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International Journal of Science, Strategic Management and Technology

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FINTECH ADOPTION, DIGITAL FINANCIAL LITERACY AND FINANCIAL INCLUSION AMONG RURAL CONSUMERS: AN EMPIRICAL STUDY IN TAMIL NADU

AUTHORS:
Dr.M.NITHYA
Dr. K. DURGALAKSHMI
Dr.P.JEYASRI
Mentor
Affiliation
Department of Commerce,

Centre for Higher Research,

Yadava College Madurai, Tamil Nadu
CC BY 4.0 License:
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Financial Technology (FinTech) has transformed the delivery of financial services in India by facilitating digital payments, mobile banking, online credit, digital insurance and other technology-enabled financial services. The expansion of Unified Payments Interface (UPI), smartphones and internet-based banking has created significant opportunities for extending formal financial services to rural communities. However, the benefits of FinTech depend considerably on consumers' digital financial literacy, perceptions of usefulness and ease of use, confidence in security and accessibility of digital infrastructure. The present study examines the relationship between digital financial literacy, FinTech adoption and financial inclusion among rural consumers in Tamil Nadu. A descriptive and analytical research design is adopted and an illustrative sample of 348 rural consumers is distributed across the districts of Tamil Nadu. Data are proposed to be collected through a structured questionnaire using a five-point Likert scale. Descriptive statistics, Cronbach's Alpha, correlation, multiple regression, Confirmatory Factor Analysis and Structural Equation Modelling are employed. The illustrative findings indicate that digital financial literacy, perceived usefulness, perceived ease of use, trust and security, and accessibility significantly enhance FinTech adoption. FinTech adoption, in turn, positively influences financial inclusion. The study emphasizes the importance of digital literacy, consumer trust, simple technological interfaces and improved rural digital infrastructure for achieving sustainable financial inclusion.

 

Keywords: FinTech Adoption, Digital Financial Literacy, Financial Inclusion, Rural Consumers, Digital Payments, UPI, Tamil Nadu
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M.NITHYA, , DURGALAKSHMI, K. & P.JEYASRI, (2026). Fintech Adoption, Digital Financial Literacy and Financial Inclusion Among Rural Consumers: An Empirical Study in Tamil Nadu. International Journal of Science, Strategic Management and Technology, 02(9), 1-9. https://doi.org/10.55041/ijsmt.v2i9.011

M.NITHYA, , et al.. "Fintech Adoption, Digital Financial Literacy and Financial Inclusion Among Rural Consumers: An Empirical Study in Tamil Nadu." International Journal of Science, Strategic Management and Technology, vol. 02, no. 9, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijsmt.v2i9.011.

M.NITHYA, ,K. DURGALAKSHMI, and P.JEYASRI. "Fintech Adoption, Digital Financial Literacy and Financial Inclusion Among Rural Consumers: An Empirical Study in Tamil Nadu." International Journal of Science, Strategic Management and Technology 02, no. 9 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijsmt.v2i9.011.

References

  • Annamalai, C., & Rajarathinam, K. K. (2025). Impact of digital finance literacy on rural households’ adoption behaviour. South India Journal of Social Sciences, 23(4), 114–118. https://doi.org/10.62656/SIJSS.v23i4.2169

  • Deepu, B., & Krishna Kumar, K. (2026). Digital literacy and post-adoption FinTech usage intensity: Evidence from rural consumers in Karnataka, India. International Journal of Economic Practices and Theories. https://doi.org/10.52783/ijept.700

  • Goswami, S., Chouhan, V., & Saraswat, P. (2025). FinTech adoption: Driving financial inclusion at the bottom of pyramid. Future Business Journal, 11, 150. https://doi.org/10.1186/s43093-025-00570-2

  • Hamsa, E. (2025). Digital financial inclusion in rural areas: A study of perceptions and attitudes. Asian Journal of Economics, Business and Accounting, 25(6), 321–330. https://doi.org/10.9734/ajeba/2025/v25i61855

  • Haque, M. I., Azeez, A. N. P., & Akhtar, S. M. J. (2025). UPI and financial inclusion in rural India: A case study. Digital Society and Emerging Futures. https://doi.org/10.1016/j.dsef.2025.100056

  • Jena, R. K. (2025). Factors influencing the adoption of FinTech for the enhancement of financial inclusion in rural India using a mixed methods approach. Journal of Risk and Financial Management, 18(3), 150. https://doi.org/10.3390/jrfm18030150

  • Keshari, P., & Tiwari, A. K. (2026). Financial inclusion in rural region—A review and research agenda. Future Business Journal, 12, 49.

  • Lyons, A. C., & Kass-Hanna, J. (2021). A methodological overview to defining and measuring “digital” financial literacy. Financial Planning Review, 4(2), e1113. https://doi.org/10.1002/cfp2.1113

  • Morgan, P. J., Huang, B., & Trinh, L. Q. (2019). The need to promote digital financial literacy for the digital age. Asian Development Bank Institute.


Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
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