Mobile banking as a means of financial inclusion in Uganda

Abstract

A tremendous growth has been observed in the recent years in mobile penetration within Uganda, and this has led to an accelerated financial inclusion rate within the country. This research examines majorly the role of mobile banking systems in accelerating financial inclusion coverage within the country. In order to achieve the above, a study was conducted to examine whether the need to use mobile banking systems in accessing financial services is a determining factor in becoming a mobile subscriber, to assess whether mobile banking systems are affordable and reliable and to assess the level that mobile banking systems have contributed to financial inclusion within the country. A set of questions designed in form of a questionnaire were administered to the 120 respondents within Kampala of which 103 were returned as valid. The methodology that was used in the study looked at different sources of data and sampling design, and the methods that were used in data collection, processing and analysis. The findings and results on the primary data were translated based on frequencies and percentages. In the presentation, illustrations in form of tables, graphs, pie charts, percentages as well as quantitative discussions have been used. The results obtained indicated that the need to access mobile banking services is one of the main reasons for becoming a mobile phone subscriber and hence a determining factor in accessing mobile banking systems. The results further revealed that mobile banking services are currently not affordable and not reliable, although they are being used by a lot of people to keep and access their money, implying that financial inclusion rate will be further improved and accelerated, if only banking and Telecom institutions focus their attention in making mobile banking services affordable and reliable.