Determinants of digital financial inclusion in India: Evidence from the World Bank’s global findex database

Abstract

The current study explores the determinants of digital financial inclusion (DFI) in India and also examines the influence of demographic characteristics on the accessibility and usage of digital financial inclusion. The data for this study was collected from the World Bank Global Financial Inclusion (Global Findex) database to find the determinants of digital financial inclusion from India's perspective. The study measured the accessibility and usage of digital financial inclusion in relation to selected demographic characteristics such as gender, age, income, education and employment status. The findings of the study revealed that individual’s socio-demographic factors such as gender, age, education, income and employment status have found a significant influence on the accessibility of digital financial inclusion. In addition, these factors have significant effect on usage of digital mode of financial transactions such as payments made and receipts through mobile phone or using the internet. The study provides valuable insights to the policymakers and service providers to improve the status of digital financial inclusion.

Unveiling the drivers of Africa's digital financial inclusion journey

“…Our IV probit results (Table 3) are consistent with the existing literature (Bathula & Gupta, 2021; Beyene Fanta & Makina, 2019; Elouardighi & Oubejja, 2023b; Ezzahid & Elouaourti, 2021a, 2021b; Kouladoum et al, 2022; Nandru et al, 2021; Niu et al, 2022), highlighting the significance of educational attainment, access to mobile telephony and internet, labor market participation and urban location as critical drivers of digital financial inclusion in Africa. Regarding the results of the Wald test of exogeneity, all models exhibit p ‐values >.05.…”