IMPACT OF POINT OF SALE (POS) BANKING ON CHURCHES
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The church and the modern technologies seem to be
ever more connected as we move further into the twenty-first century” (Hoover
2006). This assertion clearly defines the link between religious belief and the
new information and communication technologies which are the most defining
media instruments of the twenty-first century. ICT driven technologies can be
applied in virtually all areas of the church activities including the payment
system (Ovia, 2005). However, different types of payment are done by members in
the church. Examples of common payments done during church service includes
tithe, general offering, special offering, thanksgiving, harvest, covenant
offering, offering for the less privileged/needy, building construction
donations etc.
The role and importance of efficient payment
systems has been closely monitored and promoted by monetary authorities in all countries. However, the
Nigerian payment system that is cash-driven cannot and has not guaranteed the
much needed efficient and effective transactions required for a sustainable
economic development. Among the problems often associated with cash
transactions are armed robberies, use of counterfeit bank notes, frauds,
inconveniences of carrying large quantities of currency notes, long period of
waiting in bank halls, frequent trips to banks, frequent printing of bank notes
(Nnanna and Ajayi, 2005). However, churches in Nigeria are beginning to key in
into this cashless system of payment by incorporating modern and cashless
method of payment especially the use of PoS.
Point-of-sale (PoS) systems
have always been around in many forms for a number of years now. Many
businesses use these systems not only to accept payment, but to provide other
operational information such as accounting, sales tracking, and inventory
management. Thus far, this system has gone a long way in improving customer’s
experience through customer loyalty programs and suggestions in businesses
(Ojo, 2004). Nowadays, the use of POS system is not only available in business
set ups but also in churches which have gone a long way in impacting churches. Though
for a number of reasons in Nigeria, there has been various arguments and
criticisms among Christians that the use of POS system in church is ungodly and
this has been one of the major challenges faced by the use of this system in
Nigerian churches.
Some
church executives in Nigeria has come to say that the banks offered it to the
church and since the world was going digital, the members should try and also
fit in. They also say it would ease the stress of looking for change every
Sunday and for those who forget to bring money to church. So all that is needed
to be done is when you get to church is to use your ATM card at the designated
points, and collect your receipts! It’s these receipts that you present at the
altar as offering to promote efficient and accountability.
1.2
STATEMENT OF PROBLEM
Reliance
on cash based system of donation and offering in churches has however been
found to be risky and cumbersome because money outside the banks cannot be
subjected to regulatory and operational procedures, and the ability of monetary
policy to achieve set objectives in the presence of sizeable currency out of
Bank (COB) is therefore limited. Hence, many churches makes use of POS for
offering and donation collection from members to prevent the risks involved in
carrying cash about. This cash carrying character of Nigerians is also
responsible for large pool of money in the hands of the unbanked citizens. No
research has been carried on the impact of POS on churches. However, the researcher is examining the impact of POS on churches.
1.3
OBJECTIVES OF STUDY
The following are the objectives of
this study:
1. To examine the impact of POS on
churches.
2. To examine the existing payment
method/system in churches.
3. To examine the limitations of POS on
church payment system
1.4
RESEARCH QUESTIONS
1. What
is the impact of POS on churches?
2.
What are the existing payment methods/systems in churches?
3.
What are the limitations of POS on church payment system?
1.5 SIGNIFICANCE OF
STUDY
The following are the significance of
this study:
1. Findings from this study will educate
church authorities and executives and the general public in Nigeria on how they
can key in to the CBN cashless policy to promote efficiency in the churches.
2. This research will also serve as a
resource base to other scholars and researchers interested in carrying out
further research in this field subsequently, if applied will go to an extent to
provide new explanation to the topic.
1.6 SCOPE/LIMITATIONS
OF STUDY
This study will cover the existing
payment structures in churches with comparison to the modern payment system of
POS considering the benefits of POS in the collection of offering and donations
in churches.
Limitations of study
1.
Financial constraint– Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
2.
Time constraint– The researcher will simultaneously
engage in this study with other academic work. This consequently will cut down
on the time devoted for the research work.
REFERENCES
Nnanna
OJ, Ajayi M (2005), “An overview of the payments system in Nigeria.”
Publication of Central Bank of Nigeria 2 (1):1-7.
Ojo
A.T. (2004). “Enhancing the efficiency of the payment system: conceptual
framework,” A Paper Presented at the 9th C.B.N. Monetary Policy Forum.
Hoover
M (2006). Factors Influencing the Adoption of Internet Banking,” J. Assoc.
Inform. Syst. 1:1-42.
Ovia
J (2005). “Enhancing the efficiency of the Nigerian payments system.” Central
Bank of Nigeria. 29 (1): 8-20.