A CORRELATIONAL CROSS-SECTIONAL STUDY ON AGENCY BANKING AND FINANCIAL INCLUSION IN LIRA DISTRICT, UGANDA.

Abstract

Background: 

This study investigated the relationship between agency banking and financial inclusion in Lira District, Uganda. It examined the relationship between agency withdraws, agency deposits, agency transfers, and financial inclusion in Lira District. 

Methods: 

The study employed a descriptive, correlational, and cross-sectional research design with both qualitative and quantitative approaches, data was collected from employees of selected commercial banks, bank agents, bank customers, and opinion leaders. Convenience, purposive, and simple random sampling techniques were utilized to select 332 respondents. Primary data was gathered through self-administered questionnaires and interviews, while secondary data was obtained from documents and reports. Validity was ensured through expert judgment, while reliability was assessed using a test-retest method. Ethical considerations were addressed by obtaining permissions and ensuring confidentiality. 

Data was analyzed using SPSS software, including correlation and multiple regression analyses.

Results:

The overall number of male responses across all categories was 217 (67%), with 103 (32.2%) being female. The correlation coefficient for agency withdrawals and financial inclusion was 0.727. This suggests that the observed relationship between agency withdrawals and financial inclusion was statistically significant at the 0.01 level (2-tailed).

The correlation coefficient for agency deposits and financial inclusion was 0.673. with a moderately strong positive linear relationship between agency deposits and financial inclusion.
The correlation between agency transfers and financial inclusion was 0.728 with a strong positive correlation between agency transfers and financial inclusion. This significance value is below the commonly used threshold of 0.05, indicating that the correlation is statistically significant.

Conclusion:

The regression analysis indicated that agency banking activities including withdrawals, transfers, and deposits, were positively associated with financial inclusion in Lira District.

 Recommendations:

There is a need to promote agency banking services, focusing on agency deposits, improving trust and confidence, enhancing convenience and flexibility, targeting underserved populations, and continuous monitoring and evaluation.