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FinTech and Financial Inclusion: Exploring the Mediating Role of Digital Financial Literacy and the Moderating Influence of Perceived Regulatory Support

Author

Listed:
  • Muhammed Basid Amnas

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, Tamil Nadu, India)

  • Murugesan Selvam

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, Tamil Nadu, India)

  • Satyanarayana Parayitam

    (Department of Management and Marketing, Charlton College of Business, University of Massachusetts Dartmouth, Dartmouth, MA 02745, USA)

Abstract

Exploring the potential of financial technology (FinTech) to promote financial inclusion is the aim of this research. This study concentrated on understanding why people use FinTech and how it affects their access to financial services by taking into account the mediating role of digital financial literacy and the moderating effect of perceived regulatory support. This study used partial least squares structural equation modeling (PLS-SEM) for testing the research model by collecting data from 608 FinTech users in India. The results revealed the role of trust, service quality, and perceived security are essential in promoting the utilization of FinTech services. This study also demonstrated that FinTech positively impacts financial inclusion, making it easier for individuals to get into formal financial services. Furthermore, digital financial literacy emerged as an important mediator between FinTech use and financial inclusion. The research also confirmed that perceived regulatory support has a significant moderation influence on the relationship between FinTech and financial inclusion. This research would contribute to advancing theoretical frameworks and offer practical advice for policymakers and FinTech companies to make financial services more inclusive.

Suggested Citation

  • Muhammed Basid Amnas & Murugesan Selvam & Satyanarayana Parayitam, 2024. "FinTech and Financial Inclusion: Exploring the Mediating Role of Digital Financial Literacy and the Moderating Influence of Perceived Regulatory Support," JRFM, MDPI, vol. 17(3), pages 1-20, March.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:3:p:108-:d:1352905
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    References listed on IDEAS

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    1. Artie W. Ng & Benny K.B. Kwok, 2017. "Emergence of Fintech and cybersecurity in a global financial centre," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 25(4), pages 422-434, November.
    2. Georgios A. Panos & John O. S. Wilson, 2020. "Financial literacy and responsible finance in the FinTech era: capabilities and challenges," The European Journal of Finance, Taylor & Francis Journals, vol. 26(4-5), pages 297-301, March.
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    Cited by:

    1. Hengjun Mei & Simona-Aurelia Bodog & Daniel Badulescu, 2024. "Artificial Intelligence Adoption in Sustainable Banking Services: The Critical Role of Technological Literacy," Sustainability, MDPI, vol. 16(20), pages 1-25, October.
    2. Oguz Ersan & Montasser Ghachem, 2024. "Identifying Information Types in the Estimation of Informed Trading: An Improved Algorithm," JRFM, MDPI, vol. 17(9), pages 1-20, September.
    3. Jeswin Jose & Nabanita Ghosh, 2025. "Digital financial literacy and financial inclusion in the global south for a sustainable future: A scoping review," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 52(1), pages 129-148, March.
    4. Perry Sadorsky, 2024. "Using Precious Metals to Reduce the Downside Risk of FinTech Stocks," FinTech, MDPI, vol. 3(4), pages 1-14, October.
    5. K. Devender & Kafila & Gurunadham Goli & M. Shravan, 2025. "Bibliometric trends in SMEs financial literacy research from 2021 to 2024," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.

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