The influence of financial technologies on financial inclusion: the case of commercial banks in Uganda

Abstract

The study investigated the relationship between financial technologies and financial inclusion, guided by three main objectives: to examine the relationship between technological infrastructure and financial inclusion, to assess the impact of financial education initiatives on financial inclusion, and to explore the connection between innovation and research investment and financial inclusion. The research was grounded in the Technology Acceptance Model (TAM) and used a correlational design to measure the association between variables. The population comprised bank branch managers, supervisors, and IT officers from Absa Bank Uganda, Stanbic Bank Uganda, and UBA Bank, with a sample of 118 respondents, of which 86 completed the survey. The study revealed an equal gender distribution among participants, with most respondents aged 30-39 years and holding a bachelor's degree. The analysis demonstrated a significant positive relationship between financial education and financial inclusion. The regression results indicated a significant positive relationship between technological infrastructure and financial inclusion, they also indicated a strong positive relationship between innovation and research investment and financial inclusion. Additionally, the study revealed a positive relationship between technological infrastructure and financial inclusion. The study also concluded that investments in financial technologies boosted operational efficiency and customer satisfaction in financial institutions. The study recommended increasing investments in upgrading and expanding technological infrastructure to ensure reliable access to financial technologies. Furthermore, it suggested that future research should evaluate the effectiveness of different financial literacy programs in promoting the adoption of financial technologies, with comparative studies identifying best practices and recommending improvements for these initiatives.