Analysis of the Factors Affecting Adoption of Mobile Lending by the Farmer Cooperative Members in Calauan, Laguna, 2024

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaymee A. Cabangbang

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

Digital financial technology has been increasing in relevance in the Philippines. The Philippines has a low level of banking penetration and reliance on informal lending. The credit needs of farmers in Calauan were identified in previous studies and the need to improve access to credit was recommended. Recently, the cooperatives’ leadership expressed interest in expanding the credit services to members through mobile lending. Rizal Commercial Banking Corporation has planned and implemented their Moneybela assisted mobile banking in Calauan, Laguna and other areas in the Philippines.

This study aims to identify significant factors in the adoption of mobile lending. The Unified Theory of Acceptance and Use of Technology was used as the main theoretical background. The creation of a model that shows the direct effect of theoretical factors and trust on the behavioral intention to adopt mobile lending by the farmer cooperative members as measured by the indicators was a primary focus of this study.

Data was collected through scheduled interviews in the locale of the cooperatives involved. The Inang Kalikasan Agriculture Cooperative and Imok Agrarian Reform Community Women and Farmers Agriculture Cooperative were the cooperatives studied because of their agricultural operations as accredited by the Municipal Agriculturist. Partial Least Squares Structural Equation Modeling using SmartPLS software was done to analyze the Likert scale data gathered on Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, and Trust as factors affecting the Behavioral Intention to adopt mobile lending. Qualitative data was also collected to better understand the features and hindrances of mobile lending as perceived by the farmer cooperative members.

Performance Expectancy and Trust were statistically significant factors with a positive relationship in the behavioral intention to adopt mobile lending. Thematic analysis found that cooperative members were mainly hesitant to adopt due to fear of negative outcomes such as scams and credit problems. The respondents also recognized the accessibility and convenience of mobile lending as the most beneficial features to them.

It is recommended that mobile lenders conduct further information campaigns to educate potential users in rural areas. They should highlight the possible utility and trustworthiness of their platform. This can be shown through competitive interest rates and repayment schemes and digital cybersecurity features. Future researchers should conduct follow up studies on the adoption of mobile lending and financial technologies to better track the progress and path to adoption of users.

Language

English

LC Subject

Financial institutions, Cellphones, Loans

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 B33

Notes

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Document Type

Thesis

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