Journal of Applied Finance & Banking

Evaluation of determinants of financial inclusion in Uganda

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  • Abstract

    This study examines how financial literacy and financial innovation can improve financial inclusion among households in Uganda. Large sections of the population in rural and urban areas in Uganda still remain out of the coverage of formal financial systems. The study uses a cross sectional survey research design. The study population comprised of the adult population in both rural and urban settings in Uganda. Empirical data was analyzed using correlation and regression analyses. Findings indicate that financial literacy and financial innovation are better determinants of financial inclusion among households. Therefore, financially literate households have a higher potential to make informed decisions on new innovations of financial products and services. This paper is the first of its kind to examine the importance of the determinants of financial inclusion as advocated for by the Central Bank of Uganda.

    JEL classification numbers: D14, G20
    Keywords: Financial Literacy, Financial Innovation, Financial Inclusion