FinTech adoption and Financial Inclusion among Retail Banking customers in Kerala

Athira K ,

Ph.D Scholar, Sree Narayana Guru College, Chavadi ,Coimbatore

Dr.R Sathyadevi,

Associate Professor & Head of the Department, Commerce CA, Sree Narayana Guru College, Chavadi , Coimbatore

Abstract

Financial Technology (FinTech) has transformed the delivery of financial services by enhancing accessibility, affordability, and convenience for retail banking customers. In India, the rapid adoption of digital financial services such as mobile banking, Unified Payments Interface (UPI), internet banking, digital wallets, and AI-enabled banking solutions has significantly contributed to the country's financial inclusion agenda. Kerala, with its high literacy rate, widespread digital infrastructure, and strong banking penetration, provides a unique context to examine the relationship between FinTech adoption and financial inclusion. This study investigates the extent of FinTech adoption among retail banking customers in Kerala and analyzes its influence on financial inclusion. The research adopts a quantitative approach using primary data collected through a structured questionnaire administered to retail banking customers across selected districts in Kerala. Statistical techniques such as descriptive analysis, reliability analysis, correlation, and regression are employed to examine the relationship between FinTech adoption and financial inclusion. The findings indicate that perceived ease of use, perceived usefulness, trust, security, and digital literacy significantly influence FinTech adoption, while increased adoption positively affects customers' access to, usage of, and satisfaction with formal financial services. However, challenges such as cybersecurity concerns, digital exclusion among elderly customers, and varying levels of financial literacy continue to impede inclusive adoption. The study concludes that FinTech serves as a significant catalyst for strengthening financial inclusion among retail banking customers in Kerala and recommends collaborative efforts by banks, FinTech firms, and policymakers to enhance digital literacy, strengthen cybersecurity measures, and promote inclusive digital financial ecosystems. The study contributes to the growing body of literature on digital finance and offers practical implications for enhancing inclusive banking in emerging economies.

Keywords: FinTech Adoption, Financial Inclusion, Retail Banking, Digital Banking, UPI, Mobile Banking, Kerala, Digital Financial Services.