PERCEPTION OF BANK CUSTOMERS ON THE CASHLESS POLICY OF CBN IN NIGERIA
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PERCEPTION OF BANK CUSTOMERS ON THE CASHLESS POLICY OF CBN IN NIGERIA
INTRODUCTION TO CHAPTER ONE OF BANK CUSTOMERS’ PERCEPTION OF THE CBN’S CASHLESS POLICY IN NIGERIA
1.1 BACKGROUND OF THE STUDY
The recent advancement of technology for financial transactions raises interesting questions for policymakers and financial institutions about the suitability of current institutional arrangements and the availability of instruments to ensure financial stability,
efficiency, effectiveness of monetary policy, and achievement of sustainable economic growth in Nigeria in light of public perception (Ajayi and Ojo, 2006).
There have been various types of payment systems in use throughout history. “Trade by barter” was common at first. However, bartering concerns, such as the double coincidence of wants, forced the invention of other kinds of money.
Nonetheless, experts foresee the complete demise of research tools and the advent of a potentially superior substitute for currency or monetary exchanges, which is a cashless society (Wikipedia 2011).
Since Nigeria’s independence in 1960, there have been various governments, constitutional reforms, changes in economic policies, and banking reforms, all aimed at improving social welfare and achieving developmental goals, but there has been no significant improvement in Nigeria’s Human Development Indicators.
Banks are the backbone of any country’s economy. They play an important role in the country’s financial system and are important actors in the growth process (Adewoye, 2013).
Banks mobilise and assist efficient distribution of national savings by intermediating between surplus and deficit savings units within an economy,
so boosting the volume of investments and thus national output. In a developing economy like Nigeria, financial sector development has been accompanied by structural and institutional changes, and the sector has long been recognised to play an important part in the nation’s economic development.
Monetary policy is the central bank’s regulation of the money supply and interest rates in order to control inflation and stabilise currency. The Central Bank of Nigeria (CBN) implements monetary policy to preserve Nigeria’s external reserves,
protect the international value of the legal currency, and promote and sustain monetary stability. Similarly, it serves as Nigeria’s stable and efficient financial system, as a banker and financial adviser to the Federal Government, and as a lender of last resort to banks.
As a result, in carrying out its functions in accordance with its core mandate, the CBN has engaged in a series of reformations aimed at both strengthening the financial system and improving Nigeria’s overall economic performance in order to put it on the right track in line with global trends.
The payments system is the conduit via which financial resources travel from one section of the economy to another in any economy. As a result, it is the primary pillar of the modern market economy.
Essentially, the payments system has three key roles: monetary policy, financial stability, and overall economic stability (CBN, 2011).
1.2 STATEMENT OF THE PROBLEM
Most LDCs, including Nigeria, are transitioning from a cash-based to a cashless economy for development goals. Reduce the cost of banking services (including credit costs) and foster financial inclusion by providing more efficient transaction options and greater reach,
as well as improve the effectiveness of monetary policy in managing inflation and boosting Nigerian economic growth (CBN, 2013). Furthermore,
the cashless policy attempts to reduce some of the negative repercussions connected with the widespread use of physical currency in the economy, such as: high cost of cash: high risk of using cash, high subsidy, informal economy, inefficiency, and corruption (CBN, 2011).
Customers want services that are efficient, quick, and convenient. Customers desire a bank that will provide services tailored to their specific needs (personalised banking) and will help their business.
For example, businessmen may wish to travel without carryout cash for security reasons. They want to be able to check their balance online, see if a cheque has been processed, transfer monies across accounts and even pay their bills online. However, the purpose of this study is to investigate bank customers’ perceptions of the CBN’s cashless programme in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The following are the study’s objectives:
1. To investigate bank customers’ perceptions of the CBN’s cashless programme in Nigeria.
2. To investigate bank customers’ perceptions of the CBN’s cashless policy in Nigeria’s dependability and efficacy.
3. To assess the benefits and drawbacks of the CBN’s cashless strategy in Nigeria.
1.4 RESEARCH QUESTIONS
1. How do bank customers see the CBN’s cashless strategy in Nigeria?
2. How do bank customers perceive the dependability and efficiency of the CBN’s cashless strategy in Nigeria?
3. What are the benefits and drawbacks of the CBN’s cashless strategy in Nigeria?
1.6 SIGNIFICANCE OF THE STUDY
The following are the study’s implications:
1. The findings of this survey will inform the general public about bank customers’ perceptions of the CBN’s cashless programme in Nigeria.
2. This research will also serve as a resource base for other academics and researchers interested in conducting additional research in this sector in the future, and if utilised will go so far as to provide new explanations for the topic.
1.7 SCOPE AND LIMITATIONS OF STUDY
This study will look at bank customers’ attitudes, views, and opinions about the effectiveness and general implementation of the CBN’s cashless policy in Nigeria.
STUDY LIMITATIONS
Financial constraint- A lack of funds tends to restrict the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection procedure (internet, questionnaire, and interview).
Time constraint- The researcher will conduct this investigation alongside other academic activities. As a result, the amount of time spent on research will be reduced.
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