STRENGTHENING INVESTOR CHARACTER FOR IMPROVED FINANCIAL WELLBEING: EVIDENCE FROM BIG NATIONAL SACCOs IN UGANDA
Keywords:
Investor character, Financial well-being, SACCO members, Behavioral finance, Uganda, Financial literacy, Emerging economies.Abstract
Purpose: This study investigates the relationship between investor character and financial wellbeing among members of Uganda’s major national Savings and Credit Cooperative Organizations (SACCOs), including Wazalendo SACCO, URA SACCO, Exodus SACCO, and Parliamentary SACCO. The research is motivated by the need to understand how behavioral traits of investors influence financial outcomes, particularly in cooperative financial contexts in emerging economies.
Design/methodology/approach: A cross-sectional, quantitative research design was employed. Data were collected from 384 SACCO members selected from a target population of 158,844 using stratified proportionate and simple random sampling techniques. A structured questionnaire was administered, and data were analyzed using SPSS, employing descriptive statistics, Pearson correlation, and multiple regression analysis.
Findings: Correlation and regression analyses examined the links between investor character and financial wellbeing. Results indicated a positive and statistically significant relationship (r = .392, p < .01). Regression analysis confirmed that investor character significantly predicts financial wellbeing (β = .144, p = .001), suggesting that stronger investor traits are associated with higher levels of financial stability, peace of mind, and goal attainment.
Practical implications: The findings highlight the importance of fostering behavioral competencies among SACCO members. SACCO managers, policymakers, and financial literacy practitioners are encouraged to design targeted interventions that enhance self-control, mental accounting, and framing skills, thereby strengthening members’ financial habits and overall financial wellbeing.
Originality/value: To the best of the authors’ knowledge, this is among the first empirical studies to examine the behavioral foundations of financial wellbeing within SACCO members in a least developed country context. Grounded in the Behavioral Life-Cycle Hypothesis (BLC) and the Consumer Financial Wellbeing Theory (CFWB), the study contributes to understanding how investor behavioral traits translate into improved financial outcomes in cooperative financial settings.
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