An Exploratory Analysis of Financial Inclusion Technologies: Effects on Governance Structures and Sustainability Commitments

Abstract

 The present study investigates the influence of digital financial technology adoption, financial inclusion infrastructure, and the effectiveness of the governance structure to commit to sustainability, especially in the regions that are underdeveloped. A quantitative method based on Structural Equation Modeling (SEM) was used and data was gathered over a total of 648 individuals from over six districts in northern Karnataka representing both rural and urban thought. The findings indicate that the use of digital financial technology and financial inclusion infrastructure has a greater positive impact on sustainability commitments, but the effectiveness of governance structure has a greater direct impact. There are also positive influences of digital adoption and financial infrastructure on governance effectiveness. The mediation analysis validates that the governance mediates these relationships to a certain extent, and the cultural factors indicate the small and significant moderating effects. The model describes 43.3 percent of the variance in sustainability commitments. Such results emphasize the necessity to match technological development with the governance capacity and cultural background to enhance sustainable financial results. The paper has important implications to policymakers noting the significance of a combined digital, cultural, and governance approach toward sustainability development. It also determines some critical strengths and areas which require improvement like cultural alignment and financial literacy. The study as a whole gives a practical basis on the front of designing inclusive, technology-based financial systems that facilitate long-term sustainability.