Effect of technological banking innovations on financial inclusion in the banking industry in Uganda

Abstract

Financial inclusion has emerged as a critical driver of economic development and social equity. The rapid expansion of digital finance services within commercial banks has sparked a significant transformation in the financial sector. This study analyzes the effect of digital finance on financial inclusion in the banking industry in Uganda. The study determined the impact of mobile banking, agency banking and internet banking on financial inclusion in commercial banks in Uganda. The study employed a mixed methods research approach combining quantitative data analysis and qualitative exploration through interviews and surveys. It explores the role of digital finance technologies including mobile banking, agent banking and internet banking in extending financial services to previously underserved and unbanked populations. The findings from this study offer valuable insights into the effects of digital finance on access to banking services, savings and overall economic inclusion. This study ultimately contributes to the discourse on the potential of digital finance to bridge the financial inclusion gap in Uganda and offers recommendations to financial institutions and policy makers to maximize the positive impact of digital finance on the financial well-being of Ugandan citizens.