Mobile money services and financial inclusion in rural communities within Western Uganda

Abstract

Financial inclusion is essential for sustainable development particularly in rural communities underserved by conventional banking services. Mobile money services have emerged as a scalable yet feasible and convenient solution. Some rural communities within Western Uganda (like Rukungiri district) remain financially excluded despite the Country’s high subscriber base. This study explored how mobile money services influence financial inclusion in rural areas of Western Uganda and was framed by the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Technology Threat Avoidance Theory (TTAT). It was centred around ascertaining a) the factors affecting access to mobile money, b) cultural influences affecting usage, c) financial and economic behaviour changes because of mobile money usage, and d) user perceptions around trust and security. Semi structured interviews were conducted with mobile money users, agents and community leaders within Rukungiri District and analysed thematically in alignment with Braun and Clarke (2006). Whilst mobile money enhanced inclusion, structural considerations like network reliability, agent coverage, affordability and literacy were not the sole constraints of sustained adoption. Behavioural and cultural dynamics like user perceptions around trust, fraud and consumer protection also negatively influenced it thereby underscoring the need for context considerations when setting policy and business strategies.