ABSARTACT

The introduction of cashes system which was supposed to bring about efficiency, effectiveness
and enhance financial performance of deposit banks in Nigeria now appears to be a
disappointment to banks and costumers, does means it that e-banking through cashless system
meant to improve service delivery and increase financial performance of DMBs is not effective?
The study examine the effects of cashes system (ATM, POS, MP, IB) on the financial
performance (ROE) deposit money banks in Nigeria using secondary data collected from the
statistic bulleting of NDIC and annual report of central bank of Nigeria (CBN) covering period
of 2011-2020 ex post-facto research design was adopted and the data was analyzed using DATA
(version 11). The study used a census population of all the twenty-one DMBs in Nigeria with the
sample size equal population of DMBs. Multivariate linear model was adopted, using dictionary
least square (OLS) to analyze the data. ThE results revealed that there is a negative non-
significant relationship with ROE and a positive non-significant relationship exist between IB
and ROE. It was concluded that cashless system has effect on the performance of DMBs in
Nigeria. The study therefore, recommended almost others that, deposit money banks in Nigeria
should improve on the service delivery of MB and POS by reducing the cost of maintaining them
and possibly minimizes excess acquisition