EXPLORING THE ADOPTION OF DIGITAL FINANCE IN SAMBALPUR CITY: A BEHAVIORAL ECONOMICS PERSPECTIVE

Abstract

Digital finance has emerged as a key driver of financial inclusion and innovation in India, especially in the wake of the COVID-19 pandemic. However, there is a lack of research on how digital finance affects the financial behaviour and well-being of consumers, how it promotes financial literacy and education among consumers, and what are the obstacles and possibilities of digital finance for financial innovation and inclusion in the post-pandemic scenario. This paper explores the factors affecting the adoption of digital finance in Sambalpur City, with a particular focus on perceived benefits and perceived risks. The study employs a quantitative approach, utilizing a structured questionnaire administered to participants across various regions in Sambalpur city. The findings reveal that perceived benefits outweigh perceived risks, indicating a general movement towards digital finance adoption. The study offers valuable insights for financial managers and digital finance service providers, enabling them to efficiently allocate resources and improve their services to grow the adoption of digital finance. The paper concludes by highlighting the ability of digital finance to drive financial inclusion and economic growth in India, and the need for a more inclusive and secure digital financial future.

Keywords: Digital finance; Financial behaviour; Financial literacy; Financial innovation