The strategic use of information technology in the rural banking sector in Ghana (Nwabiagya Rural Bank as a case study)

Abstract

The objective of this study is to evaluate the strategic use of Information Technology in the rural banking sector in Ghana. The study is case type in design and used a combination of probability and non-probability sampling techniques in selecting its sample. The analysis revealed that Nwabiagya Rural Bank lacks the desired technologies to support its operations. However, it was able to strategically employ the very limited technologies it has in place to gain some advantages in the sector. These advantages are shortening of customers' waiting time, cut down on its operating costs, provide convenient banking services to its customers and attract a large customer base thereby increasing its sales volume and experience sharp increases in its profit level since the deployment of ICT into its systems. Two major factors were found to be militating against the accelerated deployment of innovative technologies namely: lack of funds and a restrictive ICT policy by supervisory bodies like the Bank of Ghana and the ARB Apex Bank. The study concludes that, ICT has a positive impact on the bank's operations and therefore serves as a tool to attain competitive advantage in the banking industry.