Information and Knowledge Management www.iiste.org ISSN 2224-5758 (Paper) ISSN 2224-896X (Online) Vol.3, No.6, 2013 47 Emerging trends of Electronic Banking in Ghana Kwame Owusu Kwateng 1* Kwaben Obiri-Yeboah 2 Felix Nyamekye Sarpong 3 1. KNUST School of Business, Kwame Nkrumah University of Science & Technology, PMB, Kumasi Ghana 2. KNUST School of Business, Kwame Nkrumah University of Science & Technology, PMB, Kumasi Ghana 3. First Capital Plus Limited, PMB, Kumasi Ghana *E-mail for corresponding author: kowusukwateng@yahoo.com Abstract The Government and Bank of Ghana have made it a priority to motivate existing banking customers and to reach the unbanked through the use of ICT. This strategy is also recognized as a relevant tool in the fight against poverty. In spite of this effort majority of Ghanaians still remain unbanked because the present financial service delivery methods are not able to meet the challenges of the customers, especially when it comes to serving remote communities and market men/women who finds it difficult to leave their shops and visit the bank. An ICT innovation like the speedbanking provides some hope to help solve these problems. Keywords: speedbanking, electronic cards, unbanked, Information and Communication Technology (ICT) 1. Introduction The growth of information systems has significantly affected products and services delivered through electronic banking. According to Gkoutzinis (2006) e-banking presents an efficient delivery channel through which banking products and services can be delivered more conveniently and economically. This has motivated banks all over the world to offer internet banking services to their customers. Some studies have found that innovation in products and services is an important tool for banks to have an edge on their competitors (Damanpour and Evan, 1984; Kimberly and Evanisko, 1981). Service delivery is intangible and it has been describe as subjective, attitude and perception by service quality literature. Few studies have examined the narrower subject of the effects of e-banking products on service delivery in the banking sector. This research work focused on the effects of electronic products, specifically Speed Banking on banking services delivery. It covers customers and employees of financial institutions in Ghana. The customers included both high and low end customers, literate and illiterate (with the illiterate forming the majority). This is due to the fact that most of these customers are “Susu” (daily or weekly collection of money) clients and migrating them to the speed banking platform is a way of increasing deposit mobilization through the purchase of the vouchers and reduce the risk of harbouring money at home, shops and other unconventional methods of saving money by traders in Ghana. It also constitutes one of the best ways of reaching out to the unbanked. 2. Literature Review 2.1 Defining Electronic Banking E-banking is defined by Singh and Malhotra, (2004) as the use of electronic and communication networks by banks to directly serve customers. E-banking is seen as a medium through which customers can access diverse banking services such as electronic bill payment, deposit account, making investment, and online transfer (Pikkarainen et. al., 2004; De Young, 2001). E-banking can generally be referred to as the situation where a customer does not necessary need to visit the banking premises to receive services and products. The scope can be extended to include online service deliveries such as Internet banking, personal computer (PC) banking, remote electronic banking, virtual banking, remote electronic banking, phone banking, online banking, and home banking. Internet/online banking and PC banking is patronise by customers more than the others. With exception of cash withdrawal, all banking transactions can be assessed at the click of the mouse (De Young, 2001). With vicious competition, the internet is not just seen as competitive tool but as a requirement in financial service delivery. (Flavian, Torres, and Guinaliu, 2004; Gan, and Clemes, 2006). The internet, regarded as a significant delivery channel (Karjaluoto, Mattila, and Pento 2002, p.261) has level the playing field to enable all financial institutions to have access to customers all over the world.