Drivers of financial inclusion in Uganda

Abstract

Financial inclusion serves as an effective mechanism of social inclusion and reducing poverty substantially thereby attaining economic growth and development. This study analyses the drivers of financial inclusion in Uganda using Uganda's 2018 FinScope Survey conducted by Financial Sector Deepening Uganda. The specific objectives include showing the effect of gender, marital status, education, income, age, employment, location and dependency on financial inclusion in Uganda. The study adopts a binary logit model to realize its objectives. The empirical findings suggest that being male, education, income, employment, living in urban areas increases the probability for an individual to be financially included whereas being married and single reduces the likelihood for households to be financially included as regards to mobile money usage. For the case of bank usage, the findings suggest that being male, education, income, age, number of dependents, employment, living in urban areas increases the chances for individuals to be financially included. The study recommends that the government should close the gender, education and employment gaps.