Why Education is the Key to Improving Financial Inclusion in Uganda

For the financial system in Uganda to become truly inclusive, financial institutions need to encourage those who face the greatest barriers to engaging with them to do so. Removing these obstacles is more important than providing formal financial services. Even with Automatic Teller Machines (ATM), an increase in bank branches, mobile money stalls and other financial services in many areas, if people do not have income, they do not know how accounts work, and they cannot afford banking fees, they still won’t be able to benefit from them. Financial institutions should reduce costs associated with operating an account and reduce interest rates. Educated young people who understand how money works are more likely to get access to the financial support and services they need. Katakwi District Education Department should work with financial institutions to introduce financial talks to schools so that young people appreciate the importance of saving from an early age. Financial Institutions should be given an opportunity to address the children (both in primary and higher levels) at least once a month at assemblies so they know which products are suitable for them.