The impact of mobile banking in mobilization of savings in the Ugandan economy: a case study of Post Bank Uganda, city branch from 2006 to 2011

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Kampala International University, College of Economics and Management
Mobile banking has often been advertised as an essential economic tool broadly applicable for mobilizing savings, poverty alleviation and sustainable development claiming this and dealing with the most vulnerable part of society. Mobile banking should not only pursue financial viability since it has strong social commitment and further need to guarantee resource mobilization in order to sustain the life basis of people it aims to empower. The research study was carried on the impact of Mobile Banking in mobilization of savings. The objectives of the study were to assess the relationship between mobile banking and savings mobilization in Uganda and to establish the relationship between the rate of use of mobile banking services and level of education of the customers. The researcher used descriptive methodologies; design and survey were used to collect data using interview questionnaires. The research was both quantitative and qualitative in nature. Data was checked for accuracy, relevancy and completeness. All these was done for the purpose of summarizing and the interpretation of the results after the process of classifying and editing, Data was converted in percentage and frequencies for tabulation and interpretation. These tables and graphs were of use in illustrating and summarizing the findings and gave correlation test and chi-square tests to estimate the extent of the relationship between independent variables and dependent variables. The findings of the study reveal that the major indicator of improved mobile banking service delivery was extension of variety of services to the consumers. Savings mobilization was mainly understood as a result of increased education/ literacy of the masses about the importance of saving. The findings of the study further reveals that there is a significant relationship between mobile banking devices and the savings mobilization and conclude that there is insignificant relationship between the rate of use of mobile banking services and level of education. In conclusion, the study puts it that when there is an increase in use of mobile banking devices, savings mobilization increases other factors kept constant and a reduction in the use of mobile banking devices reduces on savings. On the other hand, the rate of use of mobile banking services was found out to vary inversely to the level of education of the customers.
A Research Report Submitted To The School Of Business And Management, Department Of Accounting And Finance In Partial Fulfillment For The Requirements For The Award Of Bachelor Degree In Accounting Of Kampala International University
Mobile banking, Savings, Ugandan economy, Post Bank Uganda, city branch