Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach
Keeping in view the need to assess the effectiveness of financial inclusion (FI) efforts, this study examines how key drivers of FI—namely usage, digitization, technology, and gender perspective—impact FI success in North India, with financial literacy (FL) as a mediating variable. The study also ex...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853125000770 |
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| author | Amit Pandey Ravi Kiran Rakesh Kumar Sharma |
| author_facet | Amit Pandey Ravi Kiran Rakesh Kumar Sharma |
| author_sort | Amit Pandey |
| collection | DOAJ |
| description | Keeping in view the need to assess the effectiveness of financial inclusion (FI) efforts, this study examines how key drivers of FI—namely usage, digitization, technology, and gender perspective—impact FI success in North India, with financial literacy (FL) as a mediating variable. The study also explores the direct influence of financial initiatives on FI outcomes. Primary data were collected from 1510 customers of public and private sector banks using a standardized questionnaire. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that digitization, technology, and usage are significant FI drivers, and their influence is amplified when mediated through FL. Financial inclusion success is assessed through economic and social empowerment, and results show that financial initiatives positively and significantly contribute to this success. The mediating role of FL further enhances the effect of FI drivers, underscoring the critical importance of financial education in inclusion strategies. These results provide actionable insights for policymakers seeking to expand access to financial services—particularly in underserved rural regions—thereby fostering economic and social empowerment and helping reduce gender and income disparities. Additionally, the findings align with emerging open innovation approaches, advocating for collaborative, technology-enabled, and user-centered financial solutions that can scale inclusivity more effectively. |
| format | Article |
| id | doaj-art-b87d6b4ce67647d9b9ed9499b1d1fea5 |
| institution | DOAJ |
| issn | 2199-8531 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj-art-b87d6b4ce67647d9b9ed9499b1d1fea52025-08-20T02:55:13ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-06-0111210054210.1016/j.joitmc.2025.100542Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approachAmit Pandey0Ravi Kiran1Rakesh Kumar Sharma2School of Leadership and Management, Manav Rachna International Institute of Research and Studies, Gadakhor Basti Village, Sector 43, Faridabad, Haryana 121004, India; Corresponding author.School of Humanities and Social Sciences, Professor In Charge, Alumni Relations, Thapar Institute of Engineering and Technology, Patiala, Punjab 147004, IndiaSchool of Humanities and Social Sciences, Thapar Institute of Engineering and Technology, Patiala, Punjab 147004, IndiaKeeping in view the need to assess the effectiveness of financial inclusion (FI) efforts, this study examines how key drivers of FI—namely usage, digitization, technology, and gender perspective—impact FI success in North India, with financial literacy (FL) as a mediating variable. The study also explores the direct influence of financial initiatives on FI outcomes. Primary data were collected from 1510 customers of public and private sector banks using a standardized questionnaire. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that digitization, technology, and usage are significant FI drivers, and their influence is amplified when mediated through FL. Financial inclusion success is assessed through economic and social empowerment, and results show that financial initiatives positively and significantly contribute to this success. The mediating role of FL further enhances the effect of FI drivers, underscoring the critical importance of financial education in inclusion strategies. These results provide actionable insights for policymakers seeking to expand access to financial services—particularly in underserved rural regions—thereby fostering economic and social empowerment and helping reduce gender and income disparities. Additionally, the findings align with emerging open innovation approaches, advocating for collaborative, technology-enabled, and user-centered financial solutions that can scale inclusivity more effectively.http://www.sciencedirect.com/science/article/pii/S2199853125000770Financial inclusionFinancial literacyDigitizationTechnologyEconomicSocial PLS-SEM |
| spellingShingle | Amit Pandey Ravi Kiran Rakesh Kumar Sharma Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach Journal of Open Innovation: Technology, Market and Complexity Financial inclusion Financial literacy Digitization Technology Economic Social PLS-SEM |
| title | Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach |
| title_full | Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach |
| title_fullStr | Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach |
| title_full_unstemmed | Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach |
| title_short | Examining financial inclusion success in north India via financial inclusion drivers, financial literacy and financial initiatives: A variance based-SEM approach |
| title_sort | examining financial inclusion success in north india via financial inclusion drivers financial literacy and financial initiatives a variance based sem approach |
| topic | Financial inclusion Financial literacy Digitization Technology Economic Social PLS-SEM |
| url | http://www.sciencedirect.com/science/article/pii/S2199853125000770 |
| work_keys_str_mv | AT amitpandey examiningfinancialinclusionsuccessinnorthindiaviafinancialinclusiondriversfinancialliteracyandfinancialinitiativesavariancebasedsemapproach AT ravikiran examiningfinancialinclusionsuccessinnorthindiaviafinancialinclusiondriversfinancialliteracyandfinancialinitiativesavariancebasedsemapproach AT rakeshkumarsharma examiningfinancialinclusionsuccessinnorthindiaviafinancialinclusiondriversfinancialliteracyandfinancialinitiativesavariancebasedsemapproach |