Mobile money usage and financial inclusion: a case study of the Kampala Metropolitan slum areas
Zimula, Rogers Kagombe
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Different scholars have highlighted the vulnerability of certain population groups to having limited access to financial services offered by formal financial institutions; inclusive of the urban poor living in slums communities. However, some studies have also showcased how mobile money services have been rapidly adopted by these vulnerable groups to fill this gap. This study thus sought to examine how these mobile money services are used for financial inclusion within the slum communities of Uganda. The study also sought to derive an understanding of the different challenges faced by the individuals within these communities in using mobile money for financial inclusion and the relevant strategies that can be employed to foster effective use of these services. The research adopted a descriptive quantitative approach. The findings of this study indicated that there were high rates of usage of mobile money services for financial inclusion in these communities with the most popular uses being fund transfer, bill payment and savings while credit (loan) access and international remittances were reported to be the least used. The study also discovered that insecurity of funds, and fraud along the networks; and high transaction fees were the most challenges reported and hence mobile money services usage can be improved by improving security of deposits, and protection against fraud; and the education of communities. On the account of the evidenced high proliferation and usage rates of mobile money services within key vulnerable population groups like the slum communities, this study recommends that policy makers and relevant institutional players prioritize the leverage of mobile money services with efforts directed to improve financial inclusion within vulnerable communities.