An Investigation of the Impact of Financial Education on Banking Behavior in Retail Banking: A Study of GTBank, Ogun State
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Background of the Study
Financial education plays a crucial role in shaping customer behavior by empowering individuals with the knowledge to make informed financial decisions. At GTBank in Ogun State, initiatives aimed at enhancing financial literacy—through workshops, online tutorials, and community outreach—are integral to improving banking behavior. Educated customers are more likely to use financial products wisely, manage their savings effectively, and engage in prudent borrowing practices (Okoro, 2023). GTBank’s commitment to financial education is part of a broader strategy to promote financial inclusion and to reduce the incidence of default and mismanagement of funds. By fostering an environment where customers understand the intricacies of financial products, the bank not only enhances customer satisfaction but also builds a more resilient financial ecosystem. Furthermore, financial education can lead to more efficient use of digital banking channels, as customers who are knowledgeable about their financial options are more likely to adopt innovative services confidently (Chinwe, 2024). However, challenges persist in reaching all customer segments, particularly those with limited access to formal education. This study explores how financial education influences banking behavior at GTBank, assessing its effectiveness in altering savings, borrowing, and investment patterns, and identifying areas where further educational efforts are needed (Akinola, 2025).
Statement of the Problem
Despite the availability of financial education programs at GTBank, many customers continue to exhibit suboptimal banking behavior. Low financial literacy levels contribute to poor savings habits, misinformed borrowing decisions, and underutilization of beneficial financial products. Furthermore, the disparity in financial education across different demographic groups creates an uneven playing field, where certain segments are more vulnerable to risky financial practices. The limited reach of current educational initiatives, combined with low engagement levels among certain customer groups, undermines the overall effectiveness of these programs. In addition, the rapid evolution of digital banking requires continuous updates to educational content, a challenge that the bank struggles to keep pace with. These factors result in persistent gaps in customer financial behavior that negatively impact both individual financial stability and the bank’s performance. This study aims to identify the specific gaps in financial education at GTBank and evaluate their impact on customer banking behavior, thereby offering recommendations to strengthen educational programs and improve overall financial decision-making.
Objectives of the Study
- To assess the current level of financial literacy among GTBank customers.
- To analyze the influence of financial education on banking behavior.
- To recommend enhancements to financial education programs to improve customer outcomes.
Research Questions
- How does financial education impact customers’ savings and borrowing behaviors?
- What gaps exist in the current financial education initiatives at GTBank?
- How can financial education be improved to foster better banking practices?
Research Hypotheses
- H₁: Higher levels of financial education lead to improved savings behavior.
- H₂: Effective financial education is positively associated with prudent borrowing practices.
- H₃: Enhanced financial literacy programs result in better overall financial decision-making.
Scope and Limitations of the Study
This study is confined to GTBank’s retail operations in Ogun State. Limitations include variations in educational backgrounds, potential biases in self-reported financial behavior, and the challenge of measuring long-term behavioral changes.
Definitions of Terms
- Financial Education: Programs designed to increase customer knowledge about financial products and management.
- Banking Behavior: Patterns of financial decision-making exhibited by customers.
- Financial Literacy: The ability to understand and effectively use financial information.
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