Financial inclusion through digitalisation of services for well-being

Financial inclusion is central to bridge the wider socio-economic differentials with help of financial intermediaries like banks. Inclusion through the digitalisation of traditional banking can offer facilities such as affordable healthcare, equitable education, opportunities for equal employment and parity in income to the people who are disenfranchised and marginalised in the society. We examined the effect of digitalisation led financial inclusion on public sector Indian banks and the socially excluded segment of the Indian society by exploring to what extent the overall socio-economic well-being has been achieved. Our findings suggest digitalisation has barely advanced financial inclusion, although banks have attempted to move in the right direction with better financial penetration. On the other hand, banking financials have registered substantive improvements. The findings offer a set of policy implications for the public banks and the central bank of India; and extend our understanding of inclusion as a composite construct that represents several socio-economic well-being indicators.