Financial intermediation and financial inclusion of poor households: Mediating role of social networks in rural Uganda

The paper examined the mediating role of social networks in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. The paper used SPSS (statistical package for social scientist) and applied MedGraph program (Excel version 13), Sobel test, and Kenny & Baron guideline to test for the mediating role of social networks in the relationship between financial intermediation and financial inclusion. Quantitative data were collected from a total sample of 400 poor households living in rural Uganda who were randomly selected for this study. The findings revealed that social networks partially mediate in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. Besides, social networks and financial intermediation have significant and positive impacts on financial inclusion of poor households in rural Uganda. This implies that some effects of financial intermediation on financial inclusion go through social networks to cause an impact on financial inclusion of poor households