Form Eugene

8/3/2019 Form Eugene

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TABLE 3 DEPARTMENT OF RESPONDENTS

The various departments/units where the respondents were drawn has be shown intable 3. It can be seen from the table that 5 of them are with the corporate bankingdepartment, 15 from retail, 10 from finance whiles 5 of them were drawn form the

operations department. Other units such as HR, IT also had 5 of their staff takingparts in the study. In all retail which is the largest department had the largest numberof respondents or largest representation of 30%.

TABLE 6A question was posed to respondents to ascertain whether or not they agree thatUBA is a universal bank. All the respondents agreed to the fact that UBA is a fullFledge universal bank. Not even one had any doubt to believe that the bank is notengaged in universal banking. The views of the respondents have been depicted intable 6 below.

The views of the respondents on the factors that motivate a bank to operate foruniversal banking are as shown in table 7. Responses from the respondents washigh in favour of increased profit motive (20%) with customer attraction andefficiency and economics of scale motives with the highest response rate of 24%.The motives of increased number of products and expansion in to another financialarea regarded lowest response rate of 16% each. The response from therespondents appear to give weight to all the options. However, Santos (1998)defines a universal bank as a financial institution which enlarges its service range interms of offering a variety of financial products in one site a view which therespondents do not hold. The results is rather in assonant with Hughes et all (2002)who opine that by altering their operation to universal banking system, banks wouldget benefits from efficiency and economies of state. The writers added that universalbanking adoption offers banks opportunity to expand and attraction of customers.

Respondents were asked what their success of the adoption of universal banking byUBA has been; their responses have been shown in table 8. It can be seen from thetale that all the 50 people interviewed agreed that UBA has been success since itadopted universal banking.

TABLE 8: SUCCESS OF UNIVERSAL BANKING.

Banking services / products enjoyed by UBA under UBankingTable shows the range of products and services that are adopted and enjoyed byUBA. It also illustrates respondents view on the products which the bank benefitsfrom. Respondents by their responses have shown that UBA derives most benefitfrom .followed byas illustrated in table 9 below: in fact it was found duringthe researchers interaction with the respondents and from the banks profile thatUBA has wide array of products and services. This revelation in conformity withsantos (1998), sanders et al (2006) that adoption of universal banking enables a

bank to expand it products/service offering.


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The dominant product offering of UBAThe responses of the responses as illustrated in table 10 show that

a) Is the dominant product (60%) response rate, followed by c) (36%) aand b(40%). Hughes etal 2002 observed that a universal banl engages in broadrange of financial services. Saunders (1994), posits that a universal bank tries

to diversify its product portfolio; a view that was also shared by Rich andWalter (1993), Addison (2003), that universal bank tries to diversify not onlyproducts but also with extensive network. Where as the views of Addison(2003) and Rich and Walter (1993) on diversified products line was confirmedby the results from the respondents, the network of branches of UBA is not tatwide spread in Ghana.

UNIVERSAL BANKING AND PROFITABILITY OF UBATable . shows what the views of the respondents on whether or not universalbanking has enhanced profitability of UBA. All the respondents agreed that theadoption of universal banking has been profitable to the bank.

IMPACT OF UNIVERSAL BANKING:Table . shows the impacts of universal banking; the responses of the respondentshave also been shown.

The views of the respondents confirms the earlier works of Santos (1998), whoobserved that wide range of financial services increase risks. Saunders (2006)opined that.

Cheng (2004) observed that financial instability may result from lack of supervision.This respondents did not believe we are there yet because they were of the view thatthe banking supervision (BBD) of the Bank of Ghana has its eyes widely open. Thesentiments of the respondents however confirms with Ahmad explaining that servicequality and competition are common phenomenon universal banking of UBA.

4.14 customer satisfaction of products and services of UBA.The respondents were asked what their views they hold about customers satisfactionwith products and services of UBA. Their views on this have been captured in table14 below. In line with the views of hanson et al (2006), Ahmad () and Parasuraman(1988), all the respondent were of the opinion that customers satisfaction with the

products and services of UBA is .

4.15 presence of risks in universal banking adoption:On the presence of risks in universal banking, the respondents share the views thatadoption of universal banking is so much shrouded with risks and that the two areinseparable. The views of the respondents have been depicted in table 15 below. Allthe 50 people that took part in the staff were of the opinion that there are so muchrisk involved in the adoption of universal banking. The results as depicted in table 15reconciles with Boyd et al (1998) who agreed that the practice of universal bankingcan be harmful. In fact a similar opinion was also held by Cheng (2004) andSaunders (2006).

4.16 types of risks in the adoption of universal banking


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The various types of risks in the adoption of universal banking by UBA and what theviews of the respondents are have be shown in table 16. The responses from therespondents showed that the respondents viewed c as the highest risk factor with30% response rate 22% of the respondents thought that d, followed

Summary of the Research Findings

The study was undertaken to answer the following research questions:1.2.3.4.

The results of the led to the following findings as sumarised below:

1. Factors that motivate UBA to adopt universal banking: The staff IT was found

in the stunly the main factors that serves as motivation for banks and UBA forthat matter adopt universal banking are

Efficiency and Economics of scale

Increased profit motive and the motives for increased number of products andexpansion into other financial areas. It was alos found from the study thebanks quest to satisfy the ever increasing needs of its customers is anothermotivator for the choice of universal banking.

2. On the impact of universal banking on UBA the study revealed that it hasbeen that of positive where the bank has strivel to satisfy its customers with

innovative and mider array of products. Even though literature on the impactsof universal banking request a number of ristles and other negativities thestudy did not find that to be the case with UBA. The adoption of universalbanking has rather impated well on operations of the bank.

3. The impact of universal banking on the profit of the bank as found in the studywas positives. The respondents believed that the banks success at profit isbecause the adoption of universal banking has afforetul the bank anopportunity to operate a diversified portofolio which has translated well inprofit. On the whole the study whowed that UBA has been successful atadopting universal banking. For example, the bank has seen positive

developments in profit margins, increased share of industry deposits andincreasable fosal operating assets.

4. The study revealed that the adoption of universal banking raises the level ofrisk. The key challenges identified inclusive operational risk, legal risk, creditrisk and liquidity risk. It was also found in the study that UBA as a bank do notface much challenge from risks due to investment banking activities coupledwith focus on commercial banking activities, there is the tendency of conflict ofinterest.


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5. It was also found that eventhough there is existing literature to show thatuniversal banks also adopt wider distribution network; it is not entirely thecase with UBA in Ghana. The bank with more thn 7 years operation in Ghanahas only about .. branches in ---------out of the no reginal capitals.

6. There are no serious conflict of interest increase at UBA. For examples theissues of sales person stake was found to persist at UBA where sales pusuremanagers are found to push a new bank product on their client all with theview to achieving targets. In the banks guest to guard against bay debt andimpairments the bank has allowed clients to use their securities to issuebonus from which their laons were paid off.

RECOOMENDATIONS

In the light of the findings of the study, the following as recommendations have beenmade:

1. That the management of UBA looks at its strategy for growth in Ghana andenable on expansion of its branch network. This will go to augment it motiveof satisfying the increasing needs of its customers, strengthen itself againstcompletion and increased market share. After wider branch or distributionnetwork is one of the attributes of a universal bank.

2. In order to continue to enjoy the positive impacts of universal bankingadoption such a increased customer satisfaction and innovative products, it isrecommended that the bank fort now makes a conscious effort the kind ofmeasures of strategies that has endeared it to its customers. In fact, the studyshowed that customers are satisfied with the product offering of the bank; thiscan only be sustained or improved.

3. It is also recommended that management of the bank through the Researchand Product Development unit of the bank to constantly come out withinnovative products so that they can constantly be in grips of the market. It isby so doing that the bank can differentiate itself from that and stand tall incompetition.

4. Since the adoption of universal banking, banking raises the level of risknotably operational, credit, legal, etc. It is recommended that effective riskmanagement and asset liability management techniques be rigorouslypursued. Especially impairment from bad debt which was sun to be a majorchallenge of the bank, a strong and robust credit risk mitigating policies areadopted and adhered to.

Association for Educational Communications and Technology (2003),


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Neuman, W.L. (2003), Social Research Methods, 5th ed., Pearson Education,

Boston, MA, .

Evert Gummesson, (2005) "Qualitative research in marketing: Road-map for a

wilderness of complexityand unpredictability", European Journal of Marketing,

Vol. 39 Iss: 3/4, pp.309 - 327

Earl Babbie. 2004. The Practice of Social Research. 10th Edition.

Thomson-Wadsworth. Pp. 178-217.

Norman Blaikie. 2004. Designing Social Research. 4th Edition.

Blackwell Publishing Ltd., Chapter 1

W.Lawrence Neuman. 2003. Social Research Methods. Qualitative

and Quantitative Approaches. Fifth Edition. Boston: Allyn and

Bacon. Pp. 137-168.

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