A Study: Impact of Cashless Banking on Bank Performance

This report examines the impact of cashless banking on the performance of banks in Singapore. The study investigates the shift towards cashless systems, analyzing how these changes affect profitability, customer satisfaction, and competitive advantage. The research includes an introduction to the topic, a literature review covering bank and customer theories, and a detailed research methodology. Data analysis, based on customer surveys and other sources, reveals insights into the benefits and challenges of cashless banking. Findings highlight improvements in customer transaction times, increased online presence, and enhanced customer satisfaction. The report also discusses limitations, recommendations, and future research scopes. The findings suggest that cashless banking has a positive impact on the banks' performance and customer satisfaction.

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