Factors that influence financial inclusion among people in Uganda
Abstract
The study mainly sought to understand the effect of digital technology, trust of financial institutions, financial literacy, asset ownership and demographic factors on financial inclusion while considering the effect of residence in influencing one’s financial inclusion status using data collected from FinScope 2018 survey. The study utilized Pearson’s Chi-square tests and complementary log-log model to find out the factors which influence financial inclusion. Results from multivariate analysis showed that digital technology, asset ownership, financial literacy and trust of financial institutions increases the likelihood of using financial products in both places of residence . Age and gender were significant and positively associated with financial inclusion in rural areas only. The findings from this study proved that place of residence can influence one’s financial inclusion status. The study recommended public investment in enhancing digital financial literacy, regulation of financial institutions in the country and sensitizing the public about genuine financial institutions