Effect of Cashless Policy on Deposit Money Banks Profitability in Nigeria

Abstract

The effect of cashless policy on deposit money banks is expected to increase the profitability of banks; it lowers the operational costs and curbs corruption. As such this study tends to ascertain the effect of cashless policy on deposit money banks profitability in Nigeria from 2009 to 2019. Secondary data from the Statistical bulletin of Central Bank of Nigeria was used in the study and the ARDL Auto-regressive Distributed lag model was used as a method of data analysis. The explanatory variables are Point of Sale (POS) Terminal, Automated Teller Machine, Mobile Banking, and Web Payment while the dependent variable is Profit before Tax. The result from the research indicates that cashless policy has a negative and insignificant effect on profit before tax of deposit money banks in Nigeria within the study period. The study, therefore, makes the following recommendations; banks should educate their customers more on the importance of cashless policy and some of the innovative products they are bringing in the market. They should also improve their financial infrastructure. Power generation and distribution should be improved upon as no electronic banking can take place without adequate power supply. Banks should set up appropriate security processes and use up to date programs to limit the effects of fraud on their products.

Adoption of Cashless Economy: A Review

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“…Consequently, a clarion call emerges for further scholarly inquiry aimed at elucidating strategies through which governments, financial institutions, and other pertinent stakeholders can effectively encourage the adoption and implementation of electronic payment platforms for various transactional and financial services. In parallel, it becomes imperative for future research endeavours to delve into the intricacies of consumer preferences and aspirations pertaining to mobile payments, online transactions, and point of sale (POS) mechanisms within the broader context of payment transactions, as aptly indicated by studies such as those conducted by Mohammed et al (2022) and Nwakoby et al (2020). Such an interdisciplinary approach is essential in shaping a comprehensive understanding of the multifaceted landscape of electronic payment systems in these developing economies.…”

An Assessment of the Impact of Disruptive Technologies on the Efficacy of Accounting Practices in Selected South Western States, Nigeria

“…For this reason, the innovation that exists in the business world also encompasses the accounting sector, which is argued to be a likely option for human functions (Kroon et al, 2021). Disruptive technology which includes big data, artificial intelligence, cloud computing, and internets of a thing, among others, is believed to hugely influence the accounting sector and the procedure of financial transactions in the nearest future (Nwakoby et al, 2017). Digital disruptions, therefore, could be a huge task during accounting practitioners' transition to emerging technologies.…”