Determinants of adoption of risk management strategies in electronic banking among agro-entrepreneurs in Ughelli North Local Government Area of Delta State, Nigeria

Abstract

This study examined the determinants of adoption of risk management strategies in electronic banking (digital finance) among agro entrepreneurs in Ughelli North local Government area of delta state, Nigeria. Data were collected with the aid of structured questionnaire, administered on 79 respondents using two-stage sampling procedure. The data were analyzed with the use of descriptive statistics and regression analysis. This study showed that 34.0% of the respondents were male while 57.0% of the respondents were female, 39.2% of the respondents were in the age bracket of 41-50 years. The regression result shows that gender, age, marital status, level of education, farming status were all significant factors that influence risk management strategies in electronic banking. Household size, business experience, income and savings were not significant. Also, it was found that constraints faced by agro entrepreneur in adopting these risk management strategies includes the length of time it takes for unsuccessful funds transfer to be returned, the delayed response of banks to issues relating to electronic banking risks, ATM are not readily available and the ones that are, are usually congested resulting to agro entrepreneurs using the ATM at odd hours, amongst others. Proper awareness on these risk management strategies should be given to these rural entrepreneurs, and government should charge banks with the sole responsibility of providing a more secure and coordinated methods of carrying out these activities.

Keywords: digital finance, electronic banking risks, ATM and cyber security