Revolutionizing Rural Finance: Exploring the Impact of FinTech on Financial Inclusion in India

The COVID-19 pandemic has accelerated the adoption of FinTech by banking and non-banking financial institutions to provide better service to clients and promote financial inclusion. This adoption has been driven by the need to include the most neglected populations in the mainstream financial system. Despite initial hesitance from the banking industry to partner with FinTech startups, such partnerships have become essential in increasing the efficiency of corporate processes and improving clients’ overall banking experience. In addition, the pandemic and associated government guidelines have compelled individuals to adopt technology into their daily routines, leading to an additional boost in FinTech adoption worldwide, including in rural India. This study aims to identify post-pandemic determinants of FinTech adoption, particularly mobile banking, in rural India. The study investigates consumer views on their intention to use these services and examines the extent to which mobile banking has promoted financial inclusion in rural India. Data has been collected from both secondary and primary sources. A structured questionnaire was distributed in Uttarakhand’s mountainous regions using random sampling for primary data. The collected data has been analysed using logistic regression. The study findings reveal that rural subscribers to mobile banking have their intents influenced by perceived trust, perceived lifestyle compatibility, perceived efficiency, perceived ease of use (PEoU), demographic characteristics, and compulsion due to the COVID-19 pandemic. These findings emphasize the importance of the prompt involvement and efforts of banking and non-banking financial institutions in mobilizing their resources and accelerating financial inclusion through the use of FinTech, particularly mobile banking. The study’s outcome also highlights the need to include rural populations in the mainstream financial system, particularly during times of crisis, through the adoption of FinTech.