Drivers of the Gender Gap in use of Digital Financial Services: Evidence from Uganda

This study uses a mixed methods approach to analyse the social and economic factors causing the gender gaps in the use of digital financial services (DFS) in Uganda, using the Uganda National Household Survey data of 2019/2020. Quantitatively, we applied the bivariate probit regression and the Fairlie technique to decompose the gender gap. Bivariate regression results showed that among other factors, males were more likely to use both bank accounts and mobile money services than females. A decomposition of the gender gap for each of the DFS using Fairlie decomposition technique indicated that social and economic factors explain 75% and 65% of the existing gender gap in the use of mobile money services and bank accounts in Uganda respectively. The largest contributor to the gender gap in the use of mobile money services was the ownership of a mobile phone (72.4%), followed by expenditure on information and communication technology (ICT) and education contributing 13.5% and 2.7% respectively. Similarly, the largest contributors to the gender gap in the use of bank accounts were education (18.0%), expenditure on ICT (15.3%), age (12.7%) and ownership of a mobile phone (11.5%). Our results from qualitative analysis put culture among the other key contributors to the gender gap. We therefore recommend that policy-makers in Uganda bridge the gender gap in employment and education between men and women, to achieve inclusivity in the use of DFS.