Analysis of factors associated with access and use of banking services among the people in Sheema Municipality

Abstract

This study assesses and analyses of factors associated with access and use of banking services among the people in Sheema Municipality. A cross-sectional research design was used where a sample of 133 individuals operating businesses in area of Sheema Municipality were interviewed. Data was captured using epidata, analysis was done in STATA at univariate, bivariate levels. Results showed that majority of the respondents were female (56%), aged 20 to 39 years (50%) and dealing in retail business (63%). A slightly higher proportion were married (42%), had attain secondary education (38%) and earned 500,000 to 1,000,000 Ugandan shillings monthly. With regard to access and use to banking services, over half (51%) of the respondents were not having access to the banks, in that they did not own a bank account. only 47% and 42% of the respondents were saving and had borrowed money from financial institutions respectively. About 41% of the respondents had visited the banks in the last 3 months and mainly to pay school fees. Chi-square results at bivariate analysis revealed that age, marital status, education level and monthly income of the respondents were significantly associated with the access and use to the banking services. At further analysis, binary logistic regression analysis revealed that age, education level and level of income significantly determined access to the banking services of individuals dealing in general trade in the municipality. Where respondents were aged 18 to 19 years, those that had attained secondary and tertiary education, those that were earning over one million Uganda shillings were more likely to have access and use the banking services as compared to others. The study recommends the government and other stakeholders especially financial institutions to sensitize and extend financial services especially among the young people, less educated and low-income earners in order to encourage them access and use financial services that would in turn improve on their access and use of the banking services