Abstract
This study seeks to uncover the projected gains and challenges of a cashless and e-payment policy in Nigeria, with particular emphasis on the wellbeing of bank clients, and to examine the extent to which the promised benefits of the policy were realized eight years down the line of implementation. Researchers provided copies of a research questionnaire to selected bankers and bank customers in Ogun and Lagos states of Nigeria to find perceptions of the two stakeholder groups regarding the subject matter. Three hypotheses formulated were tested using ANOVA. The paper reveals that the cashless banking initiative in Nigeria has significantly enhanced bank customer satisfaction; the implementation of the cashless banking structure in Nigeria has not led to a significant reduction in the level of cash fraud in Nigerian banks; and the adoption of a cashless economy practice in Nigeria has significantly improved the management of bank customer funds in terms of spending and saving. The paper, in particular, recommends that bank regulators constantly and widely cooperate with all key stakeholders in the system in the fight against cybercrime. This will make the electronic space safe and reliable for use in doing banking in Nigeria and beyond. Acknowledgment The authors wish to acknowledge Covenant University for its financial support during the work on this paper.
Highlights
The relevance of the banking industry in any country stems from its financial mediation traits, establishment of a well-ordered settlement structure and acceleration of the enactment of the monetarist policy
Using a few the cashless banking initiative has enhanced bank available POS terminals comes with a prohibcustomer satisfaction, despite the innumerable itive cost
This paper depicts the merits of a cashless banking initiative and the E-payment structure in the Nigerian banking sector
Summary
The relevance of the banking industry in any country stems from its financial mediation traits, establishment of a well-ordered settlement structure and acceleration of the enactment of the monetarist policy. With respect to an intermediary, banks muster funds from the superfluous units of the nation and transfer these funds to the insufficient parts, predominantly private sector, to expand production capacity (Isiavwe, 2017; Adeyemo, Isiavwe, Adetiloye, & Eriabie, 2017). Researchers maintained that empirical evidence exists that suggests a positive correlation between money supply, bank assets and economic development (Olisabu, 1991 as sited in Adeyemo, 2012; Nyong, 1996 as sited in Ekpung, Udude, & Uwalaka, 2015; and Ogbonna, 2016; Alashi, 1991 as sited in Sepehrdoust & Berjisian, 2013). In 2012, the Central Bank of Nigeria (CBN) embarked on the implementation of a cashless banking system in the nation with the prime ambition of plummeting significantly (not eradicating), the volume of cash in the system and enhancing automated based dealings. The bill was dubbed “Industry Policy on Retail Cash Collection and Lodgments”
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