Assessing the level of financial inclusion among rural youths in Luweero District

Abstract

Previous research shows that financial inclusion is vital to economic and social development. Despite its potential, financial inclusion is still very low in Uganda’s rural areas. This has impeded the growth and development of rural areas such as Luwero District. Motivated by the reduced low levels of financial inclusion in Ugandan youths, this study aimed to establish the barriers, measures and strategies of financial inclusion among youths in Luwero District. To achieve these objectives, the study undertook a cross sectional survey research design and collected data from 138 youths in Luwero District. The research study revealed that there is limited access to financial institutions in this area. Further, the study revealed that financial institutions offer safe payment and receipt options for several services, financial institutions avail affordable credit, and youths are able to access insurance through financial institutions. Finally, the study findings indicated that financial institutions should use technology to extend banking services to the community as a strategy to improve financial inclusion among the youth in Uganda. The study recommended that financial institutions roll out a Financial Literacy and Financial Consumer Protection program to schools, colleges and other educational centers, move their social transfers, wages, and pension payments onto electronic channels and ensuring that these channels are linked to easily accessible, basic transaction accounts, and intensify financial literacy outreach through financial literacy training programs in order to reach all the youth in rural areas.