FINANCIAL INNOVATIONS AND FINANCIAL PERFORMANCE : PERCEPTIONS OF COMMERCIAL BANK EXECUTIVES

The emergence of technology in the Ghanaian banking sector has had a huge impact in the development of financial innovative products today. The introduction of these financial innovative products has transformed and continues to revolutionize banking today, and banks in Ghana are no exception to this transformation. This study aims at examining the impact of financial innovations on the financial performance of selected banks in Ghana in terms of their income or revenue generation, efficiency, liquidity, profitability and general patronage of banking services in Ghana. This work is a survey of bank executives from universal banks in Accra and Kumasi. Questionnaires were administered to find out the opinions of bank executives on the impact of financial innovations on financial performance. From the study, it was discovered that financial innovations improve significantly the efficiency, liquidity and profitability of the banks. In addition, its recommended that corporate banks must make it a policy as part of their strategic management process to establish an efficient and effective marketing department to oversee the publicity of all financial innovative products. It is also recommended that the pricing of innovative products should be reasonable in order not to further scare prospective customers or users.