Unveiling the Prosocial Potential of Digital Financial Services

The use of information and communication technology has the potential to contribute to enhancing people’s quality of life. This qualitative study investigates the process and consequences of the interplay between digital financial services (DFS) and social dynamics in rural communities in India. Through ethnographic data collected from 36 interviews across seven villages, we identify the communitarian use of DFS promoted by individuals that we termed DFS cultivators as salient. DFS cultivators play a crucial role in fostering a collaborative system within their close-knit social circles to support others with financial and non-financial affairs by sharing DFS knowledge, skills and applications. Contrary to the conventional perception of DFS as personal transactional tools, our findings show that social capital and prosocial behaviours are crucial for cultivating DFS-mediated financial inclusion in rural communities. Policymakers and banks can use these insights to develop tailored strategies that promote financial inclusion and empowerment in rural communities.