Abstract

The financial reforms initiated in 1987 have changed the operations of commercial banks in the industry. Malawi has seen the influx of commercial banks in the banking sector namely INDEBank, NedBank, MSB, OIBM, NBS Bank, First Merchant Bank and Loita Bank. The establishment of the new banks has changed the monopoly of two banks, Standard Bank previously known as Commercial Bank and National Bank of Malawi. Amongst several strategies that banks have implemented, there has been a lot of technological investment in the banking sector. The technological innovation in the banking sector has created a lot of competition and it is assumed that it contributed to customer satisfaction, productivity and profitability. This study sought to find out the impact of banking technology on the performance of commercial banks. This study adopted an integrated model. This model was derived from Balanced Score Card Model (BSCM) and Technological Acceptance Model (TAM). BSCM concentrates on organizational value whilst TAM bases its attributes on personal values that stimulate an individual to adopt technological innovations. The study used profits and productivity to measure banking technological contribution to commercial banks’ performance. Using linear regression analysis and significance hypothesis testing, it was found that banking technology investment contributes to the profitability whilst the productivity remains constant. The study also revealed that customers are satisfied with the current banking technology performance though there is in need for improvement in certain areas. Employees also agreed that banking technology innovations contribute in aiding fast delivery of services. In this way employees believed that productivity of commercial banks has been enhanced.

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School	: School of Law, Economics and Government
Issued Date	: 2008

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