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

ABSTRACT

Mobile banking has often been advertised as an essential economic tool broadly

applicable for mobilizing savmgs, 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

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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