Question Tag: Digital Payments

Ghana Bank is a major retail bank in Ghana with branches in three English-speaking West African countries. The bank’s physical presence in the major cities has helped to establish the company as a market leader within the sub-region. Despite their sub-regional dominance, the Chief Executive Officer (CEO) is concerned about the proliferation of various Financial Technology (FinTech) companies offering various financial services digitally. The executives, therefore, organized a management retreat to discuss the issues and develop appropriate strategies. In her opening remarks, the CEO read excerpts (in italic) from a thought-provoking article she had sighted in a recent edition of the Banking Quarterly Bulleting which focuses on strategic Information Technology (IT) issues affecting financial institutions. The challenges facing financial institutions have been exacerbated by issues of globalization, the ubiquity of mobile technologies and social media applications, disruptive IT innovation, and cloud computing. The phenomenon has expanded the horizon of emerging businesses, and also serves as a critical enabler for transforming business processes and operations. Many executives are now concerned with how to maximize shareholder value, improve corporate visibility and communication, and the proliferation of digital payment methods in an increasingly volatile environment. Moreover, many financial institutions have embraced global trends, standards, and technologies to remain relevant in competition

a) Discuss five (5) major issues affecting the operations of financial institutions such as Ghana Bank. [10 Marks]

b) Discuss five (5) practical ways in which IT could be leveraged by the bank to remain competitive despite the issues raised. [10 Marks]

[Total: 20 Marks]