Banking technology and cashless economy in selected Sub-Saharan African countries: does education matter?

Banking technology and cashless economy in selected Sub-Saharan African countries: does education matter?

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 mitigati...

Full description

Saved in:
Bibliographic Details
Published in:Journal of money laundering control Vol. 24; no. 3; pp. 584 - 595
Main Authors: Urhie, Ese, Amonu, Ogechi Chiagozie, Mbah, Chiderah, Ewetan, Olabanji Olukayode, Matthew, Oluwatoyin Augustina, Adediran, Oluwasogo, Adesanya, Oreoluwa, Adekeye, Adeleke
Format: Journal Article
Language:English
Published: London Emerald Publishing Limited 31-07-2021
Emerald Group Publishing Limited
Subjects:
Banking
Cost control
Electronic banking
Financial inclusion
Innovations
Internet
Mobile commerce
Technology Acceptance Model
Kenya
Nigeria
Rwanda
Mobile phone
Automated teller machine
Education
Cashless economy
Banking technology
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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.
ISSN:1368-5201
1758-7808
DOI:10.1108/JMLC-10-2020-0122