The Nexus Between Cashless Banking Policy and Returns of License Deposit Money Banks (DMBs) in Nigeria: A Comparative Study

Dr. Mary Ovayioza Ezeji, Prof. M. Y. Abubakar and Dr. Yahaya Yusuf
Additional contact information
Dr. Mary Ovayioza Ezeji: Department of Accounting, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria.
Prof. M. Y. Abubakar: Department of Accounting, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria.
Dr. Yahaya Yusuf: Department of Accounting, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria.

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 14, 1727-1748

Abstract: Cashless banking has gained significant trend over the years, with the increasing embracement of electronic transaction channels such as Global Pay (GPAY), Corporate Internet Banking (CIB), Mobile Banking (MB), Pay-Direct (PD), and Remita (RMT). This study, therefore, examines the nexus between the cashless banking policy and the performance of Deposit Money Banks (DMBs) in Nigeria. Using mixed method sources of data, the qualitative data was sourced from the employees of licensed DMBs via a closed-ended questionnaire, and secondary data was gathered from the annual reports of the sampled DMBs covering the period from 2012 to 2023. The SEM-PLS models reveal that CIB (p = 0.001), MBS (p = 0.005), and PDS (p = 0.01) are strongly associated with a bank's financial performance. The panel regression models indicate that the global pay (GPAY), with a p-value of 0.018, proved to be a significant predictor of ROE of the sampled DMBs. Furthermore, the regression results show that the cashless banking has no significant relationship with the ROA of the sampled banks during the period under review. These findings revealed different stakeholder perceptions and financial outcomes, suggesting that improved digital infrastructure, user education, and policy alignment are required to realise the cashless banking’s benefits fully. The study recommends that DMBs avoid a one-size-fits-all digital strategy. Instead, they should tailor digital tools to specific financial performance objectives such as deposit mobilisation, cost efficiency, and profitability.

Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... sue-14/1727-1748.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... a-comparative-study/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:issue-14:p:1727-1748

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().