THE EFFECTS OF INTERNET BANKING ON THE PERFORMANCE OF RURAL BANKS: A CASE STUDY OF KAASEMAN RURAL BANK

ABSTRACT The study was to examine the knowledge and utilization of e-banking facilities in Kaaseman Rural Bank in Ghana. The study used a quantitative and descriptive design of which customers and management of Kaaseman Rural Bank were targeted. Two hundred and eighty respondents were chosen with the aid of simple random sampling technique for selecting the customers while purposive sampling was used to select the managers of the four branches of Kaaseman Rural Bank. Questionnaire was the main data collection instruments. Furthermore, the data was analyzed and interpreted by using percentages and frequencies and presented by using tables, and charts using Excel 2013 version. However, the responses from the interviews were transcribed verbatim and discussed thematically based on the objectives of the study. It was found out that electronic cards such as ATM and e-switch, SMS Mobile Banking, and Electronic transfer were the only e-banking services at Kaaseman Rural Bank. Not that withstanding, these services were sometimes not available. There was no internet banking services at Kaaseman Rural Bank. Also, the level of awareness of e-banking services was low among the respondents. Respondents understand its usage and heard about e-banking services through their family and friends while few heard it from the workers of the Kaaseman Rural Bank. Respondents knew much about SMS Mobile banking as compared to electronic cards and electronic transfers. Therefore, it is recommended that Kaaseman Rural Bank management should enroll sensitization and educative program about all the e-banking services it offers to the customers for effective usage. Also, Kaaseman Rural Bank should introduce Internet Banking to ease cost of transportation among others and time wastage in queuing. iv ACKNOWLEDGEMENT I want to express my sincere gratitude to my supervisor,