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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... 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/approachThe 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.FindingsThis 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/implicationsNon-availability of data restricted this work to a panel study of selected SSA countries. Subsequent studies should consider single-country case studies.Practical implicationsFindings from the study imply that for banking technology to drive a cashless economy effectively, education has to be improved.Originality/valueThe 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Money Laundering Control Emerald Publishing

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

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References (47)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1368-5201
eISSN
1368-5201
DOI
10.1108/jmlc-10-2020-0122
Publisher site
See Article on Publisher Site

Abstract

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/approachThe 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.FindingsThis 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/implicationsNon-availability of data restricted this work to a panel study of selected SSA countries. Subsequent studies should consider single-country case studies.Practical implicationsFindings from the study imply that for banking technology to drive a cashless economy effectively, education has to be improved.Originality/valueThe 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.

Journal

Journal of Money Laundering ControlEmerald Publishing

Published: Jul 23, 2021

Keywords: Education; Automated teller machine; Mobile phone; Banking technology; Cashless economy

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