Cashless Policy and Profitability of Quoted Deposit Money Banks in Nigeria

This study investigates the effect of digital financial reforms and cashless policy on the level of profitability of quoted deposit money banks in Nigeria. Using an ex-post facto research design, panel data was obtained from the yearly audited and published annual reports and accounts of five quoted deposit money banks from 2013-2022. The variables of interest were the cashless policy measures(automated teller machine, NIBBS instant payment, web, mobile banking, cheques, NEFT, and point of sale transactions), and profitability measure which is profit after tax. Data obtained were analyzed using descriptive statistics (mean, minimum and maximum values & standard deviation) and inferential statistics(multiple regression models).
The regression results revealed that automated teller machine, NIBBS instant payment, web, mobile banking, cheques, NEFT, and point of sale transactions had significant effects on the level of profitability of quoted deposit money banks in Nigeria. The study recommends that quoted deposit money banks’ technical staff should undergo continuous training in order to learn and develop competencies in contemporary development in electronic banking. SAlso, bank management should be encouraged to emphasize efforts to improve automated teller machine services in order to increase returns on investment because it may lead to increased customers’ satisfaction and loyalty

Keywords: Cashless Policy, Electronic Banking, Profitability, Digital Financial Reforms.