BRIDGING THE FINTECH DIVIDE: UNDERSTANDING FINANCIAL LITERACY IN INDIA'S TECH BOOM

Abstract

This chapter draws out the comparison between two conditions prevalent in the same country that involves booming fintech industry on one hand and lack of basic financial literacy on the other. It further studies the extent of financial literacy perforated by the advent of multiple high end financial technology platforms in India. Fintech industry uses high end technology and costumer centric services that augment the speed and efficiency of exchange trading. The extent of the advancement of fintech industry can be evaluated by the introduction of the zero brokerage charge on stock transaction by ZERODHA Fintech Company. Startling contrast exist when such advancement in High end financial technology is compared to the extent of financial literacy among many. To test it empirically, 176 random samples were selected and asked to fill OECD questionnaire on financial literacy; in order to estimate their financial requirement and simultaneous knowledge acquired for meeting that requirement. Results show a complete
lag in the financial literacy across different income groups and across gender. This study would provide a guide to the dimensions, degree and support to be extended to parties that lack financial knowledge in order to match the fast paced advancement in financial sector.