Scrutinizing Status of Financial Inclusion using Structural Equation Modeling

This paper attempts to examine the role of telecom and socio economic variable to achieve financial inclusion. Awareness, Usability and Ability of using services are the three constructs related with financial inclusion and telecom variables. Community, Infrastructure and Education are the three constructs of socio economic variable. Thus there are 6 independent and 3 dependent constructs. The constructs comprise 62 indicators. A sample of 200 is collected randomly through schedule from the residents of vadacherry and solur village of Vellore district of Tamilnadu. The data is analyzed using Structural Equation Modelling(SEM) software SmartPLS. The results confirm that there is a positive impact of several constructs of Telecom and Socioeconomic dimensions on Financial Inclusion. Hence, Telecom and financial institutions should work together to achieve financial inclusion and help each other to generate revenue from their mutual customers.