THE EFFECT OF CASHLESS POLICY ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The study examines the Effect of Cashless Policy on the Performance of Deposit Money Banks (DMBs) in Nigeria for the period 2012-2018. The study uses Automated Teller Machine (ATM), Point of Sale (POS) and Web Based Transactions (WBT) as independent variables to measure the cashless policy while Return on Assets (ROA) was employed as proxy for performance of the DMBs and used as the dependent variable. Hypotheses were formulated and tested using Simple Linear Regression analysis (SLR). There is a significant effect of Point on Sales terminal transactions on return on assets of deposit money banks in Nigeria. Automated teller machine transactions does not have a significant effect on return on assets of deposit money banks in Nigeria. Web based transactions has a significant effect on return on assets of deposit money banks in Nigeria. The study concludes that cashless policy has a significant effect on the performance of deposit money banks in Nigeria. The study recommends thatmanagement should pay more attention on the activities that will improve the ATM services of their banks if they wish to increase the ROA and enlighten customers on the convenience and importance of adopting mobile banking channels in completing their transactions and also provide them with adequate information on how to prevent fraudsters from gaining access to their accounts. Government and regulatory authorities should be able to provide security both physically and electronically to prevent the occurrence of hacking by fraudsters.