The universal banking concept is one of the ...

The universal banking concept is one of the newest trends in the banking environment in Ghana. Though universal banking has been adopted by most banks in Ghana, much is not known about its implications on banks in Ghana. To say that a change in the banking scope of development banks due to universal banking affects their performance is purely hypothetical. The purpose of the study was to determine the effect of universal banking on the performance of development banks in Ghana. A field survey was used to carry out the study. A non-probability sampling technique was used to select a total of 33 respondents consisting of management and staff of the selected banks and their customers. Questionnaire was the main instrument used to gather data for the study and only data from primary sources was used. Descriptive statistics, frequency and percentages, a chi square test and independent t-test were used to analyze the data. It was found that banks practicing universal banking had high performance. Customers were also satisfied with universal banking services. A significant relationship between universal banking and the performance of development banks was also established. It was therefore recommended that universal banking is the way to go; therefore, banks that do not practice universal banking are encouraged to do so.