Author(s): Savita Mahendru and Annumeet
Financial exclusion is still an important issue in emerging economies, with almost 29% of people in these economies being un-served by basic financial services. Although digital financial technologies (FinTech) offer potential solutions to enhance financial inclusion, their usage is still limited in most places because of infrastructural, behavioral, and socio-economic impediments. This research examines the behavioral determinants of adoption of digital financial services in Punjab, India, based on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). A surveyed questionnaire was filled by 600 participants, comprising students, professionals, and entrepreneurs. Some of the major constructs like performance expectancy, price value, effort expectancy, hedonic motivation, habit, and facilitating conditions were investigated for their influence on behavioral intention towards financial inclusion. The results point to performance expectancy and price value as the strongest drivers, with habit and hedonic motivation also having significant impacts on users' adoption intentions. The study underscores the pivotal roles played by user perceptions, ease of use, and value propositions in influencing digital financial adoption. Policymakers and financial institutions can use these findings to develop more inclusive and user- oriented approaches towards narrowing the digital financial gap in the same socio-economic environments.