Paper Details

Name: Harsha B D
Country: India

Year: 2025
Volume: Volume No: 12, Issue No: 2, Year: 2025
Page Number: 438-446
DOI: https://doi.org/10.5281/zenodo.21932598

ABSTRACT
Financial inclusion and poverty reduction are important components of sustainable rural development. The rapid growth of Financial Technology (FinTech) has created new opportunities for improving access to formal financial services through digital payments, mobile banking, and other technology-based financial solutions. The present study titled “Role of FinTech in Financial Inclusion and Poverty Reduction in the Rural Economy of Kodagu District: An Empirical Study” examines the impact of FinTech adoption on financial inclusion and poverty reduction among rural households in Kodagu District. The study is based on primary data collected from 60 rural respondents using a structured questionnaire. Descriptive statistics, Pearson correlation, and regression analysis were employed to examine the relationship between FinTech adoption, financial inclusion, and poverty reduction. The findings indicate that the mean scores of FinTech Adoption (3.82), Financial Inclusion (3.95), and Poverty Reduction (3.71) reflect moderate to high levels of digital financial adoption and its socio-economic benefits. The correlation analysis reveals that FinTech adoption has a strong positive association with financial inclusion (r = 0.777, p < 0.01) and poverty reduction (r = 0.711, p < 0.01). The regression analysis confirms that FinTech adoption has a statistically significant and positive impact on both financial inclusion and poverty reduction among rural households. The model explains 60.4% of the variation in financial inclusion (R² = 0.604, F = 89.040, p < 0.001) and 50.6% of the variation in poverty reduction (R² = 0.506, F = 59.510, p < 0.001). The hypothesis that “FinTech adoption has a statistically significant and positive impact on both financial inclusion and poverty reduction among rural households in Kodagu District” is accepted based on the empirical findings. The study concludes that FinTech acts as an effective mechanism for enhancing financial accessibility, promoting economic participation, and improving the socio-economic conditions of rural households. Strengthening digital literacy, connectivity, and awareness of digital financial services can further enhance the benefits of FinTech-driven rural development.

Keywords: FinTech, Financial Inclusion, Poverty Reduction, Rural Economy.