Research methodology
3.0 Introduction
This section talks about the methodology that was employed in collecting the data, analyzing the data and reporting the result. The major topics to be talked about in this chapter includes the research purpose, information sourcing, study and target population, analytical tools and techniques and outline used for reading data on the risks the banks are exposed to.
3.1 Research Design
A qualitative method was employed in this research. This research method tends to explore the values, beliefs, meanings and attitude people associate with a phenomenon. This method aids in order to mark up a sounder understanding of findings, rather than try to support or disprove a relationship (Boateng, 2014). The choice of this method was based on the three principles of the qualitative method that is described, understanding, and explaining. The major aim was to ensure the most effective and efficient data gathering and to provide the appropriate answers aligned with the objectives and research questions.
A case study was also conducted with the officials at the UT bank of the following; treasury department, risk department, foreign department retail banking and corporate banking to develop an in-depth insight into foreign exchange risk and gain understanding into the observations from the survey.
The qualitative approach that was employed for this study enabled the researcher to acquire in-depth understanding about how foreign exchange risks are being managed, particularly in the banking sector (Boateng, 2013)
3.2 Study and Target Population
According to Ngechu (2004), population is a discrete set of elements, people, services and events, group of things or households being investigated. The definition ensures that there is similar about the population of interest.ding to Mugenda and Mugenda (1999) everyone has equal chance to be included in the final sample that is drawn which makes population studies are more representative. Target population is the specific population about which information is desired in statistics.
The survey population included all the workers employed by the UT, Bank head office, Accra; before and during the time data were accumulated. The target population was the workers in the treasury department, risk department, foreign department, retail department and the corporate section.
The primary data were obtained through face 'to- face interviews with the functionaries at the UT bank, specifically, risk department, department of the treasury, retail banking and corporate banking.
3.3 Sample Size
The sample size of this research was twenty (20) officials, 11 females and 10 males. Ten workers(6 females and 4 males) at the risk department, five officials(3 males and 2 females) from the corporate banking, three (2females and a male) at the department of treasury two (2) workers (a male and a female) at the department of retail banking
3.3 Sample Size and Composition of Respondents
The sample size of this research was twenty (20) officials, 11 females and 10 males. Ten workers(6 females and 4 males) at the risk department, five officials(3 males and 2 females) from the corporate banking, three (2females and a male) at the department of treasury two (2) workers (a male and a female) at the department of retail banking
3.5 Data Analysis
Data analysis indicates the process of developing meaning from the data that had been collected in a study. The main objective of analyzing data is to 'treat the evidence fairly, to produce compelling analytical conclusions and to rule out alternative interpretations' (Yin, 1994). For the purpose of this study, the interview conducted was transcribed according to the research objectives. Content analysis was also done to enrich the research and used advisedly during the discussions and recommendations (Ritchie et al, 2013).
3.6 Background of UT, Bank
UT Bankis one of Ghana's biggest and most diversified private institutions with holdings in a Bank, Life Insurance, Logistics, Properties Management, Debt collection, Private Security Services, and non-bank financial institutions in Nigeria and South Africa, providing diversified but integrated financial solutions to small and medium businesses and individuals. The vision of UT Holdings is 'to be globally recognized as Africa's leading provider of unique business and financial solutions'.
UT Bank started in Ghana as financial house in the year 1997. Progressively, the bank has been developed from a lending company to now a Universal Bank. It is publicly owned and keenly traded on the Ghana Stock Exchange. For some time now, UT Bank has placed itself as a lending bank with the purpose of changing the face of the banking sector in Ghana through effective and speedy delivery of products and services. The main objective of the bank is to deliver innovative products and services that are concentrated on the customer. This they achieved by centering on the financial needs of small and medium sized businesses in Ghana.
At the beginning, the man focus of the Bank was centered on servicing the 'unbanked' informal sector, but over the past few years, UT Bank's services have spread wider to cover the formal sector providing among others providing quick loans and trade financing to SMEs and other organizations and individuals. What set UT Bank apart in the financial services market are its solid business structure, timely delivery of financing to clients and flexibility.
'The accelerated growth and success of the UT Bank business created the need for the restructuring of the business into a Group with diverse but synergistic businesses that is able to offer value added services to clients in banking, life insurance, properties management, logistics, debt collection, private security services and non bank financial services in Ghana, Nigeria and South Africa' (UT Bank, 2015).
3.6.1 Vision of UT Bank
The vision of UT Bank is "Redefining Banking"
3.6.2 Mission of UT Bank
The bank is also on a mission to be 'the preferred bank for businesses and individuals providing quality and outstanding products with speed and efficiency to delight customers and build shareholder value.'
3.6.3 Core Values
Apart from the bank's vision and mission, the core values of UT bank consist of the following:
' 'Integrity: We do what is right. We make commitments with care and deliver on our promises.
' Professionalism: We're a disciplined organization and maintain high standards at all times. We're hard working, efficient and responsible
' Respect: We respect ourselves. Everyone has value and we treat all with equal respect.
' Stepping up to the plate: We earn 'our stripes' and creatively solve challenges. We're confident, committed and we deliver
' Ubuntu: We nurture a culture of collaboration, as together everyone achieves more. We're a team!
' Saying 'why not': We create new opportunities by constantly pushing boundaries and challenging the status quo. We are a lending organization'
3.6.4 Accomplishment of UT Bank
For the past years the UT Bank has accomplished the follows:
' '1st Runner Up ' Corporate Social Responsibility and Agriculture Financing (Ghana Banking Awards, 2012)
' 10th Company on the Ghana Club 100 list (Ghana Investment Promotion Centre, 2011)
' Bank of the Year 2011 (Ghana Banking Awards, 2011)
' Best Bank, IT/Electronic Banking (Ghana Banking Awards, 2011)
' Best Bank, Financial Performance (Ghana Banking Awards, 2011)
' 41st Company on the Ghana Club 100 list (Ghana Investment Promotion Centre, 2010)
' Best Bank in Short Term Finance (Ghana Banking Awards, 2010)
' Gold Award in the Arch of Europe Quality Award organized by Business Initiative Directions (BID) in Frankfurt, Germany for its quality delivery and business solution.
' Ghana's Most Respected Company 2010 (Pricewaterhouse and B&FT)
3.7 Ethical Consideration
Ethics is a critical subject that requires to be studied in a research (Malhotra & Birks 2007). This inquiry in conformity with ethical consideration, took steps to attain certain that any participant in this research work was not harmed in any manner. This inquiry adopts a rule which aims at protecting the dignity and privacy of every individual involved in responding to interview questions. The respondents were assured that, every information that they provided were solely used for enquiry purposes alone
3.8 Chapter Summary
This chapter described the research methodology. It began with an introduction of the chapter and followed with the research design and approach. Other issues that were discussed in this chapter include the sampling design, data collection process, data analysis and ethical considerations. The methodology employed in this research is consistent with other similar studies. This was to ensure that results would be valid and reliable and could be used as bases for similar studies.