Digital Financial Inclusion in Rural Areas: A Study of Perceptions and Attitudes

Abstract

Aims: This study intends to examine the perception of the usage of digital financial services among people residing in rural areas in Kerala State in India with special reference to the Malappuram district. Study Design: A quantitative descriptive research design was used for conducting the study to understand the adoption of digital financial services among rural people. Place and Duration of the Study: The study was conducted among rural people of Malappuram district in Kerala state in India between January 2025 and March 2025. Methodology: Primary data were collected using a structured questionnaire. A sample of 280 respondents were selected using judgement sampling of non-probability sampling technique. The survey data were analyzed using SPSS. Percentage was used to understand the perception and attitudes towards digital financial services. The hypotheses were tested using Chi-Square. Results: Gender and perception towards convenience in the usage of digital financial services are not independent (P = 0.000). Age and perception towards convenience in the usage of digital financial services are not independent (P = 0.000). Gender and perception towards security in the usage of digital financial services are independent (P = 0.065). Age and perception towards security in the usage of digital financial services are not independent (P= 0.000). Conclusion: The study reveals that Debit cards and UPI apps are the digital financial services being used by most people in rural areas in the Malappuram district. Digital loans and online insurance policies are not popular among them. Benefits perceived by them in the usage of digital financial services are easy to use and the aspect of time-saving. Difficulty faced in the usage by most of the people are forgetting user ID and password.