Impact of Knowledge Capability and Mindset on Fraud Risk Assessment within Nigerian Deposit Money Banks
Olusoji Olumide Odukoya, Madya Dr Rose Shamsiah Bt. Samsudin · Journal of Emerging Technologies and Innovative Research · 2020
Introduction of digital technology into the banking sector created opportunities for banks to prevent and detect various forms of frauds. To ensure this, deposit money banks (DMBs) employed various forms of electronic products and services to facilitate ethical banking. This study presents an assessment of knowledge capability (KC) and mindset of bank examiners in fraud risk assessment (FRA) within DMBs. The study examines regulators’ capacity for fraud prevention and detection within the Nigerian DMBs. This study deployed both primary and secondary sources for data collection. A total of 150 questionnaires were distributed out of which 120 were returned by targeted respondents (bank examiners) all employees of the Central bank of Nigeria (CBN), Nigerian Deposit Insurance Corporation (NDIC) and 10 DMBs. Out of the 120 questionnaires returned, 85 were retained for analysis after removal of outliers. Subsequently, the study employed IBM SPSS version 25 and PLS-SEM (Smart-PLS) software version 3 for data analysis. The results revealed significant positive relationship between bank examiners’ knowledge capability, mindset and (task performance) fraud risk assessment and by implication general reduction in the incidence of fraud and forgeries within DMBs. Consequently, the study contributes to enhancement of institutional and legal frameworks for banking examination, compliance and reporting. The empirical study would result in overall reduction in the escalating occurrence of fraud and forgeries within Nigerian DMBs. Researchers may explore interviews as primary source of data collection in addition to questionnaire administration and mix-methods, that is, qualitative and quantitative research methodology.