Digital financial services and member relationship management in self-help groups: An empirical study using correlation and regression analysis

The main objective of the research is to study how digitisation has changed the relationship between SHGs and their members, as Digital India is an outcome of many innovations and technological advancements as the vision of the programme focuses on three main areas: the creation of digital infrastructure, delivery of governance & services on demand, and digital empowerment of citizens. Members Relationship Management in Self-help groups plays a vital role in this transformation. By integrating members relationship management with digitisation, members can personalize their experiences and provide better support remotely. This integration allows members to understand each other’s needs and behaviour, thereby improving their relationships tailored to individual requirements. The results of the study indicate a strong and positive relationship between the independent variables, namely e-book, m-pay, bio-verif, and auto-alert, and the dependent variables. The results of the study further indicate that digital financial capability positively influences the members’ empowerment by improving their financial decision-making ability, social participation, and economic independence. The study emphasizes the importance of enhancing digital financial services, as strengthening these capacities can enable self-help group members to participate more actively and build trust, which is an important variable of empowerment. The findings have important implications for policymakers, financial institutions, and development agencies in designing effective strategies to promote digital financial services and digital empowerment of self-help group members.