Cashless Policy and the Performance of Deposit Money Banks in Nigeria


The main objective of the study is to investigate the effect of cashless policy on the performance of deposit money banks in Nigeria (2009-2018). The specific objectives are to: Investigate the effect of automated teller machine, examine the effect of point of sale, assess the effect of mobile banking, and to examine the effect of internet banking respectively on the performance of deposit money banks in Nigeria. We employed Econometric techniques involving Descriptive Statistics, Augmented Dicker Fuller and Philip Perron Tests for Unit Roots and the Autoregressive Distributed Lags (ARDL) for cointegration and coefficient analysis. The result of the study indicates that Automated Teller Machine (ATM) and Internet Banking each has a positive and significant effect on return on equity (ROE). Point of Sale (POS) has a positive but insignificant effect on return on equity, while Mobile Banking (MB has a negative and statistically significant effect on ROE, The study thus concludes that cashless policy has positively affected the performance of money deposit banks in Nigeria. The study recommends that government should provide uninterrupted power supply and adequate communication link while shortfalls should be covered by banks through back-up arrangement to power standby generator in case of power outage.

Keywords: Automated Teller Machine, Internet Banking, Nigeria, economic growth, mobile banking, point of sale


Article Review Status: Published

Pages: 85-104 (Download PDF)

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