Exploring the effect of digital finance on financial inclusion in Uganda, a reflection from Lira City

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Date

2025-03-18

Journal Title

Journal ISSN

Volume Title

Publisher

Emerald Publishing

Abstract

Purpose—The study aims to discuss financial inclusion (FI) as a facilitator of digital financing, with the intention of solving challenges relating to financial exclusion. Design/methodology/approach—To understand the nexus between digital finance (DF) and FI, both descriptive and correlation research designs were used. The study collected data from 300 respondents, including vendors and dealers in agricultural produce, who were selected purposively and randomly. Findings—The study found a significant contribution of DF to FI and significant variations in FI due to mobile money (MM) and Internet banking. MM and smartphones are very often used in performing commercial transactions due to their easy accessibility compared to ATMs, the Internet, and agent banking, which are always restricted. Research limitations/implications—The study only focused on how the DF platform affects financial inclusiveness in Lira City and did not explore other financial services. Social implications—The quickest and widest adoption of MM by rural communities is mostly due to its user-friendliness, which seems to be lacking in other bank applications or products. Originality/value—The study offers significant insight into challenges related to financial inclusiveness, which is a global concern for many economies.

Description

Keywords

Digital finance, Financial inclusion, Mobile Money transfer, Internet financial products, Branchless banking

Citation

Eton, M., Mwosi, F., Amandu, I. Y., Ocan, J., & Ogwel, B. P. (2025). Exploring the effect of digital finance on financial inclusion in Uganda, a reflection from Lira City. Journal of Electronic Business & Digital Economics. https://doi.org/10.1108/JEBDE-10-2024-0037