An assessment of forex transaction platforms on cost efficiency in banking: a case study of Guaranty Trust Bank
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Background of the Study
Forex transaction platforms are integral to modern banking, facilitating real-time currency conversions, hedging, and risk management. Guaranty Trust Bank (GTBank) has embraced advanced digital forex platforms to streamline currency trading and reduce transaction costs. These platforms leverage algorithmic trading and real-time data analytics to execute trades efficiently, thereby minimizing manual errors and latency (Adeyemi, 2023). By integrating these systems into its operations, GTBank seeks to lower operational costs, optimize hedging strategies, and improve overall cost efficiency. Digital tools now enable more precise monitoring of exchange rate fluctuations and enable rapid response to market changes (Ibrahim, 2024). However, challenges such as system integration issues, occasional downtimes, and cybersecurity vulnerabilities can offset some of these benefits. This study will assess the contribution of forex transaction platforms to cost efficiency by analyzing transaction data, operational cost metrics, and system performance reviews. The aim is to determine the extent to which these platforms reduce expenses and enhance profitability while addressing technical limitations (Chinwe, 2025).
Statement of the Problem
Despite significant investments in digital forex platforms, GTBank encounters challenges in realizing uniform cost efficiencies. Instances of system downtimes, integration glitches, and cybersecurity breaches have occasionally led to higher transaction costs than anticipated (Oluwatobi, 2023). Moreover, the variability in platform performance during periods of market volatility has resulted in inconsistent cost savings. These issues highlight a gap between the theoretical advantages of automated forex systems and their practical performance in a dynamic market environment. The bank’s internal audits suggest that while digital forex platforms reduce manual processing costs, technical and operational challenges hinder full cost optimization. This study aims to identify the key factors affecting the cost efficiency of forex transaction platforms and to propose strategies that can mitigate these challenges.
Objectives of the Study
– To evaluate the impact of forex transaction platforms on cost efficiency at GTBank.
– To identify technical challenges affecting platform performance.
– To recommend strategies for optimizing digital forex operations.
Research Questions
– How do forex transaction platforms contribute to cost efficiency?
– What technical challenges affect their performance?
– What measures can improve platform integration and cost savings?
Research Hypotheses
– H₁: Advanced forex platforms are positively correlated with reduced operational costs.
– H₂: System downtime negatively impacts cost efficiency.
– H₃: Enhanced digital integration improves overall platform performance.
Scope and Limitations of the Study
This study focuses on GTBank’s forex trading operations. Data will be collected from transaction logs, IT system reviews, and cost analysis reports. Limitations include market fluctuations and potential data integration issues.
Definitions of Terms
• Forex Transaction Platforms: Digital systems facilitating currency trading and risk management.
• Cost Efficiency: The degree to which operational costs are minimized.
• Algorithmic Trading: Automated trade execution based on predefined criteria.
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