Assessing saving mechanisms in commercial banks in rural areas: a case study of Bunyoro region: evidence from UNHS Data 2019/20

Abstract

This study was conducted in Uganda. The aim of this research work was to find out the factors influencing saving mechanisms in commercial banks in rural areas specifically Bunyoro region. The study used secondary data of UNHS of 2019/20 by UBOS and was quantitative in nature. STATA software was used to analyze the data (into univariate, bivariate and multivariate) and frequency tables and percentages were generated to present findings. Chi-square test was used to test the first two hypotheses and logistic regression used to test the third hypothesis both at 5% level of significance. The Chi-square results revealed that; age, sex, marriage status, difficulty seeing, wearing a hearing aid, difficulty communication, difficulty walking, education level, industry of employment, status of employment, household size, household income stability, and monthly household expenditure were statistically significantly associated with saving in commercial banks in rural areas each with p-values (p=0.00, p=0.00, p=0.000, p=0.067, p=0.335, p=0.616, p=0.688, p=0.000,p=0.000,p=0.001, p=0.000, p=0.133 ) respectively which were less than 0.05 at 5% level of significance. However, Any member of your household operates any land for growing crops and Any member of your household own and/or raise any livestock, herds, other were found not statistically significantly associated with saving in commercial banks in rural areas. The logistic regression results revealed that; age, status of employment activities and household income were statistically significantly associated saving in commercial banks in rural areas hence predictors of saving in commercial banks in rural areas since their p-values were less than 0.05 at 5% level of significance. From the research findings, the researcher recommended that; government should provide free education, healthy work environment, Rebate on agriculturist products and subsidies for livestock dairy farms. Industries should be developed in rural areas as cheaper labor resources are available