International Journal of Human Capital in Urban Management
Quarterly Publication

The role of financial technology and financial literacy in driving financial inclusion among the women workforce in the informal sector

https://doi.org/10.22034/IJHCUM.2026.01.08
Volume 11, Issue 1 - Serial Number 41
Winter 2026
Pages 123-142
International Journal of Human Capital in Urban Management

Document Type : ORIGINAL RESEARCH ARTICLE

Authors

M. Maria Vijay 1
K.T. Vijaykarthigeyan 1
M. Maria Evelyn Jucunda 2
D. Sivakumar 3
A. Rekhapriyadharshini 2

1 Faculty of Management, SRM Institute of Science and Technology, Kattankulathur 603203, Tamil Nadu, India

2 VIT Business School, Vellore Institute of Technology, Chennai 600 127, Tamil Nadu, India

3 School of Agriculture and Horticulture, Kalasalingam Academy of Research and Education, Krishnankoil 626126, Tamil Nadu, India.

Abstract
BACKGROUND AND OBJECTIVES: Financial Inclusion is directly related to economic growth and is an integral factor in achieving sustainable development goals. As India plans to achieve Viksit Bharat by 2047, which calls for inclusive growth, the role of women and their participation in the economy becomes a significant factor in its achievement. Women have long been suppressed by patriarchal norms in a country like India, which prohibits them from availing formal financial services. However, with the development of financial technology, the gap between underserved populations and formal financial services can be reduced if used effectively. This study attempts to unravel the importance of urban financial advancements in driving financial inclusion of women's workforce in the informal sector.
METHODS: This study adopted a confirmatory quantitative survey method using Structural Equation Modeling to explore the mediating role of financial literacy between fintech and financial inclusion among women in Chennai’s informal sector. Data were collected over eight weeks through snowball sampling, using both online and in-person surveys administered in Tamil. A structured questionnaire with a 5-point Likert scale (1 = strongly disagree to 5 = strongly agree) was used. Responses were coded by researchers, data consistency verified with an independent sample t-test, and analyses conducted using the Statistical Package for Social Sciences and Analysis of Moment Structures.
FINDINGS: The findings of the study indicate that financial technology and Financial Literacy have a significant positive impact on Financial Inclusion. The study also finds that Financial Literacy mediates the impact of financial technology on Financial Inclusion. Partial mediation exists in the relationship between financial technology, Financial Inclusion, and Financial Literacy, and the impact of financial technology on Financial Literacy is strengthened with a beta estimate of 0.481 after Financial Literacy is introduced as a mediating variable as compared to 0.347 before mediation. This suggests that financial technology can provide access to financial services, but utilization of these services effectively depends on Financial Literacy.
CONCLUSION: This study highlights the complementary roles of financial technology and literacy in advancing inclusion among women in India’s informal sector. While fintech improves access to services, its impact is greater when users have financial knowledge and skills. The findings emphasize the need for integrated policies combining digital tools with financial education, supporting India’s inclusive growth goals under Viksit Bharat 2047. These insights are valuable for policymakers, regulators, fintech providers, and agencies working to close gender and financial gaps.

Keywords

Economic growth
Mediating effect
Patriarchal barriers
Policy implications
Urban advancements
Subjects
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  • Receive Date 13 February 2025
  • Revise Date 10 May 2025
  • Accept Date 07 July 2025

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