Evaluating the mediating effect of financial literacy between fintech adoption in microfinance services

The study aims to show the impact of financial literacy on fintech adoption in microfinance services by urban borrowers in Uttar Pradesh (India). The study adopted a cross-sectional study and data was collected from the poor who resides in urban areas of Uttar Pradesh, India. Structural equation modelling through analysis of moment structures (AMOS) was used to analyse the data. Bootstrap approach with 500 samples was run to establish the mediating effect of financial literacy in the relationship between fintech adoption and microfinance services of urban the poor by microfinance institutions. This study carries out a survey-oriented method with a structured questionnaire. The present study uses AMOS 22.0 version to analyse the mediating effect of the data gathered from a sample of 231 respondents residing in Uttar Pradesh(India).Information related to the demographic profile, the correlation coefficient of the constructs, direct and indirect effects, and the path coefficients of the structural model was presented in tabular form. The model's R² coefficient of determination was discovered to be 47%. The study's proposed model was able to add to the body of knowledge on Fintech adoption and Microfinance Services.