Effect of Cashless Policy on the Financial Performance of Selected Deposit Money Banks (DMBs) in Nigeria

Abstract

The study investigated the effect of cashless policy on the financial performance of selected deposit money banks in Nigeria. A panel data were Deposit Money Banks in Nigeria" collected from a sample of 14 banks covering 6 years spanning from 2012 when Published in International Journal of the policy was introduced in Nigeria to 2017. The study used return on Asset as Trend in Scientific Research and proxy for bank performance while the value transactions done through the ATM, Development POS, Internet Banking, NIP and NEFT platforms (E-banking Products) were used to proxy cash less policy. In other to ensure the validity and the reliability of our data, we therefore subjected our data to a diagnostic test using Descriptive Statistic Analysis, Multicolinearity test, Correlation testing, and Herteroskadaticity testing. Findings from the study revealed that that (ATMV) has a positive and significant effect on return on assets (ROA) of banks in Nigeria while , POSV, WEBV, NIPV and NEFV were found to have a positive but insignificant effect on ROA of quoted banks in Nigeria. The study concluded that E-banking products as a proxy for cash less policy has positive effect on the financial performance of Deposit Money Banks in Nigeria.