An Empirical Study on the Role of Fintech in Promoting Financial Inclusion in Rural Areas of Vadodara District, Gujarat, India

Abstract

The study explores the significance of Financial Technology known as FinTech in the promotion of financial services for the people in rural areas of Vadodara district in Gujarat. Financial inclusion is not just about having a bank account; it refers to actual use of formal financial services, which comprises digital payments, savings, lending, insurance and other social support schemes. The study is designed as a type of survey employing quantitative research methodology. Primary data were collected through a structured survey following and a self-administered questionnaire. A total of 74 valid responses were analyzed. The study aims to examine the awareness, usage, benefits gained and the challenges involved in accessing FinTech services by the respondents. Descriptive analysis discloses that the majority of the respondents have bank accounts and are familiar with electronic finance models. UPI, ATM/debit cards, and mobile banking are the use of most familiar services. Chi-square tests were used to determine the relationship between FinTech adoption and various demographic, economic and cognitive factors. The outcome presented that usage of FinTech in one way or the other is related to monthly income levels, knowledge of the existence of digital financial services, the feeling that digital payment is safe, the feeling that banking services are being used efficiently, and the ease of accessing the formal banking system. However, in the aspects of gender and age, receipt of benefits from the government and general issues did not show any significant relationships with the adoption of FinTech. The study concludes that FinTech plays an important supportive role in promoting financial inclusion among the sampled rural respondents. However, the study is limited to a smaller sample size, which can impact the generalization of the findings to the whole population.