Financial Electronic Technology and Innovation for Banking Services Delivery in Ghana: Operations of the Automated Teller Machine Facility from Customers’ Perspective

Modern electronic technological innovation has changed the landscape of several businesses including the banking industry. This situation has led to introduction of some electronic technology and products (eproducts) including Automated Teller Machines (ATM) for dispensing cash. The ATM technology was designed to make banking services less labour intensive and twenty fourhour access to cash. However, introduction of e-products in the banking industry has raised both technical and operational challenges which call for critical examination. Among other questions, one may ask: To what extent is the public familiar with electronic banking products, including ATM technology in banking industry? What benefits do customers gain from the ATM facility? What challenges do banks and customers face for the introduction of the technology? These are some of the questions constituting the foundation of an exploratory study, which sought to examine in detail the relevance of the introduction of the capital intensive Automated Teller Machine (ATM) technology, in the banking industry of Ghana. Also, the study appraised the customers’ perceptions on electronic banking evolution in general and ATM in particular. Perhaps, bankers have conceived the idea that they provide effective and efficient services once they have introduced electronic banking whereas their customers might see it differently. Hence, the exploratory research focused on the reality on the ground, in terms of customers’ perception on electronic banking. A non probability approach was adopted to randomly select respondents who are customers of different banks, for study. By virtue of the exploratory nature of the study, questionnaires were used to collect primary data from some customers on the field. The primary data necessitated qualitative technique and simple statistical techniques for analysing the data. The study revealed that the respondents were aware of few e-banking products available in the banking sector. The customers expressed different opinions on importance of electronic banking technology. Some of them saw it as relevant while others saw it differently and for that reason preferred transacting businesses in banking halls, notwithstanding long waiting hours associated with manual banking system. The main reason they gave for their choice was the frustrations people go through in course of accessing ATM and other e-banking services. The lack of education of customers on ebanking innovations was identified as a major challenge by customers. Therefore, it was recommended that banks should organise extensive public education on importance and utilization of available e-products and the benefits customers gain from them. Otherwise, customers’ low knowledge on the e-products would prevent from utilizing those products as expected. Notwithstanding, the investment cost, it would be useful for banks to increase supply of ATMs facilities in their catchment areas to provide easy accessibility to cash and increased financial inclusion. That arrangement would increase availability and easy accessibility to the ATMs and high utilization of the product. It is envisaged that a step in that direction could enable both banks and customers to benefit from etechnology and innovations alike.