Advancing Financial Inclusion for Women in India’s Unorganized Sector: A Quantitative Assessment of Barriers and Enablers

Abstract

Purpose: This study examines the factors influencing financial inclusion among women employed in India's unorganized sector, with a specific focus on the Tamil Nadu region. Despite advancements through national initiatives such as PMJDY and UPI, significant gender disparities persist, particularly affecting women in informal occupations. The study assesses both socio-economic and digital enablers to provide a nuanced understanding of inclusion outcomes. Design/methodology/approach: A quantitative, cross-sectional survey was conducted with 250 women engaged in informal employment across five districts in Tamil Nadu. A structured questionnaire was utilized to collect demographic, financial, and digital usage data. Guided by the Financial Literacy Framework and the Technology Acceptance Model (TAM), the study tested six hypotheses using descriptive statistics, ANOVA, correlation, and multiple regression techniques. Findings: The results indicate that women exhibit moderate levels of financial inclusion, with notable disparities in credit, insurance, and digital platform usage. Education, income, and SHG membership emerged as significant predictors of inclusion. Among digital variables, the perceived usefulness of platforms had a stronger effect than digital literacy, underscoring that awareness alone does not ensure adoption without usability and contextual trust. Research limitations/implications: The study is limited to Tamil Nadu and focuses on a sample of women aged 18–60. Broader multi-state comparisons and longitudinal designs would enhance future research. The findings emphasize the importance of designing gender-sensitive FinTech solutions and leveraging SHGs for digital literacy interventions. Originality/value: This paper addresses a critical research gap by applying dual theoretical frameworks to quantitatively assess financial inclusion among informal women workers. It contributes evidence for refining national strategies, including the NSFI 2019–2024, and offers actionable insights for policymakers, FinTech developers, and grassroots organizations.