Adoption of Financial Service Tools, Digital Infrstatructure Growth and Financial Inclusion Among Adult Women in Uganda; A Case of Lira District.
No Thumbnail Available
Date
2025-10-28
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Makerere University Business School
Abstract
The study aimed to examine the relationship between the adoption of financial service tools and financial inclusion among adult women in Lira District, Uganda. Specifically, the objectives were to assess the levels of adoption of financial tools, digital infrastructure growth, and financial inclusion among adult women, investigate the relationship between financial service tool adoption and financial inclusion, explore the relationship between financial tool adoption and digital infrastructure growth, and determine the mediating effect of digital infrastructure growth on the relationship between financial service tools and financial inclusion. A cross-sectional survey design with a quantitative approach was employed. The study managed to collect data from 399 adult women aged 20 years and above, selected through stratified sampling. Data was collected using structured questionnaires and analyzed using SPSS version 20. Factor analysis and inferential statistics, including Pearson correlation, were used to evaluate the relationships between variables. The findings indicate a high overall level of financial service tool adoption (mean = 3.95, SD = 0.585) among adult women, though perceived access to loans/credit was only moderate (mean = 2.89) and user experience variability was noted (SD = 1.137 for app simplicity). Digital infrastructure growth in Lira District was also high overall (mean = 4.07, SD = 1.377), but significant variability in internet reliability (SD = 1.464) and electricity supply (SD = 1.394) was observed. Financial inclusion among adult women was found to be at a moderate overall level (mean = 3.21, SD = 0.877), with moderate formal bank account ownership (mean = 3.22, SD = 1.224) and low understanding of saving/investment benefits (mean = 2.81, SD = 1.324). A significant and moderately strong positive relationship was found between financial service tool adoption and financial inclusion (R=0.610, Sig. =0.000). A statistically significant, albeit modest, positive relationship also existed between financial tool adoption and digital infrastructure growth (R=0.421, Sig. = 0.000). Furthermore, digital infrastructure growth partially mediated the relationship between financial service tools and financial inclusion, accounting for 24.1% of the total effect (indirect effect = 0.147, p<0.001), while a strong direct effect persisted (direct effect = 0.463). The study concluded that while financial service tools are highly adopted and significantly contribute to financial inclusion, and also modestly stimulate digital infrastructure growth, substantial unexplained variance highlights the complex interplay of other factors. Financial inclusion remains moderate, particularly concerning formal banking and financial literacy. Therefore, the study recommends a dual-pronged strategy for policymakers and development organizations: continuous investment in robust and equitable digital infrastructure, coupled with the design and promotion of financial tools and complementary programs that are effective even in sub-optimal infrastructure environments, addressing non-infrastructure barriers like socio cultural norms and digital literacy gaps.
Description
This is a master's thesis.
Keywords
Citation
Namanya, M. (2025) Adoption of Financial Service Tools, Digital Infrstatructure Growth and Financial Inclusion Among Adult Women in Uganda; A Case of Lira District. (Unpublished master’s dissertation). Makerere University Business School, Kampala, Uganda.