Exploring Key Factors Influencing Financial Inclusion Among Customers of Rural Banking Agents

Abstract

Financial inclusion provides easy and affordable access to financial products and services and has been identified as an enabler for 7 of the 17 Global Sustainable Development Goals. Agent banking has become a powerful catalyst for improving financial inclusion, especially in rural and under-banked areas. Thus, identifying the determinants of financial inclusion for the rural banking customers would help the policymakers and government in bringing them into the formal financial system. The study has been conducted in the Darjeeling district of West Bengal, India. Primary data was collected for the present study using questionnaires on a five-point scale, and statistical analysis was done using EFA, CFA & SEM. Statistical tools like SPSS 20, AMOS 23, and Microsoft Excel were used to conduct the investigation. The study identified four constructs i.e. affordability, accessibility, trust, and availability as important determinants of financial inclusion and found statistically significant for the banking agent customers. These findings highlight the vital role of agent banking in breaking down barriers to financial inclusion and expanding access to formal financial services.

Keywords: Financial Inclusion, Business Correspondents, Banking Agents, Rural Finance

View PDF