Cashless economy and strategic impact on bank marketing

This study has been undertaken among some selected public sector and private sector banks operating in Dimapur city of Indian State of Nagaland to understand the strategic impact of cashless economy on the bank marketing policy. The obstacles faced by the banks in the implementation of cashless payment systems also highlighted in this study. A conceptual framework model has been developed to explain the impact of cashless economy on the marketing strategies of banks. The model has been tested on the sample of bank employees and customers. Hypothesis was tested using Chi square test. Pearson Correlation test has been used to investigate the relationships between the variables. Result showed that there is a positive relationship between cashless economy and bank marketing strategies. Banks emphasised on digital marketing strategies to reach the targeted customers and market its products using different digital marketing channels such as Internet Banking, digital advertisement, social media marketing, mobile marketing etc. Study also revealed that obstacle faced by the banks for implementation of cashless payment systems are low literacy rate, lack of awareness, less number of POS machines (Point of Sale), less number of ATM, low mobile internet penetration, safety issue and lack of technical knowledge.