The effect of forex trading platform enhancements on transaction costs in banking: a case study of Accord Microfinance Bank
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
In an era of globalized financial markets, forex trading platforms have become integral to banking operations, influencing transaction costs and overall service efficiency. Accord Microfinance Bank has recently upgraded its forex trading platform to incorporate advanced features such as real-time analytics, automated trading algorithms, and enhanced user interfaces. These technological enhancements are designed to reduce transaction costs by streamlining operations and minimizing manual errors (Afolabi, 2023). The competitive nature of forex markets requires banks to continuously innovate, ensuring that trading processes are both efficient and cost-effective (Chukwu, 2024).
The upgraded platform is expected to offer a more seamless trading experience by reducing latency, improving price accuracy, and enhancing security protocols. This technological shift is not only anticipated to lower operational costs but also to improve customer satisfaction by providing faster and more reliable execution of forex transactions (Ibrahim, 2025). The integration of these advanced features aligns with global trends towards automation and digitalization in financial services, which have been shown to significantly reduce transaction-related expenses and improve market competitiveness.
Despite these advantages, the process of upgrading a forex trading platform involves substantial capital investment and the risk of transitional challenges. Operational disruptions during the implementation phase and the need for staff retraining may temporarily offset the anticipated cost savings. Moreover, while enhanced platforms promise reduced transaction costs, there remains uncertainty about the magnitude of these savings in practice, particularly in volatile market conditions. This study aims to examine the impact of the enhanced forex trading platform on transaction costs at Accord Microfinance Bank, analyzing both the quantitative and qualitative outcomes of this technological upgrade.
Statement of the Problem
Although Accord Microfinance Bank has invested in upgrading its forex trading platform, the expected reduction in transaction costs has not been consistently realized. Initial implementation phases revealed technical glitches and user adaptation challenges that led to intermittent disruptions and higher-than-anticipated costs (Babatunde, 2023). Moreover, the complexity of the new system has resulted in longer transaction processing times during peak trading hours, thereby undermining the efficiency gains. In addition, there is a concern that the costs associated with continuous system maintenance and periodic updates may erode the financial benefits derived from the enhanced platform (Okeke, 2024).
Furthermore, traders and customers have reported difficulties in navigating the new interface, with some features proving to be less intuitive than expected. This has led to operational inefficiencies and an increase in error rates, which in turn contribute to elevated transaction costs. The gap between the theoretical benefits of a state-of-the-art trading platform and its practical application in a dynamic forex market environment necessitates a thorough investigation. This study, therefore, seeks to quantify the impact of platform enhancements on transaction costs and to identify the operational and technical factors that may be limiting the realization of anticipated savings (Emeka, 2025).
Objectives of the Study
To assess the impact of forex trading platform enhancements on transaction costs at Accord Microfinance Bank.
To identify operational challenges associated with the upgraded platform.
To propose strategies for optimizing system performance and reducing transaction expenses.
Research Questions
How do the new platform features affect transaction costs in forex trading at Accord Microfinance Bank?
What technical or operational issues are impeding cost reductions?
How can the platform be further optimized to achieve greater cost efficiency?
Research Hypotheses
Enhanced trading platform features are associated with a reduction in transaction costs.
Technical glitches and user adaptation issues are negatively correlated with cost efficiency.
Ongoing system optimization and staff training significantly improve transaction outcomes.
Scope and Limitations of the Study
This study focuses on the impact of the forex platform enhancements over the past two years at Accord Microfinance Bank. Limitations include market volatility and challenges in isolating the effects of the platform from other external factors.
Definitions of Terms
• Forex Trading Platform Enhancements: Technological improvements made to the system used for executing currency trades.
• Transaction Costs: The expenses incurred in processing and executing trades.
• Automation: The use of technology to perform tasks with minimal human intervention.
Related Project Materials
The effect of international public diplomacy on shaping global narratives: An evaluation of cultural exchange programs
Background of the Study
International public diplomacy has emerged as a vital tool in shaping global narratives and enhanci...
MICROBIAL EXAMINATION OF SPOILT AVOCADO FRUIT
ABSTRACT
Microbial examina...
An Evaluation of AI-Driven Voice Recognition in Financial Transactions: A Case Study of Banks in Kano State
Background of the Study
Artificial intelligence (AI)-driven voice recognition technologies are increasi...
An assessment of students' motivation for participating in physical education in Bauchi Local Government Area, Bauchi State.
Background of the Study
Student motivation in physical education has emerged as a pivotal area of research, particularly i...
An Appraisal of Nutrition Knowledge Among Health Workers in Katsina State
Background of the Study
Health workers play a vital role in providing nutrition education and promoting...
An Evaluation of Lighting Conditions and Visual Strain Among Workers in Printing Industries in Bauchi State
Background of the Study
Visual strain, often referred to as eye strain or computer vision syndrome, is a common issue faced by workers in...
COMPARATIVE EVALUATION OF THE HYPOTENSIVE EFFECTS OF THE SEED AND LEAF EXTRACTS OF MORINGA OLEIFERA LAM (Moringaceae) IN LABORATORY ANIMALS
ABSTRACT
Moringa oleifera is locally used in Nigeria for the management of respiratory disorders, hypertension and poor blood circulation...
DELINEATION OF SOLID MINERAL STRUCTURES WITHIN PART OF NASARAWA STATE NIGERIA FROM AEROMAGNETIC AND AERORADIOMETRIC DATA
ABSTRACT
Aeromagnetic data was analysed and used to delineate the structural features of the upper part of Nasarawa State of Nigeria whic...
An investigation into the use of local folklore in early childhood education curricula in Fagge Local Government Area, Kano State
Background of the Study
Local folklore forms an integral part of cultural identity and heritage, offering...
The impact of transparent pricing on customer perception of product value during economic downturns: A case study of an FMCG brand in Abuja.
Background of the study
Transparent pricing is an essential factor in shaping customer perception of product value...
