An Assessment of Rural Financial Advisory Services for Farmers: A Case Study of Guaranty Trust Bank
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Background of the Study
Rural financial advisory services provide critical guidance to farmers, enabling them to make informed financial decisions, optimize resource allocation, and improve credit management. Guaranty Trust Bank (GTBank) has established specialized advisory services aimed at rural agricultural communities, offering training on budgeting, loan management, and investment in modern farming techniques (Adesina, 2023). These services are delivered through a combination of in-person workshops, digital platforms, and field-based advisory teams, designed to address the unique challenges faced by smallholder farmers.
The advisory programs not only improve financial literacy among rural clients but also contribute to improved loan performance by helping farmers manage their debt more effectively. By providing timely information on market trends, crop pricing, and risk management, these services empower farmers to enhance productivity and sustain long-term growth (Ibrahim, 2024). Additionally, the integration of digital tools, such as mobile apps and online portals, facilitates continuous engagement and personalized advice, ensuring that farmers receive support tailored to their specific needs (Chinwe, 2025).
However, despite these initiatives, challenges remain in delivering effective financial advisory services. Low baseline literacy, cultural barriers, and infrastructural limitations in remote areas often impede the reach and impact of these programs. Furthermore, inconsistent follow up and limited customization of advice may reduce the long-term benefits of advisory services. This study assesses the effectiveness of GTBank’s rural financial advisory services, examining their impact on farmers’ financial management practices and loan repayment performance, and identifying key areas for improvement to enhance service delivery.
Statement of the Problem
Even with the introduction of rural financial advisory services by GTBank, many farmers continue to struggle with financial management, leading to sub optimal loan performance and credit defaults. A key problem is the low level of financial literacy among rural farmers, which hampers their ability to fully comprehend and apply the advisory services provided (Olatunde, 2023). In many instances, advisory programs are generic and not sufficiently tailored to the specific circumstances of individual farmers, leading to a disconnect between the advice given and the practical needs of the rural clientele. Additionally, logistical challenges, such as limited access to digital devices and poor network connectivity, further constrain the effective delivery of these services.
Moreover, the absence of a robust monitoring and evaluation framework makes it difficult for GTBank to assess the long-term impact of advisory services on financial behavior and loan repayment. Without continuous support and follow up, farmers may revert to traditional, less efficient practices, undermining the potential benefits of financial advisory interventions. This study seeks to investigate these issues by evaluating the current advisory services, identifying gaps in program design and delivery, and recommending measures to improve the overall effectiveness of rural financial advisory initiatives.
Objectives of the Study
• To evaluate the effectiveness of GTBank’s financial advisory services in rural areas.
• To identify challenges hindering effective advisory service delivery.
• To recommend strategies for enhancing financial literacy and personalized support.
Research Questions
• How do rural financial advisory services impact loan repayment and financial management?
• What barriers limit the effective delivery of advisory services in rural areas?
• What measures can improve the customization and follow up of financial advice?
Research Hypotheses
• H1: Enhanced financial advisory services significantly improve loan repayment rates.
• H2: Tailored advisory programs lead to better financial management among farmers.
• H3: Continuous follow up increases the long-term impact of financial advisory services.
Scope and Limitations of the Study
This study focuses on GTBank’s advisory services in rural areas from 2023 to 2025. Limitations include regional differences in access to digital technology and variations in farmer baseline literacy.
Definitions of Terms
• Financial Advisory Services: Guidance provided to help individuals manage finances effectively.
• Rural Financial Inclusion: The process of ensuring rural populations have access to financial services.
• Financial Literacy: The ability to understand and use financial information.
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