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Investigating the Impact of Financial Inclusion Drivers, Financial Literacy and Financial Initiatives in Fostering Sustainable Growth in North India

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  • Amit Pandey

    (School of Humanities and Social Sciences, Thapar Institute of Engineering and Technology, Patiala 147004, India)

  • Ravi Kiran

    (School of Humanities and Social Sciences, Thapar Institute of Engineering and Technology, Patiala 147004, India)

  • Rakesh Kumar Sharma

    (School of Humanities and Social Sciences, Thapar Institute of Engineering and Technology, Patiala 147004, India)

Abstract

The present study examines how successful we are in achieving financial inclusiveness, investigating the influence of the drivers of financial inclusion (FI), financial literacy, and financial initiatives on sustainable growth. The drivers of FI considered are digitalization, technology, and usage. This study proceeds with a difference and investigates the impact of the drivers on sustainable growth through the mediation of financial literacy. The basic purpose is to understand whether mediation assists in enhancing the impact of the drivers of FI on sustainable growth. Sustainable growth is measured by knowing customers’ perceptions regarding FI success through the achievement of the SDGs, viz., SDGs 1, 3, 5, 8, 9, 10, 11, and 17, especially related to poverty alleviation; removing gender inequality; and promoting industrial growth. The study uses PLS-SEM modeling to investigate the impact of the drivers of FI, financial literacy, and financial initiatives on sustainable growth. The results highlight that usage, digitalization, and FinTech emerged as significant drivers of FI. The study assesses the direct impact of the drivers of FI on sustainable growth and the indirect effect through the mediation of financial literacy. This is indicative of the importance of financial literacy in accentuating the impact of the drivers on sustainable growth. However, financial initiatives positively impact sustainable growth in the northern region of India as well.

Suggested Citation

  • Amit Pandey & Ravi Kiran & Rakesh Kumar Sharma, 2022. "Investigating the Impact of Financial Inclusion Drivers, Financial Literacy and Financial Initiatives in Fostering Sustainable Growth in North India," Sustainability, MDPI, vol. 14(17), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:11061-:d:906897
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    2. María Camila Bermeo-Giraldo & Alejandro Valencia-Arias & Lucia Palacios-Moya & Jackeline Valencia, 2023. "Adoption of Fintech Services in Young Students: Empirical Approach from a Developing Country," Economies, MDPI, vol. 11(9), pages 1-19, September.
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    4. Kayenaat Bahl & Ravi Kiran & Anupam Sharma, 2023. "Scaling Up Banking Performance for the Realisation of Specific Sustainable Development Goals: The Interplay of Digitalisation and Training in the Transformation Journey," Sustainability, MDPI, vol. 15(18), pages 1-22, September.

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