Are small finance banks acting as catalysts for financial inclusion in India? A phenomenological study

Abstract

Purpose This paper aims to investigate whether small finance banks (SFBs) in India are working towards financial inclusion through qualitative studies. Design/methodology/approach This paper uses a phenomenological approach in which semi-structured interviews were conducted with the employees of two SFBs in Mumbai with different specializations. Employee experience was captured to grasp, interpret and code data for the creation of different themes. Findings This research shows that the current literature on financial inclusion is inadequate to explain the behavior of the needy in India. Study found multiple themes of financial inclusion, namely, financial literacy, self-esteem, use of technology, prompt repayment, credit identity, cross-referencing and financial stability. Although overall results are positive, to generalize the results, SFBs need to spend some more time in business. The findings of this study can be of global benefit to micro-finance organizations of a similar scale to achieve financial inclusion and business improvement. Research limitations/implications This qualitative study was performed at a single location and with a limited sample size, which underlines the need for repeated exercises at multiple locations with a larger sample size to establish a broader logical generality. It also points out the need for a study of employee themes to enhance the business processes of SFBs. Originality/value To the best of the authors’ knowledge, this qualitative study is first attempt to figure out the extent of work done by SFBs in India in promoting financial inclusion. Themes related to financial inclusion can provide further thought process for policymakers for financial inclusion and business improvement. Findings refer not only to Indian organizations but also to small banks around the world to recognize the underpinnings of financial inclusion and what small banks and micro-finance institutions can do to make it meaningful.

Dimensions of financial inclusion in India: a qualitative analysis of bankers perspective

“…The Indian government has made financial inclusion a top priority in recent years. Many multinational corporations that are considering or have already begun a fintech lending business in India can use these findings to steer their operations in the right direction and contribute to India's overall financial inclusion (Joshi et al , 2021). Financial inclusion is a critical issue for many underserved and underbanked communities worldwide.…”

A review of microfinancing's role in entrepreneurial growth in African Nations

“…Village Savings and Loan Associations (VSLAs) represent a decentralized and community-driven microfinancing model that has gained prominence, particularly in rural African settings. This model relies on the collective efforts of community members to pool financial resources and provide access to credit within the community (Basher, 2020, Joshi, Kohli & Nalawade, 2021, Nirob, 2021.…”

Impacts of big data analytics adoption on firm sustainability performance

“…Big firms can leverage BDA ability by analyzing the billions of customer reviews, including their likes and dislikes, which help in creating customer segmentation to foster improved sales (Wamba et al , et al, 2015; Festa et al , 2020; Joshi et al , 2021). BDA capability is perceived to influence the dynamic capability and business process of firms, impacting their financial and OPP.…”