Digital financial literacy and financial inclusion of savings and credit cooperative organisation members in Uganda: a study of SACCO members in Mawogola North County

Abstract

The study sought to investigate the effects of digital financial literacy on financial inclusion among SACCO members in Uganda. The study specifically examined the effect of digital financial knowledge on financial inclusion of SACCO members in Mawogola North in Sembabule District, assessed the effect of digital financial skill on financial inclusion of SACCO members in Mawogola North in Sembabule District and examined effect of digital financial attitude on financial inclusion of SACCO members in Mawogola North in Sembabule District. The financial literacy theory was utilised to conceptualize the variables as used in the study. A cross-sectional study research design was used in the study, and a purposive sampling was employed to choose a sample of 242 customers from a population of 660 respondents. Data was obtained from SACCO members and SACCO staff members using both qualitative and quantitative techniques. The study used multiple layers of analysis, starting with descriptive statistics, then using correlation, and finally with regression analysis. The findings of the study indicated that digital financial knowledge was the strongest predictor of financial inclusion of SACCO members, this was followed by digital financial attitude and lastly digital financial skills which was insignificant. In addition, the findings of the study also indicated that digital financial knowledge, digital financial skills and digital financial attitude had a significant positive correlation with financial inclusion at 0.01 level of significance. The study therefore, concluded Digital financial knowledge, Digital financial skills, Digital financial attitude have a positive and significant effect on financial inclusion of SACCO members. The study recommended that the Government of Uganda should invest in boosting digital financial knowledge and skills to SACCO members across the country through trainings. This should include basic training on how to use smartphones, mobile apps. It further recommended that SACCOs should educate members about the security measures in place to protect their digital transactions in order to build trust and encourage members to use digital services confidently. Key words: Digital financial knowledge, Digital financial skills, Digital financial attitude, Financial inclusion.