AN ASSESSMENT OF CUSTOMER PROTECTION AND THE CHALLENGES OF A CASH-LESS ECONOMY (CASE STUDY UNITY BANK PLC)

ABSTRACT

Cash-less policy is a situation where the volume of the physical cash been used in the economy is reduced rather than total elimination of such. This had been in practice in most advanced countries. However only on Jan1, 2012, the pilot scheme of the policy was introduced as one of the financial services by Central Bank of Nigeria (CBN) in Lagos as a pilot state, been the economic nerve of the country. This policy takes the form of where no one uses cash for major purchases but instead, but instead, credit cards, charge cards, cheques, or direct transfer from one account to another through e-banking or mobile banking. Limits of cash transactions were set for both corporate and individual transactions. An is therefore made to critically appraise the pros and cons of this cashless policy introduced into the Nigerian economy within the context of customer protection and the challenges in a cash less enomy ( case study Unity Bank Plc. With a view to determine its workability as proposed and introduced by the apex bank of Nigeria. Some recommendations that are considered to aid its success are also made.

TABLE OF CONTENTS

TITLE PAGE

ABSTRACT

CHAPTER ONE:  INTRODUCTION

1.1 BACKGROUND TO THE STUDY

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVE OF THE STUDY

1.4 SCOPE AND LIMITATIONS OF THE STUDY

1.5  SIGNIFICANCE OF THE STUDY

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction

2.1 Literature and Conceptual Review

2.2 THE NEW CASHLESS HUB PAGES

2.3 DRIVING CASHLESS POLICY PRODUCTS

2.4 DEFINITION OF RELATED TERMS

2.4.1 POINT OF SALE MACHINE

2.4.2 AUTOMATED TELLER MACHINE (ATM)

2.4.3. DEBIT AND CREDIT CARDS

2.4.4. INTERNET BANKING

2.5 SECURITY CHALLENGES OF CASHLESS ECONOMY

2.6 THE REGULATORY CHALLENGES

CHAPTER THREE: METHODOLOGY OF THE STUDY

3.1       UNITY BANK PLC A HISTORICAL PERSPECTIVE

3.2       Population of Study

3.3       Sampling Techniques

3.4       Sample Size

3.5       Sources of Datas

3.6       Method of Data Analysis

3.6.1 Test of Hypothesis and Inference

3.6.2    Decision Rule and Justification

CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION OF FINDINGS

4.1 PROCEDURE OF ANALYSIS

4.2.1 Qualification of respondent

4.2.2: Working experience of respondents with Unity Bank Plc.

4.2.3: Cadre of Respondents

4.2.4: Professional qualifications of respondents

4.2.5: Challenges threat to electronic bank

4.2.6: Threat assessment of electronic Banking

4.2.7:   Presented is response assessment of Unity Bank’s electronic system

4.2.8: The level of information technology training to staff in Unity Bank Plc

4.2.9: Level of electronic banking and customer’s satisfaction

4.3.1 Hypothesis One

4.3.2: Hypothesis Two

4.3.3: Hypothesis three

4.3.5: Hypothesis four

4.3.6 Discussion of Findings

CHAPTER FIVE:

SUMMARY, CONCLUSSION, AND RECOMMENDATION OF FINDINGS

5.1 SUMMARY

5.2 CONCLUSSION

5.3 RECOMMENDATIONS

BIBLIOGRAPHY

APPENDIX

CHAPTER   ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY:

The Nigerian Bankers Committee commissioned a study (2000) to identify cost drivers and possibility of proffering lasting solutions. Results of the study indicated among others, high cash intensity in the economy and its impact on high cost structure in the financial value chain. On average 30% of branch physical space and employees are devoted to cash logistics, handling and storage- the total cash management costs (excluding cost of production, distribution, processing and destruction by (CBN) was projected to exceed N192billion by end of 2012. The study also showed that only 10% of customers were responsible for cash transactions above N150,000 in banks daily. This implies that the cost of cash for the 10% customers that make high volume cash transaction was subsidized by the mass public (90%) of banking customers. (Umeano C. David Head , Shared Services Office , (CBN June 2012)

In view of the findings of the study, CBN introduced the cash policy on cash based transactions which stipulate a cash service charge on daily cash withdrawal or cash deposits that exceed N500,000 for individuals and N3,000,000 for corporate bodies. The new policy on cash based transactions (withdrawal and deposits) in banks, aims at reducing and not eliminating the amount of physical cash circulating in the economy, and encouraging more electronic based transaction (payment for goods, services, transfer, etc) through electronic devices as ATM , POS, Mobile and Internet Banking CBN believe this policy will have a direct impact on banking industry’s efficiency and cost structure. It is expected to reduce the cost of cash to the financial system, which will result in significant savings that can be passed onto customers in form of reduced cost of banking services and lower lending rate to customers. Against this background. This study intends to analyze the challenges of E-Banking or electronic based system with Unity Bank as reference study.

1.2 STATEMENT OF THE PROBLEM

The world is evolving new systems and policies every day. Gone are the days when communication was limited to face to face, signals or by postages. Today, communication can take place between....

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