Innovative ICT-Based Services: Drivers of Transition to Cash-less Society and Competitive Advantage in the Nigerian Banking Industry

Nigeria is currently undergoing a transition to cashless economy, and banks are vital players in achieving this important goal. With effective and efficient use of Information and Communication Technologies (ICTs), banks are poised to use e-banking channels to promote better and safer customer services as well as achieve competitive advantage. The study found that some limited forms of cash-less banking already existed in the country even before the pronouncement of the cashless policy by the central bank, and thus traced the adoption of ICTs in the Nigerian banking industry and its application as a competitive tool. Banks have to contend with non-bank institutions as well, since the application of ICTs for funds transfer is not limited to banks alone. The study was based on desk review of secondary data regarding adoption of ICTs in banks as well as reports and comments by informed analysts. The major channels for cashless banking services in the country were discussed, along with their implications for the banks, customers and the society at large. The challenges facing the adoption of the cashless banking initiative by Nigerians were identified and suggestions proffered on how to improve the adoption and efficiency of cashless banking in the country.