Nigerian Journal of Banking and Financial Issues (NJBFI)

Cashless Economy Initiatives In Enhancing Profitability Metrics Of Nigeria Deposit Money Banks

Abstract

This study investigated the impact of cashless economy initiatives on profitability metrics of Deposit Money Banks (DMBs) in Nigeria. Ex-post facto research design was adopted while data for the study were sourced from Central Bank of Nigeria (CBN) annual report and statistical bulletin, annual account and reports of 14 purposively sampled banks based on consistencies and comparability of their annual accounts and reports between 2017 and 2022 from the population of 16 DMBs listed on the Nigeria Exchange Limited. The objective was to ascertain the impact of Automated Teller Machine, Point of Sale, Internet Banking, NEFT and NIP on profitability of DMBs in Nigeria. Inferential statistics, Augmented Dickey Fuller tests for Unit roots and Pool regression data analysis were applied on profitability of listed DMBs. Findings showed that ATM has a positive and significant effect on ROA of listed banks in Nigeria while, POS, ITB, NEF and NIP had positive but insignificant effect on ROA. The study concluded that cashless economy has positively influenced profitability of DMBs. The study recommends provision of robust digital infrastructures to enhance profitability of DMBs in Nigeria.