Abstract
Pakistani banking industry is at
transforming stage, making investment in
technology to upgrade its infrastructure for
implementation of cashless banking in the
country. This study examines the impact of
cashless banking on profitability of
Pakistani banking industry. To measure
cashless banking in the country proxies of
Automated Teller Machines Transactions
(ATMT), Point of Sales Transactions
(POST), Call Center Banking Transactions
(CCT) and Mobile Banking Transactions
(MOBT) are used to examine their impact
on aggregate Return on Equity (ROE) of
the banking industry. Ordinary Least
Square (OLS) multiple regressions are used
to obtain the results and data from 2nd
quarter of 2007 to 4th quarter of 2014 is
used. The results show that POST and
MOBT are positively significantly related
to ROE, CCT and ATMT are negatively
significantly associated with profitability.
Recommendations are made that banks
should educate their customers to use of
internet banking services, because it
reduces time cost of both. Call center
banking customer’s confidence should be
built so they can use this channel without
any fear.
KASHIF MEHMOOD KAMBOH, MUHAMMAD EHSAN JAVAID LEGHARI. (2016) IMPACT OF CASHLESS BANKING ON PROFITABILITY: A CASE STUDY OF BANKING INDUSTRY OF PAKISTAN, Paradigms , Vol 10, Issue 2 .
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