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Financial self-efficacy: a determinant of financial inclusion

Rachel Mindra (Department of Finance, Makerere University Business School, Kampala, Uganda)
Musa Moya (Faculty of Computing and Management Science, Makerere University Business School, Kampala, Uganda)
Linda Tia Zuze (University of the Witwatersrand, Johannesburg, South Africa)
Odongo Kodongo (Wits Business School, University of the Witwatersrand, Johannesburg, South Africa)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 15 May 2017




The purpose of this paper is to examine the relationship between financial self-efficacy (FSE) and financial inclusion (FI) among individual financial consumers in Uganda.


Using a quantitative approach and cross-sectional research design, a sample of 400 individuals from urban Central and rural Northern Uganda was drawn. SPSS and AMOS™ 21, regression analysis and structural equation models were used to establish the hypothesized relationship between FSE and FI.


The results suggest a strong positive and significant relationship between FSE and FI. The results further suggest that other variables which were controlled for, such as age and gender, had significant influence on an individual’s usage of formal financial services.

Research limitations/implications

The study was assessed using both potential and actual consumers of financial services collectively. However, if separately assessed, possibly there would be a variation in behavioral responses toward FI.

Practical implications

Formal financial service providers need to enhance individuals’ levels of confidence in management of finances and utilization of formal financial products and services, so that the financial consumers can realize the changes in financial behavior and consequently FI.

Social implications

The enhancement of individuals’ level of confidence in evaluating the available financial service options will guide them to take financial decisions that will improve their livelihood.


The results contribute toward the limited empirical and theoretical evidence for FSE and FI from a behavioral demand-side perspective.



Mindra, R., Moya, M., Zuze, L.T. and Kodongo, O. (2017), "Financial self-efficacy: a determinant of financial inclusion", International Journal of Bank Marketing, Vol. 35 No. 3, pp. 338-353.



Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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