Financial Inclusion: A Ugandan Perspective

The proliferation of mobile money services across developing countries promises to revolutionalise financial services access by leap-frogging infrastructure gaps. Nonetheless, the influence of mobile money adoption on financial inclusion varies from country to country depending upon contextual and situational factors. The aim of this study was to determine the effect of mobile money uptake on financial inclusion, using binary logistic regression. The study was motivated by the paucity of empirical studies about the influence of information and communications technology on financial inclusion in the Ugandan context. The study employed a cross-sectional survey design. Mobile money adoption was modelled as behavioural intention to use mobile money measured, using a 5-point Likert scale with three items. Financial inclusion was measured using bank account ownership and modelled as a binary decision. Information about other demographic attributes like income as potential predictors of financial inclusion was also sought. The sampling technique used was non-probability sampling design known as snowball sampling and the sample size was 400. The questionnaire was circulated to the respondents through SoGoSurvey online research software. The geographical scope was limited to the Kampala Capital City Authority (KCCA) jurisdiction since most mobile money transactions in Uganda emanate from this area. Income, nature of primary occupation and age were statistically significant predictors of financial inclusion. Mobile money was not a significant predictor of bank account ownership suggesting that mobile money in Uganda complements rather than substitutes bank account ownership. The study re-affirmed the complementary nature of mobile money to traditional brick-and mortar bank accounts.