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
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
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
*Overlap representing those who have multiple kinds of financial accounts is not shown.
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
*Overlap representing those who have multiple kinds of financial accounts is not shown.
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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.
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
39%Financially
included*
14
*Overlap representing those who have multiple kinds of financial accounts is not shown.
2015 (N=3,000)
UGANDA
Financial inclusion is expanding, driven by mobile money account
ownership
*Overlap representing those who have multiple kinds of financial accounts is not shown.
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
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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.”
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
11%
3%
35%
have a digital NBFI account
have a digital bank account**
have a mobile money 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
have a mobile money account
11%
6%
35%
*Overlap representing those who have multiple kinds of financial accounts is not shown.
have a full-service digital NBFI
account
have a full-service digital bank
account
have a mobile money 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.”
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
21Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
UGANDA
Over half of gainfully employed adults own or work on a farm
23Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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)
24Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
25Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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)
26Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.
6%
20%
32%
UGANDA
29
Feature phone and basic phone ownership still outpace smartphone
ownership
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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)
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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.
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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)
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
UGANDA
Younger Ugandans and rural residents are more likely to use their phones
for advanced services
34Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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%
Nonbank financialinstitution
Bank
Mobile money
Any financial service
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
Any financial service
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,
15+), July-August 2015.
** 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
Any financial service
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
Any financial service
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,
15+), July-August 2015.
*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,
15+), July-August 2015.
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.
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
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.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
nonusers of mobile money
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
2015: Behavior responsiveness for aware nonusers(Shown: Percentage of each subgroup)
43%, aware
nonusers of mobile money
13%
do not
budget
income
87%
budget
income
2%
do not stay
on budget
98%
stay on
budget
53
2015: Aware nonusers of mobile money (Shown: Percentage of Ugandan adults, N=3,000)
Even on budget, aware nonusers have difficulty making ends meet, find
themselves in debt and pay their bills late
UGANDA
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
nonusers of mobile money
54
2015: Aware nonusers of mobile money (Shown: Percentage of Ugandan adults, N=3,000)
UGANDA
Aware nonusers face challenges: access to technology and technical
skills
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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)
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
*Over-the-counter use
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
Have investments
35%
Have a bank account
6%
Have an NBFI account
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
*Over-the-counter use
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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.
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
Delayed payments of bills
81%
Spend more than earn
64%
2015 (N=3,000)
2015: Behavior responsiveness for unregistered users(Shown: Percentage of each subgroup)
More debts than savings
76%
Do not have enough food to eat
44%
Do not have an emergency fund
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)
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
Have investments
43%
Have a bank account
26%
Have an NBFI account
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)
35%, registered users of mobile money
66
Almost all registered users budget their money and stick to their budgets
UGANDA
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
Spend more than earn
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%
35%, registered users of mobile money
68
Do not have enough food to eat
31%
Do not have an emergency fund
64%
Active mobile money users are more likely to live above the poverty line, in
urban areas
UGANDA
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Due to the changes in the questionnaire some data points may not be directly comparable across years.
70
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,
15+), July-August 2015.
23%
19%
4%
3%
2%
2%
2%
2%
1%
UGANDA
Question allowed for multiple responses.
Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.
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
Due to the changes in the questionnaire some data points may not be directly comparable across years.
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
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
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.
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
Above the poverty line
Below the poverty line
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
Above the poverty line
Below the poverty line
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
UGANDA
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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%
Have an NBFI account
17%
Have a mobile money account
29%
Have an NBFI account
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)
Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.
*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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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%
Have a mobile money account
29%
Have an NBFI account
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
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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%
Nonbank financialinstitution
6%
5%
Nonbank financialinstitution
2014 (N=3,001) 2015 (N=3,000)
8%
7%
Nonbank financialinstitution
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.
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
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)
Source: InterMedia Uganda FII Tracker surveys Wave 2 (N=3,001, 15+), June-July 2014; Wave 3 (N=3,000, 15+), July-August 2015.
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.
Source: InterMedia Uganda FII Tracker survey (N=3,000, 15+), July-August 2015.
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)
Source: InterMedia Uganda FII Tracker survey Wave 3 (N=3,000, 15+), July-August 2015.
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
David Musiime, Senior Research Manager
Ron Cohn, FII Program Director
Colleen Learch, Director of Research