IMPACT OF POS BANKING ON CHURCHES

IMPACT OF POS BANKING ON CHURCHES

CHAPTER ONE

INTRODUCTION

1. BACKGROUND TO THE STUDY

As we move further into the twenty-first century, it appears that the church and modern technologies are becoming increasingly intertwined” (Hoover 2006). This assertion clearly defines the relationship between religious belief and the new information and communication technologies that are the most defining media tools of the twenty-first century. ICT-driven technologies can be used in virtually every aspect of church life, including the payment system (Ovia, 2005). Members of the church, on the other hand, make various types of payments. Tithe, general offering, special offering, thanksgiving, harvest, covenant offering, offering for the less privileged/needy, building construction donations, and other common payments made during church service are listed below.

Monetary authorities have closely monitored and promoted the role and importance of efficient payment systems.

in all countries. However, the Nigerian cash-based payment system cannot and has not ensured the much-needed efficient and effective transactions required for long-term economic development. Armed robberies, the use of counterfeit bank notes, frauds, the inconvenience of carrying large amounts of currency notes, long periods of waiting in bank halls, frequent trips to banks, and the frequent printing of bank notes are among the problems frequently associated with cash transactions (Nnanna and Ajayi, 2005). However, churches in Nigeria are beginning to participate in this cashless payment system by incorporating modern and cashless payment methods, particularly the use of PoS.

Point-of-sale (PoS) systems have always been around in many forms for a number of years now. These systems are used by many businesses not only to

Accept payments, but also provide operational information such as accounting, sales tracking, and inventory management. So far, this system has gone a long way toward improving customer experience through customer loyalty programs and business suggestions (Ojo, 2004). Nowadays, POS systems are used not only in business settings but also in churches, which has had a significant impact on churches. Though there have been various arguments and criticisms among Christians in Nigeria that the use of POSsystem in church is ungodly, and this has been one of the major challenges faced by the use of this system in Nigerian churches.

According to some church executives in Nigeria, the banks offered it to the church, and since the world was going digital, members should try to fit in as well. They also claim that it would alleviate the stress of searching for change every Sunday, as well as those who forget to bring money to church. So, when you get to church, all you have to do is use your ATM card at the designated points and collect your receipts! You present these receipts as an offering at the altar to promote efficiency and accountability.

1. STATEMENT OF PROBLEM

The reliance on cash-based systems of donation and offering in churches, on the other hand, has been found to be risky and inconvenient because money outside of banks cannot be subjected to regulatory and operational procedures, and the ability of monetary policy to achieve set objectives in the presence of significant currency out of bank (COB) is thus limited. As a result, many churches use POS to collect offerings and donations from members in order to avoid the risks associated with carrying cash around. Nigerians’ cash-carrying nature is also responsible for a large pool of money in the hands of unbanked citizens. There has been no research into the impact of POS on churches. The researcher, on the other hand, is looking into the impact of POS on churches.

1. OBJECTIVES OF STUDY

The following are the study’s objectives:

To investigate the effect of POS on churches.
To investigate the current payment method/system in churches.
To investigate the POS limitations on the church payment system

1. RESEARCH QUESTIONS

What effect does POS have on churches?

What payment methods/systems are currently in use in churches?
What are the limitations of the church payment system when using POS?

1.5 RESEARCH HYPOTHESIS

H0: the use of point-of-sale (POS) in churches does not promote efficiency or accountability.

H1: Using POS in churches increases efficiency and accountability.

1.5   SIGNIFICANCE OF STUDY

The following are the study’s implications:

The study’s findings will educate church leaders and executives, as well as the general public in Nigeria, on how to use the CBN’s cashless policy to promote efficiency in the churches.
This research will also serve as a resource base for other scholars and researchers interested in conducting additional research in this field in the future, and if applied, will go so far as to provide new explanations for the topic.

1.6   SCOPE/LIMITATIONS OF STUDY

This study will compare the existing payment structures in churches to the modern POS payment system, taking into account the benefits of POS in the collection of offerings and donations in churches.

Study limitations

Financial constraint- Inadequate funding tends to impede the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection process (internet, questionnaire and interview).
Time constraint- The researcher will conduct this study alongside other academic work. As a result, the amount of time spent on research will be reduced.

REFERENCES

“An overview of Nigeria’s payments system,” Nnanna OJ and Ajayi M (2005). Central Bank of Nigeria publication 2(1):1-7.

Ojo A.T. (2004). “Theoretical Framework for Improving Payment System Efficiency,” A paper presented at the 9th Central Bank of Nigeria Monetary Policy Forum.

M. Hoover (2006), “Factors Influencing Internet Banking Adoption,” J. Assoc. Inform. Syst. 1:1-42.

“Enhancing the Efficiency of the Nigerian Payments System,” J. Ovia (2005).

Nigerian Central Bank. 29 (1): 8-20.