CHAPTER ONE

GENERAL INTRODUCTION

1.0. Introduction
With the introduction of online banking, the banking sector has seen a global transformation,
with traditional banking processes and consumer relationships being completely changed. This
shift has been especially noticeable in developing nations like Sierra Leone, where commercial
banks have had to balance keeping up with the changing needs of its clientele with keeping up
with technical improvements. Over the past ten years, there have been significant developments
in Sierra Leone's commercial banking industry, mostly due to the acceptance and integration of
online banking services. Digital payment systems, electronic fund transfers, mobile banking,
online banking, and electronic fund transfers are only a few of the digital financial activities that
are included in these services. These technologies have not only altered how clients
communicate with their banks, but they have also had an effect on the nation's commercial
banks' competitiveness and general performance.

This study aims to investigate how online banking affects Sierra Leone's commercial banks'
performance. Through an examination of multiple factors like productivity, earnings, client
contentment, and competition in the market, this study seeks to offer significant understandings
of the workings of the banking industry in the digital era. The contribution of internet banking to
improving the operational effectiveness of Sierra Leone's commercial banks will be one of the
main areas of study. For financial institutions, the automation of repetitive banking functions
including account administration, transactions, and queries has resulted in simpler procedures
and lower operating costs.

Furthermore, the ease of use and accessibility provided by internet banking have enhanced
consumer happiness and service, strengthening the bond between banks and their customers.

The study will also investigate how online banking affects Sierra Leone's commercial banks'
profitability. Banks may find it financially difficult to make the first investment in digital
infrastructure and technology, but in most cases, the long-term advantages exceed the expenses.
Banks may increase their customer base and generate new revenue sources by branching out
beyond traditional physical locations. Online banking also makes it easier for banks to cross-sell
goods and services to one another, which boosts income and improves overall financial
performance.
Thus, the study will look at how internet banking affects customer happiness and loyalty in
relation to efficiency and profitability. Due to the ease of banking from anywhere at any time,
clients now anticipate smooth and customized interactions from their financial institutions.

Therefore, in order to satisfy their clients' changing demands and preferences, commercial banks
in Sierra Leone must place a high priority on user-centric design and functionality. In a market
that is becoming more and more competitive, banks may build stronger customer relationships
and encourage loyalty by providing cutting-edge digital services and features.

Additionally, the study will evaluate the wider effects of internet banking on Sierra Leone's
commercial banks' ability to compete. In order to stay ahead of the curve as technology
continues to transform the financial landscape, institutions need to innovate and adapt.
Businesses that do not adopt digital transformation run the danger of falling behind more tech-
savvy and nimble rivals. For Sierra Leone's commercial banks to remain viable and successful
over the long run, it is imperative that they comprehend the factors that influence and result from
the use of internet banking.
Furthermore, the introduction of internet banking has had a substantial impact on several facets
of bank performance and customer experience in Sierra Leone's commercial banking industry.
With the help of this study, we hope to shed light on how online banking affects Sierra Leone's
commercial banks and assist stakeholders in developing wise plans of action in the increasingly
digital financial sector.

1.1. Background of the Study

The introduction of internet banking has completely changed the global financial scene and has
had a range of effects on how well commercial banks are performing. In order to comprehend
how online banking has affected Sierra Leonean commercial banks' performance measures, this
study will examine the particular instance of these banks. Similar to other developing nations,
Sierra Leone has undergone a progressive transition towards digital financial services, primarily
due to developments in technology, evolving consumer inclinations, and initiatives by financial
institutions and governments to encourage financial inclusion.

Online banking, sometimes referred to as internet banking or electronic banking, is the provision
of banking services via the internet that enable users to carry out a range of remote financial
operations, including monitoring account balances, making transfers of money, making bill
payments, and accessing other financial services and products. Commercial banks in Sierra
Leone have adopted online banking due to the need to boost productivity, improve client
satisfaction, and maintain competitiveness in a market that is changing quickly.

The banking industry in Sierra Leone has experienced tremendous transformation as the country
moves towards a more digitally-driven economy. Conventional physical banks have embraced
online platforms to meet the changing needs of its clientele. This change affects a number of
performance metrics for commercial banks, including profitability, customer happiness,
operational effectiveness, and competitiveness in the market.

Numerous investigations have examined how online banking affects commercial banks'
performance in various settings. Aladwani and Palvia's (2002) study, for example, discovered
that the implementation of online banking had a positive impact on Kuwaiti banks' financial
performance. In a similar vein, a UK study conducted in 2000 by Jayawardhena and Foley found
a favorable correlation between consumer happiness and online banking use.

The influence of online banking on commercial banks in Sierra Leone and its specific dynamics
may vary from other locations due to several circumstances, including but not limited to
technological infrastructure, regulatory frameworks, socioeconomic situations, and cultural
considerations. Therefore, to comprehend how online banking has affected Sierra Leone's
commercial banks' performance and to pinpoint potential and obstacles for future development,
context-specific research is required.

Ultimately, in navigating the digital transition brought about by internet banking, Sierra Leonean
commercial banks must thoroughly evaluate the ramifications for their performance. In order to
inform strategic decision-making and policy development in the banking industry, this study
intends to add to the body of knowledge by analyzing the relationship between online banking
uptake and the performance of commercial banks in Sierra Leone.

1.1.0. Background of the Case Study

The emergence of online banking has completely transformed the global banking industry and
has an array of effects on the operations of commercial banks. The case study is on Sierra Leone,
a nation in West Africa, where commercial banks have been progressively implementing internet
banking services to improve their business practices and meet the changing demands of their
clientele. The banking industry in Sierra Leone has experienced tremendous change recently as a
result of shifting consumer demands and technology breakthroughs. The use of online banking
systems by commercial banks in Sierra Leone necessitates an analysis of the effects of this
technological transformation on their performance indicators.

Similar to many developing nations, Sierra Leone has seen a surge in the demand for digital
financial services as a result of reasons such rising internet usage, smartphone adoption, and the
demand for easy banking options. Several commercial banks make up the nation's banking
industry, and they are all competing to draw and keep clients by providing cutting-edge services.
In light of this, integrating online banking products has become strategically necessary for Sierra
Leone's commercial banks to remain competitive in the digital era.

Commercial banks in Sierra Leone have both opportunities and challenges as a result of the shift
to online banking. With features like 24/7 account access, mobile payments, and digital
transactions, internet banking has the ability to improve customer experience, increase
operational efficiency, and reach a wider audience. Commercial banks in Sierra Leone may see
an increase in income streams, cost reductions, and overall profitability as a result of these
advantages.

Online banking has become more popular, but commercial banks are facing new obstacles as a
result, such as worries about data privacy, cyber security, infrastructure readiness, and public
digital literacy. Similar to many developing nations, Sierra Leone confronts issues related to
cyber security and infrastructure that could impede the smooth introduction of online banking
solutions. Furthermore, fostering customer financial literacy and guaranteeing sufficient cyber
security measures are critical to establishing trust and confidence in online banking services.

Online banking's effect on Sierra Leone's commercial banks' performance may be evaluated by
taking into account a number of performance metrics, including profitability, efficiency,
customer happiness, and market competitiveness. An understanding of how the use of internet
banking affects these important performance indicators can be gained by examining financial
data, consumer reviews, and market trends. Furthermore, comparing institutions that have
adopted online banking to different degrees can provide insightful information about best
practices and potential areas for development.

Therefore, the incorporation of internet banking services has emerged as a critical element
influencing Sierra Leone's commercial banks' success. In Sierra Leone's dynamic banking sector,
commercial banks can increase their competitiveness, boost their clientele, and promote
sustainable growth by strategically utilizing digital technologies. But in order to fully utilise
online banking and provide equitable access to finance for all facets of society, issues with
infrastructure, digital literacy, and cyber security must be addressed. In Sierra Leone, the
performance of commercial banks is increasingly shaped by the incorporation of online banking
services.

Thus, in Sierra Leone's dynamic financial environment, commercial banks can increase their
competitiveness, boost their clientele, and promote sustainable growth by skillfully using digital
technologies. But in order to fully utilise online banking and provide equitable access to finance
for all facets of society, issues with infrastructure, digital literacy, and cyber security must be
addressed.

1.2. Problem Statement

Online banking has significantly changed how commercial banks operate and perform in Sierra
Leone, as it has in many other developing nations. Online banking has many potential
advantages, but its effects on Sierra Leone's commercial banks' performance are still being
studied. By studying the precise ways in which internet banking affects Sierra Leone's
commercial banks' performance, this study seeks to close this gap. The restricted availability of
conventional banking services, particularly in rural areas, is one of the main issues Sierra Leone's
commercial banks are dealing with. By enabling users to access banking services from anywhere
in the world, online banking has the potential to solve this problem. But the degree to which it's
uncertain if internet banking has increased access to financial services and increased the number
of clients that commercial banks in Sierra Leone serve.

Furthermore, there is little empirical data regarding the actual cost-effectiveness of online
banking in the context of Sierra Leone, despite the fact that it offers the possibility of cost
savings through the automation of numerous financial operations. In order to maintain their
competitiveness in the market and improve operational efficiency, Sierra Leonean commercial
banks must comprehend the costs associated with online banking.

Additionally, commercial banks face new dangers and difficulties as a result of the widespread
use of online banking, notably with regard to data privacy and cyber security. Commercial banks
in Sierra Leone need to make significant investments in cyber security measures to safeguard
client data and keep their confidence as cyber threats continue to change. Research on the cyber
security procedures and difficulties Sierra Leonean commercial banks have when using internet
banking is, nevertheless, lacking.
Overall, even though internet banking has a great deal of promise to enhance Sierra Leone's
commercial banks' performance, there are still a number of issues and problems that need to be
resolved. By offering a thorough analysis of the effects of online banking on the operations of
commercial banks in Sierra Leone, with an emphasis on cost-effectiveness, cyber security, and
accessibility to banking services, this study aims to close this gap in the literature.

By means of this analysis, the study hopes to provide policymakers, regulators, and commercial
banks in Sierra Leone with useful information and suggestions for maximizing the benefits and
minimizing the hazards associated with internet banking.

1.3. Aim of the Study

The study's several objectives are to explore different facets of this relationship between internet
banking and the performance of Sierra Leone's commercial banks. This is a detailed explanation
of the goal:

 Assessment of Online Banking Adoption: The study's multifaceted objective is to

investigate many facets of the relationship between internet banking and the performance
of commercial banks in Sierra Leone. This is a comprehensive summary of the goal:
 Evaluation of Performance Metrics: It aims to evaluate the profitability, efficiency,
customer happiness, and competitiveness of Sierra Leone's commercial banks, among
other performance metrics. This entails a thorough examination of market positioning,
client feedback, and financial data.
Identification of Key Factors: The study's main goal is to pinpoint the critical elements
impacting Sierra Leone's commercial banks' adoption and use of online banking services.
This covers the competitive dynamics, customer preferences, regulatory framework, and
technology infrastructure.
 Analysis of Impact: Its goal is to examine how different commercial bank performance
metrics are affected by the use of internet banking. This entails benchmarking against
institutions that have not adopted online banking and comparing performance metrics
between before and after its launch.
 Exploration of Challenges and Opportunities: The study is to investigate the potential
brought about by technology improvements as well as the difficulties experienced by
commercial banks in Sierra Leone while implementing online banking systems. This
 covers market expansion, infrastructural constraints, cyber security issues, and regulatory
compliance.
 Recommendations for Improvement: The study intends to offer suggestions to Sierra
Leonean commercial banks based on its results in order to raise the efficiency of their
online banking offerings and boost overall performance. This could entail partnering
opportunities, regulatory advocacy, strategic investments in technology, and customer
education.

By addressing these goals, the study hopes to add to the body of knowledge and assist in
practical decision-making within the banking sector by offering insightful information about how
online banking affects the performance of commercial banks in Sierra Leone.

1.4. Objectives of the Study

The research approach will be guided by the following objectives in order to fulfill the study's
goal:

• To determine the degree to which Sierra Leone's commercial banks have adopted internet
banking.

• To examine how internet banking affects commercial banks' operational effectiveness.

• To investigate the impact of internet banking on client retention and satisfaction in Sierra
Leone's commercial banking industry.

• To assess how the financial performance of commercial banks and the adoption of internet
banking relate to one another.

• To determine the prospects and difficulties related to the introduction of internet banking in
Sierra Leone.

1.5. Research Questions

The following research questions will be addressed in order to fulfill the above-mentioned
objectives of the study:

• To what extent are commercial banks in Sierra Leone adopting internet banking?
• How does internet banking affect Sierra Leone's commercial banks' operating
effectiveness?
 • How does online banking affect the commercial banking industry in Sierra Leone in
terms of client satisfaction and retention?
• Is there a connection between Sierra Leone's commercial banks' financial success and
their use of online banking?
•What are the primary obstacles and prospects that Sierra Leone's commercial banks
confront when putting internet banking services into place?

1.6. Significance of the Study

The banking sector has changed globally, including in Sierra Leone, as a result of online banking,
sometimes referred to as internet banking. It is imperative to comprehend the importance of
researching how online banking affects Sierra Leone's commercial banks' performance for a
number of reasons

i. Technological Advancement and Financial Inclusion: Like many developing nations,

Sierra Leone is seeing a rapid advancement in technology. Analyzing how online banking
affects the profitability of commercial banks sheds light on how technology might
improve financial inclusion by reaching people that were previously underserved.
ii. Efficiency and Cost Reduction: Commercial banks can increase productivity, lower
overhead expenses, and streamline operations with the help of online banking.
Policymakers and bank executives can find ways to maximize cost reductions and
optimize resource allocation by researching its effects.
iii. Customer Satisfaction and Retention: Commercial banks can increase productivity, cut
expenses, and simplify operations with the help of online banking. Policymakers and
bank executives can find ways to optimize resource allocation and save costs by
analyzing its effects.
iv. Competitive Advantage: Being ahead of the curve is crucial in the highly competitive
banking industry. Commercial banks in Sierra Leone can find opportunities to obtain a
competitive edge through new offerings, improved user experiences, or focused
marketing approaches by looking into the effects of internet banking.
v. Risk Management and Security: Online banking has many advantages, but it also
comes with new concerns, like fraud and cyber security threats. Through an analysis of
how it affects the performance of commercial banks, interested parties can evaluate the
efficacy of current risk management practices and make the required adjustments to
protect the organization and its clients.
 vi. Policy Implications: Policymakers can benefit from the study's findings about the
efficacy of Sierra Leone's present online banking regulations. Policymakers may ensure a
favorable atmosphere for innovation and expansion in the banking industry by having a
clear grasp of how regulatory frameworks affect the performance of commercial banks in
the online banking space.
vii. Future Research and Development: Examining how online banking affects the
performance of commercial banks creates opportunities for more study and advancement.
By delving deeper into certain topics like the prevalence of internet banking, the function
of mobile technology, or the effects on rural areas, academics and industry professionals
can add to the body of knowledge in the banking and technology domains.

Examining in-depth the importance of researching how online banking affects Sierra Leonean
commercial banks' performance, this study seeks to offer insightful information that can guide
industry development initiatives, policy creation, and strategic decision-making.

1.7. Scope of the Study

The study's purview, which centers on Sierra Leonean commercial banks and examines how
online banking affects their performance, is multifaceted. Here, we list the different dimensions
that this study will investigate:

i. Online Banking Adoption and Utilization: The scope of online banking services
adopted by Sierra Leonean commercial banks and their customer base's use will be
examined in this study. It will evaluate elements such infrastructure, internet penetration,
the regulatory landscape, and consumer preferences that affect the adoption rate.
ii. Technological Infrastructure and Investment: The study will look at the investments
and technology infrastructure made by Sierra Leone's commercial banks to enable online
banking services. This entails assessing how well security protocols, IT infrastructure,
and platform scalability can accommodate growing numbers of digital transactions.
iii. Customer Preferences and Satisfaction: Comprehending consumer preferences and
satisfaction levels is essential to evaluating how internet banking affects the performance
of commercial banks. The purpose of this study is to look into how consumers feel about
online banking in terms of ease, accessibility, security, and general happiness with the
online banking process.
iv. Financial Performance Metrics: To determine the effect of online banking usage, a
thorough examination of the financial performance metrics of Sierra Leonean commercial
 banks will be carried out. This entails looking at metrics related to the use of online
banking services, including profitability, cost effectiveness, revenue growth, asset quality,
and market share dynamics.
v. Operational Efficiency and Cost Reduction: The study will investigate how much
internet banking helps Sierra Leone's commercial banks operate more efficiently and cut
costs. This entails assessing how branch network optimization, transaction processing
expenses, workforce demands, and overall operational efficacy are affected by digital
channels.
vi. Risk Management and Compliance: It is imperative to evaluate the risk management
frameworks and regulatory compliance linked to internet banking. The purpose of this
study is to examine the steps taken by commercial banks in Sierra Leone to reduce the
risk of fraud, cyber security breaches, privacy issues, and noncompliance with laws
pertaining to digital financial services.
vii. Competitive Landscape and Market Dynamics: In the context of online banking, the
study will examine the competitive environment and market dynamics within the banking
sector in Sierra Leone. This entails analyzing the tactics used by commercial banks to set
themselves apart through digital offerings, draw in new clients, and hold onto current
ones in the face of escalating competition.
viii. Future Outlook and Recommendations: Ultimately, the study will shed light on Sierra
Leone's prospects for online banking and make tactical suggestions for commercial banks
looking to improve their online performance. To achieve sustained growth and a
competitive edge, this entails recognizing new trends, possible obstacles, and chances for
innovation.

Through a thorough examination of these aspects, the research hopes to offer insightful
information about how online banking affects Sierra Leonean commercial banks'
performance, which will help guide the industry's strategic decision-making and policy-
making processes.
1.8. Delimitations of the Study
i. Geographical Limitation: The study focuses exclusively on commercial banks
operating within Sierra Leone. Therefore, findings and conclusions may not be applicable
to commercial banks in other countries or regions, as the banking landscape, regulations,
and customer behaviors can vary significantly.
ii. Timeframe Limitation: The study's analysis is limited to a particular period of time,
which may represent the situation of internet banking in Sierra Leone at the moment and
its effect on the performance of commercial banks. Future trends or historical data
collected before this point might not be taken into account.
iii. Sample Size Limitation: The amount of commercial banks that were included in the
research could represent a limitation of the study. The findings may not be applicable to
Sierra Leone's whole commercial banking industry if the sample size is limited.
iv. Data Availability: The availability of pertinent data regarding internet banking and the
performance of commercial banks in Sierra Leone may limit the study's scope.
Insufficient availability of all-inclusive, precise, and current data may compromise the
breadth and dependability of the study.
v. Scope of Variables: Certain aspects of online banking, such transaction volumes,
customer happiness, or profitability measures, can be the focus of the study. It's possible
that the study's limitations prevent a thorough examination of other factors that could
have a significant impact, such macroeconomic circumstances or changes in regulations.
vi. Methodological Constraints: There may be restrictions imposed by the research
approach used for the study, whether it is qualitative, quantitative, or a combination of
both. For example, depending exclusively on quantitative data may miss qualitative
components that are more subtle in terms of how online banking affects the performance
of commercial banks, and vice versa.
vii. External Factors: External variables that could affect the relationship between online
banking and the performance of commercial banks include changes in consumer
preferences, technical improvements, and regulatory reforms. It's possible that the study
did not completely control for or account for these outside influences.
viii. Industry Dynamics: It's possible that the study underrepresents the competitive
dynamics that exist in Sierra Leone's commercial banking industry, particularly the
tactics used by different banks to set themselves apart in the online banking market and
how such tactics affect performance.
 ix. Limitations of Generalization: Although the study's conclusions may provide light on
the particular circumstances surrounding Sierra Leone's commercial banking industry,
care should be taken when extrapolating the conclusions to other situations or
formulating general policy recommendations without taking into account the distinctive
features of every banking market.

In addition to recognizing the inherent limitations and constraints within which the research
functions, the study strives to give a full and nuanced examination of the influence of online
banking on the performance of commercial banks in Sierra Leone by addressing these
delimitations.

1.9. Limitations of the Study

The following are some of the study's limitations about how online banking affects Sierra
Leone's commercial banks' performance:

i. Data Availability: It may be difficult to obtain thorough data on the use of internet
banking and how it affects the functioning of commercial banks in Sierra Leone.
Insufficient data availability may limit the scope of the study and result in biases.
ii. Sample Size: The sample size of commercial banks used in the analysis may have
hampered the study's efficacy. Results from a small sample size could not be
representative of Sierra Leone's diverse commercial banking environment, making them
inapplicable to a wider context.
iii. Data Quality: Some of the variables that could jeopardize the study's data quality and
dependability include missing data, inconsistent reporting practices across commercial
banks, and recording errors.
iv. Time Constraints: Enough time must pass between data collection, processing, and
interpretation in order to conduct a thorough study. Due to time constraints, researchers
may have to restrict the study's scope or ignore some important details, which could
compromise the validity of their conclusions.
v. Selection Bias: The study's commercial banks may have been chosen with bias, which
could distort the findings. The study might exaggerate the beneficial effects of online
banking on performance, for instance, if only banks with greater adoption rates of online
banking are included.
vi. Causal Inference: Thorough analysis is necessary to account for confounding variables
in order to establish a causal relationship between the performance of commercial banks
 and the use of online banking. However, because of possible endogeneity problems,
establishing causality in observational studies such as this one may be challenging.
vii. Generalizability: The study's conclusions might not apply to commercial banks
operating in other socioeconomic circumstances or to situations other than Sierra Leone.
Given the unique features of Sierra Leone's banking industry, it is important to proceed
with caution when extrapolating the findings.
viii. Lack of Longitudinal Data: The study's capacity to reliably detect trends and patterns
may be limited by the lack of longitudinal data tracking the evolution of online banking
use and its impact on commercial banks' performance over time.
ix. Human Factors: The adoption of internet banking is influenced by human factors that
the study may have overlooked. These elements include client preferences, behavior, and
trust difficulties, all of which can have a big impact on how well commercial banks
function.

The study's conclusions about how online banking affects Sierra Leone's commercial banks'
performance can be made more accurate and reliable by addressing these shortcomings through
sound research techniques, meticulous data gathering, and rigorous analysis.

1.10. Organization of the Study

The study is written in five distinct chapters which make up the entire study.

The first chapter will serve as an introduction to the research topic and will provide an overview
of the study's objectives, research questions, and significance. This chapter will present a
background of online banking and its global impact on the financial landscape. Additionally, the
chapter will outline the scope and limitations of the study, highlighting the methods chosen for
data collection and analysis. Lastly, the chapter will conclude by providing a roadmap of the
subsequent chapters, outlining how each chapter contributes to achieving the research objectives.

The second chapter will conduct an extensive review of existing literature related to online
banking and its impact on commercial banks. This chapter will analyze academic articles, reports,
case studies, and relevant empirical studies to understand the current state of knowledge on the
topic. The review will explore the ways in which online banking has facilitated financial
inclusion for commercial banks, the role of online banking in enhancing access to credit, its
effect on cash flow management, and the challenges and opportunities associated with online
banking adoption among commercial banks. By critically examining previous research, this
chapter will identify gaps in the literature that the current study aims to address.

The third chapter will provide a detailed explanation of the research design and methodology
employed in the study. This chapter will describe the mixed-method approach, including the
design and distribution of the online survey, the criteria for selecting participants for interviews
and focus groups, and the process of collecting and analyzing financial data from commercial
banks. The chapter will discuss the rationale behind the chosen methods and how they align with
the research objectives. Moreover, the chapter will address potential challenges in data collection
and strategies to ensure data validity and reliability. By providing a transparent account of the
research methodology, this chapter will enhance the study's credibility and reproducibility.

The fourth chapter will present the results of the data analysis conducted based on the collected
quantitative and qualitative data. This chapter will showcase the survey responses, using charts
and graphs to illustrate the trends and patterns related to online banking adoption among
commercial banks. It will also present the findings from the interviews and focus group
discussions, organizing qualitative insights into key themes. Additionally, this chapter will
present the results of the financial data analysis, highlighting any significant correlations
between online banking adoption and financial performance metrics. The chapter will interpret
the findings in the context of the research questions and relevant literature, providing a
comprehensive understanding of how online banking impacts commercial banks.

The final chapter will synthesize the study's findings and draw conclusions regarding the
contribution of online banking to the growth of commercial banks. This chapter will reiterate the
main research objectives and discuss how the study addressed them. It will also reflect on the
implications of the findings for policymakers and financial institutions. Based on the research
outcomes, the chapter will provide practical recommendations to enhance online banking
adoption among commercial banks and promote its positive impact on growth and financial
inclusion. Lastly, the chapter will suggest potential areas for future research to build upon the
present study and expand our understanding of the evolving relationship between online banking
and commercial banks development.
1.11. Definition of Key Terms
i. Online Banking: The term "online banking" describes the online platform that
commercial banks offer their clients to conduct a range of financial services and
transactions. These services could involve, among other things, paying bills, seeing
account statements, transferring money between accounts, and checking account balances.
ii. Performance: In the context of commercial banks, performance refers to these financial
institutions' capacity to successfully and efficiently accomplish their aims and goals. It
includes a number of factors, including operational effectiveness, asset quality,
profitability, and liquidity.
iii. Commercial Banks: Commercial banks are financial organizations that mainly offer
services like taking deposits, making loans, and giving people and businesses access to
standard financial instruments like certificates of deposit and savings accounts. They also
offer additional financial services and help with money transfers.
iv. Impact: Impact is the term used to describe how internet banking affects the general
operations, tactics, and results of Sierra Leone's commercial banks. This could involve
both favorable and unfavorable effects from the introduction and use of internet banking
services.
v. Technology Adoption: The process through which Sierra Leone's commercial banks
incorporate and make use of online banking services within the confines of their current
operational frameworks is known as technology adoption. It entails utilizing technology
to increase client satisfaction and financial services..
vi. Customer Engagement: The degree of interaction and involvement that consumers have
with the online banking services provided by commercial banks is referred to as customer
engagement. It includes acts including opening accounts, making purchases, contacting
customer service, and leaving comments.
vii. Financial Inclusion: Financial inclusion is the degree to which Sierra Leone's
commercial banks' online banking services help underserved and unbanked populations
have greater access to financial services and products. It entails enhancing the
affordability and accessibility of banking services.
viii. Cyber security: Cyber security is the term used to describe the procedures and policies
that commercial banks have put in place to guard against cyber threats, data breaches, and
unauthorized access to their online banking systems, customer information, and financial
 transactions. It includes tools, guidelines, and procedures designed to protect digital
assets and guarantee data privacy.
ix. Regulatory Compliance: The term "regulatory compliance" refers to how well Sierra
Leone's commercial banks follow the rules, laws, and directives issued by pertinent
authorities that control the offering of online banking services. It entails making sure
financial activities are accountable, secure, and transparent..
x. Competitive Advantage: The term "competitive advantage" describes the tactical edge
that commercial banks can obtain in the banking industry of Sierra Leone by skillfully
utilizing online banking technologies to set themselves apart from their rivals, draw in
clients, and improve overall performance. It entails utilizing digital capabilities to boost
productivity, creativity, and client happiness.

1.12. Summary
The study examines the impact of online banking on the performance of commercial banks in
Sierra Leone. It analyzes how the adoption and utilization of online banking services affect key
performance indicators such as efficiency, profitability, customer satisfaction, and market
competitiveness within the Sierra Leonean banking sector. By evaluating the challenges,
opportunities, and outcomes associated with online banking implementation, the study provides
insights into the transformational effects of digital banking on traditional banking operations and
strategies in Sierra Leone.