Towards promoting links in rural finance between financial self-help associations and banking institutions in Nigeria

Abstract

Owing to a perceived need to improve financial services in the rural areas, the study seeks to evaluate the potentials of links between formal financial institutions (FFI) and traditional financial self-help associations (SHA) in the Anambra and Benue states of Nigeria. The study identifies the various types and characteristics of their members. Through effective mobilisation of savings, and ensuring prompt crediting of members’ financial needs, these SHA have succeeded in establishing the environment for a lasting association with FFI. In spite of the possible constraints, it is clear that such links with modern institutions will enhance the operations of numerous rural financial SHA.