RESEARCH PROPOSAL

THE ADOPTION OF E-BANKING BY BANKS

LOCATED IN DANSOMAN

BUSINESS RESEARCH METHODS GROUP ASSIGNMENT

GROUP MEMBERS

NAME INDEX SIGNATURE

DAVID OFFEI OBUOBI 2850208
EMMANUEL TWUMASI-DONKOR
GIFTY NAA DEDEI ADJEI 2870208
REBECCA ESI ZEWU 1080208
ANTHONY YAW GOVINA

CHAPTER ONE

THE ADOPTION OF E-BANKING BY BANKS LOCATED IN DANSOMAN

1.0 Introduction
 The internet has become an important modern day technology for most businesses.
Technology can be defined as the branch of knowledge that deals with the creation and use of
technical means and their interaction with life, society and the environment. The
advancement of information technology has brought about innovative ways and platforms
that have made interesting contributions to our commerce systems and structures. “Electronic
commerce is the exchange of information across electronic networks, at any stage in the
supply chain, whether within an organization, between businesses and consumers, or between
the public and private sectors, whether paid or unpaid” (Cabinet Office Report, 1999)

Authors have recently begun to outline more clearly a difference between e- commerce and e-
Business. E-commerce is emerging as the term used when discussing the process of
transacting business over the Internet.  E-Business, on the other hand, comprises the essential
reengineering of the business model into an Internet based networked enterprise. The
distinction between the two terms according to most authors is the extent to which an
organization transforms its business operations through the use of the Internet (Poon &
Swatman, 1997). In this study, e-business will be used to describe all electronically based
exchanges of goods, services and information. The use and application of digitized and
automated services in business has permitted the instant establishment of virtual branches
throughout the world and allows direct and immediate foreign market entry to the smallest of
all businesses. According to Basu and Muylle (2007), E-Business has changed intensely the
business processes companies implement and has also enhanced industry structure and
shifted the balance of power between corporations and their suppliers and customers.
Companies have also been able to evaluate the opportunities and threats that come with e-
business adoption and through this have been able to choose the right solutions that support
their businesses strategies and create value for the company and its customers. The service
industry of Ghana’s economy is growing and this is seen especially in the banking industry.
This change anticipates that the use of the internet would ease the adoption of e-business in
the banking industry in Ghana as a way of offering flexible, efficient and cost-effective ways
of doing business as well as enhance their competitiveness. Ghana has been going through a
process of financial sector restructuring and transformation as an integral part of a
comprehensive strategy for some time (Acquah, 2006). This is important as banks in Ghana
will need to reinvent themselves in this new favorable but challenging environment.
Currently performance of electronic transactions is growing continuously and only countries
that make a move towards embracing e-Business will participate in this revenue generation
(Akoh, 2001). To be competitive in the Internet economy, companies must harness the power
of the Internet successfully hence it is important to understand the benefits, barriers and
challenges related to companies' adoption of e-business.

1.2 Statement of the Problem

As competition increase among the banks in Ghana, most of the banks are using E-banking as
a way of staying in the competition by innovatively providing E-banking products and
services (Abor, J.2005). Banks are now turning their focus into making huge investments in
technology to be able to maintain and upgrade their infrastructure to provide products and
services. However, attempt of improving technological infrastructures by these banks often
turn out that other parts of the organization are neglected in the process making it very
difficult for the efficient delivery of these E-banking products and services by the bank.

Confidentiality and security is very important as far as people’s money is concern(Abor,J.

2005). Meanwhile, most of these banks outsource their Information Technology (IT) services
to third parties since their IT departments cannot handle all the Information Technology
issues (Boateng,R.,2006). Very often than not confidential information about customers is
access by outsourced companies who work for these banks.

Furthermore, since most of these technological equipments to support the provision of E-

Banking are imported from the developed countries; technical expertise is required to be able
to operate such equipments. These banks will have to incur extra cost in training of personnel
to be able to handle such equipment (Boateng, R., 2006)

1.1 Objective of study.

Banking is one of the service sectors that are vital to the growth of Ghana’s economy. It is
important in the role it plays in capital mobilization and granting of financial facilities that is
crucial to business development and growth. As businesses always need to find ways of
improving its products and services deliveries it will be useful to understand how the
adoption of e-Business can benefit the banking industry. The purpose of this study therefore
is to describe the status of adoption of e-business in banks in Ghana as a means of identifying
their special needs for enhancing the adoptions processes.
1.2 The Specific Objectives

 To identify the benefits of e-business to the banking industry in Ghana; what are
some of the benefits banks stands to gain when they adapts to e-banking or go on the
internet economy. How this it affect their profit, their customer service delivery and
management and their overall performance as a banking institution.

 To explore barriers to the adoption of e-business in banks in Ghana; the work will try
to bring out to identify some of the major and minor barriers that may impede a bank
in entering the internet economy, it will also try to elucidate to how extent some of
the barriers have prevented some of the banks in adopting e-business in their day to
day activities.
 To describe the challenges encountered in the adoption of e-business; the research
will try to identify some of the challenges faced by some firms in their attempt to
adapt to the internet experience. The work will try to bring out some challenges that
have prevented some of the banks in the banking sectors in joining the internet
economy to enjoy competitive advantage.

1.3 Research Questions.

In order to achieve the above purpose, the following research questions have been
formulated:

 What are the benefits that may be derived by adopting e-business

 What are the barriers to the adoption of e-business in banks in Ghana
 What challenges do banks face in adopting e-business