Digital Literacy as a Mediating Factor in the Adoption of Mobile Banking Services among Marginalized Communities in India

The purpose of this study is to examine the impact of digital knowledge on the use of mobile banking services by underprivileged groups in India. This study uses structural equation modeling to look at the connections between socioeconomic factors, digital literacy, and mobile banking adoption. It does this by collecting raw data from 450 people in rural and semi-urban areas in three carefully chosen states. The results show that digital knowledge plays a big role in the link between education level and using mobile banking (β = 0.342, p < 0.01). Language hurdles (78% of respondents), trust issues (65%), and a lack of digital infrastructure (72% of respondents) are some of the main problems that the study finds. The results show that underrepresented groups that are better at using technology are 3.2 times more likely to start using mobile banking services. The study helps us understand how financial inclusion works and makes policy suggestions for making digital financial services easier for India's underserved groups to receive.