FinTech and Financial Inclusion: Exploring the Mediating Role of Digital Financial Literacy and the Moderating Influence of Perceived Regulatory Support

Muhammed Basid Amnas, Murugesan Selvam and Satyanarayana Parayitam ()
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Muhammed Basid Amnas: Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, Tamil Nadu, India
Murugesan Selvam: Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, Tamil Nadu, India
Satyanarayana Parayitam: Department of Management and Marketing, Charlton College of Business, University of Massachusetts Dartmouth, Dartmouth, MA 02745, USA

JRFM, 2024, vol. 17, issue 3, 1-20

Abstract: Exploring the potential of financial technology (FinTech) to promote financial inclusion is the aim of this research. This study concentrated on understanding why people use FinTech and how it affects their access to financial services by taking into account the mediating role of digital financial literacy and the moderating effect of perceived regulatory support. This study used partial least squares structural equation modeling (PLS-SEM) for testing the research model by collecting data from 608 FinTech users in India. The results revealed the role of trust, service quality, and perceived security are essential in promoting the utilization of FinTech services. This study also demonstrated that FinTech positively impacts financial inclusion, making it easier for individuals to get into formal financial services. Furthermore, digital financial literacy emerged as an important mediator between FinTech use and financial inclusion. The research also confirmed that perceived regulatory support has a significant moderation influence on the relationship between FinTech and financial inclusion. This research would contribute to advancing theoretical frameworks and offer practical advice for policymakers and FinTech companies to make financial services more inclusive.

Keywords: FinTech; financial inclusion; digital financial literacy; perceived regulatory support (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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