A study on level of digital financial inclusion and innovative financial products offered by private sector banks among the professional urban youth of gujarat

Abstract

This research is based on both secondary and primary data collection and analysis. Primary data was collected from the respondents residing in the urban areas, represented as four major cities of Gujarat State. The primary data collection instrument used was a structured questionnaire prepared in English and Local language Gujarati, which included various sections considering demographic profile, perception, and behavior of respondents towards innovative financial products offered by private sector banks, level of digital financial literacy, and status of digital financial inclusion. newlineProfessional urban youth represent a person between 15 to 34 years and residing in the city with a population of more than ten lacs as per the census (2011). Hence data was collected from youth respondents living in four major cities of Gujarat State, i.e., Ahmedabad, Surat, Vadodara, and Rajkot. newlineFrequency Analysis is used to study the demographic factors of respondents using SPSS 25. newlineWith the help of SPSS 25, a Reliability test has been performed on Likert Scale questions. For the attitudinal scale used in the questionnaire, the Cronbach Alpha value obtained was 0.873. Thus, the research instrument used was considered reliable. newlineIn this study, Principal Component Analysis is used. The factor analysis is applied to the factors affecting the perception of urban young professionals toward innovative products offered by banks; behavior of urban young professionals toward innovative products offered by banks; and barriers that affect digital financial inclusion. KMO test was applied to check the adequacy of the sample size for conducting factor analysis of variables. newlineTo measure the association between various demographical factors with the level of Digital Financial Literacy, Perception of respondents towards innovative financial products offered by private sector banks, Behavior of respondents towards innovative financial products offered by banks, and Level of Digital Financial Inclusion Chi-square test was applied. newlineMultiple Linear