DOES FINANCIAL LITERACY INFLUENCE FINTECH USAGE AMONG WOMEN ENTREPRENEURS? A MICRO-LEVEL STUDY FROM RURAL TAMIL NADU
DOI:
https://doi.org/10.29121/ShodhPrabandhan.v2.i1.2025.56Keywords:
Financial Literacy, Fintech Usage, Women Entrepreneurs, Rural Tamil Nadu, Digital Financial Inclusion, Digital Confidence, UPIAbstract
Financial technology (FinTech) has significantly transformed the financial landscape in India, yet adoption among rural women entrepreneurs remains uneven and strongly dependent on foundational knowledge and confidence in digital finance. This study examines whether financial literacy influences FinTech usage among women entrepreneurs in rural Tamil Nadu. Using a hypothetical dataset of 280 women operating micro and small enterprises, the research evaluates financial literacy, digital confidence, and FinTech usage patterns. The study employs descriptive statistics, Pearson correlation, independent t-tests and simple linear regression to understand the relationship between financial literacy and digital adoption.
Results indicate a strong positive association between financial literacy and FinTech usage (r = .62, p < .001), suggesting that women with higher financial knowledge are significantly more likely to engage with digital banking tools such as UPI, mobile banking apps, and online payment platforms. Regression analysis shows that financial literacy explains 38% of the variance in FinTech usage, underscoring its predictive power. Additional analyses reveal meaningful differences in usage across education groups, further highlighting the role of knowledge in shaping digital behaviour.
The findings reinforce existing literature emphasising financial literacy as a central determinant of digital financial inclusion (Lusardi & Mitchell, 2014; Ghosh, 2022) and contribute micro-level evidence from rural India. The study suggests that banks, FinTech providers and government agencies should integrate digital literacy modules into entrepreneurship support programmes, simplify digital interfaces, and deliver targeted awareness interventions for rural women. By strengthening financial literacy, policy actors can foster more equitable participation in India’s rapidly evolving digital economy.
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