Assessing the effectiveness of digital finance as a strategy to enhance financial inclusion at NCBA bank – Uganda

Abstract

The study was aimed at examining the effectiveness of digital banking as a strategy to enhance financial inclusion at NCBA Bank. The study was guided by three specific objectives which included examining the effectiveness of digital banking at NCBA Bank, to examine the level of financial inclusion at NCBA Bank and to examine the relationship between digital banking and financial inclusion at NCBA Bank. A cross sectional survey design was used basing on the population of 116 respondents who were bot employees and customers of NCBA Bank. Closed and open-ended questionnaire were used to collect data. Data was analyzed using SPSS to capture sample characteristics and percentage frequency distribution perception of the respondents. On effectiveness of digital banking at NCBA Bank, the study found out that NCBA Bank's digital banking enhances access to diverse financial services, promoting inclusivity. Users express confidence in the platform, accessing a wide array of financial products. The system's ease extends to cross-border transactions, underscoring its convenience. On the level of financial inclusion at NCBA Bank, it was found out that NCBA Bank offers a diverse range of tailored financial services catering to various income groups. Their digital and mobile banking options provide convenient access, coupled with financial education initiatives. The bank actively reaches underserved groups, ensuring affordability and transparency, and places importance on customer feedback for continuous service improvement. Study findings indicate that there is a positive and significant relationship between digital banking and financial inclusion. The study concludes that NCBA Bank's digital banking stands as a pivotal force in advancing financial inclusivity. With a user-friendly platform and tailored services, it fosters confidence and accessibility. The study affirms the bank's commitment to customer-centricity, affordability, and innovation, establishing a positive correlation between digital banking and enhanced financial inclusion. It was recommended that NCBA Bank should consistently invest in upgrading and expanding its digital banking services to stay ahead in technological advancements, ensuring that users continue to experience improved reliability, efficiency, and innovation. The Bank should launch targeted education initiatives and as well continue actively seeking feedback from users.