Exploring the Role of Cashless Banking on Service Delivery in Covid-19 Era

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue IV, April 2022 | ISSN 2454–6186

Exploring the Role of Cashless Banking on Service Delivery in Covid-19 Era

Nsofor, Ebele Sabina¹, Nwogo, Justin E. ², Ani, Michael Kosoluchukwu^3
1Department of Banking and Finance, Caritas University Enugu
²Department of Banking and Finance, Ebonyi State University
³Department of Accountancy, Enugu State University of Science and Technology

Abstract: The objective of this paper is to assess the usage of cashless banking channels in service delivery by banks in times of Covid-19. Today’s banking environment is competitive and has experienced rapid changes as a result of technological improvement and increased awareness and demands banks to serve their customers electronically. With the outbreak of covid-19, cashless and contactless payment grew as a means of service delivery. Quality service delivery is a winning strategy which results in more new customers, more business with existing customers and high customer retention. While cashless banking is seen as the available channel through which banks deliver their services in Covid-19 era, whether customers got the desired service remain an ongoing debate. The study collected annual data on selected cashless banking channels comprising the volume and value of ATM, POS, internet and mobile banking from Central Bank of Nigeria Statistical Bulletin covering 2015-2020 to assess the usage of cashless banking in Covid-19 era. The outcome revealed substantial increase in the volumes and values of these channels in times of Covid-19 when compared with that of pre-Covid-19 era

Keywords: Cashless banking, Covid-19, Service delivery, Covid-19 era

I. INTRODUCTION

Banking started from the barter system, which has been given a couple of names – swapping, compensation trading, counter purchase or counter-trade which later became a clumsy way of exchange to primitive societies as they specialize in what they can do best. Many things that had been used as a medium of exchange associated with a lot of difficulties. To ameliorate the problems associate with barter, people realized that gold is more superior, durable, portable and divisible than other commodities previously used. Gradually, silver and gold emerge as better than other metals because they are kept indefinitely. People kept their silver and gold with goldsmith for safe-keeping who issued a receipt which acknowledged the deposit of the money and incorporated a promise to return it on demand. With the passing of the paper from hand to hand, the goldsmith began to write on the note his personal promise to pay any bearer of the note the stated sum on demand. As the receipt started to be expressed payable to bearer, the need for endorsement disappeared. The goldsmith began to exercise some of the functions of a banker ranging from keeping money and valuables on safe deposit, issuing notes, making charges for safekeeping, and offering interest so as to get more money

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