The report, titled ‘Financial Inclusion through Technology and Literacy in India: Strategies for Sustainable Growth’, was launched at CII’s Annual Technology Summit in New Delhi.
Based on a survey of 1,033 respondents, the report highlights UPI’s growing adoption, with 38% of respondents from rural and semi-urban areas choosing it as their primary transaction mode. Preference for UPI was notably higher among individuals aged 18 to 35. However, 19% of respondents still relied solely on cash, while 11% did not prefer UPI at all.
The report also emphasised a strong savings culture, with 96% of respondents expressing a willingness to save and invest, presenting financial institutions an opportunity to offer customised investment products. Additionally, 55% of participants showed interest in learning financial management, covering savings, budgeting, loans, and insurance.
While digital payment adoption grows, trust in traditional banking remains strong. The survey found that 86% of account holders in rural and semi-urban regions still prefer visiting physical bank branches. For loans, 60% of borrowers use formal banking channels.
Saurabh Chandra, Senior Partner & Financial Services (Domestic) Consulting Head at EY India, said, “As India moves towards becoming a $5 trillion economy, financial inclusion must be at the core of this growth strategy. Our report’s findings suggest a fertile ground for financial institutions to introduce innovative saving and investment solutions, particularly in rural and semi-urban India, where there is inclination to learn about financial management. Technology, coupled with financial literacy, has the potential to empower millions of individuals.”The report further revealed significant gender gaps in financial literacy and digital access. While 69% of women use digital banking services, only 44% transact regularly. Awareness of government financial inclusion schemes remains uneven, with 18% of women unaware of initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY) and Atal Pension Yojana (APY). Highlighting the role of technology, Vijay Rai, Chairman – CII Delhi Panel on Emerging Technologies & IT/ITES, stated, “Technology and financial literacy are transforming India’s financial landscape. The shift towards digital payments is evident, but we must focus on empowering under-banked communities with the tools and knowledge they need to thrive in this evolving ecosystem.”
The report calls for short-term initiatives to understand the unbanked segments and improve their access to financial tools through technology and literacy programs. For long-term impact, it suggests building a tech-driven financial ecosystem leveraging AI and automation to deliver personalised and secure financial services.
The findings underline the need for a collaborative approach involving financial institutions, policymakers, and technology providers to drive sustainable financial inclusion and economic growth in rural and semi-urban India.
Content Source: economictimes.indiatimes.com