Factors Determining Adoption 0f Banking Financial Services Among the Fishing Communities in Mbita District, Kenya

Abstract

The fishing commuruties has been viewed as among the most risky groups to provide financial services to, yet the exact nature and extent of the prevailing challenges hindering the adoption of financial services or attributed to this riskiness is not known This study was conducted to examine the factors determining adoption of banking financial services among the fishing communities in Mbita District, Kenya. Specifically the study Determines the extent to which financial education affects adoption of banking financial services among the fishing communities in Mbita District; establish the influence of socio-cultural networks on adoption of banking financial services among the fishing Communities in Mbita District; determine the extent to which the nature of fishers financial needs affect adoption of banking financial services by the fishing communities in Mbita District and determine the effect of growth in financial on adoption of banking financial services by the fishing communities in Mbita. The study was conducted through explanatory survey; data was collected using structured questionnaires based on 5 point likert scale and interview responses from 384 fisher folks and 10 officers from financial institutions randomly selected from the accessible population within the 5 landing beaches in the district Secondary data from financial institutions around these beaches was also soughted. With the aid of Statistical Package for Social Sciences (SPSS), the data was analyzed using correlation, regression and descriptive analysis Bar graphs and tables were used to present the data. The findings of the study were: Financial education (B=-.193, t=-2.953, p<O.OOI), Financial Education with sig of .001 had a strong significance to adoption of financial services and was thus statistically significant This implies that Financial Education determines the adoption of financial services, Sociocultural networks (B=359, t=5.129, p<O.OOI),with sig of .001 had also a strong significance to the adoption of financial services. This implies that Socio-cultural factors affect the adoption of financial services and lastly on the development of financial markets, (B=324, t=4.383, p<O.OOO).Financial markets with sig of .000 had a strong significance to adoption of financial services and was thus statistically significant. The study therefore recommends: Financial Institutions in Mbita District should proactively initiate financial education and extensive advertising of their products and services to the fishing communities to help them fully adopt banking and other financial services that will help them save, invest and expand their fishing businesses. There is also need to sensitize the fishing communities on the negative socio-cultural networks that hinder them from adopting the financial services towards a positive culture that encourages savings, entrepreneurial skills and investments. Financial institutions should develop their financial market that fits on the needs and the nature of the fishing communities They should also review their working policies to conform their products and services to suit the unique needs of the fishing communities and make those products and services cheaper for the fishing communities. The study contributed significantly to the existing literature in the area of adoption of financial services among the fishing communities and further research.