Moderating Role of Technology Self-Efficacy on Fintech Usage and Digital Financial Inclusion of Women in Rural Uganda
Authors
Main Article Content
Abstract
Digital financial inclusion (DFI) especially among rural women remains a significant challenge in Uganda. Despite the potential benefits of fintech’s, limited technology self-efficacy (TSE) among rural women hampers their effective usage. This study examined how TSE influences the relationship between fintech usage and DFI among these women. Data were gathered via a structured questionnaire from 384 women vendors in Mbale main market, employing an explanatory, quantitative, cross-sectional design. Using hierarchical regression and Hayes PROCESS Macro V 4.0, the study assessed both direct relationships and the moderating effect of TSE. Results indicate that both fintech usage and TSE positively impact DFI, with TSE significantly enhancing the association between fintech usage and DFI. Based on these findings, the study recommends that policymakers support fintech adoption through targeted education programs to improve TSE among rural women. Additionally, user-friendly interfaces and supportive systems are crucial in overcoming technological barriers and boosting confidence. However, limitations include the study’s cross-sectional approach, focus on women vendors in a specific district, and potential social desirability bias. Future research should consider longitudinal studies, cultural aspects of fintech adoption, and mixed-methods data collection to deepen understanding of the variables.
Article Details
The data that support the findings of this study are available from the corresponding author, RM upon reasonable request.
Aiken, L. S., West, S. G., & Reno, R. R. (1991). Multiple regression: Testing and interpreting interactions. sage.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.
Alhassan, A. L., & Yengeni, S. (2022). Financial technology and financial inclusion in Africa. research square platform llc.
Alrabei, A. M., Al-Othman, L. N., Al-Dalabih, F. A., Taber, T. A., & Ali, B. J. (2022). The impact of mobile payment on the financial inclusion rates. Information Sciences Letters, 11(4), 1033-1044.
Alter, A., & Yontcheva, B. (2015). Financial Inclusion and Development in the CEMAC. International Monetary Fund.
Anane, Isaac and Nie, Fengying (2022). Determinants Factors of Digital Financial Services Adoption and Usage Level: Empirical Evidence from Ghana. International Journal of Management Technology, 9 (1). pp. 26-47. ISSN 2055-0847(Print) ,2055-0855(Online)
Andreou, P. C., & Anyfantaki, S. (2021). Financial literacy and its influence on internet banking behavior. European Management Journal, 39(5), 658-674.
Asif, M., Khan, M. N., Tiwari, S., Wani, S. K., & Alam, F. (2023). The impact of Fintech usage and digital financial services on financial inclusion in India. Journal of Risk and Financial Management, 16(2), 122.
Aziz, A., & Naima, U. (2021). Rethinking digital financial inclusion: Evidence from Bangladesh. Technology in Society, 64, 101509.
Bandura, A. (1986). The explanatory and predictive scope of self-efficacy theory. Journal of social and clinical psychology, 4(3), 359-373.
Belluomini, E. (2016). Digitally immigrant social work faculty: Technology self-efficacy and practice outcomes (Doctoral dissertation, Walden University).
Chitimira, H., & Torerai, E. (2023). A regulatory analysis of digital financial services and the adoption of central bank digital currencies in Zimbabwe and South Africa. Juridical Tribune, 13(3).
Choi, S. (2018), “What promotes smartphone-based mobile commerce? Mobile-specific and self-service characteristics”, Internet Research, Vol. 28 No. 1, pp. 105-122.
Chong, K. F., Sabri, M. F., Magli, A. S., ABD Rahim, H., Mokhtar, N., & Othman, M. A. (2021). The effects of financial literacy, self-efficacy and self-coping on financial behavior of emerging adults. The Journal of Asian Finance, Economics and Business, 8(3), 905-915.
Chuen, D. L. K., & Teo, E. G. (2015). Emergence of FinTech and the LASIC principles. The Journal of Financial Perspectives: Fintech, 3(3), 24-37.
Compeau, D.R. and Higgins, C.A. (1995), “Computer self-efficacy: development of a measure and initial test”, MIS Quarterly, Vol. 19 No. 2, pp. 189-211.
Correia, J., Compeau, D., & Thatcher, J. (2016). Implications of technological progress for the measurement of technology acceptance variables: The case of self-efficacy.
Creswell, J.W. (2006), Research Design: Qualitative and Quantitative Approaches, Sage, London
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.
Ebirim, G., & Odonkor, B. (2024). Enhancing global economic inclusion with fintech innovations and accessibility. Finance & Accounting Research Journal, 6(4), 648–673.
Ebong, J., & George, B. (2021). Financial Inclusion through Digital Financial Services (DFS): A Study in Uganda. Journal of Risk and Financial Management, 14(9), 393.
Enders, C. K. (2022). Applied missing data analysis. Guilford Publications.
Enebeli-Uzor, Sunday and Mukhtar, Adam (2023) Efficacy of Digital Finance on Financial Inclusion: Evidence from the Nigerian Banking Industry. Journal of Economics, Management and Trade, 29 (11). pp. 140-152. ISSN 2456-9216
Esmael Abdu & Mohammd Adem (2021) Determinants of financial inclusion in Afar Region: Evidence from selected woredas, Cogent Economics & Finance, 9:1, 1920149
Evans, O. (2015). The Effects of Economic and Financial Development on Financial Inclusion in Africa. Review of Economics and Development Studies, 1(1), 21–32.
Financial sector deepening (FSD) Uganda (2018). FINTECH IN UGANDA; Implications for Regulation
Gupta, S., & Bostrom, R. P. (2019). A revision of computer self-efficacy conceptualizations in information systems. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 50(2), 71-93.
Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. (2016), A Primer on Partial. Least Squares Structural Equation Modelling (PLS-SEM), 2nd ed., Sage, Thousand Oaks, CA.
Hollanders, M. (2020). Fintech usage and financial inclusion: Opportunities and challenges. Journal of payments strategy & systems, 14(4), 315-325.
Hong, J.-C., Hwang, M.-Y., Tai, K.-H. and Chen, Y.-L. (2014), “Using calibration to enhance students’ self-confidence in English vocabulary learning relevant to their judgment of over-confidence and predicted by smartphone self-efficacy and English learning anxiety”, Computers and Education, Vol. 72, pp. 313-322.
International Monetary Fund (IMF) 2019"Fintech and Financial Inclusion."
Johns, R. (2010), “Likert items and scales”, Survey Question Bank, available at: http://www.surveynet. ac.uk/sqb/data collection/likertfactsheet.pdf
Jose, P. E. (2013). Doing statistical mediation and moderation. The Guilford Press.
Kim, Y., Choi, J., Park, Y.-J. and JiyoungYeon (2016), “The adoption of mobile payment services for ’Fintech usage’”, International Journal of Applied Engineering Research, Vol. 11 No. 2, pp. 1058-1061.
Koefer, F., Bokkens, A., Preziuso, M., & Ehrenhard, M. (2024). Addressing financial and digital literacy challenges for inclusive finance: Insights from microfinance institutions and Fintech usage organisations (No. 2024/97). EIF Working Paper.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610.
Lee, Y. K. (2021). Impacts of digital technostress and digital technology self-efficacy on Fintech usage usage intention of Chinese Gen Z consumers. Sustainability, 13(9), 5077.
Likert, R. (1932), “A technique for the measurement of attitudes”, Archives of Psychology, Vol. 140 No. 1, pp. 44-53
Mader, P., Duvendack, M., & Macdonald, K. (2022). Fintech and tax in Sub-Saharan Africa: taxation versus financial inclusion. Journal of Cultural Economy, 15(4), 488–507.
McCall, B. P. (1994). Testing the proportional hazards assumption in the presence of unmeasured heterogeneity. Journal of Applied Economics, 9(3), 321–334.
Museba, T. J., Gianfrate, G., & Ranganai, E. (2021). Customer perception of adoption and use of digital financial services and mobile money services in Uganda. Journal of Enterprising Communities: People and Places in the Global Economy, 15(2), 177–203.
National-Financial-Inclusion-Strategy II (2023-2028) 1. (n.d.) retrieved from www.afi-global.org
Persmoen, Å. K., & Sandvik, E. (2018). Collaboration between Banks and Fintech usage Companies: An Assessment of Emerging Organizational Designs within (Master's thesis, Handelshøyskolen BI).
Rahman, M., Yee, H. P., Masud, M. A. K., & Uzir, M. U. H. (2024). Examining the dynamics of mobile banking app. Adoption during the COVID-19 pandemic: A digital shift in the crisis. Digital Business, 4(2), 100088.
Rai, S., Prabha, C., and Gupta, A. (2019). Fintech usage Innovations and Their Impact on Traditional Financial Institutions, Payment Systems, And Financial Inclusion -A Review of Case Studies. International Journal of Research and Analytical Reviews Vol 6, No2
Ryu, H.-S. (2018), “What makes users willing or hesitant to use Fintech? the moderating effect of user type”, Industrial Management and Data Systems, Vol. 118 No. 3, pp. 541-569
Senyo, P., & Osabutey, E. L. C. (2020). Unearthing antecedents to financial inclusion through FinTech innovations. Technovation, 98, 102155.
Shiau, W. L., Yuan, Y., Pu, X., Ray, S., & Chen, C. C. (2020). Understanding Fintech usage continuance: perspectives from self-efficacy and ECT-IS theories. Industrial Management & Data Systems, 120(9), 1659-1689.
Slutsky, A. (2016). Factors influencing teachers' technology self-efficacy. Gardner-Webb University.
Uganda Bureau of Statistics 2022, The National Population and Housing Census 2014 – Area Specific Profile Series, Kampala, Uganda.
United Nations Secretary-General's Special Advocate for Inclusive Finance for Development (UNSGSA), 2018.
Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision sciences, 39(2), 273-315.
World Bank. (2018a). Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution. The World Bank.
Zhang, T., Kizildag, M., & Lu, C. (2018). Banking “on-the-go”: examining consumers’ adoption of mobile banking services. International Journal of Quality and Service Sciences, 10(3), 279–295.