An analysis of Mobile Money Services as a tool of financial inclusion in Uganda : a case study of Sembabule District
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Mobile money is a key component of financial inclusion, especially in developing countries. The study aimed at analyzing the role of mobile money as a tool of financial inclusion while identifying challenges faced and the strategies for strengthening financial inclusion in Uganda. The study used a descriptive research design on 80 households and 20 mobile money agents to conduct a survey in the Lugusulu sub-county, Sembabule District. The study obtained data solely from primary sources using well-structured questionnaires to determine the role of mobile money in financial inclusion. The study was also purely quantitative in nature and a simple random sampling technique was used in data collection. The data was analyzed and presented using SPSS version 21.0, the results indicated that all variables under study had reliability with alpha coefficients of 0.785 and a content validity index of 0.81. The results revealed that mobile money usage is crucial in promoting financial inclusion in rural districts of Uganda as it encourages a savings culture and facilitates payments and remittances among rural households. Several challenges like security threats (fraud), customer illiteracy, and poor accessibility are faced in utilizing mobile money services. Findings indicate that mobile network service providers have to educate and inform the public, especially in rural areas, on mobile money activities, products, and services. Additionally, an upgrade to the mobile money system would guarantee convenience, functionality, and reliability for users. Mobile money has quickly been adopted by most Ugandans, particularly rural households. Nonetheless, the level of household adaptation in rural areas is still low. This study aids in policy formulation and bridges the gap in the literature.