IMPACT OF CASHLESS POLICY ON DEPOSIT MONEY BANK PERFORMANCE IN NIGERIA (2000-2018)

Abstract

The study examines the impact of cashless policy on deposit money banks performance Nigeria; for the period 2000-2018. Secondary data were used and collected from Central Bank of Nigeria Statistical Bulletin. This study used automated teller machine (ATM), point-of-sale (POS), and mobile banking (MB) as the explanatory variables to measure cashless policy; whereas, return on assets of deposit money banks was proxy for deposit money banks performance and employed as dependent variable. Hypotheses were formulated and tested using Ordinary Least Square (OLS). There is a significant impact of automated teller machine transaction on return on assets of deposit money banks in Nigeria. Point on Sales terminal transactions have a significant impact on return on assets of deposit money banksin Nigeria. Electronic mobile payment has a significant impact on return on assets of banks in Nigeria. .The coefficient of determination indicates that about 47% of the variations in banks profitability can be explain by changes in cashless policy variables ((ATM, POS, MB) in Nigeria. The study concludes that cashless policy has a significant impact on deposit money banks performance in Nigeria. The study recommends that The policy makers should ensure that effective deployment of information technology due to its sophistication since the technology with relative perceived advantage. Policy makers and regulatory authorities should be able to provide security by physically and electronically to check the incidence of hacking by fraudsters .The management deposit money banks should from time to time train customers with regard to electronic banking benefits, its risk exposure, physical and electronic security to avoid financial loss in the hands of fraud stars .The operators should create an enlightenment to their customers on the convenience and importance of adopting mobile banking channel in completing their transactions.