More and more Ugandans are choosing to stash their hard-earned cash under their beds, a recent survey has unveiled, in what might seem like a scene straight out of a treasure hunt.
According to the Finscope Uganda 2023 study, jointly conducted by FSD Uganda and Bank of Uganda, the number of Ugandans resorting to home banking has skyrocketed, signaling a remarkable lack of confidence in formal and informal financial institutions alike.
This FinScope survey serves as a sort of financial census, delving into the depths of Ugandan households to uncover insights into their financial habits, preferences, and perceptions.
Comparing the financial landscape of 2023 with that of 2018, the survey reveals a significant surge in the percentage of Ugandans opting to hoard cash within their abodes for the long haul, jumping from 27% in 2018 to a staggering 44% in 2023.
In a peculiar twist, the report discloses that more Ugandans are entrusting their precious bundles of cash to family members or friends, a practice that has seen an increase from a modest 8% in 2018 to a slightly less modest 13% in 2023.
While the report falls short of providing a definitive explanation for this burgeoning trend, one can’t help but wonder if it’s a result of either a dire lack of financial knowledge or a covert operation to evade the ever-elusive bank charges lurking in the shadows of customers’ transactions.
Adding another layer of financial absurdity, the survey exposes the precarious financial tightrope many Ugandans are treading, with a staggering seven out of every 10 individuals operating on a personal budget deficit.
Remarkably, instead of relying on traditional banking solutions to bridge these financial chasms, Ugandans are turning to a makeshift network of family, personal savings, and borrowing to keep their financial ships afloat, a stark departure from the landscape of 2018.
In a plot twist that even seasoned financial analysts might find perplexing, the survey paints a picture of Ugandans shying away from credit for long-term investments, opting instead to borrow to cover day-to-day expenses.
Despite a reported increase in overall savings among Ugandans, the digital age seems to have left many behind, with a mere 2 out of every 10 individuals claiming to have ever engaged in electronic saving.
However, amidst the financial chaos, glimmers of hope emerge in the form of SACCOs and Mobile Money, which have experienced a surge in adoption rates since 2018, indicating a gradual shift towards alternative financial channels amidst the cash-stashing craze.
