ASSESSMENT OF BANKING BEHAVIOUR OF RURAL HOUSEHOLDS IN AKKO LOCAL GOVERNMENT AREA OF GOMBE STATE, NIGERIA

Abstract

This study aimed to investigate the banking behavior of rural households in Akko Local
Government Area of Gombe State, Nigeria. A multistage sampling technique was adopted for the
study. The study was designed to identify the banking methods of rural households in the study
area. Data for the study were obtained via a questionnaire and analyzed with the aid of descriptive
statistics. The findings showed that most (70%) of the rural households in the study area used
the Rotating Savings and Credit Association (ROSCAS) as their choice of banking method. The
study also revealed that a low level of financial literacy and awareness (mean = 3.66) is the major
factor influencing the choice of banking in the study area. The study concludes that unorganized
or informal rural household banking methods are the most preferred banking methods by rural
households owing to their lack of access to formal banking services. The study recommends that
the government and financial institutions should provide more access to credit facilities and
financial education programs in rural areas to improve the financial literacy and awareness of rural
households. Additionally, the study suggests that the government should promote the
establishment of more formal banking institutions in rural areas to provide convenient and reliable
banking services to rural households.