Cogent Economics & Finance (Dec 2024)
Extending the Theory of Planned Behavior in financial inclusion participation model – evidence from an emerging economy
Abstract
AbstractRecently, researchers have deployed the Theory of Planned Behavior (TPB) to examine factors influencing financial inclusion participation behaviour. However, more must be made to expand the theory by integrating sectoral and contextual variables. Hence, this study extends TPB by intergrating additional financial inclusion participation behavior determinants in Nigeria, an emerging economy. The study employed a quantitative research methodology with a positivist research design. The target population included 23 million adults aged 15 years and above in Northwest Nigeria. From this population, a sample of 500 adults was selected using a stratified simple random sampling technique. Data from the sample was collected through survey questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings revealed that all the original TPB variables, attitude, subjective norms, perceived behavioural control, and behavioural Intention, strongly influenced financial inclusion participation. It was also found that of the three new variables included, awareness and government support significantly influenced financial inclusion participation behaviour. In contrast, access to banking and digital channels was found to be insignificant. These findings imply that for better financial inclusion and participation, the government should play a proactive role in ensuring essential awareness about new banking products and services, especially those that align with the dominant religious beliefs of the Northwestern region, such as Shariah-compliant banking products and services. Additionally, policy support should be extended to enhance access to banking and digital channels for Nigeria’s underserved communities.
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