An analysis of the effect of plastic money on profitability of banks: a case study ofCBZ bank limited.

Abstract

This research was aimed at investigating the effects of plastic money on profitability of banks. A mixed research approach was used to describe the phenomenon as it naturally happens (descriptive design). The data was collected from CBZ Bank Limited with a target population of forty seven (47) personnel. A sample was used were thirty three questionnaires and seven interviews were administered to the population. The key result of the study indicated that increased use of plastic money reduce profitability of banks. A major recommendation suggested that banks tilt their product mixes toward fee-based activities and away from traditional intermediation activities. A further study was proposed to evaluate the effect of product mix on profitability of banks.