Examining the role of financial intermediaries in promoting financial literacy and financial inclusion among the poor in developing countries: Lessons from rural Uganda

Figures & data

Table 1. Sample characteristics

Demographic variables	Frequency	%	Cumulative %
Gender
Male	254	63.5	63.5
Female	146	36.5	100
Total	400	100
Age
18–25 years	38	9.5	9.5
26–33 years	147	36.8	46.3
34–41 years	102	25.5	71.8
42–49 years	92	23.0	94.8
50+ years	21	5.3	100
Total	400	100
Members in household
5 or less	117	29.3	29.3
6–10	229	57.3	86.5
More than 10	54	13.5	100
Total	400	100
Type of lighting source
Paraffin lantern	187	46.8	46.8
Small kerosene lamp	108	27.0	73.8
Firewood	3	0.8	74.5
Others (solar)	102	25.5	100
Total	400	100
Are you able to read & write?
Yes	241	60.3	60.3
No	159	39.7	100
Total	400	100

n = 400

Table 2. Factor loadings and cross loadings for the variables

Variables & constructs	Financial literacy	F. Intermediation	F. Inclusion
Fin. inclusion
Factor_1finincl	0.188	0.133	0.539***
Factor_2finincl	0.113	0.169	0.588***
Qtly	0.211	0.333	0.770***
Usg	0.113	0.169	0.531***
Fin. intermediation
Market penetration	0.301	0.747***	0.220
Qualityservices1	0.372	0.872***	0.343
Financial literacy
Factor_1finlit	0.617***	0.314	0.096
Factor_2finlit	0.615***	0.247	0.081
Factor_3finlit	0.759***	0.291	0.336
Factor_4finlit	0.571***	0.214	0.067

***p < 0.001

Table 3. Factor loadings significant for the variables

Variables & constructs	Loadings	SE	t- values	P-values	VIF
Fin. inclusion
Factor_1finincl	0.539***	0.123	4.386	0.000	1.108
Factor_2finincl	0.588***	0.127	4.641	0.000	1.145
Qtly	0.770***	0.102	7.584	0.000	1.059
Usg	0.531***	0.125	4.256	0.000	1.072
Fin. intermediation
Market penetration	0.747***	0.071	10.522	0.000	1.120
Qualityservices1	0.872***	0.035	24.974	0.000	1.120
Financial literacy
Factor_1finlit	0.617***	0.122	5.054	0.000	1.084
Factor_2finlit	0.615***	0.108	5.688	0.000	1.155
Factor_3finlit	0.759***	0.075	10.118	0.000	1.129
Factor_4finlit	0.571***	0.107	5.326	0.000	1.141

***p < 0.001

Table 4. Convergent validity analysis

Variables & constructs	Loadings	Cr α	CR	AVE	R2
Fin. inclusion		0.701	0.703	0.558	0.141
Factor_1finincl	0.539***
Factor_2finincl	0.588***
Qtly	0.770***
Usg	0.531***
Fin. intermediation		0.855	0.794	0.660	0.174
Market penetration	0.747***
Qualityservices1	0.872***
Financial literacy		0.720	0.737	0.651
Factor_1finlit	0.617***
Factor_2finlit	0.615***
Factor_3finlit	0.759***
Factor_4finlit	0.571***

***p < 0.001

Table 5. Discriminant validity analysis

Variables	Fin. Inclusion	Fin. Intermediation	Fin. Literacy
Fin. Inclusion	0.615***
Fin. Intermediation	0.355***	0.814***
Fin. Literacy	0.261***	0.417***	0.644***

***p < 0.001

Figure 1. Measurement model for financial literacy.

Figure 2. Measurement model for financial intermediation.

Figure 3. Measurement model for financial inclusion.

Figure 4. PLS SEM algorithms with both direct and indirect effects.

Figure 5. PLS SEM algorithms with t-vales and p-values.

Table 6. Results of hypotheses testing

HypothesesPath	PathCoeff.	SE	t-value	P-values	95% LL	95% UL	Decision
FI← FINT ←FINLIT	0.124	0.043	2.863	0.000***	0.047	0.202	Mediated
FI← FINT	0.297	0.080	3.713	0.000***	n/a	n/a	Supported
FI ← FINLIT	0.138	0.092	3.463	0.000***	n/a	n/a	Supported

***p < 0.001

Table 7. Blind folding and predictive relevance of the model for mediation

Exogenous variables	R²	Cross-validated redundancy	Results
Financial inclusion	0.141	0.102	Acceptable Q²
Financial intermediation	0.174	0.130	Acceptable Q²

***p < 0.001

Table 8. Effect size of exogenous variables on endogenous variable of financial inclusion

Exogenous variables	R^2 included	R^2 excluded	R^2 included-R^2excluded	1-R^2 included	Total effects
Financial intermediation	0.141	0.103	0.038	0.859	0.044
Financial literacy	0.141	0.090	0.051	0.859	0.059

***p < 0.001