Innovation and management of financial institutions in Ghana. A review of related literature

Abstract

Financial innovations (FIs) have become the bedrock of financial institutions management. This reviewed literature looks at the reasons, effects and forms of financial innovations in the developed market and in the Ghanaian context. It was found from the reviewed literature that the reasons sparking financial innovation are the need to shift from the traditional spectrum of acquiring funds as well as old modes of service delivery by financial institutions - to look for a more attractive mode of satisfying clients. The shift in consumer demand, lifestyle and sophistication has also caused financial institutions to look fora more strategic approach to satisfy customer taste and needs. It can be concluded that FIs have major impacts on the performance and management of financial institutions including improved efficiency, facilitating the payment system, quality service and increased revenue. Moreover, different people benefit from financial products including investors, shareholders, customers, issuers and other stakeholders.