Title: Unearthing digital financial services and financial inclusion: an empirical evidence from India

Authors: Aishwarya Nagpal; Megha Jain; Abhay Jain

Addresses: Department of Business Administration, Faculty of Management Studies, North Campus, University of Delhi, New Delhi, Delhi – 110007, India ' Department of Business Administration, Faculty of Management Studies, North Campus, University of Delhi, New Delhi, Delhi – 110007, India ' Department of Commerce, Shri Ram College of Commerce, Maurice Nagar, University of Delhi, New Delhi, Delhi – 110007, India

Abstract: The present study aims at determining the role of information and communication technologies (ICTs), macroeconomic and demographic characteristics of individuals in advancing financial inclusion levels in India. Financial inclusion has been proxied by credit penetration, account ownership and digital financial services by key digital modes (i.e., mobile cellular subscriptions and internet penetration). The secondary data have empirically been analysed by using ordinary least squares estimation at the macro-level and employing logistic regression at the micro-level. The findings suggest that internet usage and mobile penetration rates have a positive association with financial inclusion in India. The study further discovers that individual characteristics and economic circumstances like education level, income level, age, gender, government transfers and saving behaviour are also likely to impact financial inclusion indicators in India. Unearthing a perfect balance between adopting an inclusive financial approach, pro-poor growth, and a technologically advanced infrastructure is indispensable for each facet that has an important role to contribute. Finally, the study recommends that such moves are not an end in themselves, rather expected to shoulder the responsibility of creating new economic order in India via financial inclusion toolbox through sustainable development goals (SDGs).

Keywords: technology; financial inclusion; digital financial services; DFS; financial development; account ownership; logistic regression; India.

DOI: 10.1504/IJEF.2019.104075

International Journal of Electronic Finance, 2019 Vol.9 No.4, pp.287 - 309

Received: 20 Jul 2018
Accepted: 21 May 2019

Published online: 05 Dec 2019 *

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