Mobile banking adoption for financial inclusion: insights from rural West Bengal

Ashish Khobragade (), Rakhe Balachandran (), Barkha Gupta (), Rajas Saroy (), Sakshi Awasthy (), Gunveer Singh (), Rekha Misra () and Sarat Dhal ()
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Ashish Khobragade: Reserve Bank of India
Rakhe Balachandran: Reserve Bank of India
Barkha Gupta: Reserve Bank of India
Rajas Saroy: Reserve Bank of India
Sakshi Awasthy: Reserve Bank of India
Gunveer Singh: Reserve Bank of India
Rekha Misra: Reserve Bank of India
Sarat Dhal: Reserve Bank of India

Journal of Social and Economic Development, 2025, vol. 27, issue 2, No 9, 525-543

Abstract: Abstract Mobile banking is promoted as a powerful channel for reaching out to the masses for their banking needs, yet its adoption remains slow. Existing studies identify perceived safety, perceived ease of use, perceived usefulness, financial literacy, and demographic characteristics as key determinants of mobile banking adoption. However, given the low financial literacy of rural adults, handholding, defined as the provision of support to adopt mobile banking, could be an important component of ‘facilitating conditions’ as recognised under the UTAUT framework. To empirically examine this relationship, partial least square structural equation modelling (PLS-SEM) was employed using data from a primary survey conducted in eight villages in West Bengal, India. After controlling for all the variables traditionally identified, the findings confirm the role of handholding, both institutional and informal, in catalysing the transition to mobile banking in rural areas. Focussing on tech-savvy youngsters during financial literacy programmes may help in increasing the migration to mobile banking through the informal handholding channel.

Keywords: Digital banking; Mobile banking; Financial inclusion; Financial literacy; Digital financial literacy; Economic development (search for similar items in EconPapers)
JEL-codes: G20 O10 O30 O33 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40847-024-00376-y

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