MOBILE BANKING SERVICES AND FINANCIAL INCLUSION AMONG SMALL SCALE FARMERS IN RURAL AREAS: A CASE OF NAKISUNGA SUB-COUNTY, MUKONO DISTRICT
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Date
2024-09-04
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Uganda Christian University
Abstract
The study sought to investigate the impact of mobile banking on financial inclusion in rural areas
of Uganda, with a specific focus on small scale farmers in Katente Village, Nakisunga sub-county
Mukono District. The study was guided by three objectives: examining the relationship between
mobile payments service and financial inclusion among small scale farmers, establishing the
relationship between mobile savings service and financial inclusion among small scale farmers
and finding out the relationship between mobile loans service and financial inclusion among small
scale farmers in Nakisunga.
The study was carried out using cross-sectional research design where quantitative research
approach was utilized. Simple random sampling method was used to get a sample of 36
respondents who were small scale farmers in Katente village, Nakisunga Sub-County, Mukono
district and these responded to the questionnaires that were used to collect data.
From the study findings, it was revealed that mobile payment, mobile savings, and mobile loan
services each significantly enhance financial inclusion among small-scale farmers in Katente
Village, with positive relationships observed across all three services (mobile payments: r = .884,
mobile savings: r = .856, mobile loans: r = .873, p < .05). Mobile payments facilitate timely
transactions and new channels for mobile financial services, mobile savings promoting financial
inclusion and fostering the habit of saving among individuals, while mobile loan offers assistance
when there is a need for an emergency, finance for investment or business growth. Taken together,
all of these services are critical in enhancing financial inclusion for farmers, helping with the
farmers’ financial management, and improving their economic welfare.
Lastly the research, emphasized the importance of the development of infrastructure and enhanced
facilities for mobile money payments to enable the small scale farmers around Katente Village to
attain financial inclusion. The study also suggests, there is a need to give more support and
education regarding the mobile savings services for the achievement of financial inclusion. Lastly
the study recommends satisfactory provision for the development of mobile loan services to meet
the expectations of small scale farmers in Katente Village.