at least once in a
month. The a clear indication of how vital the ATM is to their daily activities.
Frequency of ATM Visitation
Response Frequency Percentage
Once a week 60 15
Twice a week 142 35.5
Once a month 98 24.5
Occasionally 100 25
Total 400 100

AMT Helps Reduce Time Involved in Bank Transaction

 AMT Helps Reduce Time Involved In Bank Transaction
45
40
35
30
25
Percentage

20
15
10
5
0
Strongly Disagree Neutral Agree Strongly Agree
Disagree

Response

40% of customers agreed with the fact that ATM has helped reduce the time involved in Bank
transactions. This combined with the 15% that strongly agree compared to the 25 % that disagree,
shows a clear indication that ATM has been a positive introduction.
ATM Reduces Number of Customers in Banking Hall

ATM Reduces Number of Customers in Banking Hall

45
40
35
30
25
Percentage

20
15
10
5
0
Strongly Disagree Neutral Agree Strongly Agree
Disagree

Response

Majority of customers (55%) have agreed to the notion that ATMs have helped reduced the number
of customers that visit the banking halls hence reducing queues.

ATM Gives Access to Accounts at Any Location

 ATM Gives Access to Accounts At Any Location
45
40
35
30
25
Percentage

20
15
10
5
0
Strongly Disagree Neutral Agree Strongly Agree
Disagree

Response

51% of the respondents agree to the fact that ATMS have made it easier to access their bank details
as compared to 22% that disagree.
 CHAPTER FIVE
SUMMARY OF FINDINGS
The management of Barclays recognizes that providing high-quality service via ICT is a vital
strategic component of the company's profitability. The relevance of service delivery and its impact
on customer retention and satisfaction, sales and market share, and corporate image cannot be
overstated.
According to the findings, ICT-based solutions have a significant positive impact on customer
service. Due to customer’s ability to now make withdrawals at any bank, this benefits Barclays'
expansion. Customers also don't have to carry large sums of money around with them, and their
requests are promptly answered.
By providing a low-cost solution, ICT is currently regarded to hold the possibility of a new business
revolution.
CONCLUSION
The introduction of ATMSs has actually had a great impact on Ghanaian banks and customers as a
whole. Long queues in banking halls has been an issue of concern over decades and ATMs have made
it possible that customers don’t need to visit the banking hall for withdrawals, mini-statements, balance
enquiries and deposits. Hence reducing the number of clients in the banking halls drastically since these
are the major day to day transactions.
Banks have made huge profits since the introduction of ATM due to the high level of usage and their
corresponding charges.
In short, ATMs have benefited all banking stakeholders.
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