From Financial Access to Financial Well-Being: The Role of AI-Enabled Digital Finance among Smart Phone using Below Poverty Line Women Workers in Bengaluru

Abstract

Financial inclusion has emerged as an important policy measure for promoting inclusive growth and reducing socio-economic inequalities in developing economies. Even though financial access has significantly increased in India thanks to programs like digital banking, Direct Benefit Transfers (DBT), and mobile payment platforms, it is still difficult to translate financial access into meaningful financial well-being, especially for Below Poverty Line (BPL) women who work in the unorganized sector. Artificial Intelligence (AI)-enabled digital financial services are revolutionizing the delivery and accessibility of financial products due to the quick development of financial technologies.

In relation to AI-enabled digital finance, this study looks at the relationship between financial access, financial literacy, and financial well-being among BPL women workers in Bengaluru. The relationship between financial access, financial literacy, and financial well-being among BPL women workers in Bengaluru is examined in this study in relation to AI-enabled digital finance. The study is made with primary data obtained from 100 BPL women respondents through a structured questionnaire. It aims to analyse the impact of digital financial technologies, including mobile banking, automated banking services and digital payment platforms, on financial inclusion and financial potentiality. To evaluate the relationships among the variables, in this study several statistical techniques such as reliability testing, correlation analysis, multiple regression analysis and factor analysis using the Kaiser–Meyer–Olkin (KMO) measure and Bartlett’s Test of Sphericity is applied.

The study proposes that digital financial services enabled by AI have the potential to contribute to the women’s financial inclusion. Financial inclusion can further contribute to the financial well-being of individuals by enhancing their financial literacy and involvement in financial activities. The study contributes to the literature on digital financial governance and women’s financial empowerment by presenting micro-level evidence from an urban low-income group. The study’s findings have policy implications that suggest that financial literacy interventions should be promoted along with AI-enabled financial services in order to achieve financial empowerment for marginalized BPL urban working women.