Determinants of digital finance in India

Ghosh, Chandralekha; Chaudhury, Rimita Hom

doi:10.1080/2157930x.2020.1850012

Cited by 9 publications

(5 citation statements)

References 15 publications

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“…Ghosh and Chaudhury (2019) have identified that, apart from income level, tertiary education contributes the maximum to explain the gender gap in case of Digital finance especially in case of using and holding the debit card. Ghosh and Chaudhury (2020), however, have subsequently found that for India, the gender gap in digital finance has reduced post demonetization (2017). Moreover, Aterido (2013) have acknowledged that women are disadvantaged in terms of labor force participation and education and therefore lag behind in participation in formal financial sector.…”

Section: Literature Reviewmentioning

confidence: 99%

Digital finance: a developing country perspective with special focus on gender and regional disparity

Chatterjee

2024

DPRG

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Purpose Even if digital financial services have a positive impact on financial inclusion, it creates a digital as well as gender divide within and across countries, creating regional disparity even within developing nations. Though pandemic has initiated digitalization of various services, there has been scanty research on whether digital transfer of income can improve digital financial inclusion in post-pandemic era, especially in developing countries. The purpose of the current study is to explain the regional disparity within developing countries from three regions East Asia Pacific, South Asia and Sub-Saharan Africa, using latest World Findex data, 2021. Design/methodology/approach The author takes an instrumental variable approach to run bivariate probit model to find the factors that motivate the users to make digital payments. Findings The study observes that electronic transfer of wages, government transfers and remittances can motivate individuals to make use of digital mode of transactions and mobile. The practice of formal saving and borrowings are the prerequisites. However, this mechanism holds good for East Asia Pacific and not for South Asia and Sub-Saharan Africa, which are poor in information and communication technology infrastructure. Women are lagging behind men, but digital transfer of wages motivate them to make digital transaction. Practical implications Digitalization of all government services and provision of affordable mobile network and internet services are necessary for regions like South Asia and Sub-Saharan Africa. In East Asia Pacific region, data protection, data governance and better regulatory framework are required. Higher female labor force participation with digital transfer of wages and empowerment with smartphones are key to reducing the Gender gap. Originality/value The current study corrects for the possible endogeneity issue, which the extant literature has not paid attention to, and provides region-specific and gender-specific policy recommendations for an improved digital inclusion.

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Section: Literature Reviewmentioning

confidence: 99%

Digital finance: a developing country perspective with special focus on gender and regional disparity

Chatterjee

2024

DPRG

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“…Prior researchers Bathula and Gupta (2021), Dar and Ahmed (2021), Ghosh and Hom Chaudhury (2022), Kulkarni and Ghosh (2021), Rana et al (2020) and Shafeeq and Beg (2021) have provided insights into understanding the determinants of adoption and use of DFSs. Bathula and Gupta (2021) explored the determinants of financial and DFI.…”

Section: Review Of Research On the Adoption Of Digital Financial Serv...mentioning

confidence: 99%

“…The study results show that gender, age, education and income significantly impact the ownership of debit cards and determine the various measures of financial inclusion, such as ownership of bank accounts, credit cards and savings. Ghosh and Hom Chaudhury (2022) examined the determinants and impact of demonetization on access to DFSs. According to the study, the demographics viz ., male, high income, more educational background and older age are more favorable to avail DFSs.…”

Section: Literature Reviewmentioning

confidence: 99%

Socioeconomic determinants of ownership of payment cards, mobile money account, and government remittances of digital financial services: evidence from India

Nandru,

Chendragiri,

Arulmurugan

2023

JFEP

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Purpose This paper aims to measure the extent of digital financial inclusion (DFI) and examine the effect of socioeconomic characteristics on using government remittances and the adoption of digital financial services (DFS) during the COVID-19 pandemic. Design/methodology/approach The World Bank Global Financial Inclusion (Global Findex) database 2021 is used in this study, with a sample size of 3,000 Indian individuals. The study measured the demand-side analysis of DFI, namely, accessibility and usage of DFS with selected socioeconomic characteristics such as gender, age, income, education, being in the workforce and residential status of respondents. The dependent variable is binary in nature; therefore, the logistic regression model is used for the data analysis. Findings The results of the study reveal that individuals’ socioeconomic factors, such as female, all the age groups, tertiary education, third- and fourth-income quintile and workforce, are found to have a significant association with “accessibility,” an exogenous variable of DFS. Besides, respondents’ socioeconomic attributes, namely, female, tertiary education, income for all quintiles and workforce, are more likely to use DFSs in the COVID-19 pandemic. The study also finds the residential status of individuals is influencing the accessibility and usage of DFS. Practical implications The findings of the study provide valuable insights to the service providers and policymakers regarding the rapid expansion of DFS by digital infrastructure, simplifying the banking procedures and highlighting the importance of digital financial literacy to accomplish government goals through serving the unbanked population and also design strategies for achieving the objectives of Digital India: “Faceless, Paperless, and Cashless” of DFI across the country. Originality/value Notable studies used World Bank Findex survey data to explore the determinants of financial inclusion in general. This research is one among the few studies to explore the determinants of India’s DFI. Moreover, this study measured the effect of individual socioeconomic attributes on the adoption of DFSs during the COVID-19 pandemic, which has not been included in prior studies. Therefore, this study has added value to the existing literature on financial technology innovation and DFS for the sustainable development of emerging nations.

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“…Digital financial inclusion is, thus, providing digital access to formal financial services to the excluded population. Access to digital financial services can promote financial inclusion by overcoming the institutional barriers of traditional finance and can increase the pace of financial inclusion by providing costeffective financial services (Ghosh & Chaudhury, 2020). At the same time, digital financial literacy is an important prerequisite for digital financial inclusion.…”

Section: Introductionmentioning

confidence: 99%

“…Research suggests that women are more prone to financial exclusion, are highly likely to display lower levels of financial literacy than men and possess less confidence in their financial knowledge and skills (Bucher-Koenen et al, 2021). Digitisation of finance can bring down the cost of service delivery and speed up the pace of financial inclusion (Ghosh & Chaudhury, 2020;Saroy et al, 2020), and improve financial knowledge, skills, attitudes and behaviours (McKillop et al, 2020). Though digital financial literacy has positive effects on actual behaviours, Setiawan et al (2020) found that it can also be affected by socio-economic characteristics such as age, income and education.…”

Section: Introductionmentioning

confidence: 99%

Reverse FinTech Socialisation

Abhijith

2023

International Journal of E-Business Research

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Technology has brought unprecedented changes in the financial realm, and its benefits were evident during the times of COVID-19. Nonetheless, digital divide has kept fintech out of the reach of many. Digital financial exclusion needs practical solutions to bring positive attitudes and confidence to use fintech among these segments. This is an original work that suggests reverse fintech socialisation as a tool to create such confidence within the digitally excluded. Employing a cross-sectional design, a sample of 349 middle-aged mothers was drawn from Kerala, India to examine the relationships between attitude, reverse socialisation, and confidence to deal in fintech. Findings supported the hypothesised relations between these variables and revealed that attitude predicts reverse fintech socialisation, which has a very high influence on confidence. Age, income, and income earner in the family too were found significant for confidence. Findings imply that policymakers can formulate interventions that make use of the youth to create confidence within the digital immigrants to use fintech.

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Determinants of digital finance in India

Cited by 9 publications

References 15 publications

Digital finance: a developing country perspective with special focus on gender and regional disparity

Digital finance: a developing country perspective with special focus on gender and regional disparity

Socioeconomic determinants of ownership of payment cards, mobile money account, and government remittances of digital financial services: evidence from India

Reverse FinTech Socialisation

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