Title: Financial inclusion: key determinants and its impact on financial well-being

Authors: Jitender Kumar; Anjali Ahuja

Addresses: Department of Management Studies, Deenbandhu Chhotu Ram University of Science and Technology, Murthal, Sonepat, Haryana, India ' Department of Management Studies, Deenbandhu Chhotu Ram University of Science and Technology, Murthal, Sonepat, Haryana, India

Abstract: The present study highlights the key determinants of financial inclusion (access, technology, financial literacy, affordability, and trust) and its impact on the financial well-being of low-income respondents in India. Through self-administered questionnaires, we collect data using convenience-cum-judgemental sampling from 404 low-income respondents of the National Capital Region of India. The study uses factor analysis to identify the key determinants of financial inclusion and its impact on financial well-being. We use partial least squares structural equation modelling to examine the framed hypotheses. The study demonstrates five key determinants of financial inclusion, i.e., access, affordability, financial literacy, technology, and trust. These five factors drive a 78.70% (coefficient of determination, R²) variation in financial inclusion. Further, financial inclusion influences a 27.1% variation in financial well-being. The study's outcome will facilitate academics, policymakers, aspiring researchers, and the general public to ensure the financial well-being of low-income respondents through financial inclusion activities.

Keywords: financial inclusion; exploratory factor analysis; EFA; financial literacy; financial well-being; India.

DOI: 10.1504/GBER.2024.140847

Global Business and Economics Review, 2024 Vol.31 No.3, pp.330 - 353

Received: 14 Nov 2022
Accepted: 31 Mar 2023
Published online: 03 Sep 2024 *

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