Mobile money usage and financial inclusion in Uganda

Abstract

Giving the less fortunate in developing and emerging nations like Uganda the mobile money they need opens up a world of opportunity for banks and newly emerging financial technology companies. In contrast to its siblings, such as automated teller machines, online banking, point-of-sale banking, etc., many people view mobile money services as a distinct domain within the banking and payment business. The purpose of this study was to establish the relationship between mobile money usage and financial inclusion. A conceptual model based on the stimulus-organism-response paradigm is presented in this work. The key objectives set for the study included;

• To identify the level of mobile money usage in Uganda.
• To identify the level of financial inclusion in Uganda.
• To determine the effect of mobile money usage on financial inclusion in Uganda.
• To establish the relationship between mobile money usage and financial inclusion in Uganda.

The study used a cross sectional research design to collect data from mobile money users located in Kabale district, western Uganda. A correlational research design was also used to establish the relationship. Both quantitative and qualitative approaches were adopted.

The findings revealed that there is a strong relationship between mobile money usage and financial inclusion (r = 0.670, p< 0.01). Similarly, the findings indicated that mobile money usage influences financial inclusion by 45%.