Trends in Banking Transaction Analysis: Insights for Management Decision Making
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Date
2024-02-17
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A.A.U
Abstract
The world of banking is changing as a result of data analytics, which enables
financial institutions to better understand their business processes, spot patterns and
trends in massive databases, and make more scholarly decisions. Data, when treated
as a product, has the potential to transform the foundations of banking. Banks don’t
lack data, they lack the means to unlock it, and simply and consistently turn it into
actions. From the trends, bank’s decision depends on a course that will shape its
destiny for years to come. Globally, only 7% of banks are fully employing critical
analytics. This study aimed in assessing the current trends of banking transaction
analysis conducted at branches of Bunna Bank of Amhara Regional State of Ethiopia,
2023. A survey was conducted on the trends of banking transactions analysis
conducted at Bunna Bank branches in Amhara Regional State of Ethiopia; from
January, 2019 to September, 2022. Secondary data on all customers during the study
period was obtained from the branches of the bank. Data was cleaned, coded and
entered into SPSS 26 and Excel. Results were displayed using frequency and
proportions; and presented using tables, figures and charts. Total transaction done
was 9,707,966; of which 43.5% (94,227,252 transactions) was during the four
quarters of 2021; and 32% (3,105,679 transactions) during the the first three
quarters of 2022. Retail customers were 9,205,441 (94.8%) and corporate customers
were 619,465 (6.4%). Transaction via Traditional method accounted for 85.2%
(8,274,668 transactions)of the total; 14.8% (1,433,398 transactions) of them were
made by digital methods. February and January had the least number of transactions,
while December, October and July months had the highest number of banking
transactions conducted. The overall banking transaction’s trend showed increment
during the study period. The traditional banking transaction method utilization still
remains the major banking transaction route despite the trends during the study
period showed decrement at branches of Bunna bank. Strengthening the banks
infrastructures and technologically, as well; is recommended.