Perception and Behavioral Intention Towards Financial Technologies of Rice Farmers in Selected Municipalities of Laguna

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

Committee Member

Fitz D. Jimenez, Gemma U. Reyes, Mar B. Cruz

Abstract

Currently, little research exists regarding the attitudes of rice farmers towards using financial technologies (fintech) as a tool for managing financial transactions on their farms. The study entitled, “Perception and Behavioral Intention towards Financial Technologies of Rice Farmers in Selected Municipalities of Laguna” was conducted with the general objective of determining the perception and behavioral intentions to financial technologies of rice farmers. Specifically, the study aimed to: 1) present the profile of rice farmers and their farms in the selected areas in Laguna; 2) describe the fintech services that are utilized by the rice farmers; 3) determine the rice farmers’ perceived usefulness, perceived ease of use, and other external factors affecting the usage of fintech; 4) analyze the adoption of fintech services across different demographics; 5) assess the challenges and opportunities in the adoption of fintech among rice farmers; and 6) recommend strategies for key stake holders to facilitate adoption of fintech products and services.

Rice farming is a critical component of the Philippine economy, employing a significant portion of the population and contributing substantially to the country’s agricultural output. However, rice farmers encounter various challenges, including limited access to formal financial institutions, inadequate credit facilities, cumbersome loan application processes, and high transaction costs. Effective agricultural financing and risk management are vital for sustainability and growth of rice farming. Fintech, the integration of financial services and technology, has the potential to revolutionize the financial landscape in the Philippines, especially for individuals engaged in agriculture. Through this study, the author gained valuable insights into the demand for fintech solutions.

The study presented a new research model that investigates farmers’ attitudes towards fintech integration into farm practices based on the extended Technology Acceptance Model (TAM). The association of farmers’ attitudes, fintech, and TAM is novel within this field of research. The research model of this study contributes to the existing literature as it aims at explaining the attitude towards fintech integration into farm practices, being based on the extended TAM. This study used the rice farmers’ perceived ease of use, perceived usefulness, and other external factors—perceived behavior control and personal innovativeness—as antecedent variables; attitude towards using fintech as independent variable; and behavioral intention as dependent variable.

Based on the existing literature within the technology acceptance field, a research model has been created. A deductive and quantitative research approach has been employed in order to test the hypothesis of 330 rice farmers from selected municipalities in Laguna, specifically from Pila and Victoria using a structured and supervised survey. The questionnaire is divided into three parts: the profile of the farmers and their farms; their fintech services usage, and their perceptions. The results of the Pearson correlation tests showed that four out of five hypotheses could be accepted. Perceived usefulness, perceived ease of use, and personal innovativeness have an impact on the rice farmers’ attitude towards fintech. The findings revealed that the attitude towards using fintech in their farm influences the behavioral intention. Using the Chi-Square test, it was also found that the socio-demographic profile of the respondents is not associated with fintech adoption.

Research limitations concern the model’s application in different contexts for other technologies, factor of time, factor of performance, and the concentration on specific industries in which user-driven innovation is highly important. Future research is encouraged to take these factors into consideration. Employers and farm owners should support their farmers’ confidence in using fintech in processes by reinforcing the perception of fintech’s usefulness. User-centric design, intuitive interfaces, transparency, and trust and reliability are key to driving fintech adoption among farmers and empowering them to leverage digital financial services for their agricultural activities.

Through the study, it was perceived that the adoption of fintech among rice farmers faces several gaps and challenges. The limited digital infrastructure, digital literacy, trust and security concerns, affordability and accessibility issues, customization to local needs, and the lack of technical support as barriers to the effective adoption of fintech solutions. Addressing these constraints requires collaborative efforts from various stakeholders, such as rice farmers, fintech companies, financial institutions, government and regulatory bodies, and agricultural extension services, which are elaborated in this study to create an enabling environment that fosters the widespread of adoption and utilization of fintech among rice farmers.

Language

English

LC Subject

Fintech, Rice farmers-- Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 W34

Notes

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Document Type

Thesis

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