Agency banking business and operators’ risk of exposure to criminal victimisation in Ibadan, Nigeria

Abstract

Despite the growing popularity of the agency banking business in Nigeria, a major problem confronting its operators is criminal victimisation. Thus, this study examined the risk of exposure of agency banking operators in Ibadan city to criminal attacks. Routine activity theory was deployed as the conceptual framework. Data were elicited from 11 operators of the business who were victims of criminal attacks and 20 of their counterparts who were yet to be victimised, using key informant and in-depth interview methods. Results showed that operators of agency banking business were being targeted by lone criminals and gangs of criminals using violent and non-violent tactics. Scamming through fake SMS credit/debit transaction alerts was the most common type of criminal victimisation suffered by people involved in the business. A combination of factors was responsible for their vocational-related victimisation. It is imperative for operators of agency banking business to invest in physical security appliances, such as CCTV surveillance system, protective barriers, and alarm devices.

Agent bankers and customer victimization in Ado City, Nigeria

“…The implication of this finding is that victimization through fake credit and debit alert has the tendency to negatively impact on the cashless policy and financial inclusion already achieved by CBN, as the essence of commercial banks' online money transfer services is increasingly being jeopardized by criminals using it for fraudulent purpose. This result corroborates the findings of Ojedokun and Ilori (2022) and Mudiri (2013), who identified fake SMS debit and credit alerts and fraudulent perpetration as the most common forms of customer-driven fraud. It is also mconsistent with the study of Alvazzi del Frate (2004) which found that businesses that deal directly with the public are most likely to experience high rates of criminal victimization.…”

“…Agent bankers and their customers often experience common forms of customer-driven fraud such as fake message alerts, fraudulent perpetration, unauthorized possession of customers' card PIN, unauthorized withdrawal on behalf of customers, impersonating law enforcement officials, etc. (Ojedokun & Ilori, 2022;Ojedokun, 2020;Mudiri, 2013). Such fraud results in a direct and indirect burden on agent bankers (who are small business owners) and their customers, often increasing the cost of conducting business.…”

“…Previous studies have focused on agent banking and financial inclusion in relation to economic growth (Ayegbeni, 2020;Kingangai et al, 2016;Okoye et al, 2016;Ogbehor, 2015;Waihenya, 2012), the challenges agent banking face in Kenya (Atandi, 2013), agent banking and customer retention in Kenya (Muoria & Moronge, 2018), factors militating against agent banking services and customers in rural areas in Kenya (Githae et al, 2018), and the impact of violence on business activities (Fe & Sanfelice, 2022;Greenbaum & Tita, 2004;Taylor & Mayhew, 2002). Only Ojedokun and Ilori (2022) conducted a study on the victimization of the agent banking business, focusing on Ibadan. It is against this backdrop that this study examines the exposure of agent bankers and their customers to criminal victimization in Ado city.…”