Factors contributing to ownership of bank accounts in Katakwi district in Uganda
Abraham, Gloria Kandi
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The present study assessed factors associated with ownership of bank accounts among young people aged 15 to 30 years in Katakwi district. Specifically, the association between individual`s demographic, socio-economic factors and understanding and clarity of financial information and ownership of bank account. The study used secondary data collected by Development Research and Training center (DRT) from 5210 households from the two Sub-Counties (Katakwi and Akoboi) of the district. Data analysis was done in STATA version 15 where univariate analysis involved calculating simple descriptive statistics, bivariate analysis where chi square and ANOVA test statistic were used to test whether a significant relationship existed among the variables of interest and multivariate analysis involved the use of Probit model to discover whether certain variables affected bank account ownership among the youth in Katakwi district. A total of 4407 youth respondents aged 15 to 30 years were considered and on average they were aged 21 years. Majority of the respondents were females (54%), had never been married, were Catholics (59%) and had attained only primary education (67%). Over half (53%) of the respondents were employed or had an earning opportunity in the last 3 months and most (68%) of the respondents were in good health in the last 12 months. Over 55% of the respondents did not understand and had no clarity about financial information and only 3% of the respondents owned bank account. At bivariate analysis, chi-square and ANOVA results showed that age, marital status, religion, education level, employment opportunity and understanding and clarity of financial information were significantly associated with ownership of bank accounts. On further analysis (multivariate analysis) using Probit regression model, marginal results showed a significant association between age, marital status, religion, education level, employment and understanding and clarity of financial information and ownership of bank accounts where age of the respondents increased the probability of owning a bank account, being divorced or separated and married, having attained at least primary education, having been employed or doing a business and understanding and having clarity increased the probability of owning a bank among the youth in Katakwi District . The study recommends government and other stakeholders such as financial institutions to extend financial services in rural areas and create a favorable package of banking services for the youth in order to improve on their financial inclusion status.