An Exploratory Analysis of Employees and Customers’ Responses in Determining the Technological Innovativeness of Banks

Abstract

The banking sector globally is saddled with intensified competition. Coupled with global economic situation of little tolerance for inappropriate resources usage, financial institutions have to pursue different strategies to meet the challenges and opportunities of providing quality services to existing customers, attract new customers, improve the turnover of employee, and increase long-term firm performance. Innovation and technology are considered fundamental elements of strategic management. Implementing strategies to achieve a better relationship between technological innovation and financial services are essential. In determining the level of banking technological innovation, the study analyses responses as perceived by customers and employees at branch level of universal banks in Ghana and examines how these perceptions influence their preferences and assessments. 88% of customers and 96% of employees indicated their banks are innovative. 92% of customers will recommend their banks to others, whiles 81% of employee indicated positive innovation impact on profitability. From a logistic regression model, eight (8) factors were found to be significant (p-value <0.05), indicating that customers are more likely to rate banks as innovative for service offering consistency with the latest innovations, product or service quality, new or improved product or service, and products or services features. For bank employees, innovation effect on process, innovation effect on risk management, and innovation effect on employee productivity were identified as the main perceptions for rating their banks as innovative. Practical implications and limitations of the study are also presented.

The Mediating Role of Employee Innovativeness on the Nexus between Internet Banking and Employee Performance: Evidence from the Republic of Congo

“…e adoption of innovation in the Banking Sector has facilitated transactions and business worldwide. Internet banking structures, such as electronic checks payment system, Automatic Teller Machines (ATMs), credit visa, debit and master cards, mobile banking applications, etc., have transformed the world where clients may be able to purchase and sell goods and services, and also can make money transactions through the use of Internet [7,14,17,18]. Chai et al [5] have confirmed that the introduction of Internet banking has increased efficiency, effectiveness, and productivity levels in the banking industry.…”

“…ey further suggested that, it is required to improve conditions of access in providing satisfactory high-speed connectivity and infrastructure of Internet services; to reduce costs related to Internet connection by supporting healthy competition among service providers; and to impart digital literacy to individuals who may highlight the benefits and advantages provided by the usage of Internet. Technology answers can help a financial institution to innovate on methods such as digital dispersal of banking correspondence, direct banking, tolerating electronic documentation from clients [38], enhancing employee performance, and lowering inefficiencies [18]. Siddik et al [4] researched the impact of innovative technology on the profitability of Bangladeshi banks.…”

Factor Effecting of Durian Innovation Product of SME Industry: Study in South of Thailand

“…In Thailand, attempts have been done on the national level to increase technological innovation in the durian business. Technological innovations are a result of the competition in processes (Obeng & Mkhize, 2017).…”

Role of Training in Information Technology in Enhancing Employee Efficiency in Banking Sector in India

“…Regarding the aspect of skills, [25] observed that IT implementation leads to enhanced skill compatibility among banking aspects, an outcome that was documented to be a pointer or predictor of improved employee productivity. As avowed by [26] say an additional attribute that leads to insights regarding the relationship between IT implementation and HR management (as well as the performance of banking institutions) involves competence. Particularly, the study indicated that through IT implementation, bank employees exhibit competence because they believe that they possess the required skills and capabilities to implement and learn e-banking; with the confidence also making them be part of and participate in IT implementation; especially after undergoing adequate training.…”