Impact of Cashless Banking on the Performance of the Banks

Running head: IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE
BANKS
Impact of Cashless Banking on the Performance of the Banks
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Abstract:
The main reason behind undertaking this research is the initiation of cashless banking, which has
resulted in the development of new and enhanced activities and in this manner; it would be
beneficial for fulfilling customer satisfaction. The improvements inherent in the banking services
through cashless banking would be analysed and thus, the profit to be achieved could be
ascertained. In this research, appropriate code of conduct is followed by the researcher. The
researcher has collected data from authentic sources so that the research outcomes could be
accurate and trustworthy. For conducting the data analysis, the researcher has used the MS Excel
function to convert the responses of the bank customers into meaningful graphs, charts and
tables. Initially, the opinions of the respondents have been gathered after the researcher has
provided with a close-ended questionnaire, which is to be filled by the respondents within 7
days.
It has been analysed that the banks of Singapore have implemented the cashless banking system
successfully; however, it is yet to be popularised in the public sector banks. Moreover, it has
been found that with the help of cashless banking, the customers are able to minimise their
transaction time for purchasing any necessary products and services. Moreover, the banks have
increased their online presence in the nation due to which the satisfaction level of the customers
has been maximised.
There are certain limitations in this research, one of which is the limited number of respondents
due to limited timeframe. Another limitation is the inability of the researcher to use secondary
data, which could have contributed immensely to the research findings, especially the role of
cashless banking in developing the economy of Singapore. Therefore, this research could be

2IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
undertaken in future by undertaking increased number of respondents and consideration of
secondary data.

3IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Acknowledgements:
I would like to express my sincere gratitude and thank the following people for their immense
help and support, as without their assistance, it would not be possible for me to complete this
research.
 To my supervisor, your constant direction and guidance enabled me to carry out my
research effectively and diligently
 To my dearest friends and family, as without their financial and emotional support, the
research study would not have been possible
 To all the customers of the different banks of Singapore, who allowed me to borrow their
time for conducting surveys
 Finally, I would like to thank sincerely to all the teaching staffs as well as library staffs in
my college/university

4IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.1 Background of the study:.......................................................................................................8
1.2 Rationale of the study:...........................................................................................................8
1.3 Problem statement:................................................................................................................9
1.4 Research aim and objectives:.................................................................................................9
1.5 Research questions:...............................................................................................................9
Chapter 2: Literature Review.........................................................................................................11
2.1 Introduction:........................................................................................................................11
2.2 Bank theories:......................................................................................................................11
2.2.1 Organisational change:.................................................................................................11
2.2.2 Customer relationship management:............................................................................12
2.2.3 Communication of change:...........................................................................................13
2.3 Customer theories:...............................................................................................................13
2.3.1 Reaction to change:.......................................................................................................14
2.3.2 Demands by the customers:..........................................................................................15
2.4 Summary:.............................................................................................................................16
Chapter 3: Research Methodology................................................................................................17
3.1 Introduction:........................................................................................................................17

5IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
3.2 Research strategy:................................................................................................................17
3.3 Sample selection:.................................................................................................................17
3.4 Data analysis plan:...............................................................................................................18
3.5 Ethical considerations:.........................................................................................................18
3.6 Summary:.............................................................................................................................18
Chapter 4: Data Analysis and Interpretation.................................................................................20
4.1 Introduction:........................................................................................................................20
4.2 Findings and analysis:..........................................................................................................20
4.3 Summary:.............................................................................................................................28
Chapter 5: Conclusion and Recommendations..............................................................................30
5.1 Linking with the objectives:................................................................................................30
5.2 Recommendations:..............................................................................................................31
5.3 Limitations and future scope of the research:......................................................................31
References:....................................................................................................................................32
Appendix:......................................................................................................................................35

6IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Table of Figures
Figure 1: Age group of the respondents........................................................................................20
Figure 2: Technological advancements.........................................................................................21
Figure 3: Factors promoting new banking techniques...................................................................22
Figure 4: Superiority of cashless banking over cash services.......................................................24
Figure 5: Presence of online platform...........................................................................................25
Figure 6: Satisfaction level of the customers.................................................................................27

7IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Table of Tables
Table 1: Age group of the respondents..........................................................................................19
Table 2: Technological advancements...........................................................................................21
Table 3: Factors promoting new banking techniques....................................................................22
Table 4: Superiority of cashless banking over cash services.........................................................23
Table 5: Presence of online platform.............................................................................................25
Table 6: Satisfaction level of the customers..................................................................................26

8IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Chapter 1: Introduction
1.1 Background of the study:
The creation of new and advanced technologies in the existing era has improved the
financial sector activities of the international economies. The deployment of such technologies as
well as electronic gadgets has been beneficial in sound service qualities of the financial
organisations (Dzombo, Kilika & Maingi, 2017). The operating banks in the Singapore economy
are able to enhance their operating activities and service quality through electronic tools in the
banking system. As a result, cashless banking has emerged and cashless activities are enforced
with the use of ATM and online banking system (Kamboh & Leghari, 2016). The cashless
banking process minimises the geographical boundaries and time required in the manual banking
system. The developments observed in the banking activities through cashless banking and the
degree of profit that the banks recognise for such kinds of activities would be understood.
1.2 Rationale of the study:
The main reason behind undertaking this research is the initiation of cashless banking,
which has resulted in the development of new and enhanced activities and in this manner; it
would be beneficial for fulfilling customer satisfaction. The improvements inherent in the
banking services through cashless banking would be analysed and thus, the profit to be achieved
could be ascertained (Alao & Sorinola, 2015). The formation of the banking activities and time
saving feature through cashless banking would be assessed due to which this study has been
undertaken.

9IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
1.3 Problem statement:
For this research, the researcher has developed an understanding of the modifications that
have occurred with the initiation of cashless banking activities, the degree to which there has
been customer satisfaction and the degree of profitability achieved by the banks. One of the
primary issues is that the degree of profit obtained by the banks through cashless banking is
unknown and thus, analysis of the same is vital to gain an overview of the suitability of cashless
banking (Ugwueze & Nwezeaku, 2016). The analysis of various models and variables would be
beneficial in ascertaining the aspects leading to the formation of customer satisfaction through
cashless operations and thus, the research paper could be finished effectively.
1.4 Research aim and objectives:
Aim:
The aim of this research is to analyse the ways through which cashless banking assists in
providing competitive advantage to the banks; thereby, increasing their profit level and customer
satisfaction.
Objectives:
The research is formulated with the objective of analysing and gaining knowledge of the
ways through which cashless banking supports in increasing profitability level for the banks
operating in Singapore.
1.5 Research questions:
 How cashless banking has been helpful in the development of the profitability of the
banks in Singapore?

10IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
 How cashless banking assist in the development competitive edge for the banks in the
banking sector?
 How does cashless banking contribute to the creation of customer satisfaction?

11IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Chapter 2: Literature Review
2.1 Introduction:
The initiation of cashless banking in the context of Singapore has not received much
attention from the academic practitioners. Such banking originates from the hierarchy of a bank
choosing to overhaul the bank strategy and looking to modify the organisational dynamics. This
has direct impact on the staffs and the customers engaged in the banking sector of Singapore.
This chapter is prepared for exploring the reactions of the customers towards cashless banking
implemented by the banks of Singapore. Due to this, the literature review is divided into two
parts. The initial part focuses on the literature confronting the bank, which include organisational
change and customer relationship management. The latter part of the section concentrates on the
literature confronting the customers, which include reaction to change and demands by the
customers.
2.2 Bank theories:
By initiating cashless banking, the Singapore banks have undergone radical
organisational change. The banks now focus on providing effective customer services to its
customers. Therefore, the following bank theories are considered for this particular research:
2.2.1 Organisational change:
Before the enforcement of cashless banking, the Singapore banks have undergone
significant organisational change for staying competitive in the sector. The technological
enhancements in areas like broadband and internet pushed the change in the banking sector (Ng,
2018). The Singapore banking sector has witnessed significant change, as no cash options are
available in some banks and other banks are still providing certain cashless services. The

12IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
technological advancements like enhanced broadband infrastructures are deemed to be the
primary reason due to which cashless banking has been introduced. By using these technological
advancements, it becomes possible for the customers in accessing their locations at any place and
time. The initiation of schemes like internet banking services, banking applications for smart
phones and telephone banking has eliminated the need for the banks in offering cash services
(Taasim & Yusoff, 2018). Moreover, the technological advancements lead to cost minimisation
because of transaction handling charges along with enhancing the availability of electronic
transfers. By using the same as base from such improvements, plastic cards have evolved in the
form of debit and credit cards increasing the process of cashless banking in banks.
2.2.2 Customer relationship management:
In the current era, it has become necessary for any business organisation to find out the
wants of the customers, meet their requirements along with their desires. By satisfying the
customers, it is possible to establish values for the customers along with staying profitable and
maintaining the desired levels of performance (Howgego, 2018). This implies that the
organisations need to possess a strong orientation towards the customers and therefore, they need
to exercise sound CRM for self-prosperity. Customer relationship management is significant in
the banking industry of Singapore, as it is the only process associated with the bank between
staffs and customers and the Qualified Financial Advisors.
In order to undertake the transition successfully for completing cashless banking, it needs
to have exquisite alternatives available to the customers, which would result in effective
customer relationship management. One possible path is to develop a wholly integrated e-
banking system by taking into account all the needs of the customers. Information technology
could have favourable or unfavourable impact on the level of satisfaction of the customers. In

13IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
case, the banks are cashless and the consumers still want to use cash, they need to be able to
draw money from ATMs (Toh, 2018). If there is a glitch in information technology and all
ATMs are compelled to shut down, the customers would experience cash shortage and they
might become highly infuriated. For alleviation of the potential downfalls in the levels of
satisfaction, the bank services need to be used in a value-added manner, as ascertained by the
customers. The banks are required to estimate the expectations of the customers to the banks
becoming cashless along with providing essential customer services. If the banks of Singapore
follow this, they are deemed to be representing effective levels of customer relationship
management.
2.2.3 Communication of change:
For effective communication of change to the customers of the bank, the management
needs to be aware of the various channels of communication, which are suitable to the varying
diverse base (Ledford & Gast, 2018). The customers using certain methods need to continue
receiving information this way; therefore, the bank is efficient in using its resources. The
younger customers of a bank are inclined in using internet and they need to be aware of the
various systems in place on the part of the bank compared to the older customers of a bank. By
using this information, the banks could use websites related to internet banking for
communicating the change to the customers, since they are probable to interact with the same
(Olaoye & Adebayo, 2017). In case, the customer segment is not involved in regular usage of the
web banking, there would be efficiency in e-mail, as they are viewed as the technological
generation.

14IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
2.3 Customer theories:
The initiation of cashless banking has considerable impact on the customers and it is
necessary for reviewing the literature confronting the reactions of the customers along with
conducting a detailed research of the change effect. Therefore, this section could be categorised
into the following sub-categories:
2.3.1 Reaction to change:
The reaction to change of the customers is crucial for successful implementation of the
stated change. The behaviour of the customers as well as their attitude towards the new change
needs to be addressed for accomplishing a successful outcome. According to Nair (2016), the
reaction model of the generic change is inherent. In this model, three faces are inherent, which
include resistant, supportive and neutral. Resistance is created owing to change; and therefore,
the backlash could not be avoided. By introducing cashless banking, there might be a feeling
among the customers that the new organisational structure would influence them negatively
(Jumoke, Olugbenga & Mudasin, 2015). As a result, the customers become resistant to change.
The customers who do not conduct cash transactions with their banks would not be influenced by
the change by remaining neutral. The customers wishing to avail additional customer
relationship management and advice would be boosted by the transition and thus, they would
tend to support cashless banking.
It is noteworthy to mention that that all resistance to change is not damaging owing to
issues that might arise, which are not expected by the banks. These issues could be addresses by
the bank and this would result in stronger organisational structure. According to the research
work of Ewa and Ina (2016), there are certain advantages of resistance to change from the

15IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
customers and the ways through which it could enhance the strategy of an organisation in the
long-run.
2.3.2 Demands by the customers:
As per the liquidity preference theory of John Keynes, it becomes possible to describe the
demand the customers have in order to possess cash. This encompasses three various motives,
which include transaction motives, speculative motives and precautionary motives. The
transaction motive includes the areas, in which the customers have cash for conducting daily
transactions, while the precautionary motive includes the areas, in which the customers hold cash
to combat with emergency situations. The speculative reasons to hold cash are for investments
and the intention is to obtain additional cash by accepting risk (Bátiz-Lazo & Smith, 2016).
Owing to the increasing availability of ATMs and technological progress, the use of debit cards
as well as electronic payments is made. For smaller transactions, the customers use cash, while
for undertaking expensive purchases, debit cards are used.
It has been found that the cost of the transactions to the customers has been a significant
factor for purchase decisions. Moreover, the electronic payments are found to be inexpensive
compared to cash payments; therefore, the customers conduct more transactions by using debit
cards (Sowmya, 2018). Even though there is global acceptance of cash, it is seen as unsafe in
contrast to debit cards. However, it has been argued by Muhibudeen and Haladu (2018) that cash
payments are safer than electronic payments, as it is easy to recover stolen money physically,
instead of retrieving the financial information of a customer by using electronic medium.
There are certain methods to inform the customers regarding change likely to occur in the
banking branches. For instance, the banks could use posters for notifying the customers along

16IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
with making them aware of the probable change. Mass media is another tool that the banks could
use for communicating the change (Paramashivaiah, 2017). Newspaper spreads, online
advertising and television and radio adverts could be used for communicating change to the
public.
2.4 Summary:
From the literature reviewed, different theories related to banks and customers have been
analysed. The literature confronting the actions of the banks represents that enhanced customer
relationship management due to the new organisational structure. After critical review of the
literature related to the customers, different techniques have been assessed for finding out the
ways through which the customers provide response to the change.

17IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Chapter 3: Research Methodology
3.1 Introduction:
The chapter clarifies the reason behind undertaking research methodology and it explains
the primary characteristics of the research design. The literature review section has shed light on
certain areas, which have not been considered previously to the forefront. Therefore, this
research has focused on the ways through which the customers react to change as well as the
lessons learned. This is because it has assisted in determining the impact of cashless banking on
the performance of the banks operating in Singapore.
3.2 Research strategy:
For this particular research, the researcher has chosen the survey research. This is
because the research is aimed at evaluating the performance of the Singapore banks after the
introduction of cashless banking in the nation. The researcher has used the customers of the
different banks operating in Singapore and the recommendations of the research would be open
to the other banks thinking of introducing cashless banking.
3.3 Sample selection:
According to Mackey and Gass (2015), numerous debates have occurred in relation to
choosing an adequate sample size for an examination. It is significant that a fair representation of
the target is used. The sample size that the researcher has selected is essential, since it would
ascertain the validity and accuracy of the research (Taylor, Bogdan & DeVault, 2015). Since the
research is conducted in Singapore, the researcher has considered 30 customers from different
listed banks in Singapore. For selecting the sample, the researcher has chosen probability

18IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
sampling in the form of simple random sampling, as it provides all the participants with equal
opportunities of being selected in the survey process (Lewis, 2015).
3.4 Data analysis plan:
For conducting the data analysis, the researcher has used the MS Excel function to
convert the responses of the bank customers into meaningful graphs, charts and tables. Initially,
the opinions of the respondents have been gathered after the researcher has provided with a
close-ended questionnaire, which is to be filled by the respondents within 7 days. The researcher
has mailed the questionnaire to the 30 customers via e-mail and the responses obtained have
been categorised by using different options. After gathering all responses, the data obtained have
been converted into graphs, tables and charts with the help of Excel function.
3.5 Ethical considerations:
In this research, appropriate code of conduct is followed by the researcher. The
researcher has collected data from authentic sources so that the research outcomes could be
accurate and trustworthy (Flick, 2015). Moreover, the researcher has not asked any personal
information from the customers of the banks for persuading them to participate in the survey
process. Along with this, there would be no disclosure of the identity of the respondents in order
to maintain their confidentiality. Finally, the research paper would not be used for business
purpose and the researcher would not entertain, if the same is done.
3.6 Summary:
Based on the above discussion, it is apparent that the researcher has followed the survey
process by surveying the customers having accounts in the different listed banks of Singapore.
This is because the research is aimed at evaluating the performance of the Singapore banks after

19IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
the introduction of cashless banking in the nation. For conducting the data analysis, the
researcher has used the MS Excel function to convert the responses of the bank customers into
meaningful graphs, charts and tables. Initially, the opinions of the respondents have been
gathered after the researcher has provided with a close-ended questionnaire, which is to be filled
by the respondents within 7 days. Finally, appropriate code of conduct is followed by the
researcher. The researcher has collected data from authentic sources so that the research
outcomes could be accurate and trustworthy.

20IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Chapter 4: Data Analysis and Interpretation
4.1 Introduction:
This chapter represents the findings from the research, evaluates them and provides a
generalised comment on all the research sub-sections. The research findings have been used for
defining the impact of cashless banking on the bank performance through customer survey. This
has assisted in providing answers to the research questions.
4.2 Findings and analysis:
Q1. Tick your age group:
Age group Frequency Total respondents Percentage of responses
18-25 years 19 30 63.33%
26-35 years 7 30 23.33%
35-44 years 2 30 6.67%
45-54 years 2 30 6.67%
Grand Total 30 100.00%
Table 1: Age group of the respondents
(Source: As created by author)

21IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
18-25 years 26-35 years 35-44 years 45-54 years
0
2
4
6
8
10
12
14
16
18
20 19
7
2 2
Age group
Figure 1: Age group of the respondents
(Source: As created by author)
According to the above figure, it is evident that most of the customers of the chosen
banks fall between the age group of 18-25 years. This implies that maximum customers of the
banks fall within this age group; however, only 36.67% of the total respondents fall above the
stated age group, which is identified as a major concern for the researcher.
Q2. Which bank category do you consider as technologically advanced?
Sector
Frequenc
y Total respondents Percentage of responses
Private sector banks 17 30 56.67%
Public sector banks 13 30 43.33%
Grand Total 30 100.00%

22IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Table 2: Technological advancements
(Source: As created by author)
Private sector banks Public sector banks
0
2
4
6
8
10
12
14
16
18 17
13
Technological advancement
Figure 2: Technological advancements
(Source: As created by author)
The above diagram clearly illustrates the fact that most of the respondents think the
private sector banks to be technologically advanced compared to the public sector banks. This is
because that the government of Singapore is yet to implement cashless banking in all its banks,
while the private banks have adopted this system to provide maximum convenience to the
customers. It has been analysed in the literature review section 2.2.1 that the Singapore banking
sector has witnessed significant change with few banks becoming entirely cashless and others
providing a number of cashless services. Thus, in terms of technology, the private sector banks
are leading the sector.
Q3. Which factor promotes you the new banking techniques?
Promotion Frequency Total respondents Percentage of responses

23IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Cost effectiveness 8 30 26.67%
Ease of use 4 30 13.33%
Minimised transaction time 10 30 33.33%
Technology savvy 8 30 26.67%
Grand Total 30 100.00%
Table 3: Factors promoting new banking techniques
(Source: As created by author)
Cost effectiveness Ease of use Minimised
transaction time Technology savvy
0
2
4
6
8
10
12
8
4
10
8
Factors promoting new banking techniques
Figure 3: Factors promoting new banking techniques
(Source: As created by author)
As per the above figure, it is evident that 33.33% of the respondents think the main
benefit by using cashless banking is minimised transaction time. This is because if the customers

24IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
have to avail cash services, they need to visit their nearest branches for making cash transactions.
However, with the help of cashless banking, it becomes possible for them to conduct monetary
transactions at their convenient places. As evident from the literature review section 2.2.2, one
possible path is to develop a wholly integrated e-banking system by taking into account all the
needs of the customers. Thus, by using e-banking services provided by the banks of Singapore,
the customers could make transactions at a rapid pace and this has assisted in increasing the
profitability level of the banks.
Q4. Do you think cashless banking has been superior compared to cash services provided
by the banks?
Superiority Frequency Total respondents Percentage of responses
Strongly agree 16 30 53%
Agree 9 30 30%
Neutral 3 30 10%
Disagree 2 30 7%
Strongly disagree 0 30 0%
Grand total 30 100%
Table 4: Superiority of cashless banking over cash services
(Source: As created by author)

25IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Strongly agree Agree Neutral Disagree Strongly
disagree
0
2
4
6
8
10
12
14
16
18 16
9
3 2
0
Superiority of cashless banking
Figure 4: Superiority of cashless banking over cash services
(Source: As created by author)
It is apparent from the above figure that 53% of the respondents have strongly agreed to
the fact that cashless banking provides additional and better features that could not be provided
by cash services at the banks of Singapore. It has been identified from the literature review
section 2.3.2 that owing to the increasing availability of ATMs and technological progress, the
use of debit cards as well as electronic payments is made. For smaller transactions, the customers
use cash, while for undertaking expensive purchases, debit cards are used. These are the primary
reasons that the customers think cashless banking to be superior over cash services.
Q5. Do you find presence of adequate online platforms for availing cashless banking
facilities?
Online platform Frequency Total respondents Percentage of responses
Strongly agree 15 30 50%
Agree 11 30 37%

26IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Neutral 4 30 13%
Disagree 0 30 0%
Strongly disagree 0 30 0%
Grand total 30 100%
Table 5: Presence of online platform
(Source: As created by author)
Strongly agree Agree Neutral Disagree Strongly
disagree
0
2
4
6
8
10
12
14
16 15
11
4
0 0
Online platform
Figure 5: Presence of online platform
(Source: As created by author)
The above figure clearly illustrates the fact that majority of the respondents find adequate
online platforms for availing cashless banking services. As evaluated in the literature review
section 2.3.1, the reaction to change of the customers is crucial for successful implementation of
the stated change. The behaviour of the customers as well as their attitude towards the new

27IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
change needs to be addressed for accomplishing a successful outcome. In this case, most of the
banks of Singapore have implemented the cashless banking system successfully through the use
of advanced technologies and thus, the nation is deemed to be progressing technologically in the
banking sector. As a result, the banks of Singapore have managed to maintain competitive
advantage in the market.
Q6. How satisfied are you with the current cashless banking services provided by the
banks?
Online platform Frequency Total respondents Percentage of responses
Strongly satisfied 16 30 53%
Satisfied 9 30 30%
Neutral 4 30 13%
Dissatisfied 1 30 3%
Strongly dissatisfied 0 30 0%
Grand total 30 100%
Table 6: Satisfaction level of the customers
(Source: As created by author)

28IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Strongly
satisfied Satisfied Neutral Dissatisfied Strongly
dissatisfied
0
2
4
6
8
10
12
14
16
18 16
9
4
1 0
Customer satisfaction
Figure 6: Satisfaction level of the customers
(Source: As created by author)
As apparent from the figure, maximum customers are observed to be extremely satisfied
with the cashless banking services provided by the banks of Singapore. It has been assessed from
the literature review section 2.2.2 that for alleviation of the potential downfalls in the levels of
satisfaction, the bank services need to be used in a value-added manner, as ascertained by the
customers. The banks are required to estimate the expectations of the customers to the banks
becoming cashless along with providing essential customer services. The banks of Singapore are
found to be following this pattern successfully and thus, they have achieved success in providing
maximum satisfaction to the customers through the cashless banking system.
4.3 Summary:
Based on the above analysis, it is inherent that the banks of Singapore have implemented
the cashless banking system successfully; however, it is yet to be popularised in the public sector
banks. Moreover, it has been found that with the help of cashless banking, the customers are able

29IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
to minimise their transaction time for purchasing any necessary products and services. Finally, it
has been found that the banks have increased their online presence in the nation due to which the
satisfaction level of the customers has been maximised. Therefore, it could be inferred that the
cashless banking system implemented by the banks of Singapore have made positive
contributions to the economy of the nation.

30IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Chapter 5: Conclusion and Recommendations
5.1 Linking with the objectives:
Linking with objective 1: To identify the role of cashless banking in developing bank
profitability in Singapore
The survey questions 2 and 3 help in fulfilling this particular research objective. It has
been evaluated that the private sector banks in Singapore are more prone towards implementing
the cashless banking system than the public sector banks. However, the initiation of this system
has increased online transactions and the customers find it convenient to purchase stuffs from
their nearest locations. In addition, it has been analysed that the increasing number of ATMs and
use of debit cards for expense purchases have helped the banks to increase their profitability
level.
Linking with objective 2: To analyse the role of cashless banking in developing competitive
edge for the banks of Singapore
The survey question 5 has partially fulfilled this objective. This is because due to the
limited timeframe, the researcher has not been able to collect secondary data, which could have
added more to meeting this objective fully. However, from the opinions of the surveyed
customers, it has been gathered that many banks have successfully implemented cashless
banking system; thus, making it easier for the customers to perform transactions without
worrying about cash. This has definitely contributed in developing competitive advantage to a
certain extent for the banks of Singapore.

31IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Linking with objective 3: To know the contribution of cashless banking to the creation of
customer satisfaction
The survey question 6 has helped in fulfilling this objective. It has been evaluated that the
banks are successful in estimating the needs and demands of the customers and accordingly, they
have designed the cashless banking system. This has added values to the wants of the customers,
which have helped in maximising their satisfaction level.
5.2 Recommendations:
Recommendation 1: The banks of Singapore are needed to provide alternative areas for the
customers so that they could deposit and withdraw cash. With the help of such alternative places,
any negative impact of cashless banking on the customers would be minimised, as they would
still be able to access the identical features in different places like before.
Recommendation 2: The government of Singapore needs to encourage its public sector banks to
initiate the cashless banking system, in which it has not yet been initiated. The customers prefer
using online platforms for making expensive purchases rather than cash and hence, focusing
more on cashless banking would add further to their profitability and the economy of the nation.
5.3 Limitations and future scope of the research:
There are certain limitations in this research, one of which is the limited number of
respondents due to limited timeframe. Another limitation is the inability of the researcher to use
secondary data, which could have contributed immensely to the research findings, especially the
role of cashless banking in developing the economy of Singapore. Therefore, this research could
be undertaken in future by undertaking increased number of respondents and consideration of
secondary data.

32IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
References:
Alao, A. A., & Sorinola, O. O. (2015). Cashless policy and customers’ satisfaction: A study of
commercial banks in Ogun State, Nigeria. Research Journal of Finance and
Accounting, 6(2), 37-47.
Bátiz-Lazo, B., & Smith, A. (2016). The Industrial Organization of Hong Kong's Progression
Toward a Cashless Economy (1960s-2000s). IEEE Annals of the History of
Computing, 38(2), 54-65.
Dzombo, G. K., Kilika, J. M., & Maingi, J. (2017). The Effect of Branchless Banking Strategy
on the Financial Performance of Commercial Banks in Kenya. International Journal of
Financial Research, 8(4), 167.
Ewa, K. E., & Ina, E. U. (2016). Evaluating Nigeria Cashless Policy
Implementation. International Journal of Business and Social Research, 6(5), 17-27.
Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Howgego, J. (2018). Goodbye, cash?. New Scientist, 239(3192), 36-40.
Jumoke, S., Olugbenga, S. B., & Mudasin, H. (2015). Nigerian cashless culture: The open
issues. International Journal of Engineering Sciences, 4(4), 51-56.

33IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Kamboh, K. M., & Leghari, M. E. J. (2016). Impact of cashless banking on profitability: A case
study of banking industry of Pakistan. Paradigms, 10(2), 82.
Ledford, J. R., & Gast, D. L. (2018). Single case research methodology: Applications in special
education and behavioral sciences. Routledge.
Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), 473-475.
Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design.
Routledge.
Muhibudeen, L., & Haladu, A. (2018). The Impact of Cashless Policy Tools on Money
Circulating Outside Nigerian Banks. In State-of-the-Art Theories and Empirical
Evidence (pp. 227-238). Springer, Singapore.
Nair, V. P. (2016). Eschewing cash: the challenges of cashless transactions in the
Philippines. Journal of Southeast Asian Economies (JSEAE), 33(3), 387-397.
Ng, D. (2018). Evolution of digital payments: Early learnings from Singapore’s cashless
payment drive. Journal of Payments Strategy & Systems, 11(4), 306-312.
Olaoye, F. O., & Adebayo, I. A. (2017). Empirical Evaluation of Government Cashless Policy
and Accountants’ Workload in Selected Higher Institutions’ in Ekiti State,
Nigeria. International Journal of Innovative Research and Development, 6(10), 245-256.
Paramashivaiah, P. (2017). Is Demonitisation Directional to Cashless Economy?. Adarsh Journal
of Management Research, 19(2), 79-87.

34IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Sowmya, K. (2018). Cashless economy-The demand of the day. GLOBAL JOURNAL FOR
RESEARCH ANALYSIS, 6(3), 129-142.
Taasim, S. I., & Yusoff, R. (2018). An Instruments Developing Cashless in Malaysia. Shirkah:
Journal of Economics and Business, 2(2), 12-25.
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Toh, M. H. (2018). Effectiveness of Cash Management Technologies and Cashless Payments in
Retail and Food Services Sectors. World Scientific Book Chapters, 42(9), 263-309.
Ugwueze, A. C., & Nwezeaku, N. C. (2016). E-banking and commercial bank performance in
nigeria: A cointegration and causality approach. International Journal of e-Education, e-
Business, e-Management and e-Learning, 6(3), 175.

35IMPACT OF CASHLESS BANKING ON THE PERFORMANCE OF THE BANKS
Appendix:
Survey Questionnaire:
Q1. Tick your age group:
 18-25 years
 26-35 years
 35-44 years
 45-54 years
 55 years and above
Q2. Which bank category do you consider as technologically advanced?
 Public sector banks
 Private sector banks
Q3. Which factor promotes you the new banking techniques?
 Minimised transaction time
 Cost effectiveness
 Ease of use
 Technology savvy
Q4. Do you think cashless banking has been superior compared to cash services provided
by the banks?
 Strongly agree
 Agree