IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 9 2023
DOI: 10.56201/jafm.v9.no9.2023.pg265.285

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Appraising the Impact of Cashless Economic System on the Financial Performance of Financial Institutions in Nigeria

Osirim, Monday, Wadike, C. George & Idatoru, A. Roberts

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Abstract

The main objective of the study is to investigate the effect of cashless economic system on the The main objective of the study is to investigate the effect of cashless economic system on the financial performance of deposit money banks in Nigeria. This study adopts a survey research design and a sample size of 290 was drawn from a population of 350 using Taro Yamani formula. The obtained data was analyzed using simple regression analysis. The findings show that Automated Teller Machine (ATM), and Online Banking each has a positive and significant effect on return on assets of deposit money banks. Point of Sale has a positive but insignificant effect on return on assets while mobile banking has a negative and statistically significant effect on return on assets. This study thus concludes that cashless economic system has positively affected the financial performance of deposit money banks in Nigeria. Thus it was recommended that more ATM centers/ outlets should be opened in order to enhance the success of the cashless monetary policy of the Nigerian government. This is suggested in that ATM contributes positively to the success of the cash less policy and income generation, consequently the financial performance of the banks in the Nigerian banking sector. It is also recommended that the use Point of sales (POS) should be encouraged by organizations and other businesses at effectuating business transactions as this would enhance its contribution to the cashless economic system in Nigeria.

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