Examining the influence of financial inclusion on financial well-being of marginalized street vendors: an empirical evidence from India

Abstract

PurposeThe study attempts to explore the determinants of financial inclusion. Subsequently, it examines the effect of financial inclusion on financial well-being of marginalized street vendors in India.Design/methodology/approachThe demand-side analysis of measuring financial inclusion with a sample of 371 marginalized street vendors is adopted. Both exploratory and descriptive research designs are employed in this study. The primary data collection is done by administering the structured interview schedule by using a convenience sampling technique. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) are performed to describe the latent constructs and their hypothetical relationships with adequate empirical evidence.FindingsOut of five dimensions of financial inclusion considered for the study, accessibility, availability, usage and affordability are found to be significant determinants of financial inclusion; however, the financial literacy dimension is found statistically insignificant. Further, the study results confirm that financial inclusion contributes substantially to the well-being of marginalized street vendors.Research limitations/implicationsThe outcome of the study will facilitate all the stakeholders including policymakers and financial institutions to enact policy guidelines to ensure financial well-being of the marginalized street vendors through financial inclusion initiatives.Originality/valueFinancial well-being through financial inclusion is possible even without the effect of financial literacy from the unorganized sector perspective specifically marglianized street vendors. Thus, it adds new dimension to the existing literature on demand side analysis of measuring financial inclusion.

Determinants of financial inclusion across gender in Saudi Arabia: evidence from the World Bank's Global Financial Inclusion survey

“…Considering the importance of financial inclusion for inclusive development and the gap in adoption of financial services across demographics, several studies have analyzed the factors affecting financial inclusion (Demirg€ uç-Kunt et al, 2013;Del echat et al, 2018;Arnold and Gammage, 2019;Dar and Ahmed, 2020;Kaur and Kapuria, 2020;Oumarou and Celestin, 2021;Nandru et al, 2021). Ghosh and Vinod (2017) have identified different possible factors which hamper financial inclusion and argue that gender disparity badly affects the access to finance among households headed by females in India.…”

“…, 2013; Deléchat et al. , 2018; Arnold and Gammage, 2019; Dar and Ahmed, 2020; Kaur and Kapuria, 2020; Oumarou and Celestin, 2021; Nandru et al. , 2021).…”

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“…Besides cultural context, institutional setting influences financial well-being (Brüggen et al 2017; Gonçalves, Ponchio, and Basílio 2021; Nanda and Banerjee 2021). Studies have shown that trust in government increases financial well-being (Barrafrem, Tinghög, and Västfjäll 2021) and that universally accessible formal financial services (high financial inclusion) have a positive effect on financial well-being (Nandru, Chendragiri, and Velayutham 2021). However, these studies have used a single financial well-being score.…”

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