1. THE CONCEPT OF E-BANKING
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2. OVERVIEW OF BANKING IN GHANA
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3. Definition of a BANK
A bank can be defined in accordance with the Banking Act, as a body corporate which is issued with a license in accordance with this Act to carry on banking business

4. The Banking Act, 2004 as amended defines banking business:
Banking business” means,
(a) accepting deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, orders or by any other means;

5. (b) financing, whether in whole or in part or by way of short, medium or long term loans or advances, of trade, industry, commerce or agriculture and (c) any other business activities that the Bank of Ghana may prescribe or recognize as being part of banking business.

6. Accepting deposits from the ‘public’ means that a bank accepts deposits from anyone who offers money for the purpose.
Unless a person has an account with the bank, it does not accept deposit.
For depositing or borrowing money there has to be an account relationship with the bank.

7. A bank can refuse to open an account for undesirable persons
A bank can refuse to open an account for undesirable persons. It is banks right to open an account.
Bank of Ghana has stipulated certain norms “Know Your Customer” (KYC) guidelines for opening account and banks have to strictly follow them.

8. HISTORY OF BANKING IN GHANA

9. HISTORY OF BANKING IN GHANA
In 1891 George Neville, a representative of Elder Dempster & Co in Lagos, Nigeria, recognised that banking facilities were urgently required in West Africa, especially in Lagos.
Neville and a colleague, Alfred Lewis Jones, believed that the best way forward was to get an existing bank to establish a branch in Lagos.

10. HISTORY OF BANKING IN GHANA
Neville approached the African Banking Corporation, established in South Africa in
Its board of directors in London agreed to extend their business operations to Lagos but made it known that their main interest was in South Africa.

11. HISTORY OF BANKING IN GHANA
Shortly thereafter a series of meetings were held between Elder Dempster and the African Banking Corporation to discuss the takeover of the Lagos branch by Elder Dempster.

12. HISTORY OF BANKING IN GHANA
The Bank of British West Africa (BBWA) now known as Standard Chartered Bank was registered as a limited liability company by the directors of Elder Dempster and began trading on March , initially in England and in Lagos.

13. HISTORY OF BANKING IN GHANA
Of the 3,000 shares issued, Alfred Jones took up 1,753 and his partners, Alexander Sinclair and W.J. Davy, took up 433 each.
The rest went to the other appointed directors.
In 1896, a new branch of the Bank was opened in Accra, in the Gold Coast (now known as Ghana).

14. HISTORY OF BANKING IN GHANA
Shortly after the Bank was established in Accra it was able to acquire the business of maintaining the Government accounts.
In addition, it was able to introduce the use of cheques in settlement of Government accounts which helped to advertise the usefulness of the Bank to the public.

15. HISTORY OF BANKING IN GHANA
By 1918, the operations of BBWA in the Gold Coast had been so successful that another expatriate bank, the Colonial Bank decided to commence banking there.

16. HISTORY OF BANKING IN GHANA
In 1925 the Colonial Bank merged with the Anglo-Egyptian Bank, the National Bank of South Africa and Barclays Bank under the leadership and name of Barclays Bank (Dominion Colonial and Overseas).
Barclays soon developed into a strong competitor of BBWA

17. HISTORY OF BANKING IN GHANA
From the late 1920s until the early 1950s, banking services in the Gold Coast continued to be exclusively provided by these two expatriate banks.

18. HISTORY OF BANKING IN GHANA
They functioned largely as commercial banks, facilitating the trading of commercial firms and assisting in revenue collection and the payment of salaries by the Colonial Government. It may be noted that the BBWA functioned additionally as the bank of issue for the Colonial Government.

19. HISTORY OF BANKING IN GHANA
Branches were opened in many of the provincial capital towns and in the main trading centres in the Gold Coast Colony, and, subsequently, in Ashanti and the Northern Territories of the Gold Coast.

20. HISTORY OF BANKING IN GHANA
In 1953 the Bank of the Gold Coast was set up by the Government and Alfred Engleston, formerly of the Bank of England.
Eventually the Bank was splited into two: the Bank of Ghana, operating as a bank of issue, to be developed into a complete central bank;

21. HISTORY OF BANKING IN GHANA
and the Ghana Commercial Bank, to be developed into the largest commercial bank with a monopoly on the accounts of public corporations.

22. HISTORY OF BANKING IN GHANA
On March 6, 1957 the Gold Coast attained independence from Great Britain and the Bank of Ghana quickly developed into a strong competitor of the expatriate banks by opening branches in most of the towns and centres in which they had been operating as well as moving into new areas such as the Ashanti and the Northern Regions.

23. HISTORY OF BANKING IN GHANA
The advent of the new Government, elected by popular vote in 1957, brought the establishment of more banks. Banks incorporated by legislation between the period 1957 to 1965 include: the Ghana Investment Bank as an Investment Banking Institution;

24. HISTORY OF BANKING IN GHANA
the Agricultural Development Bank for the development of Agriculture; the Merchant Bank for merchant banking; and the Social Security Bank to encourage savings. In conformity with the economic policy of the time all these institutions were incorporated as state-owned banks.

25. HISTORY OF BANKING IN GHANA
The Banking Law was enacted in 1989, enabling suitable locally incorporated bodies to file applications for licences to operate as banking institutions. Subsequently, a number of corporate entities were licensed to operate as banks, including Meridien (BIAO) Trust Bank, CAL Merchant Bank, Allied and Metropolitan and ECOBANK.

26. GENERAL OVERVIEW OF TRADITIONAL BANKING
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27. General Overview of Traditional Banking
Traditional Banking is also known as ‘brick and mortar’ banking
Traditional bank has to do with banking within brick and mortar structures with banking hall, where the client meet face to face with the banking officers for any assistance they might need.
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28. General Overview of Traditional Banking Cont’
Traditional banking products may be in the form of a deposit account
A deposit account is a current account, savings account, or other types of bank accounts, at a banking institution that allows money to be deposited and withdrawn by the account holder.
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29. BANK ACCOUNT
A bank account is a record of the financial transactions between the customer and the banking institution.
The banking institutions have provided several types of accounts to cater for the needs of all sorts of individuals.

30. BANK ACCOUNT
Banking institutions offer a wide range of bank accounts to attract deposits from the general public.
These bank accounts serve an important purpose by mobilizing savings in order to utilize them in profitable investments.

31. BANK ACCOUNT
One of the most important functions of banks is accepting deposits, which is aimed towards generating savings for the purpose of utilizing them in profitable investments.
People, on the other hand, also prefer to deposit their savings in the banks, as they can earn interest and also avoid the danger of theft.

32. BANK ACCOUNT
Though, the types of accounts offered can vary from bank to bank, here are some of the common bank accounts offered by commercial banks.

33. Checking Account
A checking account is also known as a current account or a transactional account.
Money deposited in this type of account can be withdrawn at any time, as there in no restriction on the number of withdrawals and the amount of money withdrawn.

34. Checking Account
Customers are generally given paper checks to carry out day-to-day transactions, like paying bills, making purchases, or transferring money to another account.
ATM (Automated Teller Machine) facility is also provided to the customers.

35. Checking Account
However, no interest is paid on the deposited money and sometimes, customers have to pay a charge to the banks for rendering this service.
This type of account is generally maintained by businessmen, as they have to make a number of financial transactions each day.

36. Checking Account
A transactional account is sometimes called a demand deposit account, as no notice is required to withdraw money, i.e. money is available on demand.

37. Checking Account Drawbacks:
Checking accounts are subject to a variety of fees, which can become expensive quickly.
Many checking accounts charge a maintenance fee or require a minimum balance.

38. Savings Account
Savings accounts are aimed towards mobilizing small savings from the general public.
There are certain restrictions regarding the number of withdrawals and the amount to be withdrawn in a particular time period.

39. Savings Account
However, money deposited in this account, earns a fair rate of interest.
Though the customers can't withdraw their money with checks, they can avail the ATM facility for the same.
A passbook is also provided, which keeps track of all the financial transactions.

40. Savings Account Drawbacks:
Savings accounts typically yield a low interest rate in comparison to fixed deposit account.
Typically, they do not come with a debit card for purchases, and the number of withdrawals per month is limited.

41. Time Deposit A time deposit or fixed deposit account.
This account requires the customers to deposit a certain sum of money for a fixed time period.
The money deposited in this account can't be withdrawn before the date of maturity.

42. Time Deposit
However, some banks allow customers to withdraw money before maturity, by charging a penalty.
The rate of interest paid on time deposits is usually higher than the other bank accounts.
In addition to this, the interest paid on this account depends on the maturity period, i.e. longer the maturity period, the higher is the rate of interest paid.

43. IMPORTANT FACTORS DRIVING CHANGE IN THE BANKING INDUSTRY
IMPORTANT_FACTORS_DRIVING_CHANGES_IN _THE_BANKING_INDUSTRY.docx
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44. OVERVIEW OF ELECTRONIC BANKING
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45. Overview of Electronic Banking Cont’
Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and- mortar institution
E-banking is the use of computers and telecommunications to enable banking transactions to be done by telephone or computer rather than through human interaction.
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46. Overview of Electronic Banking Cont’
e-banking services provide customers access to accounts, the ability to move their money between different accounts, and making payments or applying for loans via e-Channels
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47. Overview of Electronic Banking Cont’
Its features include electronic funds transfer for retail purchases, automated teller machines (ATMs), etc.
Electronic banking has vastly reduced the physical transfer of paper money from one place to another or even from one person to another.
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48. Overview of Electronic Banking Cont’
In other words, e-banking is electronic banking whose facility, you can take through your regular broadband Internet connects.
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49. REASONS FOR THE ADOPTION OF E-BANKING BY BANKS
Increasing Penetration Of Personal Computers
Availability of broadband internet services
Wider diffusion of mobile phones with SMS facilities
Improved communication infrastructure e.g
LAN, WAN, Radio, Satellite technologies
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50. Overview of Electronic Banking Cont’
History of Electronic Banking in Ghana
Over time, technology has increased in importance in Ghanaian banks.
Traditionally, banks have always sought media through which they would serve their clients more cost-effectively as well as increase the utility to their clientele.
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51. Overview of Electronic Banking Cont’
Their main concern has been to serve clients more conveniently, and in the process increase profits and competitiveness
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52. Overview of Electronic Banking Cont’
In Ghana, the earliest forms of electronic and communications technologies used were mainly office automation devices.
Telephones and facsimile were employed to speed up and make more efficient, the process of servicing clients.
For decades, they remained the main information and communication technologies used for transacting bank business.
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53. Overview of Electronic Banking Cont’
Later in the 1980s, as competition intensified and personal computer (PC) got popular, Ghanaian banks began to use them in back-office operations and later tellers used them to service clients.
Advancements in computer technology saw the banks networking their branches and operations thereby making the one-branch philosophy a reality
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54. Overview of Electronic Banking Cont’
Barclays Bank (Gh.) and Standard Chartered Bank (Gh.) pioneered this very important electronic novelty, which changed the banking landscape in the country.
The most revolutionary electronic innovation in this country and the world over has been the ATM.
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55. Overview of Electronic Banking Cont’
The Trust Bank Ghana, in 1995 installed the first ATM.
Not long after, most of the major banks began their ATM networks at competitive positions.
Ghana Commercial Bank started its ATM offering in 2001 in collaboration with Agricultural Development Bank.
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56. Overview of Electronic Banking Cont’
Another technological innovation in Ghanaian banking is the various electronic cards
The first major cash card is a product of Social Security Bank, now SoceiteGenerale SSB, introduced in May 1997.
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57. Overview of Electronic Banking Cont’
Their card, ‘Sika Card’ is a value card, onto which a cash amount is electronically loaded.
In the earlier part of year 2001 Standard Chartered Bank launched their debit card in this country
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58. Overview of Electronic Banking Cont’
A consortium of three (3) banks (Ecobank, Cal Merchant Bank and The Trust Bank) introduced a further development in electronic cards in November 2001, called ‘E-Card’.
This card was online so anytime a client used the card, or changes occurred in their account balance, their card automatically reflected the change.
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59. Overview of Electronic Banking Cont’
Ghana Commercial Bank, Ecobank (Gh.) Ltd, Standard Charted Bank (Gh.) Ltd., Barclays Bank (Gh.) Ltd and Stanbic Bank (Gh.) started PC banking services, mainly to corporate clients
The banks provided their customers with the proprietary software, which they used to access their bank accounts, sometimes via the World Wide Web (WWW).
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60. Overview of Electronic Banking Cont’
Internet banking also began.
Banks realized the need to serve their customers through the internet
Telephone banking, also took a big leap with its convenience and time.
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61. Overview of Electronic Banking Cont’
Barclays Bank (Gh.) launched its telephone banking services in August 28, 2002.
Another innovation was the CALL CENTERS
SSB Bank also launched its “Sikatel” or “SSB Call Centre” (telephone banking) in September 19, 2002.
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62. Overview of Electronic Banking Cont’
Bank of Ghana established the Ghana Interbank Payment and Settlement System (GHIPSS) in 2008.
E-Zwich
Cheque Codeline Clearing (CCC)
Ghana Automated Clearing House (GACH)
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