Title: Electronic Fund Transfer and Cash Management Of Deposit Money Banks In Nigeria
Authors: UKUEKU, Ogheneovo & Prof. Victor Chukwunweike EHIEDU
Volume: 9
Issue: 2
Pages: 150-159
Publication Date: 2025/02/28
Abstract:
The study examined the relationship between electronic fund transfer and cash management of deposit money banks in Nigeria from the period of 2006 to 2021 (16years). In order to evaluate the effect of electronic fund transfer on cash management of Deposit Money Banks in Nigeria, the following measures electronic fund transfer, namely; Automated Teller Machine (ATM), Point of Sale (POS), Internet Banking (INTB), Nigeria Interbank Settlement System (NIBSS) and Nigeria Electronic Fund Transfer (NEFT) in relation to cash management was proxied with Liquidity Ratio (LQR). The research design for this study was based on the ex-post facto research design. The study made used of aggregate secondary data from CBN Statistical Bulletin, CBN Annual Report, CBN Bank Supervisory Annual Report and Nigeria Deposit Insurance Corporation (NDIC) Annual Reports for the period 2006-2021. The data set was described using descriptive statistics, diagnostics tests, correlation analysis, unit root test, Johannsen cointegration and the Multiple Regression analysis were employed with the aid of E-VIEW version 9.0 for the purpose of testing the research hypotheses raised. In the light of the findings, it evident that measures of electronic fund transfer used has mixed effects on LQR of DMBs in Nigeria. However, majority of the independent variables such ATM, POS and INTB has significant effects on LQR of DMBs while MOB, NIBSS and NEFT established an insignificant effects on LQR of DMBs in Nigeria. Hence, the study concluded that electronic fund transfer has significant effects on cash management of deposit money banks in Nigeria. Thus, the study recommended that managers of DMBs should from time to time train customers with regard to ATM, its benefits, risk exposure, physical and electronic security to avoid financial loss in the hands of hackers, trainings should be held for bank staff in short periods to acquaint them with modern developments of the sophisticated technology in changing times to improve the financial performance of DMBs in Nigeria.