CONSUMER PREFERENCES FOR FINANCIAL SERVICE CHANNELS IN AN EMERGING ECONOMY: A STUDY OF ABEOKUTA METROPOLIS

Abstract

The purpose of this study is to analyse the channel preferences for financial transactions in Abeokuta Metropolis. Primary source of data was adopted using questionnaires.  This study adopt a descriptive research design that involves administration of questionnaires to 100 adult residents of Abeokuta metropolis with at least one bank account. Information collected include demographic data (age, education, income); value of financial transaction in ranges (≤ N5,000.00, ≤ N10,000.00, ≤ N20,000.00, ≤ N50,000.00, ≤ N100,000.00, > N100,000.00); type of operation (deposit, withdrawal) and the preferred mode of executing the transaction (Bank branch, POS, ATM). The data are analysed using frequency counts and percentages. The results indicate that 50% of the respondents favour the use of POS (from agents of MMOs) to withdraw cash less than N5,000 while 61.8% would go to the bank branch if the amount is above N100, 000. The equivalent proportion for deposit transactions are 49.8% and 74% respectively. The study concludes that customers prefer to use the cash services of MMOs for small value day-to-day economic activities in Abeokuta metropolis. The study recommends that measures should be taken by Deposit Money Banks to provide flexible, convenient financial services to Customers who are in the active productive population of the nation. Also, the CBN also needs to consider the activities of MMOs while taking monetary policy decisions in tackling inflationary pressure and maintaining a sound financial system.