Can Mobile Financial Services Influence Financial Behaviour in India?

The study examines the relationship between mobile financial services and individual financial behaviour in India, wherein a sizeable population is yet to be financially included. The study utilises the nationally representative data from the Financial Inclusion Insights survey conducted during 2018, representing over 45,000 individuals aged 15 years or above for the empirical analysis. The study indicates that the use of mobile financial services improves financial behaviour in India. Specifically, the study finds that using mobile financial services increases the likelihood of investment, having insurance and borrowing from formal financial institutions. Further, to address endogeneity concerns, we also employ Lewbel’s method and propensity score method, and the findings remain qualitatively similar. The empirical results of the study highlight that fastening the pace of access to mobile financial services can improve financial outcomes in developing country settings. JEL Codes: G51, G52, O16