Gender Gap in Digital Financial Services: In Search of Financial Inclusivity in Indian Sundarban

Abstract

India is on the progressive path of development and its rural population is an integral part of the growth trajectory. As India gears up for an era of increased digitalization, the issue of digital banking, specifically in rural areas is the need of the hour for financial inclusion and social empowerment. The present research scrutinizes the extent of female population, under the ‘Digital India’ initiative in the banking-based financial sector in the selected study area i.e. Indian Sundarban and explores the aspects behind the resultant low female clientele. The study area involves six community blocks of the Indian part of the Sundarban: Hingalganj, Sandeshkhali II, Mathurapur II, Sagar, Gosaba and Canning II covering districts of North and South Twenty-Four Parganas. The study was carried out from September, 2023 to October, 2024, involving stages from pilot survey to detailed door-to-door household surveys and data processing, analysis thereafter. The factors influencing the female customer satisfaction regarding digital banking is identified through Principal Component Analysis and issues regarding implementation of usage of Digital Financial Services (DFS) by women is evaluated through SWOC analysis. The study is based on mixed-method approach, involving a stratified sampling, taking a sample of 2400 customers (1030 female respondents) along with 36 bank officials 100 women of Self-Help Group and 36 small entrepreneurs for the study from different pockets of Indian Sundarban, The study revealed low digital literacy levels in general and psychological phobia among women in particular put a setback. The banks are to level up their operations in the rural areas exposing the locals more to digital avenues leading to capacity building. Policy and strategy implementation are the need of the hour for reducing gap between the idea and the experienced reality that is between the digital banking facility and the people’s involvement, especially women, in digital banking.