Socio-economic characteristics, mobile phone ownership and banking behaviour of individuals as determinants of digital financial inclusion in India
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 10 April 2023
Issue publication date: 17 October 2023
Abstract
Purpose
This paper aims at analysing the socio-economic characteristics, mobile phone ownership and banking behaviour as key determinants of digital financial inclusion in India.
Design/methodology/approach
This study is based on the Global Findex Survey of the World Bank covering 3,000 adult individuals in India. Simple statistical tools such as descriptive statistics, chi-square test and regression analysis with a marginal effect have been used for the data analysis.
Findings
About 35.2% of respondents have reported using digital financial services in the country. There is a significant association between the socio-economic profiles of individuals with the adoption of digital financial services in terms of gender, age, education, occupation and income. The marginal effect indicates that socio-economic factors, mobile phone ownership and banking behaviour of individuals towards borrowings and savings have indicated significant influence on digital financial inclusion. The analysis depicts that male with higher age, education, working status and higher income are more likely to adopt digital financial services. Further, individuals with mobile phone ownership and utilising banking in terms of borrowings and savings are more likely to adopt digital financial services.
Practical implications
As digital banking services have emerged as a preferred channel for financial service delivery, this study provides timely insights on developing user driven-strategies for promoting digital financial services.
Originality/value
Socio-economic characteristics, mobile phone ownership and banking behaviour are critical determinants of financial inclusion, so assessing its implications in the era of digitisation becomes imperative.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2022-0673.
Keywords
Acknowledgements
The author would like to extend sincere thanks to the World Bank Global Financial Inclusion (GFI) Database team for providing the valuable dataset for this research.
Citation
Ali, J. and Ghildiyal, A.K. (2023), "Socio-economic characteristics, mobile phone ownership and banking behaviour of individuals as determinants of digital financial inclusion in India", International Journal of Social Economics, Vol. 50 No. 10, pp. 1375-1392. https://doi.org/10.1108/IJSE-10-2022-0673
Publisher
:Emerald Publishing Limited
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