ASSESSING FACTORS HINDERING FINANCIAL INCLUSION IN RURAL AREAS

Abstract

ABSTRACT The general objective of this study was to assessing factors hindering financial inclusion in rural area: Case study of Ibiri ward. .In accordance with the general objective of this research, the following specific objectives were to determine how income level influence financial inclusion, to examine the influence of financial literacy on using financial services, and to assess the role of infrastructure in financial inclusion. The scope of the study comprised of residents of Ibiri ward. The research design used was descriptive in nature. Data collection method involves primary data collection, research procedures involved and also explains the purpose of this study to the respondents and data analysis and presentation methods involved quantitative technique in which the data was analyzed using Statistical Package for Social Science (SPSS). The study established that income influenced how people use financial services in rural area. As most of respondents engaged on agricultural activities and end up saving during harvest time. As the result few respondents posed bank account. In the second objectives, the study found that respondents were not aware of importance of financial services and that hinders the use of financial services. Lastly, infrastructure plays a great role in using financial services. The study found that respondents used short period of time when wants to use informal financial services such as borrowing from a friend or family compared to when using formal financial services. Also, mobile money has helped rural people in accessing financial services. Distance affect how people use financial services. Finally results and findings were analyzed using SPSS. Excel was employed to generate graphs, pie charts, tables and bar charts to represent the percentages generated from each of the specific objectives. The outcome of the study is finalized with discussions, conclusions and provide a number of recommendations needed to improve the financial inclusion in rural area.