Combined Role Of Fintech Adoption And Financial Literacy For Sustainable Financial Inclusion In India
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Financial inclusion in India has traditionally been examined as a problem of access to financial services; however, this study reconceptualizes the issue as a gap in accounting systems, particularly in the production, interpretation, and use of accounting information in digital environments. Drawing on accounting information usefulness and accountability perspectives, the paper argues that Fintech should be understood not merely as a financial delivery mechanism but as a digital accounting infrastructure that reshapes record-keeping, transaction visibility, and individual accountability. Existing research largely overlooks how Fintech adoption and financial literacy interact as accounting capabilities, thereby limiting theoretical explanations of inclusion in digitally mediated economies. Using survey data from rural India, this study examines Fintech adoption and financial literacy as proxies for accounting information accessibility, reliability, and user competence, and evaluates their joint influence on financial inclusion outcomes. The findings indicate that while Fintech adoption enhances access to accounting records and transaction traceability, financial literacy plays a more decisive role in enabling individuals to interpret, trust, and effectively use accounting information. This suggests that digital accounting systems alone do not ensure accountability unless users possess the literacy required to engage with them meaningfully. The study extends accounting theory by demonstrating how Fintech transforms the locus of accounting from organizational systems to individual users, highlighting the importance of accounting literacy in sustaining accountability within digital financial ecosystems.
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