Can policymakers push financial inclusion through mobile telephony? A qualitative inquiry among Indian “urban poor” during demonetization

Abstract

Mobile telephony penetration has reached up to the remote location of globe enabling access to communication to each individual. This communication access and technology can also assist individuals to gain financial inclusion specifically in emerging economies like India. This study aims to address the issue of financial inclusion and inclusive economic growth through the development of mobile penetration in India. The study targets financially excluded Indian urban poor segment and aims to address the missing linkages between mobile telephone, digital transaction, and financial inclusion during demonetization. The study follows qualitative research design. Qualitative research design aims to address the nexus between financial inclusion and mobile telephony from the demand side. The study conducts 52 in‐depth interviews collected under naturalistic observations from the urban poor segment of society across major cities of India. Open coding method is followed to analyze the in‐depth interviews to assimilate information from various emerging themes. Qualitative data analysis identifies various themes to understand the usage of mobile telephony for any financial transaction, financial planning by the urban poor segment. The study explores various reasons behind financial exclusion of urban poor segment and how mobile telephony adoption can be utilized to attain financial inclusion.