Browsing by Author "Nicholas Mulumba Mujjuni"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    The effect of financial inclusion on household saving patterns in Uganda
    (Uganda Christian University, 2026-05-06) Nicholas Mulumba Mujjuni
    This study analyses the effect of financial inclusion on household saving behaviour, in Uganda according to the national representative FinScope Uganda 2023 Survey (N = 3,176 adults, weighted). Financial inclusion is also measured in three dimensions access (formal bank account ownership and proximity), usage (active mobile money use and SACCOs/VSLAs), and capability (financial literacy index) and household saving is also measured in two dimensions participation (any saving) and formality (use of semi-formal/community formal channels). The survey-weighted logistic regression results show that the active use of the mobile money is a strong predictor of the likelihood of any saving (OR = 4.67, p < 0.001) and formal/semi-formal saving (OR = 3.71, p < 0.001). Formal bank account ownership is an important predictor of semi-formal saving (OR = 2.19, p < 0.001) but does not affect overall saving participation. Surprisingly, both of them have negative correlation with above-median financial literacy (OR = 0.55 and 0.51, p < 0.001), which would suggest that more financially literate households may not rely on precautionary or group savings strategies. The urban/rural subgroups and the presence of gender, age, education, income and region are strong in the impacts. The study finds that the most influential element of saving behaviour in Uganda is the digital financial services, and the traditional bank accounts supplement the semi-formal channels. Responses to the policy should then be to augment the availability of credible mobile money infrastructure, to develop product-specific savings products and to provide behaviourally-targeted financial literacy programmes as opposed to knowledge-only interventions. Keywords: Financial inclusion, household saving, mobile money, financial literacy, Uganda, FinScope 2023.