Cashless Banking Research Articles

Implementation and effectiveness of the cashless banking system

This thesis analyses the implementation and effectiveness of the cashless banking system at Ecobank, focusing on various dimensions such as usability, stakeholder satisfaction, and customer perspectives. A mixed-methods approach was employed, incorporating quantitative and qualitative data from 25 participants to evaluate the system's performance. The analysis reveals that while the cashless banking system is generally well-received, particularly in ease of task completion and overall workflow improvements, there are notable challenges in usability, particularly with interface intuitiveness and performance during peak hours. Stakeholders and customers reported moderate satisfaction, with varying experiences regarding ease of use and reliability. The study concludes that although the cashless banking system has enhanced Ecobank’s service delivery and met broad expectations, further user experience, system performance, and continuous evaluation mechanisms are necessary to optimise its effectiveness and customer satisfaction. Recommendations include focusing on user-centred design, improving scalability for peak demand periods, and establishing robust feedback loops for ongoing system refinement.

Effect of Electronic Fraud on the Financial Performance of Banks in Nigeria

The study investigated the effect of electronic fraud on the financial performance of banks in Nigeria. The specific objectives were to investigate the effect of electronic fraud through online web transactions, evaluate the effect of electronic fraud through automated teller machine, to determine the effect of fraud through point of sale machine, and to investigate the effect of fraud through mobile phone USSD transactions on the financial performance of selected deposit money banks in Nigeria. Panel Generalized method of moments (GMM) was used to analyze the panel series of the model. The Hausman test indicated the random effect model as most fit for the estimation. The major findings of the study revealed that fraud through the automated teller machine (AEF) has significant negative impact on the financial performance of the deposit money banks in Nigeria. The panel regression result also revealed that fraud through the mobile phone channel (MPEF), and fraud through the online banking channel (OBEF) had significant negative effect on the financial performance of the banks studied. The study concluded that electronic fraud has significant negative relationship with the performance of banks. The policy implication of these findings holds for both management of banks and the financial sector authorities to engineer strategic fraud mitigation technology to strengthen confidence in the financial system. Based on the findings, the study recommended that there is an urgent need for effective monitoring of bank fraud which will allow for the growth of Nigeria deposit banks performance. This is necessary especially this period that the world is going cashless and e payment instrument are used for cashless banking system. And failure to do that, will affect customer’s confidence in the industry. It is also recommended that Bank fraud shall be reduced through effective supervision and regulation of banks by the monetary authorities so that financial industry will contribute to the economy.

Assessing the Impact of Cashless Banking on Economic Growth in Nigeria

Notwithstanding the availability of cashless banking instrument in Nigeria, its definite impact on economic growth has not been well established. The goal of this study is to determine how Nigeria's economic growth is impacted specifically by cashless banking. Multiple regression analysis employing the ordinary least-square (OLS) approach was used in a quantitative design. However, the federal office of statistics and the CBN annual report provided the secondary data for this study. The relevance of the data is examined using the Ordinary Least Squares (OLS) approach. Augmented Dickey Fuller (ADF) unit root tests were also used in several tests to determine the viability of the model assumptions. The data indicate that point-of-sale terminals were relevant for economic growth throughout the study period. The results shows that cashless banking have significant effect on GDP in the long run. Users' education, availability in the hinterlands and security of the gadgets for the operators could enhance wide usage and acceptability. The government and bankers should work harder on building infrastructure and launching aggressive public awareness efforts in the meanwhile.

Correlation of the distribution of cashless banking transactions and certain macroeconomic indicators in Ukraine

This article is devoted to outlining current trends in the cashless banking sector in Ukraine and exploring the correlations between the spread of cashless banking transactions and certain macroeconomic indicators (including gross domestic product per capita) to improve the methodology for studying the cashless activities of banks and forming effective mechanisms for their further development. The study employs special quantitative methods, including statistical and correlation analysis, which characterize the relationships between the spread of cashless banking transactions and certain macroeconomic indicators. The dynamics of changes in the share of cash and cashless transactions in Ukraine over recent years are described. The current state of development of cashless banking transactions, as well as their structure by quantity and amounts, is characterized. The correlations between the volumes of cashless banking transactions and GDP per capita are substantiated using statistical correlation analysis methods. A schematic representation of the algorithm of the identified correlation relationships between the studied indicators and their impact on the stable economic development of the country is provided. The relationships between the volumes of the shadow economy in the country and its cashless sector are described: an increase in the share of cashless payments in the economy contributes to a reduction in the level of the shadow economy and an increase in state revenues, which stimulates further economic development and recovery of the country. The main problems with the spread of cashless banking transactions are outlined: the high level of the shadow economy in Ukraine, the instability of the economic situation and the energy system of our country, especially in wartime conditions, as well as the low level of financial inclusion and financial-digital literacy of the Ukrainian population. It is noted that Ukrainian online banking is less bureaucratic and requires less time for use and transactions than European online banking. On the other hand, it is less secure due to the enhanced authentication and increased security measures of European online banking. Potential ways for the further popularization of cashless banking transactions in Ukraine are identified, including the optimization of their positive impact on the sustainable economic development of the country.

Cash to Cashless Economy: Opportunities & Challenges in India

Cash may be defined as the legal common way for all kinds of material transactions in an economy. In a highly unorganized economy, the circulation of currency notes without disclosing of its actual income to appropriate authorities provides enough scope for the accumulation of black money in the hands of people as well as the circulation of duplicate currency notes. So, it is necessary to promote digital transaction & plastic money in order to track all the payments and income sources of people. Cash use doesn't seem to be waning all that much, with around 85% of global payments still made using cash. the main reasons are that there is nothing to truly compete with the flexibility of notes and coins. Indian governments also inclined to transform the Indian banking system from traditional branch-based practices to technology-driven cashless banking. And for this it provides enough opportunities such as increasing mobile & internet penetration, raising disposable income, ensuring various lifestyle, urbanization, increasing foreign investment and latest economic and taxation reforms, etc. to accelerate digital transactions but we have to encounter a number of challenges also like poor internet connectivity in rural areas, digital literacy, cybersecurity issues, highly fragmented unorganized economy, etc. Now we can conclude that we have initiated such measures which will pave the way for such a digital transformation of the Indian economy.

Cashless Policy and Patronage in Stanbic IBTC Bank Plc, Katsina-Nigeria

Existing empirical literature on cashless banking is one that is quite scanty in the developing countries including Nigeria. Reviews of empirical studies on cashless policy indicate that a lot of prior studies focused on the adoption, prospects and benefits and challenges of cashless policy. This study on the other hand is aimed at investigating the effect of cashless policy on patronage using responses obtained from 410 customers of Stanbic IBTC Plc branch domiciled at Katsina town-Nigeria. To achieve the stated objective, authors used descriptive statistics and multiple regression techniques. The major findings reveal that ATM transaction has significant negative effect on patronage; POS transaction has no significant effect on patronage; web transaction has positive and significant effect on patronage and mobile banking has negative but significant effect on patronage in Stanbic IBTC bank Plc, Katsina. Authors conclude that if deposit money banks in Nigeria can make cashless policy channels well functional and secured, it will enhance and improved bank patronage. It is recommended by the authors that the management of Stanbic IBTC Plc, Katsina needs to ensure that the ATMs are functional 24/7, and loaded with mints to attract patronage. Author also recommends that DMBs should deploy information technology (IT) solutions that will make transactions on POS and other cashless channels more safe and secured. It is also recommended that banks especially Stanbic IBTC Plc should provide incentive for using internet banking platform for transactions; and should deploy mobile banking solution that is all phone enabled.

Cashless Banking and Performance of Deposit Money Banks

Cashless Banking and Performance of Deposit Money Banks

A Study on Customer Awareness and Usage of Payments Bank and Neo banks in Chennai City

The banking and financial sector has evolved over the years to meet the changing needs of the economy and industries, leading to the birth of innovative financial instruments. The Reserve Bank of India introduced payment banks to promote digital, paperless, and cashless banking in the country. Payment banks offer basic banking services to unbanked and underbanked individuals, particularly migrant workers and those from lower-income households, and bring them into the formal economy. The trend towards digital payments and net banking has increased, especially after the impact of demonetization and the COVID-19 pandemic. Neo banking is a fintech-powered concept that operates entirely in the virtual space. Technology has become crucial to satisfy customer demands, leading to the emergence of payment banks and neo banks. Despite their growing importance, research on payment banks and neo banks in India is limited. This paper aims to study customer awareness and usage of payment banks and neo banks in Chennai city.

Relationship between Cashless Banking and Bank's Profitability of Bangladesh

Relationship between Cashless Banking and Bank's Profitability of Bangladesh

Digital/Cashless Economy: The Changing Landscape of India

Digital/ Cashless banking has become talk of the town recently. People are opting for digital payments using mobile applications/wallets instead of cash and GOI/RBI is also promoting it through various schemes and incentivisation. This mode of payments has actually changed the dynamics of consumer and corporate relationships with their banks. Now, instead of taking out cash from our wallets, we open our mobile wallets to make payments or transfer money to someone. We do not wait for the bank branch to open and stand in long queues for getting our cash deposited in account neither we wait to withdraw cash. Likewise, we do not count cash at shopping counters and make the payment in a flash using our debit/ credit card. All this is possible because of the innovation in IT and its optimum utilization by our banks. The present paper will give an idea about what is this buzz word “Digital/ Cashless Banking” and how has it changed the banking relationships these days.

Mandatory adoption of the Central Bank of Nigeria’s cashless and e-payment policy: implications for bank customers

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.

Covid-19 city locked down: The need for effective cashless policy practices among nigerian populace

The study examined the influence of Covid-19 City Locked Down: The Need for Effective Cashless Policy Practices among Nigerian Populace. In order to carry out this study, two specified research objectives were formulated which research questions were used for study. The research design for this study is an Expost Facto design. The population of the study consisted of all the staff of selected banks in Uyo metropolis. Simple random sampling technique was used to select 100 respondents out of the population. The instrument used for data collection was questionnaire. The instrument was validated by two experts in Test and Measurement. Data from 100 completed questionnaires was subjected to percentage analysis. The findings and conclusion showed that the contentious usage of cashless banking options during this pandemic has the potential to transform economic activity and achieve order of stay at home and social distance to curb the spread of the virus. Therefore, trusted central banks and governments must play a key role in promoting the development of popular forms of e-banking channels during and after this period. The study also recommended that Adequate and well-functioning infrastructural facilities must be in place. More specifically, issue of electricity should be tackled by the government to facilitate the usage of electronic money. Regular awareness campaign to educate the public on the cashless banking channels and security measures that protects the users from electronic theft and effective regulatory measures should be continuously implemented at the domestic and international level. In other words, legal, regulatory and economic policy frameworks should evolve to cope with these new cashless banking products.

Payments Bank in India: Acceptance and Use

Payments bank is the latest inclusion in the Indian digital, paperless, cashless and mobile banking industry. There is hardly any study that examines the factors that affect people's intention to use payments bank services. Therefore, there is an impending need to determine the factors that influence people to use payments bank services. The study integrates the UTAUT3 model and initial trust model (ITM) to determine the constructs of the study. Data analysis reveals that BI directly predicted by PE, EE, SI, FC, HM, PV, habit, PI and initial trust whereas FC, habit, PI, initial trust and BI directly determine UB. The study has significant contributions towards theoretical and practical body of knowledge in the context of financial innovations especially in emerging economies.

Cashless Policy in Nigeria: Effects, Challenges and Prospects

This study is to investigate the effects, challenges and prospects of cashless policy on the Nigerian Economy. The objectives of the study are to examine: the effects of cashless policy, the challenges of cashless policy and the prospects of cashless policy on the Nigerian economy. The hypotheses of the study are: there are no significant effects of cashless policy on the Nigerian economy: there are no significant challenges of cashless policy on the Nigerian economy, and there are no significant prospects of cashless policy on the Nigerian economy. In carrying out the study, primary data was used which was sourced through questionnaire. A total of one thousand, two hundred questionnaires were passed and after careful monitoring and supervision, there was hundred percent retrieval and used for the analyses. In analyzing the result, simple frequencies, percentages and t-statistics were used to analyze the research hypotheses. From the analyses, it was found that cashless policy has positive effect on the growth of Nigerian economy. Also, respondents were of the opinion that the introduction of cashless banking in Nigeria has increased the cost of e-payment transactions as well as the normal bank charges as they are required to pay for various e-cards aside from indirect payment for technologies acquired to run cashless business venture by the banks. It was concluded that, in as much as the policy is good, there should be a conscious efforts at improving on information and communication infrastructure that will enhance speed in service delivery, internet security framework to check online fraud so that the public can be assured and protected against cyber attacks and fraud.

Customer's Usage of Cashless Banking Services -with Special Reference to Puducherry (U.T)

Cashless Banking is a designate or of financial transaction handled by means of credit cards, bank transfer, and cheques, with no exchange of bills or coins. The recent evolution of technology for financial transactions poses interesting questions for policy makers and financial institutions regarding the fitness of current institutional arrangements and availability of instruments to guarantee financial stability, effectiveness & efficiency of economic policy. This study aims to find out how the socio economic conditions of the respondents influence the proper and prompt use of various services.135 sample customers from Puducherry (U.T) were chosen for the study. The findings show that the respondents’ education qualification and the type of account (Savings, fixed, recurring and current account) are moderately correlated with the use of different services provided by the bank.

Digital Banking Services Awareness and its Preferences: HDFC Bank at Moradabad Region

Almost the whole world has been caught up in digitalization in recent years. Therefore, it could not stay behind the banking sector. It is time for cashless banking, which must be met by all the banks. HDFC Bank has developed a number of virtual banking facilities such as the net banking industry, Payz app, Chillr, etc., as the privately held pioneer in world class banking. Nevertheless, in order to capture the attention of the consumer, the focus of this research paper is on the creating a strong digital footprint on the market. This study is centered on an experimental study to evaluate people's awareness of HDFC banking products and their preferences.

An Empirical Study on the Awareness and Usage of Payment Banks Among College Students in Bangalore City

Payment banks are the newest initiative from the Reserve Bank of India (RBI) with the first motive to promote digital, paperless and cashless banking in our nation. Its an associated approach within which different non-banking monetary organizations are granted the authority to ensure basic bank services to each Indian national. A payments bank could be a differentiated bank with the precise objective of occupation to the unbanked and underbanked. Though the Pradhan Mantri Dhan Yojana has brought down the amount of unbanked people within the country, there are still millions who don't have bank accounts. According to a World Bank report, Republic of India is home to twenty one of the world’s unbanked adults. Payments banks aim to service these customers, particularly migrant employees and people from lower financial gain households, in addition as bring them into the formal economic system. It conjointly has the additional advantage of secured, technology-driven transactions which might simply be half-track with none loop hole for black cash. The present paper provides a horizon on the attention level and usage of payment banks among the faculty going students of urban center town. For the aim of the study each primary and secondary knowledge are used. the scholars following totally different courses are created use as sample. the info collected are analyzed victimization acceptable applied math techniques. It’ll conjointly highlight the necessity for payment banks in Republic of India and its future.

Digital Banking: A case study of perception of bank employees in rural areas of Udupi District

Technology has entered in every activity of human being. One such field where technology has gained very much popularity is the Banking sector. The technology has brought a complete shift in the functioning of banks and delivery of banking services. Customers need not visit to bank branches for banking transactions. They can do the banking transactions sitting at home and need not visit the branches of banks for anything. Banks use technology to provide quality of service at a great speed. This technological phase in banking sector can be traced in 1991i.e. post liberalization period. Along with the basic function of accepting deposits and lending of loans, banks have started rendering various other services to the customers, which is been enabled by the innovation in the Banking Technology. At the beginning telephone, telegrams, letters, typewriters, calculators, billing machines, Fax, Couriers were used for the purpose. The new technological innovations that have taken place are Online banking, Mobile banking, ATMs, Anytime banking, Telebanking, Green banking, Internet Banking, Core banking, Centralized Banking solution, SMS alerts, RTGS, NEFT, POS, etc. These technological innovations enable the customer to withdraw his deposits at any time 24x7, anywhere in the country. The customer can view his account by sitting at his home itself. The innovation in Banking Technology enables the banker to make the various online payments, online shopping. Thus it paves the way for Cashless Banking, i.e. Digital India. Thus the Innovation in Banking Technology results in increasing the efficiency and productivity of the banks, saves time, reduces the cost and thereby increases the profitability of the banks India is a country of villages or rural areas. Nearly half of India's population does not have bank account. So to find greater growth in banking sector, RBI is emphasizing on Financial Inclusion, so that banking services reach each and every individual in rural areas. It has made compulsory for all Indian banks to open at least of their branches in rural areas. CRISIL Report (March 12, 2018) reports that “In the last 5 years, business per branch in the rural areas has grown at a compounded annual growth rate of 7%, despite the overall branch network growing at 9%. The economies of scale are set to increase further in the years to come.” Though technology is introduced in banks in rural areas, the banks and customers face certain problems or obstacles. Since majority of villagers are illiterates and poor, the find it difficult to operate the technology based bank accounts, Debit/Credit cards, mobile banking, online shopping etc. People may doubt about the safety and confidentiality of their accounts while using technology. Again there may be lack of awareness of technological products of banks, their uses and benefits.. This paper tries to find out how technological innovations have been perceived by bank employees in rural areas of Udupi district

Effect of Cashless Banking on Unemployment Rate in Nigeria

Effect of Cashless Banking on Unemployment Rate in Nigeria

Cash-less Banking Policy Regime and Firm-Level Performance in Nigeria

This study analyzed the effects of cash-less banking policy on firm-level performance in Nigeria. The study adopted hybrid approach to evaluate firms’ performance before and after the policy was introduced using performance indicators including employment level, output level, sales volume, cost of production and profit level. A survey was conducted through which copies of a set of questionnaire was used for data collection from a total of one thousand and fifty (1,050) firms. The survey results showed that the adoption of the cash-less banking policy has brought about only minimal increase in each of the performance indicators. The knowledge level about the contents of the cash-less banking policy is still low, as such there is a need for the continuous dissemination of information on the contents of the cashless banking policy. Change agents could be brought on board to share their experiences and give evidence of the benefits of the policy to the performance of their businesses.