OTEMEH JOSEPH OKUMODE PROJECT 1

ACCESS ROLE OF COOPERATIVE CREDIT SOCIETIES IN COMPLEMENTING THE EFFORT OF CONVENTIONAL FINANCIAL INSTITUTION (A CASE STUDY OF TEMIDIRE COOPERATIVE INVESTMENT AND CREDIT SOCIETY LIMITED IBADAN, OYO STATE) OTEMEH JOSEPH OKUMODE MATRIC NO: 20231331 BEING A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF HIGHER NATIONAL DIPLOMA IN COOPERATIVE ECONOMICS AND MANAGEMENT FEDERAL COOPERATIVE COLLEGE IBADAN SEPTEMBER, 2025 CERTIFICATION This is to certify that this work is prepared and submitted by OTEMEH JOSEPH OKUMODE with MATRIC NO: 20231331 under the supervision of Mr. Adegboola Tayo Kola of the Federal Cooperative College, Eleyele, Ibadan. It is accepted in partial fulfillment of the award of Higher National Diploma in Cooperative Economics and Management. ----------------------------------- ---------------------- Mr. Adegboola Tayo Kola Date SUPERVISOR ----------------------------------- ---------------------- DR. Ogunrekun Segun Akinola Date Head of Department DEDICATION I dedicate to Almighty God, the Alfa and Omega for keeping me throughout my project. ACKNOWLEDGEMENT I would like to express my deepest gratitude to the Supreme God, the giver of life, wisdom, and understanding, for His unending kindness and grace throughout my academic journey. It is by His divine favor that I have been able to persevere and achieve success. A special thanks goes to my diligent and supportive supervisor, Mr. Adegboola Tayo Kola, who, despite his busy schedule, took the time to meticulously review and guide this project from start to finish. Your insights and dedication were invaluable, and I am immensely grateful for your unwavering support and mentorship. Thank you, Sir. I would also like to extend heartfelt appreciation to my Head of Department, Dr. Ogunrekun Oluwasegun A., whose vast knowledge and wisdom have been a constant source of inspiration. You are truly the ocean from which we draw the water of knowledge. To the entire faculty of the Department of Cooperative Economics and Management, your teachings and guidance have shaped me in more ways than words can express. May God bless and reward you all abundantly. Finally, I cannot fail to recognize my beloved parents. Without your love, encouragement, and sacrifices, none of this would have been possible. I am forever grateful to you both. You are truly a blessing, and I dedicate this achievement to you. ABSTRACT This study evaluates The Role Of Cooperative Credit Societies In Complementing The Effort Of Conventional Financial Institution. The research focuses on Cooperative credit societies (CCSs) have emerged as significant players in the financial landscape, particularly in enhancing financial inclusion and providing accessible financial services to underserved populations. Unlike conventional financial institutions that prioritize profit, CCSs operate on a member-centric model, focusing on mutual aid and community development. This study explores the role of cooperative credit societies in complementing the efforts of traditional banks and financial institutions by providing microloans, savings options, and financial education, thereby fostering economic empowerment among their members. A sample of 81 cooperative members, consisting of five executives and 76 additional members, was purposively selected for the study. Data were collected using structured questionnaires, and descriptive statistics, such as mean, median, mode, and standard deviation, were used to summarize the socio-economic and demographic characteristics of respondents. Inferential statistics, specifically Chi-square (Z²), were applied to test the Cooperative societies play a vital role in complementing the effort of conventional financial institutions. This conclude that CCSs contribute to local economic growth by reinvesting profits into community projects and initiatives, thereby enhancing social cohesion and resilience. They also play a crucial role in promoting financial literacy, equipping members with the knowledge needed for informed financial decision-making. However, despite their numerous benefits, cooperative credit societies face challenges such as regulatory constraints, limited resources, and increasing competition from digital financial services. Keyword: Cooperative Societies, Financial Inclusion, Conventional Financial Institutions, Microfinance, Credit Unions, Risk Sharing. TABLE OF CONTENTS Title page Certification ii Dedication iii Acknowledgement iv Abstract v Table of content vi – vii CHAPTER ONE 1.1 INTRODUCTION 1 1.2 Problem Statement 3 1.3 Research Question 5 1.4 Objectives of the study 5 1.5 Hypothesis of the study 6 1.6 Scope of the study 6 1.7 Significance of the study 6 1.8 Definition of term 9 CHAPTER TWO 2.1 Literature Review 12 2.2 Theoretical Review 14 2.3 Conceptual Review 17 2.4 Empirical Framework 20 2.5 Summary of the literature 23 CHAPTER THREE 3.1 RESEARCH METHODOLOGY 25 3.2 Study Area 25 3.3 Study Population 25 3.4 Sampling Technique and Sample Size 26 3.5 Source of data and instrument for data collection 27 3.6 Validity and reliability of the study 27 3.7 Method of data collection 27 3.7 Method of data analysis 28 CHAPTER FOUR 4.1 Data Presentation 29 4.2. Testing and validation of hypothesis 60 CHAPTER FIVE 5.0 Summary, Conclusion and Recommendation 61 5.1. Summary of finding 61 5.2. Conclusion 63 5.3. Recommendations 63 References 65 Appendix 68 CHAPTER ONE 1.1 Introduction of the study Cooperative societies play a vital role in complementing conventional financial institutions by providing accessible financial services to underserved communities. These member-driven organizations focus on mutual assistance and local development, often addressing gaps that traditional banks may overlook. Nigeria is a country blessed with enormous human and natural resources. But in spite of its abundant natural resources, the nation has severe economic challenges that have a big impact on its supply chain and overall growth. Currently, Nigeria is struggling with inflation (Adeleye, 2024). The president of Nigeria, Bola Ahmed Tinubu was reported to have acknowledged the economic hardship in the country and has accepted full responsibility for the economic hardship (Angbulu, 2024). The cost of living has significantly increased as a result of inflationary pressures, making it harder for average Nigerians to pay for needs like food, housing, and healthcare. The nation's poverty and inequality have gotten worse due to the growing cost of living, which has reduced individuals' purchasing power. Nigerians' economic hardships, which range from sociopolitical obstacles to infrastructure constraints, have a knock-on impact on the effectiveness and stability of the supply chain, making matters worse for both enterprises and consumers. Vulnerable families find it difficult to create a safety net against these dangers for a variety of reasons, including low savings rates and weaknesses in the insurance and credit markets (Gash & Grey, 2016). Access to resources, such as reasonably priced and well-designed financial services, is therefore seen to contribute to the development of resilience against economic vulnerabilities. However, not every family has the same level of access to financial services. Economically vulnerable populations face numerous barriers to financial inclusion and are most at risk, often relying on coping mechanisms that lead to long-term financial insecurities and negative developmental outcomes (Gash & Gray 2016). This has increased the need for a solution that would help foster financial inclusion among individuals in the country.Financial institution has developed into a potent framework that reduces risks and acts as a buffer against adversity to help people build financial resilience. Approximately 1.7 billion adults do not currently have access to formal financial services, according to the World Bank (Demirgüç-Kunt et al. 2018). With over 75% of the adult population living in developing nations, mostly in South Asia and Sub-Saharan Africa including Nigeria, these financially excluded people are mostly found in these regions. Gash and Grey (2016) stated that more inclusive financial institutions, according to policy makers and other stakeholders, enable people, particularly the most disadvantaged, to save, borrow, accumulate assets, mitigate risk, and subsequently create resilience. Cooperative societies have been suggested to be an effective means for mitigating the pressures of prevailing economic hardship in Nigeria. According to Attah et al. (2018), cooperative societies are efficient means of raising members' standards of life by using their limited resources to increase output and foster community development. Cooperative societies, which are based on the ideas of self-help, mutual aid, and democratic governance, are essential for promoting resilience in communities and economic empowerment (Musa & Bello, 2023). These cooperatives give people a place to combine their resources, share risks, and carry out economic activity as a group. Cooperative societies improve the financial well-being of their members. The need to enhance digital financial literacy is on the rise because it is thought to mediate the relationship between financial inclusion and literacy and enhance the efficacy of both (Lyons et al., 2020; Morgan et al., 2019). Vogels and Anderson (2019) suggested that it is imperative that individuals possess the information and abilities necessary to conduct digital financial transactions and to use digital devices like tablets, smartphones, and cellphones in order to engage in the digital economy. It is unclear if cooperative societies could offer these training for its member given the fact that Nigeria is presently grappling with economic uncertainties. It is therefore against this backdrop that the researcher conducts this study to determine the influence of cooperative societies on financial inclusion in prevailing economic hardship in Nigeria. The increase in the demand for financial services has brought changes to cooperative societies as a factor in financial, economic and social science disciplines to the extent that over the years, local and international organisations have continued to explore the best modalities in the application of cooperative concept to almost every area of the economic needs of individuals at urban and rural areas. This may have necessitated the declaration of the year 2005 as the international year of microcredit and the year 2012 as the international year of cooperatives by the United Nations General Assembly. 1.2 Problem Statement The financial landscape is characterized by a duality where conventional financial institutions, such as banks and credit unions, play a crucial role in economic development. However, they often fail to adequately serve certain segments of the population, particularly low-income individuals, small-scale entrepreneurs, and rural communities. This gap in financial inclusion has significant implications for economic empowerment, as many potential clients are unable to access essential financial services, leading to limited opportunities for growth and stability. Key Issues: 1. Access Barriers: Conventional financial institutions frequently impose strict eligibility criteria for loans and services, which many individuals and small businesses cannot meet. This results in a large unbanked or underbanked population lacking basic financial services. 2. High Costs: Many conventional institutions charge high interest rates and fees, making credit unaffordable for those in need. This discourages borrowing and can perpetuate cycles of poverty. 3. Lack of Tailored Products: Financial products offered by traditional banks may not align with the specific needs and circumstances of underserved populations. This misalignment further exacerbates financial exclusion. 4. Limited Awareness and Education: Potential clients may lack understanding of financial products and services, leading to mistrust and reluctance to engage with conventional institutions. 5. Regulatory Challenges: Cooperative societies face regulatory hurdles that can restrict their operations, making it difficult for them to compete with larger financial institutions or effectively serve their members. 6. Sustainability and Resource Constraints: Many cooperatives struggle with limited financial resources, affecting their ability to offer diverse products and expand their reach. This can hinder their growth and sustainability in the long term. 7. Impact of Competition: As conventional financial institutions increasingly adopt community-focused strategies, cooperatives must define their unique value proposition to remain relevant and effective. 1.3 Research question The following research questions are stated for this study: How do cooperative credit societies complement the efforts of conventional financial institutions in providing access to financial services to underserved populations? What are the key strategies employed by cooperative credit societies to enhance financial inclusion and support economic development? How do these complement the efforts of conventional financial institutions? What is the impact of cooperative credit societies on financial inclusion and access to credit for underserved populations? How do these contributions complement the services offered by traditional financial institutions? 1.4 Objectives of the Study This study aims to explore the role of cooperative societies in complementing conventional financial institutions. Specifically, it seeks to: Identify Service Gaps Evaluate Cooperative Contributions: Examine Community Impact Explore Collaboration Opportunities Highlight Best Practices 1.5. Hypothesis of the study HO1: Cooperative credit societies does not play a vital role in complementing the effort of conventional financial institutions. HA2: Cooperative societies play a vital role in complementing the effort of conventional financial institutions. 1.6 Scope of the study This study primarily the role of cooperative credit societies in complementing the effort of conventional financial institutions. The study of the project will be based on the activities Temidire Cooperative Investment and Credit Society Limited Ibadan from 2019 - 2023. Members shall be interviewed and questionnaire shall be used to set inside information. 1.7 Significance of the study Significance of the Study on the Role of Cooperative Societies in Complementing Conventional Financial Institutions The study of cooperative societies in relation to conventional financial institutions is significant for several reasons, addressing theoretical, practical, and policy-related dimensions. Below are the key aspects of its significance: 1. Enhancing Financial Inclusion Addressing Gaps: The study aims to identify how cooperative societies fill critical gaps in financial services, particularly for underserved and marginalized populations. Understanding this role can help policymakers and practitioners develop strategies to enhance financial inclusion. Informing Best Practices: By documenting successful models of cooperatives, the study can serve as a resource for establishing best practices that other organizations can adopt to improve access to financial services. 2. Economic Development Local Economic Empowerment: Cooperative societies often drive local economic development by providing credit, facilitating savings, and supporting small businesses. This study highlights their impact on community development, which can inform broader economic policies. Job Creation: By exploring how cooperatives contribute to job creation and economic stability, the study provides insights into mechanisms for enhancing local employment opportunities. 3. Theoretical Contributions Expanding Financial Theory: The research contributes to financial inclusion theory by integrating cooperative models and highlighting their unique attributes compared to traditional banking systems. This can enhance academic discourse on alternative financial systems. Understanding Cooperative Dynamics: The study can offer a deeper understanding of how cooperatives operate within the financial ecosystem, their governance structures, and the role of member participation in decision-making. 4. Policy Implications Informed Policymaking: The findings can inform policymakers about the significance of cooperatives in achieving financial inclusion goals, guiding the formulation of supportive policies and regulations. Regulatory Frameworks: Insights from the study can help shape regulatory frameworks that facilitate the growth and sustainability of cooperative societies while ensuring consumer protection. 5. Collaboration Opportunities Synergistic Strategies: By identifying opportunities for collaboration between cooperative societies and conventional financial institutions, the study can promote strategies that leverage the strengths of both sectors for mutual benefit. Innovative Financial Solutions: Understanding how cooperatives complement traditional institutions can lead to the development of innovative financial products and services tailored to meet diverse community needs. 6. Community Awareness and Engagement Raising Awareness: The study can raise awareness about the value of cooperative societies and their potential contributions to financial stability and community resilience, encouraging greater member participation. Empowerment through Education: By emphasizing the role of cooperatives in financial education and literacy, the research supports initiatives aimed at empowering community members to make informed financial decisions. 7. Sustainability of Cooperatives Long-term Viability: Exploring the challenges faced by cooperatives can lead to recommendations for improving their sustainability and long-term viability in the competitive financial landscape. Resource Allocation: The study may highlight effective resource allocation and management practices within cooperatives that contribute to their success. 1.8 Definition of term Definition of Terms Related to the Role of Cooperative Societies in Complementing Conventional Financial Institutions Understanding the terminology used in discussing the role of cooperative societies and their relationship with conventional financial institutions is crucial for grasping the concepts involved. Below are key terms defined in detail: Cooperative Societies Cooperative societies are member-owned and democratically controlled organizations that aim to meet the common economic, social, and cultural needs of their members. They operate on principles of mutual aid, solidarity, and democratic governance. Examples include credit unions, agricultural cooperatives, and consumer cooperatives. Financial Inclusion Financial inclusion refers to the process of ensuring that individuals and businesses have access to useful and affordable financial products and services that meet their needs. This includes banking, loan services, insurance, and investment products, particularly for underserved populations. Conventional Financial Institutions Conventional financial institutions are traditional banking entities, such as commercial banks, savings banks, and credit unions, that provide financial services like deposits, loans, and investment options. They operate on a profit-oriented model and adhere to regulatory standards set by financial authorities. Microfinance Microfinance refers to a range of financial services, including microloans, savings, and insurance, designed to serve low-income individuals or those without access to traditional banking. Cooperative societies often engage in microfinance to support their members’ economic activities. Credit Unions Credit unions are a type of cooperative society that provides financial services primarily to their members. They offer savings accounts, loans, and other financial products, typically at lower interest rates than conventional banks. Members have a say in the management and operation of the credit union. Risk Sharing Risk sharing refers to the practice of distributing the financial risk among members of a cooperative society, enabling them to collectively manage uncertainties. This can occur through mutual insurance or pooled resources, offering members greater financial security. Community Development Community development encompasses efforts aimed at improving the economic, social, and environmental well-being of a community. Cooperative societies contribute to community development by creating jobs, promoting local enterprises, and reinvesting profits into community projects. Member Participation Member participation is a core principle of cooperative societies, emphasizing the involvement of members in decision-making processes. This democratic governance structure fosters a sense of ownership and accountability among members. CHAPTER TWO 2.1 Literature review Literature Review on the Role of Cooperative Societies in Complementing Conventional Financial Institutions The literature on cooperative societies emphasizes their significant role in promoting financial inclusion, supporting local economies, and providing services that complement those of conventional financial institutions. This review synthesizes key themes and findings from various studies, underscoring the multifaceted impact of cooperatives. 1. Historical Context and Evolution of Cooperatives Cooperative societies have a longstanding history, rooted in the need for mutual aid and collective financial management. Deller et al. (2009) trace the origins of cooperatives to the early 19th century, highlighting their emergence as a response to the economic needs of marginalized communities. The evolution of cooperatives, particularly in the financial sector, has led to the establishment of various models, including credit unions, which serve specific community needs (Baker & Baker, 2016). 2. Financial Inclusion and Accessibility A substantial body of research illustrates how cooperative societies enhance financial inclusion. Robinson (2001) argues that cooperatives are particularly effective in providing financial services to underserved populations, as they often offer microloans and savings products that conventional institutions do not. Mersland and Strøm (2009) demonstrate that credit unions significantly reduce barriers to credit access for low-income individuals, contributing to their economic empowerment and social mobility. 3. Community Development and Economic Impact Cooperative societies are integral to community development efforts. According to the International Cooperative Alliance (2016), cooperatives reinvest profits into local communities, creating jobs and supporting local enterprises. Hulgård (2016) found that cooperatives enhance social capital and foster community engagement, which leads to increased economic stability and resilience in local economies. This aligns with findings by Develtere et al. (2008), who emphasize the role of cooperatives in stimulating local economic development. 4. Risk Sharing and Financial Stability The concept of risk sharing is central to the operation of cooperative societies. Aksak and Aksak (2016) indicate that cooperatives provide members with collective risk management strategies, enhancing financial stability during times of economic hardship. By pooling resources, cooperatives help mitigate individual financial risks, contrasting with the risk-averse nature of conventional financial institutions (Woller, 2002). 5. Democratic Governance and Member Participation Cooperative societies are characterized by their democratic governance structures, which empower members to participate in decision-making processes. Birchall (2010) highlights that this member-driven approach fosters accountability and encourages practices aligned with community interests. This contrasts with conventional financial institutions, where decision-making is often concentrated among a few shareholders, potentially sidelining community needs (Patel, 2013). 6. Financial Education and Literacy Cooperative societies play a crucial role in promoting financial literacy among their members. McKillop and Wilson (2011) point out that cooperatives often offer educational programs designed to enhance members' financial knowledge and skills. This emphasis on financial education empowers individuals to make informed financial decisions, thereby improving their economic situations (Lusardi & Mitchell, 2014). 7. Collaboration with Conventional Institutions Recent studies have explored potential collaborations between cooperative societies and conventional financial institutions. Rhyne (2010) notes that partnerships can enhance service delivery, enabling cooperatives to leverage the resources of traditional banks while maintaining a community focus. This collaboration can lead to the development of innovative financial products tailored to the needs of underserved populations (Sinha & Kaur, 2016). 8. Challenges Faced by Cooperatives Despite their advantages, cooperative societies face several challenges. The International Cooperative Alliance (2018) highlights issues such as limited access to capital, regulatory constraints, and competition from larger financial institutions. These challenges can impede the growth and sustainability of cooperatives, limiting their ability to serve their communities effectively (Murray, 2015). 2.2. THEORETICAL REVIEW Cooperative societies play a vital role in the financial ecosystem, particularly in developing economies. They provide financial services that complement conventional financial institutions (CFIs), addressing gaps in accessibility, affordability, and community support. This review examines the theoretical underpinnings of cooperative societies and their contributions to the financial landscape. 1. Social Capital Theory Cooperative societies leverage social capital, where trust and networks among members facilitate access to financial resources. This contrasts with CFIs, which often focus on transactional relationships. 2. Financial Inclusion Theory Cooperatives aim to include underserved populations in the financial system. By providing accessible loans and savings options, they enhance financial inclusion, complementing the services of CFIs. 3. Collective Action Theory This theory posits that individuals can achieve common goals through collective efforts. Cooperatives enable members to pool resources, enhancing bargaining power and access to capital, which traditional banks may overlook. Contributions of Cooperative Societies 1. Access to Credit Cooperatives often provide microloans to members who may not qualify for loans from CFIs due to lack of collateral or credit history. This access fosters entrepreneurship and small business development. 2. Lower Interest Rates Because they are member-owned, cooperatives can offer lower interest rates on loans compared to CFIs, making borrowing more affordable and promoting financial stability among members. 3. Financial Literacy and Education Many cooperatives invest in financial education, equipping members with knowledge on saving, investing, and managing debt. This empowerment complements the educational initiatives of CFIs. 4. Community Development Cooperatives often reinvest profits into local communities, funding social projects and infrastructure, which helps enhance community well-being in ways that CFIs may not prioritize. Case Studies and Evidence Numerous studies highlight the effectiveness of cooperatives in various regions: Agricultural Cooperatives in India: These have significantly improved farmers' access to credit and markets, enhancing their livelihoods and complementing agricultural financing from banks (Kumar & Singh, 2019). Credit Unions in the United States: Research shows that credit unions provide affordable services and foster financial literacy among low-income groups, effectively filling gaps left by traditional banks (National Credit Union Administration, 2020). Challenges and Limitations Despite their benefits, cooperatives face challenges: 1. Regulatory Constraints: In some regions, regulatory frameworks favor CFIs, limiting the operational capacity of cooperatives. 2. Capitalization Issues: Cooperatives often struggle to raise capital compared to CFIs, impacting their growth and sustainability. 3. Management Skills: The success of cooperatives depends on effective management, which can be lacking in some organization. 2.3 CONCEPTUAL REVIEW Cooperative societies play a vital role in the financial landscape, particularly in underserved communities. They complement conventional financial institutions (CFIs) by providing access to credit, savings, and financial education, fostering economic development and social cohesion. Definition and Purpose of Cooperative Societies Cooperative societies are member-owned organizations that operate for the mutual benefit of their members. Their primary purpose is to meet the economic, social, and cultural needs of their members, often focusing on those who are marginalized or excluded from traditional banking systems. The Role of Cooperative Societies 1. Access to Finance: Cooperatives often provide financial services to members who may not qualify for loans from CFIs due to lack of collateral or credit history. This inclusivity promotes financial literacy and encourages saving habits. 2. Lower Interest Rates: By operating on a non-profit basis, cooperative societies can offer lower interest rates on loans compared to traditional banks, making borrowing more accessible. 3. Local Economic Development: Funds generated by cooperatives are typically reinvested in the local community, fostering entrepreneurship and job creation. This local focus can stimulate economic growth in underserved areas. 4. Financial Education and Empowerment: Many cooperatives prioritize educating their members about financial management, enhancing their financial literacy and empowering them to make informed decisions. 5. Risk Mitigation: Cooperative societies often provide members with a safety net through collective savings and insurance schemes, reducing individual financial risks. 6. Social Capital: The communal nature of cooperatives fosters trust and solidarity among members, creating social networks that can enhance economic opportunities. Relationship with Conventional Financial Institutions Complementary Services: Cooperative societies often fill gaps left by CFIs, especially in rural or low-income areas where traditional banking services are limited. They can serve as intermediaries, channeling funds from members to broader markets. Collaboration: Some cooperatives partner with CFIs to enhance service delivery, sharing resources and expertise to improve financial access and innovation. Regulatory Framework: While cooperatives operate under different regulations than CFIs, the governance structure often encourages accountability and transparency, aligning with broader financial sector goals. Challenges Faced by Cooperative Societies 1. Capital Constraints: Many cooperatives struggle to raise sufficient capital compared to larger financial institutions, which can limit their ability to grow and offer diversified services. 2. Management Issues: The success of cooperatives depends heavily on effective management and governance. Poor leadership can undermine their potential. 3. Competition: The increasing presence of digital financial services poses a challenge, as cooperatives may lack the technological infrastructure to compete effectively. 4. Regulatory Hurdles: Navigating the regulatory landscape can be complex, especially when it intersects with the regulations governing CFIs. 2.4. EMPIRICAL REVIEW Cooperative societies have emerged as significant players in the financial sector, particularly in developing economies. This review examines empirical studies that highlight how these societies complement conventional financial institutions (CFIs), focusing on their impact on financial inclusion, economic development, and member welfare. Financial Inclusion 1. Access to Credit: Study by Ghosh (2018): This research found that cooperative societies significantly increase access to credit for low-income individuals who are often excluded from CFIs. The study showed that members of cooperatives had a higher likelihood of securing loans compared to non-members. 2. Microfinance Impact: Research by Moyo and Calegari (2019): This study illustrated that cooperatives functioning as microfinance institutions provide tailored financial products that meet the needs of the local community, thereby enhancing financial inclusion and reducing dependency on informal moneylenders. Economic Development 1. Community Investment: Case Study by Shankar and Bhat (2020): This case study of agricultural cooperatives in Nigeria highlighted how reinvestment of profits into local infrastructure and services spurred economic development, benefiting both members and the wider community. 2. Job Creation: Empirical Analysis by Choudhury et al. (2021): This analysis showed that cooperative societies contribute to job creation by supporting local businesses and promoting entrepreneurship, thus fostering economic resilience in rural areas. Member Welfare and Empowerment 1. Financial Literacy: Study by Okwu and Ajayi (2017): This research demonstrated that cooperative societies often provide financial education programs, leading to improved financial literacy among members, which positively impacts their financial management skills. 2. Social Capital: Research by Putnam (2000): Although not exclusively about cooperatives, this work underlines how cooperative societies enhance social capital through community engagement and trust-building, which are crucial for economic cooperation and resilience. Relationship with Conventional Financial Institutions 1. Partnership Models: Study by Wanyonyi et al. (2020): This research documented successful partnerships between cooperatives and CFIs, highlighting how these collaborations enhance service delivery, particularly in rural areas where CFIs have limited reach. 2. Regulatory Influence: Analysis by Kambewa (2019): This study assessed the regulatory environment affecting cooperatives and CFIs, noting that supportive regulations can facilitate cooperation and improve service offerings for underserved populations. Challenges and Limitations 1. Resource Constraints: Research by Kauffman and Bhat (2021): This study revealed that many cooperatives face challenges related to capital mobilization and resource allocation, which can limit their operational capacity compared to larger CFIs. 2. Management Capacity: Empirical Study by Chien and Hsu (2019): Findings indicated that effective governance and management practices are critical for the sustainability of cooperatives. Poor management often leads to operational inefficiencies and member dissatisfaction. 2.5 SUMMARY OF THE LITERATURE Summary of the Literature on the Role of Cooperative Credit Societies The literature highlights the significant role cooperative credit societies play in complementing conventional financial institutions, particularly in fostering financial inclusion and supporting local economies. Key Themes: 1. Financial Inclusion: Cooperative credit societies primarily target underserved populations, providing access to financial services for individuals and small businesses that may be excluded from traditional banking systems. Studies show that these societies effectively reduce barriers related to credit access and eligibility. 2. Cost Efficiency: Research indicates that cooperative societies offer lower interest rates and higher savings returns than conventional banks. This affordability stems from their non-profit structure, allowing them to prioritize member benefits over profit maximization (Birchall, 2003). 3. Empowerment through Education: Many cooperative societies incorporate financial literacy programs, equipping members with essential knowledge and skills for better financial management. This educational component fosters a culture of saving and informed borrowing (Nair, 2015). 4. Community Development: Cooperative credit societies play a crucial role in local economic development by financing community projects and small enterprises. This investment not only creates jobs but also promotes entrepreneurship, strengthening local economies (Sharma, 2016). 5. Risk Mitigation and Support: By pooling resources, cooperative societies enable risk-sharing among members, allowing for greater lending flexibility. This collective approach makes it feasible to lend to individuals who may otherwise be deemed high-risk by conventional banks (Mishra, 2018). 6. Responsive Financial Services: The literature emphasizes the adaptability of cooperative credit societies in meeting the specific needs of their members. Their personalized approach contrasts with the rigid structures often found in traditional financial institutions (Kumar & Singh, 2019). CHAPTER THREE RESEARCH METHODOLOGY A research design is a systematic plan to study a scientific problem. The design of a study defines the study type (descriptive, correlational, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research question, hypotheses, independent and dependent variables, experimental design, and, if applicable, data collection methods and a statistical analysis plan (Orji, 2006). The researcher therefore adopted sample survey method for this study. This study made use of a primary source of data with the aid of a structured questionnaire. Though the research questionnaire was analyzed by statistical package for social sciences through frequency table and mean and chi-square was used to test the hypotheses. 3.2 STUDY AREA The area of the study is limited to Temidire Cooperative Investment and Credit Society Limited Ibadan Oyo State, 3.3 STUDY POPULATION Target population as described by Borg and Crall (2019) is a universal set of study of all members of real or hypothetical set of people, events or objects to which an investigator generalized the result. According to Burns and Grove (1993), a population is defined as all elements (individuals, objects and events) that meet the sample criteria for inclusion in a study. The study population of this consisted of all members of Temidire Cooperative Investment and Credit Society Limited Ibadan Oyo State, the population of the study is 435 members. 3.4 SAMPLING TECHNIQUE AND SAMPLING SIZE Sample size refers to the number of units or people that are chosen from which the researcher wish to gather information or data (Evans et al., 2000). In order to get a good representation of the population, the researcher used stratified random sampling techniques. To make a sample a true representation of the parent population, the entire population is first divided into homogenous groups called strata. By applying the systematic sampling, items were selected from each stratum into the sampling. Using this method. In order to get a representation of the entire population, the Taro Yamani statistical formula was employed. According to Taro Yamene (1964) the formula is stated as follows. For the purpose of this study, N will be equal to 435, e will be assumed to be 10% therefore the sample size for this research work will be Where, n = Sampling size N = Total population e = Expected error 1 = Constant value n = 100 members Since the population is homogeneous. A sample size of 81 respondents was used. 3.5 SOURCES OF DATA AND INSTRUMENT FOR DATA COLLECTION There are two (2) broad sources of data for any statistical survey. They are primary and secondary data sources. Primary data source (Encyclopedia Sage Research Method 27 Dec, 2012). A primary data source is an original data source, that is, one in which they are collected first-hand by the researcher for a specific research purpose or project. Secondary data is the data that have been already collected by and reading available from other sources. 3.6 VALIDITY AND RELIABILITY OF THE STUDY To enhance the validity, appropriate and adequate items relevant to research objectives were contained in the questionnaires. Different research instrument will be used for triangulation purposes. Validity will be done by my supervisor through expert judgment to ensure that the items of the research instrument are valid and in line with the study objective. Reliability of the instrument refers to the consistency of score or answer from one administration of an instrument to another, and from one set of items to another. The questionnaire will be protested using the split half method with all the questions expect to seek respondent's recommendation. 3.7 METHOD OF DATA COLLECTION The method of data collection employed for this study includes personal and questionnaire, library research, journals and internet research. Also direct method was used to administer/collect the information by the researcher and friends assistants (they helped in the administration and collection of the questionnaire) after completion by the respondents. The reason is to ensure a high return rate of the instrument. 3.8 METHOD OF DATA ANALYSIS The data collected through questionnaires were analyzed by using Statistical Package for the Social Science (SPSS).The statistical tool for the analysis was chi-square to test the hypothesis of the research. In treating and analyzing of data collected extensive use of tabular and percentage will be paramount. The data collected will be presented in table and analyzed with percentage. The hypotheses will be analyzed by the use of Chi – Square formular. The formular is shown below: X 2 = Σ (o – e) 2 E Where: X 2 = Chi – Square O = Observed frequency E = Expected frequency. CHAPTER FOUR 4.0 DATA PRESENTATION This chapter entails the presentation of data, and subsequent interpretations. This is when a critical analysis is made on the collected data and interpretation is made in order to draw meaningful conclusions. This chapter also presents the data and analysis of questionnaires that were collected from the respondents by the researcher of this project. Table 1 Sex: Frequency Percent Valid Percent Cumulative Percent Valid Male 45 55.6 55.6 55.6 Female 36 44.4 44.4 100.0 Total 81 100.0 100.0 INTERPRETATION: From the above analysis, 55.6% of the respondents are Male while the remaining 44.4% are Females. This shows that there were more Male respondents compared to Female. Table 2 Age: Frequency Percent Valid Percent Cumulative Percent Valid 20-25yrs 22 27.2 27.2 27.2 26-35yrs 33 40.7 40.7 67.9 36-45yrs 19 23.5 23.5 91.4 46-55yrs 3 3.7 3.7 95.1 56 above 4 4.9 4.9 100.0 Total 81 100.0 100.0 INTERPRETATION: From the above analysis, 27.2% of the respondents are within 20-25yrs, 40.7% are within 26-35yrs, 23.5% are within 36-45yrs, 3.7% are within 46-55yrs and 4.9% are Above 56years. This implies that members that are managing cooperative society are within 26-35years. Table 3 Marital Status: Frequency Percent Valid Percent Cumulative Percent Valid Single 43 53.1 53.1 53.1 Married 38 46.9 46.9 100.0 Total 81 100.0 100.0 INTERPRETATION: From the above table, 53.1% of the total respondents are single, 46.9% are married. Table 4 Educational background: Frequency Percent Valid Percent Cumulative Percent Valid SSCE 16 19.8 19.8 19.8 ND/NCE 30 37.0 37.0 56.8 HND/BSc 26 32.1 32.1 88.9 Master and above 9 11.1 11.1 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the educational qualifications of respondents, 19.8% had SSCE, 37.0% had OND/NCE, 32.1% had HND/BSc while the remaining 11.1% had Master and above. This means that the majority of the respondent that have qualification most is OND/NCE respectively. Table 5 Religion: Frequency Percent Valid Percent Cumulative Percent Valid Christian 43 53.1 53.1 53.1 Muslim 36 44.4 44.4 97.5 Traditional 2 2.5 2.5 100.0 Total 81 100.0 100.0 INTERPRETATION: The above table shows that 53.1% of the respondents are Christian, 44.4% are Muslim while the remaining 2.5% of the respondents are Traditional. This shows that majority of the respondents are Christian. Table 6 How long have been in the organisation? Frequency Percent Valid Percent Cumulative Percent Valid 1-2yrs 38 46.9 46.9 46.9 3-4yrs 32 39.5 39.5 86.4 5-6yrs 11 13.6 13.6 100.0 Total 81 100.0 100.0 INTERPRETATION: From the above analysis, 46.9% of the respondents have been in the organisation for between 1-2yrs, 39.5% between 3-4years, 13.6% between 5-6 years. This implies that the majority of the respondents are between 3-4yrs. Table 7 What is the primary difference in ownership structure between a cooperative credit society and a conventional bank? Frequency Percent Valid Percent Cumulative Percent Valid Owned by shareholders for profit vs owned by members for service 26 32.1 32.1 32.1 Governed by the government vs Governed by a board of directors 24 29.6 29.6 61.7 Focus on international markets vs focus on local communities 20 24.7 24.7 86.4 Offering more complex financial product vs offering basic services 11 13.6 13.6 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 32.1% of the respondents said that owned by shareholders for profit vs owned by members for service, 29.6% of the respondents said that governed by the government vs governed by a board of directors, 24.7% said that focus on international markets vs focus on local communities while 13.6% of the respondents said that offering more complex financial product vs offering basic services. This implies that governed by the government vs governed by a board of directors. Table 8 Which of the following best describes the main goal of a cooperative credit society? Which of the following best describes the main goal of a cooperative credit society? Frequency Percent Valid Percent Cumulative Percent Valid Maximise profits for shareholders 32 39.5 39.5 39.5 Provide financial services to members and the community 29 35.8 35.8 75.3 Offer the highest interest rates on loans 15 18.5 18.5 93.8 Compete directly with large commercial banks 5 6.2 6.2 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 39.5% of the respondents understand cooperative society that there is maximize profits for shareholders, 35.8% of the respondents understand cooperative society that they should provide financial services to members and the community, 18.5% of the respondents understand cooperative society that there should be offer the highest interest rates on loans, 6.2% of the respondents understand cooperative society that there should be a compete directly with large commercial banks. This means that provide of financial services to members and the community is the best main goals for cooperative society. Table 9 How do cooperative credit societies typically foster financial inclusion compared to conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid By requiring higher credit scores for loans 30 37.0 37.0 37.0 By focusing on serving underserved populations 37 45.7 45.7 82.7 By offering fewer financial products 10 12.3 12.3 95.1 By charging higher fees for services 4 4.9 4.9 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 37.0% of the respondents cooperative societies requiring higher credit scores for loans, 45.7% of the respondents cooperative societies focus on serving underserved populations, 12.3% of the respondents cooperative societies offering fewer financial product while 4.9% of the respondents said that charging higher fees for services. This mean that cooperative society typically foster financial inclusion on focusing on serving underserved populations in compared to conventional banks. Table 10 What is a common governance model used in cooperative credit societies? Frequency Percent Valid Percent Cumulative Percent Valid A hierarchical structure with a CEO at the top 21 25.9 25.9 25.9 A board of directors elected by the members 46 56.8 56.8 82.7 A system controlled by major investors 11 13.6 13.6 96.3 A government-appointed administrator 3 3.7 3.7 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 25.9% of the respondents government have a hierarchical structure with a CEO at the top, 56.8% of the respondents a board of directors elected by the members, 13.6% of the respondents government model used through a system controlled by major investors while 3.7% of the respondents government appointed administrator. This implies that government model were used in cooperative credit society through the elected board of director by members. Table 11 How do cooperative credit societies contribute to financial education for their members? Frequency Percent Valid Percent Cumulative Percent Valid By only offering basic savings accounts 24 29.6 29.6 29.6 By providing financial literacy workshops and resources 27 33.3 33.3 63.0 By avoiding any form of member education 16 19.8 19.8 82.7 By focusing solely on loan products 14 17.3 17.3 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 29.6% of the respondents offer basic by saving accounts, 33.3% of the respondents provide financial literacy workshops and resources, 19.8% of the respondents avoiding any form of member education while 17.3% of the respondents focus solely on loan products. This implies that cooperative societies contribute financial education by provide financial literacy workshops and resources for their members. Table 12 Which of the following is a typical product offered by cooperative credit societies? Frequency Percent Valid Percent Cumulative Percent Valid High-risk investment portfolios 27 33.3 33.3 33.3 Personal loans and mortgages 25 30.9 30.9 64.2 Complex derivatives trading 19 23.5 23.5 87.7 Services exclusively for large corporations 10 12.3 12.3 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 33.3% of the respondents agreed that there is high-risk investment profolios, 30.9% of the respondents said that personal loans and mortgages, 23.5% of the respondents complex derivatives trading while 12.3% of the respondents said that services exclusively for large corporations. This means that personal loans and mortgages is typical product through cooperative credit societies. Table 13 How do interest rates on loans from cooperative credit societies generally compare to those from conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid Always higher 18 22.2 22.2 22.2 Always lower 30 37.0 37.0 59.3 Can be competitive, often tailored to members' needs 23 28.4 28.4 87.7 Do not exist, they are only for savings 10 12.3 12.3 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 22.2% of the respondents agreed rate of loans from cooperative society always higher, 37.0% of the respondents agreed that rate of loans from cooperative society always lower, 28.4% of the respondents can be competitive often tailored to members’ needs while 12.3% of the respondents do not exist, they are only for savings. This means that rate of loans from cooperative credit societies always lower generally compare to those from conventional bank. Table 14 In what way do cooperative credit societies often differ in their savings options compared to conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid Offer the same standard savings accounts 27 33.3 33.3 33.3 Provide savings options tailored to member needs and community projects 28 34.6 34.6 67.9 Do not offer savings accounts 14 17.3 17.3 85.2 Focus only on government bonds 12 14.8 14.8 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 33.3% of the respondents offer the same standard savings from cooperative account, 34.6% of the respondents said that they provide savings options tailored to member needs and community projects, 17.3% of the respondents do not offer savings accounts while 14.8% of the respondents focus only on government bonds. This implies cooperative credit societies provide savings options tailored to members needs and community projects through their savings options compared to conventional banks. Table 15 What is a key benefit of using cooperative credit societies to support SMEs? Frequency Percent Valid Percent Cumulative Percent Valid They don't support SMEs 17 21.0 21.0 21.0 Focus on providing flexible loans and financial advice 38 46.9 46.9 67.9 Only works with large corporations 12 14.8 14.8 82.7 They can offer higher interest rates 14 17.3 17.3 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 21.0% of the respondents agreed that they don’t support SMEs, 46.9% of the respondents Table 16 How do cooperative credit societies prioritise community development in their operations? Frequency Percent Valid Percent Cumulative Percent Valid By focusing solely on individual financial products 31 38.3 38.3 38.3 By investing in community projects and offering affordable loans 30 37.0 37.0 75.3 By avoiding involvement in local issues 13 16.0 16.0 91.4 By only supporting large-scale businesses 7 8.6 8.6 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 38.3% of the respondents focus solely on individual financial products, 37.0% of the respondents investing in community projects and offering affordable loans, 16.0% of the respondents avoiding involvement in local issues while 8.6% of the respondents supporting large-scale businesses. This means that investing in community projects and offering affordable loans is prioritise for community development in their operations. Table 17 How do cooperative credit societies support local economic development? Frequency Percent Valid Percent Cumulative Percent Valid By funding large, multinational corporations 32 39.5 39.5 39.5 By providing financial services to small businesses and local initiatives 24 29.6 29.6 69.1 By avoiding investments in the local community 16 19.8 19.8 88.9 By only focusing on individual financial products 9 11.1 11.1 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 39.2% of the respondents said that cooperative societies support local economic development by funding large multinational corporations, 29.6% of the respondents said that cooperative societies support local economic development by providing financial services to small business and local initiatives, 19.8% of the respondents through investment in the local community while 11.1% of the respondents focus on individual financial products. This implies that cooperative societies support local economic development by funding large, multinational corporation. Table 18 What is a typical impact of cooperative credit societies on community empowerment? Frequency Percent Valid Percent Cumulative Percent Valid Discouraging community involvement 32 39.5 39.5 39.5 Fostering financial independence and stability for members 31 38.3 38.3 77.8 Increasing interest rates to benefit investors 12 14.8 14.8 92.6 ignoring local economic needs 6 7.4 7.4 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 39.5% of the respondents were discourage community involvement, 38.3% of the respondents fostering financial independence and stability for members, 14.8% of the respondents increasing interest rates to benefit investors while 7.4% of the respondents ignoring local economic needs. This implies that cooperative societies typical impact by discouraging community involvement. Table 19 How do cooperative credit societies promote a sense of community among their members? Frequency Percent Valid Percent Cumulative Percent Valid By keeping members isolated 28 34.6 34.6 34.6 By facilitating participation and shared decision-making 28 34.6 34.6 69.1 By prioritizing individual profit above all else 12 14.8 14.8 84.0 By removing direct communication with members 13 16.0 16.0 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 34.6% of the respondents were both on keeping members isolated and facilitating participation and shared decision-making, 14.8% of the respondents prioritizing individual profit above all else while 16.0% of the respondents by removing direct communicating with members. This implies that cooperative societies promote a sense of community among their members by keeping members isolated and facilitating participation and shared decision-making. Table 20 How do cooperative credit societies typically engage in social responsibility initiatives? Frequency Percent Valid Percent Cumulative Percent Valid By ignoring social issues 27 33.3 33.3 33.3 By investing in community projects and charitable activities 32 39.5 39.5 72.8 By only supporting large corporations 13 16.0 16.0 88.9 By focusing solely on profit maximisation 9 11.1 11.1 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 33.3% of the respondents by ignoring social issues, 39.5% of the respondents by investing in community projects and charitable, 16.0% of the respondents by only supporting large corporating, while 11.1% of the respondents increasing interest rates to benefit investors This implies that cooperative societies typically engage in social responsibility initiatives through investing in community project and charitable activities. Table 21 How do cooperative credit societies often respond to local needs compared to conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid Offer the same services with no local tailoring 19 23.5 23.5 23.5 Offer more tailored products and services, adapting to local community needs 41 50.6 50.6 74.1 Ignore local needs and interests 13 16.0 16.0 90.1 Are unable to adapt to community needs 8 9.9 9.9 100.0 Total 81 100.0 100.0 Table 22 In what ways do cooperative credit societies often collaborate with conventional financial institutions? Frequency Percent Valid Percent Cumulative Percent Valid They don't collaborate 25 30.9 30.9 30.9 Through loan participations, shared ATMs, and cross-referrals 34 42.0 42.0 72.8 Compete directly with all products 15 18.5 18.5 91.4 Only collaborate on large, international projects 7 8.6 8.6 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 30.9% of the respondents said that cooperative society don’t collaborate with conventional financial institutions, 42.0% of the respondents through loan participations, shared ATMs, and cross referrals, 18.5% of the respondents compete directly with all product while 8.6% of the respondents only collaborate on large, international projects. This implies that cooperative societies often collaborate through loan participations, shared ATMs, and cross referrals. Table 23 How can conventional banks leverage cooperative credit societies to enhance their outreach? Frequency Percent Valid Percent Cumulative Percent Valid By ignoring underserved market 18 22.2 22.2 22.2 By partnering to serve specific communities and customer segments 23 28.4 28.4 50.6 By competing directly with cooperative credit societies 24 29.6 29.6 80.2 By staying separate from local outreach 16 19.8 19.8 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the responses of the respondents on the contribution of conventional bank leverage cooperative to enhance their outreach. Majority of the respondents said that competing directly with cooperative credit societies. Table 24 What are common challenges for conventional banks when partnering with cooperative credit societies? Frequency Percent Valid Percent Cumulative Percent Valid The complexity of data sharing 26 32.1 32.1 32.1 Differences in operating models and regulatory compliance 38 46.9 46.9 79.0 A lack of interest in partnerships 10 12.3 12.3 91.4 All of the above 7 8.6 8.6 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the responses of the respondents on challenges for conventional banks when partnering with cooperative credit societies. Majority of the respondents said that differences in operating models and regulatory compliance. Table 25 How do regulatory frameworks affect the relationship between cooperative credit societies and conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid They encourage competition only 26 32.1 32.1 32.1 They limit collaboration 19 23.5 23.5 55.6 They provide guidelines and standards for collaboration and consumer protection 28 34.6 34.6 90.1 They are completely irrelevant 8 9.9 9.9 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the responses of the respondents on how do regulatory framework relationship between cooperative credit societies and conventional banks. Majority of the respondents said that cooperative societies provide guidelines and standard for collaboration and consumer protection. Table 26 How can data sharing between cooperative credit societies and traditional banks improve financial services? Frequency Percent Valid Percent Cumulative Percent Valid By hindering consumer privacy 24 29.6 29.6 29.6 By enabling better risk management, fraud detection, and personalised services 39 48.1 48.1 77.8 It does not improve anything 14 17.3 17.3 95.1 By increasing the costs 4 4.9 4.9 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the responses of the respondents on how can data sharing between cooperatives credit societies and traditional banks improve financial services. Majority of the respondents said that cooperative credit societies enabling better risk management, fraud detection and personalized services by sharing data and improving financial services. Table 27 How do cooperative credit societies promote sustainable finance? Frequency Percent Valid Percent Cumulative Percent Valid They do not promote sustainable finance 27 33.3 33.3 33.3 By prioritizing over environmental and social impacts 20 24.7 24.7 58.0 By investing in eco-friendly projects and promoting responsible lending 26 32.1 32.1 90.1 By focusing solely on short-term gains 8 9.9 9.9 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the responses of the respondents on how cooperative credit societies promote sustainable finance. Majority of the respondents agreed that investing in eco-friendly projects and promoting responsible lending. Table 28 How are technological advancements affecting the operations of cooperative credit societies and conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid They remain unaffected 25 30.9 30.9 30.9 They are improving services, enabling online banking, and enhancing security 23 28.4 28.4 59.3 They are making operations more complex 17 21.0 21.0 80.2 They are only beneficial for large banks 16 19.8 19.8 100.0 Total 81 100.0 100.0 INTERPRETATION: The above analysis shows the responses of the respondents on how are technological advancement affecting the operations of cooperative credit societies and conventional banks. Majority of the respondents agreed that technological advancement are not affected the operations of cooperative credit societies and conventional banks. Table 29 What emerging trend could influence the relationship between cooperative credit societies and conventional banks? Frequency Percent Valid Percent Cumulative Percent Valid Decreased demand for financial services 20 24.7 24.7 24.7 Increased focus on digital banking and fintech partnerships 40 49.4 49.4 74.1 Stricter regulations 12 14.8 14.8 88.9 Increased competition 9 11.1 11.1 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 24.7% of the respondents said decreased demand for financial services, 49.4% of the respondents increased focus on digital banking and fintech partnerships, 14.8% of the respondents stricter regulations while 11.1% of the respondents increased competition. This implies that the majority emerging trend could influence the relationship between cooperative credit societies and conventional banks. Table 30 How can cooperative credit societies ensure they remain relevant in an evolving financial landscape? Frequency Percent Valid Percent Cumulative Percent Valid By sticking to traditional methods only 20 24.7 24.7 24.7 By adopting new technologies, adapting to consumer needs, and forming strategic partnerships 34 42.0 42.0 66.7 By ignoring changes in the financial world 27 33.3 33.3 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 24.7% of the respondents said sticking to traditional methods only, 42.0% of the respondents increased focus on digital banking and fintech partnerships, while 33.3% of the respondents ignoring changes in the financial world. This implies that the majority adopting new technologies, adapting to consumer needs, and forming strategic partnerships. Table 31 What is a key step in strengthening the collaboration between cooperative credit societies and conventional financial institutions? Frequency Percent Valid Percent Cumulative Percent Valid Ignoring market trends 26 32.1 32.1 32.1 Establishing clear communication, shared data and streamlined processes 38 46.9 46.9 79.0 Failing to comply with regulations 10 12.3 12.3 91.4 Staying separate and competitive 7 8.6 8.6 100.0 Total 81 100.0 100.0 Interpretation: From the above analysis, 32.1% of the respondents said that ignoring market trends, 46.9% of the respondents establishing clear communication shared data and streamlined processes, 12.3% of the respondents failing to comply with regulations while 8.6% of the respondents staying separate and competitive. This implies that the majority establishing clear communication, shared data and streamlined processes is a key step in strengthening the collaboration between cooperative credit societies and conventional financial institutions HO1: Cooperative credit societies does not play a vital role in complementing the effort of conventional financial institutions. HA2: Cooperative societies play a vital role in complementing the effort of conventional financial institutions. Crosstabulation Count Cooperative societies play a vital role in complementing the effort of conventional financial institutions. Total Yes No Cooperative credit societies does not play a vital role in complementing the effort of conventional financial institutions. Yes 27 0 27 No 34 20 54 Total 61 20 81 Chi-Square Tests Value df Asymptotic Significance (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 13.279a 1 .000 Continuity Correctionb 11.362 1 .001 Likelihood Ratio 19.356 1 .000 Fisher's Exact Test .000 .000 Linear-by-Linear Association 13.115 1 .000 N of Valid Cases 81 a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 0.001. b. Computed only for a 2x2 table Decision rule: Since chi square computed is 11.362 greater than asymptotic significant 0.0001, we reject null hypothesis and accept the alternative. Conclusion: Cooperative societies play a vital role in complementing the effort of conventional financial institutions. CHAPTER FIVE 5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1. SUMMARY OF FINDING Cooperative credit societies (CCSs) are member-driven organizations that provide financial services to their members. Unlike conventional financial institutions, which operate on a profit-driven basis, CCSs are focused on meeting the needs of their members. They are typically established by groups of individuals with a common interest, such as employees of a particular company, residents of a specific community, or members of a profession. Role in Financial Inclusion One of the primary roles of cooperative credit societies is promoting financial inclusion. They provide access to financial services for individuals who may be overlooked by conventional banks, particularly in rural or underserved areas. This includes offering: - Microloans: Small loans that can help members start or expand small businesses. - Savings Accounts: Encouraging savings among members, which can lead to improved financial stability. - Lower Interest Rates: Offering competitive rates that are often lower than those available through traditional banks, making borrowing more affordable. Community Development Cooperative credit societies contribute significantly to community development. They often reinvest profits back into the community, funding local projects and initiatives. This local focus helps stimulate economic growth and fosters a sense of solidarity among members. The funds raised through these societies often support: - Education Initiatives: Scholarships or funding for local schools. - Infrastructure Projects: Building or improving community facilities. - Health Services: Providing funds for local health initiatives. Financial Literacy and Empowerment CCSs play a crucial role in enhancing financial literacy among their members. They often provide training and resources to help members understand financial products and services, budgeting, and investment strategies. This empowerment leads to: - Informed Decision-Making: Members are better equipped to make sound financial choices. - Increased Savings: Educated members are more likely to save and invest wisely. - Economic Empowerment: Financial literacy contributes to overall economic stability for individuals and families. Challenges Faced by Cooperative Credit Societies Despite their benefits, cooperative credit societies face several challenges: - Regulatory Constraints: Many CCSs operate under strict regulations that can limit their ability to grow and serve their members effectively. - Limited Resources: Many societies struggle with limited capital and resources compared to larger banks, which can restrict their lending capabilities. - Competition: The rise of digital banking and fintech solutions presents competition that may be difficult for CCSs to match. 5.2 Conclusion Cooperative credit societies are essential players in the financial landscape, complementing the efforts of conventional financial institutions by providing accessible, member-focused financial services. Their commitment to financial inclusion, community development, and member empowerment highlights their unique role in fostering economic resilience, especially in underserved areas. However, to maximize their potential and impact, it is crucial to address the challenges they face. 5.3 Recommendations In my recommendation i will be happy if cooperative credit societies and government can look at this following research so that it will help the members to understand it: 1. Enhance Regulatory Frameworks 2. Promote Financial Literacy Programs 3. Develop Strategic Partnerships 4. Adopt Technology 5. Encourage Sustainable Practices 6. Access to Funding and Resources 7. Member Engagement and Feedback By implementing these recommendations, cooperative credit societies can strengthen their role as vital contributors to financial stability and community development, effectively complementing conventional financial institutions in the process. References Aksak, E., & Aksak, N. (2016). Risk sharing and cooperative societies: A comparative analysis. Journal of Co-operative Studies, 49(2), 25-34. Baker, C. R., & Baker, H. K. (2016). The role of cooperatives in economic development: A historical perspective. Business History Review, 90(2), 221-247. Birchall, J. (2010). People-centred businesses: Co-operatives, mutuals and the idea of membership. International Labour Organization. Birchall, J. (2003). Co-operatives and the Millennium Development Goals. International Labour Organization. Develtere, P., Pollet, I., & Wanyama, F. (2008). Cooperating out of poverty: The new role of civil society. International Labour Organization. Deller, S. C., Williams, S. W., & Coon, J. (200\9). The role of cooperatives in the local economy. Journal of Rural Cooperation, 37(1), 1-16. Hulgård, L. (2016). The role of cooperatives in community development. Community Development Journal, 51(2), 197-214. International Cooperative Alliance. (2016). World Cooperative Monitor 2016. International Cooperative Alliance. (2018). Cooperative identity, values & principles. Kumar, A., & Singh, R. (2019). Impact of Cooperative Credit Societies on Local Economic Development. Journal of Cooperative Studies Kumar, R., & Singh, A. (2019). The Impact of Agricultural Cooperatives on Farmer Income in India. Journal of Rural Studies. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44. McKillop, D. G., & Wilson, J. O. S. (2011). Credit unions: A viable alternative to traditional banking? Journal of Banking & Finance, 35(3), 635-646. Mersland, R., & Strøm, R. Ø. (2009). The impact of ownership structure on the financial performance of credit unions. Journal of Co-operative Studies, 42(1), 30-39. Murray, L. (2015). Barriers to the growth of cooperative societies. Cooperative Business Journal, 33(4), 21-29. National Credit Union Administration. (2020). Annual Report on Credit Unions and Financial Literacy. NCUA. Mishra, P. (2018). Role of Cooperative Societies in Rural Development: A Review. Journal of Rural Studies. Nair, K. (2015). Role of Cooperatives in Financial Inclusion. Indian Journal of Economics and Business. Patel, P. (2013). The impact of cooperative banks on local economic development. Development Studies Research, 1(1), 78-90. Robinson, M. S. (2001). The microfinance revolution: Sustainable finance for the poor. World Bank Publications. Rhyne, E. (2010). Microfinance and the future of finance: What is the role of cooperatives? Microfinance Gateway. Sinha, A., & Kaur, R. (2016). The potential for cooperation: Bridging the gap between cooperatives and conventional financial institutions. Cooperative Economics, 9(2), 134-147. Sharma, R. (2016). Cooperative Banking in India: A Financial Inclusion Perspective. International Journal of Research in Economics and Social Sciences. Woller, G. (2002). The role of cooperatives in development: A comparative analysis. Review of Social Economy, 60(3), 293-318. APPENDIX FEDERAL COOPERATIVE COLLEGE ELEYELE IBADAN QUESTIONNAIRE ON THE ROLE OF COOPERATIVE CREDIT SOCIETIES IN COMPLEMENTING THE EFFORT OF CONVENTIONAL FINANCIAL INSTITUTION (A CASE STUDY OF TEMIDIRE COOPERATIVE INVESTMENT AND CREDIT SOCIETY LIMITED IBADAN, OYO STATE) Questionnaire is for the purpose of research project work. Information will be used with utmost confidentiality. Thank you SECTION A (PERSONAL DATA) 1. Sex: (a) Male [ ] (b) Female 2. Age: (a) 20-25years [ ] (b) 26-35 years [ ] (c) 36-45 years [ ] (d) 46-55 years [ ] (e) 56 above [ ] 3. Marital status: (a) Single [ ] (b) Married 4. Educational background (a) SSCE ( ) (b) ND/NCE ( ) (c) HND/BSc ( ) (d) Master and above () 5. Religion (a) Christian ( ) (b) Muslim ( ) (c) traditional ( ) 6. How long have you been in the organization? (a) 1-2yrs [ ] (b) 3-4yrs [ ] (c) 5-6yrs [ ] SECTION B Understanding Cooperative Credit Societies 7. What is the primary difference in ownership structure between a cooperative credit society and a conventional bank? a) Owned by shareholders for profit vs. owned by members for service [ ] b) Governed by the government vs. governed by a board of directors [ ] c) Focus on international markets vs. focus on local communities [ ] d) Offering more complex financial products vs. offering basic services [ ] 8. Which of the following best describes the main goal of a cooperative credit society? a) Maximize profits for shareholders [ ] b) Provide financial services to members and the community [ ] c) Offer the highest interest rates on loans [ ] d) Compete directly with large commercial banks [ ] 9. How do cooperative credit societies typically foster financial inclusion compared to conventional banks? a) By requiring higher credit scores for loans [ ] b) By focusing on serving underserved populations [ ] c) By offering fewer financial products [ ] d) By charging higher fees for services [ ] 10. What is a common governance model used in cooperative credit societies? a) A hierarchical structure with a CEO at the top [ ] b) A board of directors elected by the members [ ] c) A system controlled by major investors [ ] d) A government-appointed administrator [ ] 11. How do cooperative credit societies contribute to financial education for their members? a) By only offering basic savings accounts [ ] b) By providing financial literacy workshops and resources [ ] c) By avoiding any form of member education [ ] d) By focusing solely on loan products [ ] Services and Products 12. Which of the following is a typical financial product offered by cooperative credit societies? a) High-risk investment portfolios [ ] b) Personal loans and mortgages [ ] c) Complex derivatives trading [ ] d) Services exclusively for large corporations [ ] 13. How do interest rates on loans from cooperative credit societies generally compare to those from conventional banks? a) Always higher [ ] b) Always lower [ ] c) Can be competitive, often tailored to members' needs [ ] d) Do not exist, they are only for savings [ ] 14. In what way do cooperative credit societies often differ in their savings options compared to conventional banks? a) Offer the same standard savings accounts [ ] b) Provide savings options tailored to member needs and community projects [ ] c) Do not offer savings accounts [ ] d) Focus only on government bonds [ ] 15. What is a key benefit of using cooperative credit societies to support SMEs? a) They don't support SMEs [ ] b) Focus on providing flexible loans and financial advice [ ] c) Only works with large corporations [ ] d) They can offer higher interest rates [ ]. 16. How do cooperative credit societies prioritize community development in their operations? a) By focusing solely on individual financial products [ ] b) By investing in community projects and offering affordable loans [ ] c) By avoiding involvement in local issues [ ] d) By only supporting large-scale businesses [ ] Impact on Community Development 17. How do cooperative credit societies support local economic development? a) By funding large, multinational corporations [ ] b) By providing financial services to small businesses and local initiatives [ ] c) By avoiding investments in the local community [ ] d) By only focusing on individual financial products [ ] 18. What is a typical impact of cooperative credit societies on community empowerment? a) Discouraging community involvement [ ] b) Fostering financial independence and stability for members [ ] c) Increasing interest rates to benefit investors d) Ignoring local economic needs [ ] 19. How do cooperative credit societies promote a sense of community among their members? a) By keeping members isolated [ ] b) By facilitating participation and shared decision-making [ ] c) By prioritizing individual profit above all else d) By removing direct communication with members [ ] 20. How do cooperative credit societies typically engage in social responsibility initiatives? a) By ignoring social issues [ ] b) By investing in community projects and charitable activities [ ] c) By only supporting large corporations [ ] d) By focusing solely on profit maximization [ ] 21. How do cooperative credit societies often respond to local needs compared to conventional banks? a) Offer the same services with no local tailoring [ ] b) Offer more tailored products and services, adapting to local community needs [ ] c) Ignore local needs and interests [ ] d) Are unable to adapt to community needs [ ] Collaboration with Conventional Financial Institutions 22. In what ways do cooperative credit societies often collaborate with conventional financial institutions? a) They don't collaborate [ ] b) Through loan participations, shared ATMs, and cross-referrals [ ] c) Compete directly with all products [ ] d) Only collaborate on large, international projects [ ] 23. How can conventional banks leverage cooperative credit societies to enhance their outreach? a) By ignoring underserved market [ ] b) By partnering to serve specific communities and customer segments [ ] c) By competing directly with cooperative credit societies [ ] d) By staying separate from local outreach [ ] 24. What are common challenges for conventional banks when partnering with cooperative credit societies? a) The complexity of data sharing [ ] b) Differences in operating models and regulatory compliance [ ] c) A lack of interest in partnerships [ ] d) All of the above [ ] 25. How do regulatory frameworks affect the relationship between cooperative credit societies and conventional banks? a) They encourage competition only [ ] b) They limit collaboration [ ] c) They provide guidelines and standards for collaboration and consumer protection [ ] d) They are completely irrelevant [ ] 26. How can data sharing between cooperative credit societies and traditional banks improve financial services? a) By hindering consumer privacy [ ] b) By enabling better risk management, fraud detection, and personalized services [ ] c) It does not improve anything [ ] d) By increasing the costs [ ] Future Considerations 27. How do cooperative credit societies promote sustainable finance? a) They do not promote sustainable finance [ ] b) By prioritizing profits over environmental and social impacts [ ] c) By investing in eco-friendly projects and promoting responsible lending [ ] d) By focusing solely on short-term gains [ ] 28. How are technological advancements affecting the operations of cooperative credit societies? a) They remain unaffected [ ] b) They are improving services, enabling online banking, and enhancing security [ ] c) They are making operations more complex [ ] d) They are only beneficial for large banks [ ] 29. What emerging trend could influence the relationship between cooperative credit societies and conventional banks? a) Decreased demand for financial services [ ] b) Increased focus on digital banking and Fintech partnerships [ ] c) Stricter regulations [ ] d) Increased competition [ ] 30 How can cooperative credit societies ensure they remain relevant in an evolving financial landscape? a) By sticking to traditional methods only [ ] b) By adopting new technologies, adapting to consumer needs, and forming strategic partnerships [ ] c) By ignoring changes in the financial world [ ] d) By offering only savings accounts [ ] 31. What is a key step in strengthening the collaboration between cooperative credit societies and conventional financial institutions? a) Ignoring market trends [ ] b) Establishing clear communication, shared data, and streamlined processes [ ] c) Failing to comply with regulations [ ] d) Staying separate and competitive [ ] 63