DIGITALISATION AND FINANCIAL INCLUSION: TECHNOLOGY-DRIVEN SELF-HELP GROUP OUTCOMES

Abstract

Digitalisation encourages financial inclusion by delivering cost-saving financial services within a shorter period by using a digital platform to access banking and financial services. The present article is a critical review as well as a quantitative research design. It determines how digitalisation is playing a role of catalyst in enabling SHGs to perform better. A chi-square test has been used with a sample size of 209 respondents to determine the significance of digitalisation in the personality development and self-confidence of SHG members and SHG group leaders. The findings of the study revealed that with the help of digitisation, the SHGs have become more organised and the microfinance institutions are easily taking up the financial performance of SHG groups to reduce operational costs and non-performing assets as well. It has also been found that there is a significant difference in personality development and self-confidence between SHG members and SHG group leaders who are using the multiple SHG digital platforms for their groups respectively. The digital financial inclusion model is emerging around the globe with new financial players every day, an extensive empirical investigation is needed to study the risk and challenges associated with the digitisation of SHGs and its impact on poor marginalised people.