Influence of Digital Technology on Microfinance Sector: A Study in Kerala

Main Article Content

Santhosh Kumar K.
Aithal P. S.

Abstract

Purpose: This study aims to evaluate how digital technology integration enhances operational efficiency and expands financial inclusion within India's microfinance sector. It also seeks to analyze beneficiary satisfaction levels with digital microfinance services to inform strategies for improving service delivery and overall impact.


Design/Methodology/Approach: The study utilizes a mixed-methods research design, integrating both quantitative techniques such as Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM), and qualitative data gathered through a structured questionnaire. This approach enables a thorough assessment of beneficiary satisfaction with digital microfinance services in Kerala, offering valuable insights into enhancing service delivery and maximizing sector-wide impact.


Findings/Result: The study reported high satisfaction levels among respondents with digital microfinance services in Kerala, particularly noting that Digital Savings Accounts and Mobile Payments significantly enhance satisfaction due to their convenience and accessibility. However, Advisory Services and Micro insurance Products were identified as areas with potential for improvement.


Originality/Value: The study adds unique value by examining how digital technology integration specifically enhances beneficiary satisfaction within Kerala's microfinance sector. It provides detailed insights using both quantitative methods like Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) and qualitative data, offering actionable recommendations to optimize digital microfinance services in the region.


Paper Type: Empirical Research.

Article Details

How to Cite
Santhosh Kumar K., & Aithal P. S. (2024). Influence of Digital Technology on Microfinance Sector: A Study in Kerala. International Journal of Applied Engineering and Management Letters (IJAEML), 8(2), 186–197. https://doi.org/10.47992/IJAEML.2581.7000.0229
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