Social capital as a better predictor of financial inclusion in Wakiso and Kiboga Town Councils, Uganda

Abstract

This study analysed the role of social capital in enhancing financial inclusion in Wakiso and Kiboga Town Councils in Uganda. A mixed methods approach was adopted. The study was guided by theories of financial intermediation and social capital. A random sample of 384 respondents was selected from a target population of 9,880. It was found that there is a significantly positive relationship between social capital and financial inclusion (r = 0.443, p < 0.001). This means that strong social networks among consumers are more likely to enable an even bigger number of people to access and use financial services. Therefore, a social clustering model was developed as a possible means of improving financial inclusion among Ugandan communities