Retail Banking in Ghana: Critical Factors for Success

Abstract

In an attempt to encourage competition, growth and liberalise the Ghanaian banking industry for economic development, the Central bank of Ghana introduced the “Universal banking licence” to allow banks to operate in commercial, development, and investment or merchant segments without the need for separate licences. In spite of this, the banks in Ghana seem to be focusing mainly on retail banking. The study therefore aims to identify the factors crucial for the success of the retail banking segment in Ghana for the sake of competitiveness and sustainability. Literature review on retail banking was carried out and primary research on eight selected banks in Ghana was conducted to determine the factors crucial for successful retail banking in Ghana. The researchers principally used interview and questionnaires to obtain descriptive data for analysis and also made use of secondary data. The finding shows among other things that,  the factors crucial for successful retail banking among others are technology, good reputation /image, service quality, convenience and good customer relationship management strategies. This work is relevant and important to the least developing economies where competition in the banking industry is at its barest minimum and where the banking industry is critical in their economic development.

Keywords: Retail Banking, Critical Factors, Success, Economic Development, Ghana