Financial intermediation and financial inclusion of poor households: Mediating role of social networks in rural Uganda
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Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Cogent Economics & Finance
Abstract
The paper examined the mediating role of social networks in the relationship
between financial intermediation and financial inclusion of poor households in
rural Uganda. The paper used SPSS (statistical package for social scientist) and applied
MedGraph program (Excel version 13), Sobel test, and Kenny & Baron guideline
to test for the mediating role of social networks in the relationship between financial
intermediation and financial inclusion. Quantitative data were collected from a total
sample of 400 poor households living in rural Uganda who were randomly selected
for this study. The findings revealed that social networks partially mediate in the relationship
between financial intermediation and financial inclusion of poor households
in rural Uganda. Besides, social networks and financial intermediation have significant
and positive impacts on financial inclusion of poor households in rural Uganda.
This implies that some effects of financial intermediation on financial inclusion go
through social networks to cause an impact on financial inclusion of poor households in rural Uganda. Therefore, financial institutions such as banks and microfinance
institutions should develop financial products and services that promote social networking
among poor households in rural Uganda. In addition, they should advocate
for participation by poor households in existing village associations and social organizations
so as to develop wide social networks. This will help them to gain access to
scarce and vital information about available financial services like credit.
Description
Keywords
Financial inclusion, Social networks, Financial intermediation, Rural Uganda, Poor households, Banks and microfinance, Financial intermediaries
Citation
George Okello Candiya Bongomin, Joseph Mpeera Ntayi, John C. Munene & Charles Malinga Akol | (2017) Financial intermediation and financial inclusion of poor households: Mediating role of social networks in rural Uganda, Cogent Economics & Finance, 5:1, 1362184, DOI: 10.1080/23322039.2017.1362184