The Nexus Among Cashless Economy, Bank Performance and Economic Growth in Zimbabwe 2014-2021.

Abstract

What prompted this research is that there is a quantum leap in the use of cashless transactions in 
Zimbabwe that is more than in financial sector and economic growth. Hence, the study examined 
whether the adoption of cashless transactions necessitates economic growth through enhancing 
bank performance in Zimbabwe. The study used quarterly data from Zimbabwean national bank 
sector reports, World Bank and Zimstat for the period 2014-2021 and a 2-stage least square method 
for the analysis. The results show that, cashless transactions lead to the growth of Zimbabwe’s 
gross domestic product through enhancing bank performance. This study recommends that banks 
should promote the use of internet banking to realise more profits and fuel economic growth.