Impact of Digital Literacy on Financial Inclusion: A Study of Mobile Banking Adoption and Usage in Rural Areas

Abstract

Financial inclusion acts as a key driver towards inclusive economic development especially in developing countries. Rural communities in such economies face challenges when it comes to accessing financial services. In view of the rapidly changing technologies especially mobile technology, mobile banking can be used as an instrument for reaching out to people who previously did not have access to financial services. But its success depends to a great extent on how digitally literate individuals are Purpose. The current research investigates the role of digital literacy in promoting financial inclusion especially with regard to mobile banking adoption and use in the rural areas. This research employs a descriptive-analytical approach based on hypothetical survey data (n = 100) Discussion. The study has found that there is a positive correlation between digital literacy and mobile banking adoption. Digital literacy influences users' mobile bank usage frequency, their financial decisions, and level of trust in digital services. On the other hand, low levels of digital literacy, lack of knowledge about financial services and infrastructural challenges represent barriers to mobile banking adoption and use Conclusion. It is clear from the above discussion that digital literacy plays a vital role in promoting mobile banking adoption and usage thus increasing financial inclusion..