An exploratory analysis to employees and customers’ responses in determining the technological innovativeness of banks

Asare Yaw Obeng, Peter L Mkhize


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.


Innovativeness; customer satisfaction; employee efficiency; banking services; technological innovation; logistic regression

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The Electronic Journal of Information Systems in Developing Countries.
ISSN: 1681-4835