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1 – 1 of 1Ese Urhie, Ogechi Chiagozie Amonu, Chiderah Mbah, Olabanji Olukayode Ewetan, Oluwatoyin Augustina Matthew, Oluwasogo Adediran, Oreoluwa Adesanya and Adeleke Adekeye
This study aims to analyze the effect of banking technology [automated teller machine (ATM) and mobile cellular devices (MOBs)] and other traditional factors on the level of…
Abstract
Purpose
This study aims to analyze the effect of banking technology [automated teller machine (ATM) and mobile cellular devices (MOBs)] and other traditional factors on the level of currency in circulation for a sample of 21 selected sub-Saharan African (SSA) countries. It also assessed the mitigating effect of education on the relationship between banking technology and the cashless economy.
Design/methodology/approach
The study used a panel data approach to design a cashless economy model with banking technology – ATM and MOBs – as well as their interaction with education as regressors.
Findings
This study finds that MOB is significant for promoting a cashless economy, whereas ATM is insignificant in sample SSA countries. The level of education and the number of bank branches were also found to be significant in promoting a cashless economy. The interaction between education and ATM was insignificant but negatively signed, whereas that between education and MOB was significant but had a positive sign.
Research limitations/implications
Non-availability of data restricted this work to a panel study of selected SSA countries. Subsequent studies should consider single-country case studies.
Practical implications
Findings from the study imply that for banking technology to drive a cashless economy effectively, education has to be improved.
Originality/value
The ratio of cash in circulation to total money supply was used as a measure of the cashless economy. The study also evaluated the moderating effect of education on banking technology.
Details