UGANDA - finclusion.orgfinclusion.org/uploads/file/reports/InterMedia FII Wave 3 Findings...UGANDA...

UGANDA

WAVE 3 REPORT

FII TRACKER SURVEY

FEBRUARY 2016

PUTTING THE USER FRONT AND CENTER

UGANDA

The Financial Inclusion Insights (FII) program responds to the need identified by multiple stakeholders for

timely, demand-side data and practical insights into digital financial services (DFS), including mobile money,

and the potential for their expanded use among the poor.

The FII team conducts regular survey and qualitative research in Kenya, Tanzania, Uganda, Nigeria, India, Pakistan, Bangladesh and Indonesia to:

• Track access to and demand for financial services generally, and the uptake and use of DFS specifically;

• Measure adoption and use of DFS among key target groups (females, BOP, rural, unbanked, etc.);

• Identify drivers and barriers to further adoption of DFS;

• Evaluate the agent experience and the performance of mobile money agents; and

• Produce actionable, forward-looking insights to support product and service development and delivery, based on rigorous FII data.

The FII program is managed by InterMedia. Visit the FII Resource Center to learn more: www.finclusion.org.

2

http://www.finclusion.org/

CONTENTS

UGANDA

1. Executive Summary 4

2. Methodology & Research Description 9

3. Financial Inclusion 12

4. Ugandans’ Financial Lives 19

5. Access to, Use of Mobile Phones 27

6. Financial Services Use 36

7. Mobile Money (2013-2015) 42

8. Bank Services (2013-2015) 72

9. Nonbank Financial Services (2014-2015) 84

10. Integration of Mobile Money and Bank Services (2015) 88

11. Glossary93

3

http://www.finclusion.org




EXECUTIVE SUMMARY

UGANDA

4





• Uganda is building toward meaningful financial inclusion.

o Formal account ownership and usage have grown versus 2013, largely

due to increases in mobile money usage.

o Almost four in 10 (39 percent) Ugandans now have a registered account, up

from one-third (33 percent) in 2013

o Active account ownership has also increased versus 2013.

o Thirty-four percent of Ugandans are now active account holders (used their

registered accounts “in the past 90 days”) versus 30 percent in 2013. There

are few dormant bank and mobile money accounts. Most who have an

account use it.

o Active bank and mobile money account holders are using more

beyond-basic-wallet functions compared with previous years. Savings

and bill pay remain the most common advanced activities; payroll

distribution and merchant payments via digital accounts are on the

rise.

o While mobile money active registered account usage largely explains

the growth in financial inclusion, the use of bank services and account

ownership declined from a relatively low market position.

UGANDA

5

Registered financial service users*(Shown: Percentage of Ugandan adults for each year)

33%

39%

39%

2013

2014

2015

30%

34%

34%

2013

2014

2015

Active financial service users(Shown: Percentage of Ugandan adults for each year)

Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000,

15+), July-August 2015.

*Overlap representing those who have multiple kinds of financial accounts is not shown.

Key findings – financial inclusion





• Mobile money continues to be the predominant financial service in

Uganda.

o Thirty-five percent of Ugandan adults have a registered mobile money

account. An additional 13 percent access services via somebody else’s

account, including that of an agent (over-the-counter/OTC use).

o Mobile money account ownership surpasses the use of both banks and

nonbank financial institutions (NBFIs).

o Consumers are more likely to know of mobile money point-of-service

options versus banks or other regulated financial outlets.

o There is nearly universal knowledge of the mobile money concept and

providers.

o There continues to be a sizable portion of the population that know

about mobile money and do not use it.

– 43% are considered “aware nonusers,” and they are primarily poor,

rural and less educated.

– The biggest barriers for aware nonusers include access to

technology and lack of technical skills.

UGANDA

Key findings – mobile money

6

39%have

financial

accounts

6% have a

nonbank financial

institution account

11% have a

bank account

35% have a

registered mobile

money account


Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.

2015: Registered users of financial services*(Shown: Percentage of Ugandan adults, N=3,000)





• Limited handset ownership continues to be a barrier to mobile

money usage despite an increase in access.

o Use of financial services accounts, especially mobile money

accounts, is dependent on access to mobile phones and the ability

to use them to send and receive texts.

o Adults without access to mobile phones and those who borrow

phones are both poor, female and living in the rural areas.

• Making a financial transaction is the most commonly used advanced

phone function, followed by sending/receiving multi-media

messages.

o Those who are more likely to use their phones for advanced

services are younger Ugandans and rural residents.

UGANDA

Key findings – mobile money

7



79%

58%

85%

55%

Have access to a mobile phone(Shown: Percentage of Ugandan adults, by year)

Own a mobile phone(Shown: Percentage of Ugandan

adults, by year)

2014 (N=3,001) 2015 (N=3,000)





UGANDA

Implications for expanding mobile money usage

8

• Expanding mobile money usage in Uganda requires a dual focus: increasing access to affordable

phones and encouraging phone owners to register their own SIM cards, and building meaningful

knowledge about the benefits of mobile money use.

• Limited ownership of a personal mobile phone and/or SIM card, coupled with a lack of

understanding of how to start using mobile money, is the biggest obstacle keeping aware nonusers and

nonregistered users from registering an account.

• Building meaningful knowledge comes from connecting mobile money to the target audience’s daily

realities. Aware nonusers of mobile money (aware of mobile money but do not use it) struggle with

budgeting and have difficulties making ends meet. This leads them to believe they can’t afford or aren’t

eligible to use mobile money. FII data, however, demonstrates those who have a financial account are

likely to manage their money better. Therefore, it is important to illustrate for aware nonusers how

their financial lives can change for the better with the use of mobile money.

• Promoting active, advanced use can deepen a user’s relationship with mobile money.

• Current users of mobile money services show interest in expanding the application of their accounts

beyond basic CICO and P2P functions. There is a notable increase in the number of mobile money

account holders who used the service at least once in the past 90 days.

• Usage of advanced services is also increasing with more users opting to save/set aside money and pay

bills via their accounts. Other advanced uses are also picking up but at a slower pace. The increased use

of advanced services might be because active users are now seeing more need of these services.









METHODOLOGY & RESEARCH DESCRIPTION

UGANDA

9





Survey Summary

• Annual, nationally representative survey (N=3,000) of Ugandan adults aged 15+

• Face-to-face interviews lasting, on average, 66 minutes

• Third survey (wave 3) conducted from 7/1/2015 to 8/1/2015

• Tracks trends and market developments in DFS based on the information gathered in the first survey,

conducted in 2013, and second survey conducted in 2014

Data Collection

• Basic demographics and poverty measurement (Grameen Progress Out of Poverty Index)

• Access/use of mobile devices

• Access/use of mobile money

• Access/use of formal financial services (e.g., bank accounts)

• Access/use of semi-formal and informal financial services (e.g., SACCO, cooperatives, self-help groups)

• Financial literacy and preparedness

• General financial behaviors

UGANDA

FII Uganda Tracker Survey details

10





UGANDA

% of survey % of survey

Gender Age

Male 46% 15-24 35%

Female 54% 25-34 23%

Geography 35-44 18%

Urban 25% 45-54 12%

Rural 75% 55+ 12%

Income Aptitude

Above the $2.50/day poverty

line27% Basic literacy 57%

Below the $2.50/day poverty

line73% Basic numeracy 80%

Figures are weighted to reflect national census data demographics.

Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.

11

Survey demographics





FINANCIAL INCLUSION

UGANDA

12





UGANDA

Understanding financial inclusion


What is financial inclusion?

For the purposes of this report, financial inclusion is

defined as having an account with an institution that

provides a full-suite of financial services and comes

under some form of government regulation.

These services include savings, money transfers,

insurance or investment. Institutions that only offer

loans to consumers, such as some microfinance

institutions (MFIs), are not considered to be full-service

institutions. (Source: InterMedia FII Program)

How is it measured?

To determine financial inclusion, we look at the

percentage of adults who report having an account in

their name with at least one institution offering a full-

suite of financial services.

What is included in this?

Banks, nonbank institutions and mobile money services

are included in the financial inclusion measure. In the

case of Uganda, nonbank financial institutions include

MFIs, cooperatives, post office banks and SACCOs. In

all countries, individuals must have an account in their

own name.

What isn’t included?

Excluded from the financial inclusion measure are

money guards, savings collectors and digital recharge

cards – such as gift cards – that are not attached to a

bank or MFI account.

Additionally, individuals who have accessed formal

financial services but do not have their own account,

such as those using another family member’s account,

are not included.

13





UGANDA

About four in 10 Ugandans are financially included

have a full-service NBFI account

have a full-service bank account**

have a mobile money account

11%

6%

35%

Individuals must have

accounts with institutions

offering financial services

beyond credit to be

considered financially

included. Some banks and

many NBFIs only offer

credit services to their

customers.

**For the purposes of this study, bank account holders have accounts at full-service institutions, unless otherwise noted.


39%Financially

included*

14


2015 (N=3,000)





UGANDA

Financial inclusion is expanding, driven by mobile money account

ownership


15

39%

38%

Financially included

35%

11%

6%

33%

14%

5%

Mobile money

Bank

NBFI

2014 (N=3,001) 2015 (N=3,000)

Financially included(Shown: Percentage of Ugandan adults for each year)

Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.





UGANDA

Financially excluded Ugandans are less likely to have a financial plan for

unexpected events


16

66%79%

94% 93%

Financially includedabove poverty

(n=608)

Financially excludedabove poverty

(n=356)

Financially includedbelow poverty

(n=540)

Financially excludedbelow poverty

(n=1,496)

56%

43%50%

37%

Financially includedabove poverty

(n=608)

Financially excludedabove poverty

(n=356)

Financially includedbelow poverty

(n=540)

Financially excludedbelow poverty

(n=1,496)

2015: Economically vulnerable(Shown: Percentage of Ugandan adults by financial inclusion, poverty levels)

2015: Have a financial plan for unexpected events(Shown: Percentage of Uganda adults by financial inclusion, poverty levels)





UGANDA

Four in 10 Ugandan adults are financially included with digital access to an

account

*Overlap representing those who have multiple kinds of financial accounts is not shown (N=3,000).

**Digital access = those who have “used an account digitally at an institution offering a full suite of services.”


11%

3%

35%

have a digital NBFI account

have a digital bank account**


Digitally

included*

38%

17

2015 (N=3,000)





UGANDA

Very few NBFI account holders have digital access to the services

have a full-service NBFI account

have a full-service bank account


11%

6%

35%


have a full-service digital NBFI

account

have a full-service digital bank

account


11%

3%

35%

2015: Financially included(Shown: Percentage of Ugandan adults, N=3,000)

2015: Digitally included(Shown: Percentage of Ugandan adults, N=3,000)

Digital inclusion is financially included

with digital access** to the account.

**Digital access = those who have “used an account digitally at an institution offering a full suite of services.”


39%Financially

included*

11%

Digitally

included**

18

38%





UGANDANS’ FINANCIAL LIVES

UGANDA

19





UGANDA

Nearly half of Ugandans have a financial plan; economic vulnerability

remains a big challenge

20Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.

Able to pay bills on time

Regularly experience economic

vulnerability (i.e., can’t afford food,

medical expenses)

Have a financial plan for

unexpected events

23%

87%

44%

2015: Financial responsibility, vulnerability(Shown: Percentage of Ugandan adults, n=3,000)

Financially

included(n=1,148)

Financially

excluded(n=1,852)

81% 91%

34% 17%

53% 38%









UGANDA

Sacrificing needed medical care is the most common form of economic

vulnerability


87%

Profile of vulnerable adults (n=2,580)

54% Female

77% Rural

78% Live on less than $2.50 a day

79% Numerate

46% Illiterate

Form of economic vulnerability (Shown: Percentage of vulnerable adults, n=2,580)

%

Gone without medical help 68%

Miss an important family event

(i.e., funeral, wedding, etc.)

55%

Couldn’t pay school fees 53%

Gone without food 50%

Gone without cooking fuel 39%

Gone without fertilizer for the farm 30%

Gone without help from a veterinarian 27%

Had to close down business temporarily or completely 16%

regularly experience

some form of

economic vulnerability

2015: Economic vulnerability(Shown: Percentage of Ugandan adults, n=3,000)









UGANDA

Seventy percent of adults are gainfully employed, 5 percent are looking for

work

22

4% Other

Gainfully employed Housewife or student Unemployed, job searching

70% gainfully employed

18% housewife or student

5% unemployed, job searching

3% retired or disabled

2015: Employment(Shown: Percentage of Ugandan adults, N=3,000)

OtherRetired or disabled










UGANDA

Over half of gainfully employed adults own or work on a farm


70%Gainfully

employed

1%

1%

2%

3%

5%

4%

7%

15%

44%

Driver

Mechanic

Street vendor

Occassional worker with nooccupation

Shop owner

Professional (doctor, teacher…)

Business owner

Farm worker

Farmer/ farm owner

2015: Most common primary occupation(Shown: Percentage of gainfully employed adults, n=2,141)

2015: Employment(Shown: Percentage of Ugandan adults, N=3,000)

50% of the gainfully employed are males.

74% of the gainfully employed are poor.

78% of the gainfully employed are rural

residents.









10%

10%

11%

16

24%

45%

Saving through buying something (e.g.,livestock)

Family, friends, neighbors

Bank

Mobile money account

With people in the community (ROSCAs)

Cash at home

UGANDA

Seventy-five percent of Ugandans save money; more do so through cash

and informal mechanisms

2015: Savings(Shown: Percentage of Ugandan adults, N=3,000)


currently have

savings

75%

45% know the interest rate they earn.

2015: Location of savings(Shown: Percentage of Ugandan adults who save, n=2,253)

Protecting my family from poverty

and crime (46%) and making ends

meet on a daily basis (42%) are the

top two reasons people save

money.









2015: Borrowing(Shown: Percentage of Ugandan adults, N=3,000)

5%

5%

6%

7%

18%

34%

62%

Moneylender/Shylock

SACCO

ASCA

Bank

Local shop/supplier allows you to takegoods on credit

Nigina, merry-go-rounds

Friends, family, neighbors

2015: Source of loans(Shown: Percentage of Ugandan adults who borrow, n=1,808)

UGANDA

Seven in 10 borrowers know the interest rates on their loans; friends, family,

neighbors and merry-go-rounds are the top sources of loans


68% know the interest

rates on their loans.

Those who borrow

are more financially

aware of interest

rates than those

who save. (slide 24)

borrowed

money in the

past year

62%









19%

26%

50%

Property

National Social SecurityFund

Medical

UGANDA

Very few have insurance; medical, social security and property insurance are

the most commonly owned types of insurance

2015: Insurance(Shown: Percentage of Ugandan adults, N=3,000)


have

insurance

4%

2015: Type of insurance(Shown: Percentage of Ugandan adults with

insurance, n=107)









ACCESS TO, USE OF MOBILE PHONES

UGANDA

27





79%

58%

85%

55%

UGANDA

28

Increase in mobile phone access still leaves a large gap between access,

ownership and phone competency

Have access to a mobile phone(Shown: Percentage of Ugandan adults, by year)

Own a mobile phone(Shown: Percentage of Ugandan adults, by year) 49%

sent/received

SMS

2014 (N=3,001) 2015 (N=3,000)

Basic mobile phone competency

(has sent/received text messages [SMS])(Shown: Percentage of Ugandan adults, by year)

2014

2015

47%

sent/received

SMS






6%

20%

32%

UGANDA

29

Feature phone and basic phone ownership still outpace smartphone

ownership


Feature phone

Basic phone

Smartphone

2015: Type of mobile phone(Shown: Percentage of mobile phone owners, n=1,610)

55%Own a mobile

phone

Low smartphone use suggests

app-based mobile money solutions

are unlikely to reach many.





0.6%

0.8%

1%

1%

5%

6%

52%

81%

Vodafone

Smile

Sure

K2

UTL

Africell

Airtel Uganda

MTN Uganda

UGANDA

30

MTN Uganda has the greatest market share among mobile phone owners

2015: SIM card providers(Shown: Percentage of mobile phone owners, n=1,610)






UGANDA

Male Female Above the poverty line Below the poverty lineUrban Rural

Adults without access to mobile phones and those who borrow phones are

demographically similar groups

31

2015: Dynamics of mobile phone access(Shown: Percentage of mobile phone owners, by ownership type)

66% 46% 73% 49% 77% 47%

55%Own a mobile

phone

22% 35% 18% 33% 16% 34%

29%Can borrow a

mobile phone

12% 18% 9% 18% 6% 19%

15%Have no access to

a mobile phone






UGANDA

32

Experience using financial services accounts, especially mobile money

accounts, is dependent on access to mobile phones

Total population Ever use NBFI Ever use bank Ever use mobile money

Own mobile(n=1,610)

Borrow mobile(n=894)

No mobile(n=496)

68%

21%

12%

55%

28%

2%

4%

29%

8%

0.5%

0.6%

15%Percent

of total

population

Ever use

NBFI

Ever use

bank

Ever use

MM

Mobile phone ownership and availability coincides with higher percentages of

mobile money use.


2015:





UGANDA

33

Financial inclusion is significantly higher among those who can use mobile

phones to send and receive texts

2015: Mobile phone competent(Shown: Percentage of Ugandan adults, N=3,000)

60%Financially

included

47% 53%SMS incapableSMS capable

8%

56%

20%Bank

Mobile money

NBFI

19%Financially

included3%

16%

3%Bank

Mobile money

NBFI

2015: Full service account ownership

(financial inclusion)(Shown: Percentage of mobile competent, n=1,337)

2015: Full service account ownership

(financial inclusion)(Shown: Percentage of mobile challenged, n=1,663)






UGANDA

Younger Ugandans and rural residents are more likely to use their phones

for advanced services


Profile of advanced phone users (n=1,012)

46% Female

61% Rural

56% Live on less than $2.50 a day

66% Younger than 35 years

Regularly experience

some form of

economic vulnerability

37%use a mobile

phone for

advanced

functions

2015: Advanced phone use(Shown: Percentage of Ugandan adults, N=3,000)









UGANDA

35

Making a financial transaction is the most commonly used advanced phone

function, followed by sending/receiving multi-media messages

2015: Advanced phone use(Shown: Percentage of advanced mobile phone users, n=1,012)

21%

28%

31%

32%

32%

35%

37%

39%

40%

79%

Navigation, maps

Downloaded any other mobile app

Used touchscreen

Used "Call Tunes" or other on-demandaudio/video service

Downloaded music or video games

Used social media (e.g., WhatsApp…)

Used/browsed the internet

Took a color picture

Sent/received MMS

Made a financial transaction


37%use a mobile

phone for

advanced

functions

2015: Advanced phone use(Shown: Percentage of Ugandan adults, N=3,000)





FINANCIAL SERVICES USE

UGANDA

36





5%

9%

31%

34%

4%

11%

29%

34%

0%

10%

26%

30%

Nonbank financialinstitution

Bank

Mobile money

Any financial service

6%

11%

35%

39%

5%

14%

33%

39%

0%

12%

29%

33%


Bank

Mobile money


2013 (N=3,000) 2014 (N=3,001) 2015 (N=3,000)

8%

12%

47%

50%

7%

15%

43%

47%

0%

14%

43%

47%

Nonbank financialinstitution**

Bank

Mobile money


UGANDA

Uganda at-a-glance: Mobile money drove increased engagement with

financial services from 2013 to 2015

Financial account access Registered financial service users(Shown: Percentage of Ugandan adults for each year)

Active* financial service users

Types of account ownership are not mutually exclusive. *Used in the last 90 days.

NANA NA

37Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000,


** NBFI question was not asked in the FII 2013 survey.





85%

78%

88%

89%

85%

78%

88%

89%

N/A

81%

89%

90%

Nonbank financial institution

Bank

Mobile money


2013 (N=3,000) 2014 (N=3,001) 2015 (N=3,000)

5%

9%

31%

34%

4%

11%

29%

34%

N/A

10%

25%

30%

Nonbank financialinstitution**

Bank

Mobile money


2013 (N=3,000) 2014 (N=3,001) 2015 (N=3,000)

UGANDA

There is greater active mobile money use in the marketplace compared

with 2013; most registered accounts are active

Active* financial account holders(Shown: Percentage of Ugandan adults)

Types of accounts are not mutually exclusive.

38

Active* financial account holders(Shown: Percentage of registered users for each type of account, by year)

Inferring

few

dormant

accounts

Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+) June-July 2014; Wave 3 (N=3,000,


*A registered account used in the last 90 days. ** NBFI question was not asked in the FII 2013 survey.





23%

23%

7%

56%

47% 51%

19%

27%

40%

2 0 1 3 ( N = 7 8 8 ) 2 0 1 4 ( N = 8 5 5 ) 2 0 1 5 ( N = 9 1 4 )

Basic activities only (CICO and account management)

Basic activities and P2P only

At least one advanced activity

UGANDA

Bank uses, by type(Shown: Percentage of active bank account holders)

More active bank and mobile money account holders are using their accounts

for advanced activities

Due to the changes in the questionnaire some data points may not be directly comparable across years.

39

Mobile money uses, by type(Shown: Percentage of active mobile money account holders)

Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+) June-July 2014; Wave 3 (N=3,000,


42%39%

27%

10% 5%

6%

47%

57%66%

2 0 1 3 ( N = 2 8 8 ) 2 0 1 4 ( N = 3 2 8 ) 2 0 1 5 ( N = 2 4 1 )

Basic activities only (CICO and account management)

Basic activities and P2P only

At least one advanced activity









5%

6%

5%

9%

13%

18%

19%

21%

23%

25%

31%

38%

53%

57%

4%

4%

5%

5%

5%

7%

8%

24%

26%

28%

34%

42%

58%

62%

Below poverty line (n=2,036)

Rural (n=2,200)

Females (n=1,955)

Total population (N=3,000)

Males (n=1,045)

Urban (n=800)

Above poverty line (n=964)

Active bank account holders Active mobile money account holders Active NBFI account holders All active financial account holders

UGANDA

Types of accounts are not mutually exclusive.


2015: Active account usage by demographic(Shown: Percentage of each subgroup)

There is more disparity within active account usage by poverty level than

urbanicity and gender

40

Largest gap in

active financial

account

holdings





Consumers know of an informal financial group or mobile money (MM) agent

within 1 km of where they live; banks, ATMs are farther away

UGANDA


2015: Proximity to points-of-service (POS) for financial institutions(Shown: Percentage of Ugandan adults, N=3,000)

77%

48%45%

41%

16%12% 12% 12%

9%11%7%

23%18% 16% 15% 14% 13% 11%

6% 6%

21% 21%

27%

55%52%

45%

35%

6%

39%

11%

19%

42%

17%21%

31%

45%

Any POS Informal group MM agent Retail store with aMM agent

SACCO Bank branch ATM Banking agent MFI

Less than 1 km from home 1-5 kms from home More than 5 kms from home Don't know

54% know of any mobile

money agent within 1 km of

their home

41

16% know of any banking

POS within 1 km of their

home

More than half of those who know about a bank POS

also know about an MM POS





UGANDA

42

MOBILE MONEY

(2013-2015)





Market context

UGANDA

43

Mobile money services were

first introduced in Uganda by

MTN Mobile Money, Airtel

Money and Uganda Telecom.

• Main use initially was for

basic services. This included

deposits and withdrawals,

buying airtime and data

bundles, and

sending/receiving money

from other mobile money

users.

More mobile money providers

have entered the marketplace,

but MTN Mobile Money remains

the market leader, followed by

Airtel Money.

• Introduction of the National ID

program helped increase

mobile money subscribership.

Banks introduced mobile banking

apps to allow customers access

to bank accounts via mobile

money.

The East African community now

enjoys cross-border mobile

money transfers.

Uganda still needs a

comprehensive regulatory

framework for mobile money.

Bank of Uganda issued guidelines

for MNO/bank partnerships and

consumer protection (Mobile

Money Guidelines, 2013), and

started consumer literacy

programs to promote financial

inclusion.

Uganda Revenue Authority (URA)

imposed a 10-percent tax on all

money transfers including mobile

money.

MTN Mobile Money and Airtel

Money are the leading mobile

money providers.

• Providers expanded the range

of mobile money activities to

provide value-added products

and services.

2009 2010-2014 2015





Key measures: Mobile money awareness is static, usage grew incrementally

since 2013

UGANDA

91% 35%47% 31%

91% 33%43% 29%

90% 29%43% 26%

Progression from awareness of mobile money providers* to use(Shown: Percentage of Ugandan adults for each year)

2015

*Aware of at least one provider. Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+),

June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.

2014

2013

26%

21%

17%

Aware of mobile money

provider

Use mobile money Mobile money account holder Active mobile money use Advanced mobile money use

44





UGANDA

45

90%

aware

2013 (N=3,000)

Conversion of awareness of mobile money providers* to mobile money use(Shown: Percentage of Ugandan adults for each year)

2014 (N=3,001) 2015 (N=3,000)

43% use

mobile

money

0.48

conversion

rate

43% use

mobile

money

0.47

conversion

rate

47% use

mobile

money

0.52

conversion

rate

*Awareness of at least one mobile money provider.

Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+),

July-August 2015.

Awareness almost doubles usage, even with an improved conversion

factor over the years

91%

aware91%

aware

9%

unaware

9%

unaware10%

unaware





UGANDA

*Identification documents (ID) necessary for registering a mobile money or a bank account include one of the following: a National ID, passport, voter’s card,

driver’s license, school issued ID, ration card, military ID, birth certificate, company or government ID, taxpayer certificate or local council (LC) certificate.

Key indicators for mobile money account registration (Shown: Percentage of Ugandan adults, N=3,000)

2014 49% 58% 60% 79% 73% 79%

2013 NA 62% 64% 83% 75% 87%

85%

Have access to

a mobile phone

47%

Ever send/receive

text messages

80%

Have basic

numeracy

84%

Have

an ID*

58%

Own a

SIM card

55%

Own a

mobile phone

46

Indicative of the progress

of the National ID

program

Government-driven cancellations

of unregistered SIM cards had an

indirect negative impact on mobile

phone access



Lack of equipment and skills remain a challenge for building mobile money

use; growth in ID acquisition helps





UGANDA

Mandatory SIM-card registration may have contributed to continued

non-registered use

47

Between 2012 and 2013, the Uganda Communications Commission started a

national SIM-card registration exercise.

Requirements for registration of new SIMs included presenting one of the

required IDs and biometrics: a headshot and data from fingerprint and iris scans.

Proxy registration was limited and restricted to direct family of persons seeking

registration.

Active SIM Cards that were not registered by the deadline were deactivated.









MOBILE MONEY: UNAWARE NONUSERS

UGANDA

48





UGANDA

49

Mobile money provider awareness*(Shown: Percentage of Ugandan adults for each year)

*Awareness of at least one mobile money provider.

Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+) June-July 2014; Wave 3 (N=3,000, 15+),

July-August 2015.

Unaware nonusers are primarily lower-income, less educated Ugandans,

and those in the West Nile and Eastern Region

91%

aware

2015 (N=3,000): 9% unaware

2014 (N=3001) : 9% unaware

2013 (N=3,000) : 10% unaware

2015: Percentage of each subgroup among people not

aware of mobile money providers

Region Poverty Status

Karamoja 14% Above $2.50/day 8%

West Nile 25% Below $2.50/day 92%

Eastern 20%

Eastern Central 10% Education

Southern Western 9% Primary and lower 92%

North 8% Secondary and higher 8%





MOBILE MONEY: AWARE NONUSERS

UGANDA

50





More than two in five Ugandans know about mobile money, but do not use

it, making them “aware nonusers”

UGANDA


None/primary education

73%

Secondary education and

above

27%

Urban

16%

Rural

84%

Employed

69%

43%, aware

nonusers of mobile money

2015: Profile of aware nonusers of mobile money (Shown: Percentage of each subgroup)

Younger than 35 years

59%

35 years and older

41%

Above the poverty line

14%

Below the poverty line

86%

Male

42%

Female

58%

Poor, rural and less educated

51

2015: Aware nonusers of mobile money (Shown: Percentage of Ugandan adults, N=3,000)





UGANDA


Have investments

25%

Have a bank account

3%

Have an NBFI account

2%

Borrow

59%

Save

70%

Have insurance

2%

Aware nonusers primarily save and borrow; they typically don’t have

financial accounts, insurance or investments

2015: Financial activities engagement(Shown: Percentage of each category)

43%, aware


52

2015: Aware nonusers of mobile money (Shown: Percentage of Ugandan adults N=3,000)





Aware nonusers budget their income and feel that they stay on budget

UGANDA


2015: Behavior responsiveness for aware nonusers(Shown: Percentage of each subgroup)

43%, aware


13%

do not

budget

income

87%

budget

income

2%

do not stay

on budget

98%

stay on

budget

53






Even on budget, aware nonusers have difficulty making ends meet, find

themselves in debt and pay their bills late

UGANDA


Delay payments of bills

82%

Spend more than earn

62%

2015: Behavior responsiveness for aware nonusers(Shown: Percentage of each subgroup)

Have more debts than savings

78%

Do not have enough food to eat

48%

Do not have an emergency fund

79%

43%, aware


54






UGANDA

Aware nonusers face challenges: access to technology and technical

skills


81% 77% 39% 36% 33%have an ID* have basic

numeracy

have at least

one active

SIM card

have a

mobile phone

ever

send/receive

text messages

Among aware nonusers:

Indirect agent-experience influence: Frustrations users have with agents may make their way to nonusers. More than half of users found agents were absent, didn’t have enough cash or e-float, and either their system, or the GSM/mobile network, was down.

*Identification documents (ID) necessary for registering a mobile money or a bank account include one of the following: a National ID, passport,

voter’s card, driver’s license, school issued ID, ration card, military ID, birth certificate, company or government ID, taxpayer certificate or local

council (LC) certificate.

55





MOBILE MONEY: USER SEGMENTS

UGANDA

56





Mobile money users tend to actively utilize their registered accounts

UGANDA

35%

13%

53%

Registered MM users (n=1,036) Unregistered MM users (n=375)

MM nonusers (n=1,607)

2015: Usage of mobile money (MM) services(Shown: Percentage of all Ugandan adults, N=3,000)


88% of users access their

accounts at least once

every three months

57





UGANDA

2015: Demographic characteristics of registered and unregistered mobile money (MM) users (Shown: Percentage of each subgroup)

58

Registered MM users

(n=1,036)

Unregistered MM users

(n=375)

Males 56% 40%

Younger than 35 years old 61% 66%

Rural 60% 72%

Below the poverty line 53% 73%

At least secondary education 61% 41%

Unregistered mobile money users are more likely than registered users to be

females and to have a primary education or lower






UGANDA

2015: Registered and unregistered mobile money users, by technical skills and equipment ownership(Shown: Percentage of each subgroup)

59

Registered MM users

(n=1,036)

Unregistered MM users

(n=375)

Own a phone 93% 42%

Own a SIM card 97% 47%

Ever sent/received an SMS 76% 43%

Basic literacy 78% 58%

Basic numeracy 88% 80%

Unregistered mobile money users lack the necessary equipment and

skills needed to facilitate mobile money registration and usage






UGANDA

2013 (N=3,000)

Mobile money use(Shown: Percentage of Ugandan adults for each year)

2014 (N=3,001) 2015 (N=3,000)

MM OTC*

use, 14%

MM registered

users, 29%

MM OTC use, 10%

MM registered

users, 33%

MM OTC use, 13%

MM registered

users, 35%

43% use mobile

money

43% use

mobile

money

47% use

mobile

money**

*Over-the-counter use. **Percentages add up to 48% due to statistical rounding.

Source: InterMedia Uganda FII Tracker surveys Wave 1 (N=3,000, 15+), September-December 2013; Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+),

July-August 2015.

Unregistered usage persists; for every four mobile money users, one does

not have a registered account

60





I never have

money to make a

transaction with

such account

Someone in my

family already has

an account

I don’t see any

additional

advantages to

registration

Unregistered users started using mobile money for transfers; they feel

they do not have the money or see the need to register an account

UGANDA

2015: Top reasons for starting to use mobile money (MM)(Shown: Percentage of unregistered MM users, n=375)

*Over-the-counter use


I had to receive

money from

another person

64%

I had to send

money from

another person

27%

I had to receive

money from an

organization/

government

agency2%

MM OTC* use, 13%

Top reasons for not registering an account(Shown: Percentage of unregistered MM users, n=375)

12%

9%

8%

2015 (N=3,000)

61





UGANDA



Have investments

35%

Have a bank account

6%


5%

2015 (N=3,000)

Borrow

66%

Save

72%

Have insurance

4%

Unregistered users have investments and are active in saving and

borrowing

2015: Financial activities engagement(Shown: Percentage of unregistered users in each category, n=375)

MM OTC* use, 13%

62





A majority of unregistered users budget their money and stay on budget

UGANDA



2015 (N=3,000)

2015: Behavior responsiveness for unregistered users(Shown: Percentage of unregistered users in each category, n=375)

MM OTC* use, 13%

11%

do not

budget

income

89%

budget

income

1%

do not stay

on budget

99%

stay on

budget

63





Unregistered users tend to struggle with spending, bill paying and debt

management

UGANDA

*Over-the-counter use.


Delayed payments of bills

81%


64%

2015 (N=3,000)

2015: Behavior responsiveness for unregistered users(Shown: Percentage of each subgroup)

More debts than savings

76%


44%


74%MM OTC* use, 13%

64





Almost equal proportions of registered users signed up for an account before

and after a trial period; P2P transfers are a key motivator for registration

UGANDA

2015: Top three reasons for starting to use mobile

money(Shown: Percentage of registered mobile money users, n= 1,036)


I had to receive money

from another person 54%

I had to send money from

another person 20%

I wanted to start saving with

mobile money account 7%

At least one

provider is

tried before

registering

51%

At least one

provider is

tried after

registering

47%

65

35%, registered users of mobile money

2015 (N=3,000)





UGANDA


Have investments

43%

Have a bank account

26%


11%

2015 (N=3,000)

Borrow

67%

Save

86%

Have insurance

7%

Registered mobile money users tend to have other financial accounts,

including investments

2015: Financial activities engagement(Shown: Percentage of registered mobile money users)


66





Almost all registered users budget their money and stick to their budgets

UGANDA


2015 (N=3,000)

2015: Behavior responsiveness for registered users(Shown: Percentage of each subgroup)

7%do not

budget

income

93%

budget

income

2%

do not stay

on budget

98%

stay on

budget

35%,registered users of mobile money

67





Even though they budget, registered users still struggle financially

UGANDA



59%

2015 (N=3,000)

2015: Behavior responsiveness for registered users(Shown: Percentage of each subgroup)

Delayed payments of bills

66%

More debts than savings

68%


68


31%


64%





Active mobile money users are more likely to live above the poverty line, in

urban areas

UGANDA


2015: Active registered users, by demographics(Shown: Percentage of each category)

Urban/Rural

Male/Female

Above/Below

Poverty Line

53% vs. 24%

38% vs. 25%

57% vs. 21%

more urban

than rural

more male

than female

more living

above the

poverty line

than below

31%Active registered

MM users

69





23%

23%

4%

30%

24%51%

19%

27%

40%

2 0 1 3 ( N = 7 8 8 ) 2 0 1 4 ( N = 8 5 5 ) 2 0 1 5 ( N = 9 1 4 )

Basic activities only (CICO and account management) Basic activities and P2P only At least one advanced activity

UGANDA

In 2015, more active mobile-money account holders used their accounts for advanced activities than in previous years


70

Mobile money uses, by type(Shown: Percentage of active mobile money account holders)











23%

19%

4%

3%

2%

2%

2%

2%

1%

UGANDA

Question allowed for multiple responses.


Loan activity

Save/set aside money

Bill pay

Receive wages

Receive G2P payments

Make MM2MM transfers

Pay for goods/services at a store

Make MM2SACCO transfers

Make MM2bank transfers

2014 (n=855)

14%

12%

3%

3%

1%

1%

0.8%

7%

6%

2015: Advanced mobile money account uses(Shown: Percentage of active mobile money account holders, n=914)

71


Saving and bill pay dominate the use of advanced services among active users, showing growth vs. 2014

40%of active registered

users have used at

least one

advanced mobile

money function

(vs. 27% in 2014

and 19% in 2013)









UGANDA

72

BANK SERVICES

(2013-2015)





Market context: Bank services overview

UGANDA

73

The Bank of Uganda (BoU) regulates the activities of formal banks and nonbank financial institutions (NBFI). Uganda has:

- 25 commercial banks

- 4 credit institutions

- 4 microfinance deposit-taking institutions*

Key regulations of the banking sector include:

- Micro Finance Deposit-Taking Institutions Act (2003)- Financial Institutions Act (2004)- Financial Consumer Protection Guidelines (2011)

- Maya Declaration** (discussed in the FII Wave 2 report, link below).*https://www.bou.or.ug/bou/supervision/financial_institutions.html **http://www.afiglobal.org/sites/default/files/publications/Maya%20Declaration%20Bank%20of%20Uganda.pdf; http://finclusion.org/wp-content/uploads/2014/12/InterMedia-FII_Uganda_Year-2-Report.pdf

Banks

The main mobile money services in Uganda involve partnerships between commercial banks and mobile phone operators. Banks are using these partnerships to roll out mobile banking products (e.g., Centenary Bank & MTN partnered on a mobile money ATM cash-out service. Centenary Bank ATMs across the country can be used by MTN mobile money customers to cash out).

Under these partnership, the mobile phone company employs a network of agents to interface with their customers. Customers are able to purchase, with cash, virtual money from agents.

Virtual money can be stored electronically in the customer’s virtual account; transferred to another mobile money customer; used to pay utility bills and school fees; and can, at a later date, be withdrawn in cash through an agent.

Key Bank & Mobile Money Partnerships





http://finclusion.org/wp-content/uploads/2014/12/InterMedia-FII_Uganda_Year-2-Report.pdf

http://finclusion.org/wp-content/uploads/2014/12/InterMedia-FII_Uganda_Year-2-Report.pdf

9%

11%

10%

Bank

11%

14%

12%

Bank

2013 (N=3,000) 2014 (N=3,001) 2015 (N=3,000)

12%

15%

14%

Bank

UGANDA

2013-2015 progress at a glance: Access, registered and active bank use

were static over the past three years

Financial account access Registered financial service users

(Shown: Percentage of Ugandan adults for each year)

Active* registered financial service

users

Types of account ownership are not mutually exclusive. *Used account in last 90 days.

74







UGANDA

Use of bank services and account ownership declined from a relatively low

market position

Demographic trends for access to and registered use of bank accounts (Shown: Percentage of Ugandan adults who fall into each category, by year)

Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+) June-July, 2014; Wave 3 (N=3,000, 15+), July-August 2015.

12%

18%

7%

24%

8%

25%

8%

15%

22%

9%

30%

10%

28%

9%

Totals

Male

Female

Urban

Rural



Bank use

2014 Use a bank (n=463) 2015 Use a bank (n=331)

11%

17%

7%

23%

8%

24%

7%

14%

21%

8%

26%

10%

25%

8%

Totals

Male

Female

Urban

Rural



Registered bank use

2014 Have a bank acount (n=425) 2015 Have a bank account (n=308)

75









UGANDA

Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+) June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.

Almost two-thirds of all bank users are engaged in advanced financial

activitiesBank account uses, by year

(Shown: Percentage of all users)

Savings has gradually increased

2014 (n=463) 2015 (n=331)

Basic bank account uses

Withdraw money 90% 90%

Deposit money 86% 87%

P2P transfers 22% 34%

Advanced bank account uses

Bill pay 29% 30%

Set aside/save money 18% 31%

Receive wages 17% 16%

Loan activity 9% 13%

Receive G2P payments 8% 6%

Make Bank2bank/MM2Bank

transfers

6% 9%

Savings increased

P2P transfers are becoming a popular basic activity

76









UGANDA

Bill pay Save/set aside money Receive wages

Poverty Status

Above $2.50/day poverty line (n=964) 8% 8% 5%

Below $2.50/day poverty line (n=2,036) 2% 2% 1%

Education

Primary and lower (n=1,936) 0.7% 1% 0%

Secondary and higher (n=1,064) 8% 8% 5%

Location

Urban (n=800) 7% 7% 4%

Rural (n=2,200) 3% 3% 1%

Age

Younger, aged 15-34 (n=1,695) 3% 3% 2%

Older, 35+ (n=1,305) 5% 5% 2%

Figures are weighted to reflect national census data demographics. Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.

2015: Demographics of those who use the top-three advanced bank services(Shown: Percentage of Ugandan adults who fall into each category)

Ugandans living in urban areas, above the poverty line, and the more

educated utilize bank services to pay bills, save and receive their wages

77





UGANDA

Almost all Ugandans who had used a bank account had digital access to that

account

2015: Digital access among active bank account holders(Shown: Percentage of active bank account holders, n=241)

2015: Digital bank account access and usage(Shown: Percentage of Ugandan adults, N=3,000)

78

59%

65%

96%

97%

Can be accessed via internet and/ormobile

Can transfer money digitally

Offers debit/ATM or credit card

Digital bank account

9%

11%

9%

13%

Active bank account holders

Access to a bank account

Digital bank accounts offer at least one of the following options: debit/ATM or credit cards, internet or mobile access, or a digital money transfer capability.

Digital accountsDigital and nondigital accounts










UGANDA


Bank users are more financially active than those who don’t use banks

12%Bank users,

(n=331)

Save

97%

Have insurance

14%

Borrow

75%

Have investments

52%

Save

71%

Have insurance

3%

Borrow

60%

Have investments

29%

88%Bank

nonusers (n=2,669)

2015: Financial activities engagement for bank users and nonusers(Shown: Percentage of each category)

79





UGANDA


Over a third of bank nonusers have either a mobile money account or

an NBFI account

12%Bank users

(n=331)

Have a mobile money account

81%


17%


29%


4%

88%Bank nonusers

(n=2,669)

2015: Mobile money and NBFI account ownership (Shown: Percentage of each category)

37% of all adults

80





UGANDA

Perceived lack of money is the key barrier to getting a bank account,

mostly reported among the rural groups and poor

Rural females

58%

Rural males

50%

Unemployed

53%

Top three reasons for not having a bank account (Shown: Percentage of Ugandan adults, by year)

Urban females

46%

Urban males

30%

Have ID

50%

Below poverty line

56%

Above poverty line

35%

Don’t have ID

53%

4%

13%

45%

5%

11%

50%

There are no banks close to where Ilive

I don't have money to make anytransactions with such account

I don't have money

2015 (N=3,000) 2014 (N=3,001)

Rural

54%Urban

39%

Gainfully employed

49%

81

2015: Those who say they don’t have money to

open a bank account(Shown: Percentage of each category, n=1,498)


*Identification documents (ID) necessary for registering a mobile money or a bank account include one of the following: a National ID, passport, voter’s card,

driver’s license, school issued ID, ration card, military ID, birth certificate, company or government ID, taxpayer certificate or local council (LC) certificate.









UGANDA


2015 (N=3,000)

Those who do not have a bank account still partake in financial

activities; a third of them have an alternative financial account

89%, don’t have a full

service bank account

Have investments

29%


29%


4%

Borrow

60%

Save

71%

Have insurance

3%

2015: Ugandans without a full service bank account(Shown: Percentage of those who do not have a bank account, n=2,692)

37% of all adults

82





A majority of those who don’t have a bank account budget their money and

adhere to their budgets

UGANDA


2015: Responsible behavior of Ugandans without a full service

bank account(Shown: Percentage of Ugandans without a bank account, n=2,692)

87%

budget

income

2%

do not stay

on budget

98%

stay on

budget

83

89%, don’t have a full

service bank account

2015 (N=3,000)





UGANDA

84

NONBANK FINANCIAL SERVICES

(2014-2015)





5%

4%


6%

5%


2014 (N=3,001) 2015 (N=3,000)

8%

7%


UGANDA

2014-2015 progress at a glance: Nonbank financial institutions play a

relatively minor role in expanding financial inclusion in Uganda

Financial account access Registered financial service users(Shown: Percentage of Ugandan adults for each year)

Active financial service users

85

NBFI question was not asked in the FII 2013 survey.






UGANDA

86Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.

SACCO is the more common NBFI; usage is static versus 2014

Financial institution registration and use, by year(Shown: Percentage of NBFI account holders among the total population, by year)

0.30%

0.30%

1%

3%

0.50%

0.90%

2%

3%

Post office bank

Cooperative

MFI

SACCO*

Typ

es o

f a

cco

unts

2015 (n=3,000) 2014 (N=3,001)

Ever used Active

use

SACCO 5% 3%

MFI 2% 1%

Cooperative 1% 0.8%

Post office bank 0.8% 0.5%

2015: NBFI use(Percentage of NBFI account holders among the total

population, N=3,000)

*Savings and credit cooperative





UGANDA

NBFIs continue to have more of a savings function in the marketplace

*Subgroups of registered cooperative and post office bank users are too small for further analysis.

87

Use of nonbank financial institution accounts*(Shown: Percentage of account holders for each institution)

53% 54%

45%

36%

Loan activities Save/set aside money

MFI (n=43) SACCO (n=95)

78%

41%

91%

76%

Save/set aside money Loan activities

MFI (n=40) SACCO (n=112)


2014 2015

Decline in the use of

SACCOs for loan

activities might be due

to more appealing

alternative credit

products.









UGANDA

88

INTEGRATION OF MOBILE MONEY AND

BANK SERVICES (2015)





Few Ugandans use both bank and mobile money, most tend to use one of

the financial institutions exclusively

2015: Percentage of

Ugandans who use

either a bank or

mobile money, or

both (N=3,000)

Bank or mobile

money

Bank and mobile

money

Access 49% 11%

Registered use 37% 9%

Unregistered use 13% 0.1%

Active use(used in last 90 days)

33% 7%

UGANDA

Figures are weighted to reflect national census data demographics. Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015. 89





There are signs that some Ugandan financial services users see value in

using both banking and mobile money as complementary services

UGANDA

Figures are weighted to reflect national census data demographics.


2015: Adults by different categories of access and use of bank and mobile money(Shown: Percentage of Ugandan adults, N=3,000)

11%

49%

9%

37%

0.1%

13%

7%

33%

Access bank and mobile money

Access bank or mobile money

Registered bank and mobile money

Registered bank or mobile money

Unregistered bank and mobile money

Unregistered bank or mobile money

Active bank and mobile money

Active bank or mobile money

26 percentage-point

difference

28 percentage-point

difference

38 percentage-point difference

90





Two-thirds of those who access mobile money and banks are active

registered users

UGANDA

11%

2015: Progression from access to active registered use of banks or mobile money (MM) (Shown: Percentage of Ugandan adults, N=3,000)


Access bank and MM Registered bank and MM Active bank and MM

9% 7%

Males, urbanites and those above the poverty line are more likely to actively use both bank

and mobile money.

16%

6%

6%

24%

23%

7%

14%

5%

5%

21%

20%

6%

11%

4%

4%

16%

15%

4%

Male

Female

Below poverty line

Above poverty line

Urban

Rural

Active bank and mobile money Registered bank and mobile money

Access bank and mobile money

91





Bank account users, including registered and active users, who use banks

exclusively, are financially more active

UGANDA

Figures are weighted to reflect national census data demographics. Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.

Access

bank

only

Access

MM only

Access

bank and

MM

Registered

bank only

Registered

MM only

Registered

bank or

MM

Active

bank

only

Active

MM

only

Active

bank or

MM

Borrow 83% 64% 74% 82% 64% 74% 88% 66% 73%

Save 97% 79% 98% 96% 83% 98% 99% 84% 98%

Have insurance 6% 3% 15% 15% 4% 14% 17% 5% 16%

Have investments 53% 38% 52% 60% 40% 51% 53% 40% 58%

2015: Financial activities engagement(Shown: Percentage of Ugandan adults in each category)

92





GLOSSARY

93

• Access –Access to a bank, NBFI or mobile money account; those with access have used the services either via their own account or via the account of

another person.

• Accumulating Savings and Credit Association (ASCA) – Also called Village Savings and Loan Associations (VSLAs), usually comprise 10 to 20

participants who conduct savings and loan activities for a fixed period, usually 12 months.

• Active account holder – An individual who has a registered financial services account and has used it in the last 90 days.

• Advanced use – The use of an account for services other than basic or P2P services. (For the purposes of this study, in the case of mobile money, airtime

top-ups are not considered an advanced use.)

• Basic use – The use of an account to cash-in (deposit) or cash-out (withdraw), or conduct account maintenance.

• Below the poverty line - In this particular study, adults living on less than $2.50 per day, as classified by the Grameen PPI.

• Cooperative – Typically, a business or other professional organization that is owned and run jointly by its members, who share the profits or benefits.

Cooperatives can release some of the profits/funds as loans to its members.

• Credit-only financial institution – A financial institution that only disperses loans to its customers.

• DFS access – Access to a DFS account through one’s own account or someone else’s account.

• Digital financial services (DFS) – Financial services that are provided through an electronic platform (mobile phones, electronic cards, the internet, etc.).

• Financial inclusion – For the purposes of this report, financial inclusion is defined as having an account with an institution that provides a full suite of

financial services and comes under some form of government regulation. Services include: savings, money transfers, insurance or investment.

• Full-service financial institution – Financial institutions that offer its customers at least one of the following services: savings, money transfers, insurance

or investment.

• Grameen Progress out of Poverty Index (PPI) – A poverty measurement tool from the Grameen Foundation wherein a set of country-specific questions

are used to compute the likelihood that a household is living below the poverty line.

• Informal financial institutions – Financial institutions or services that do not offer accounts or a full suite of services. These vary from

highly informal services such as money guards (individuals who keep money for others) to established community savings groups or collectives.

GLOSSARY

• Microfinance institution (MFI) – An organization that offers financial services to low-income populations. Almost all give loans to their members, and

many offer insurance, deposit and other services.

• Mobile money (MM) – A service in which a mobile phone is used to access financial services.

• Nonbank financial institution (NBFI) – A financial organization that is not formally licensed as a bank or a mobile money provider, but whose

activities are regulated, at least to some extent, by the central bank within the respective country. Such financial institutions include microfinance

institutions (MFI), cooperatives, post office Savings Banks and village-level, semi-formal savings groups.

• P2P transaction – The use of an account to send or receive money to or from other individuals.

• Post office (Savings) Bank – A government-run bank that operates through local post offices.

• Registered account holder – An individual who has a full-service bank, NBFI or mobile money account in their own name that offers more than just

credit services.

• Rotating savings and credit association (ROSCA) - A group of individuals who agree to meet for a defined period in order to save and borrow

together, a form of combined peer-to-peer banking and peer-to-peer lending.

• Savings and credit cooperative (SACCO) – A unique member driven, self-help group, which is owned and managed by its members who have a

common bond (e.g., work for the same employer, belong to the same church, live in the same village, etc.). All members contribute to the SACCO fund,

which can be used for group investment or, part of which can be given to members as loans.

• Unregistered/OTC user – An individual who has ever used bank, NBFI or mobile money services through someone else’s account, including a mobile

money agent’s account or the account of a family member or neighbor.

• Urban/rural – Urban and rural persons are defined according to their residence in urban or rural areas as prescribed by the national bureau of statistics.

• Village level semi-formal savings group – a savings group, often tied to initial or ongoing support from an NGO, that requires members to regularly

contribute to a group-managed fund and disburses loans based on pre-determined requirements and loan terms.

94

For more information contact:

Lucy Kaaria, Senior Research Associate

[email protected]

David Musiime, Senior Research Manager

[email protected]

Ron Cohn, FII Program Director

[email protected]

Colleen Learch, Director of Research

[email protected]





mailto:[email protected]




Date post:	21-Jun-2018
Category:	Documents
Upload:	vothuy
View:	212 times
Download:	0 times

UGANDA - finclusion.orgfinclusion.org/uploads/file/reports/InterMedia FII Wave 3 Findings...UGANDA...

Documents