Financial inclusion and fintech research in India: A Review

Ozili, Peterson K (2024): Financial inclusion and fintech research in India: A Review. Forthcoming in:

Abstract

This article presents a concise review of the existing financial inclusion research in India. We use a thematic literature review methodology. We show that the Reserve Bank of India (RBI) has been at the forefront of financial inclusion in India and has used collaborative efforts to deepen financial inclusion in India. The review of existing literature shows that the major determinants of financial inclusion in India are income, age, gender, education, employment, ICT, bank branch network and nearness to a bank. The common theories used to analyse financial inclusion in India are the finance-growth theory, the diffusion of innovations theory, development economics and modernization theory, the vulnerable group theory of financial inclusion and the dissatisfaction theory of financial inclusion. The common methodologies used in the literature are surveys, questionnaires, financial inclusion index, regression estimations and causality tests. Existing studies also show that financial inclusion in India affects the level of poverty, human development, financial stability, monetary policy, and income level. Some criticisms of the financial inclusion efforts in India include the inability to meet the specific needs of the poor, poor geographical access, excessive transaction cost, inappropriate banking products, financial illiteracy and a large digital divide between tech savvy and non-tech savvy people. We also suggest some areas for future research.

• Item Type: MPRA Paper
• Language: English
• Keywords: ICT, Internet, financial inclusion, literature review, access to finance, causality tests, regression, India, index, theory.
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G20 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives

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