Redefining financial services for Viksit Bharat: the role of credit cards in inclusive growth and digital banking

Abstract

Introduction: Credit cards have emerged as pivotal tools in advancing inclusive financial growth and promoting digital banking in India’s journey toward Viksit Bharat 2047. Their growing adoption reflects a broader transformation in consumer financial behavior, enhanced access to credit, and rising digital literacy. This study explores the perceptions of consumers and bankers regarding the role of credit cards in fostering financial inclusion, transactional convenience, and trust in digital platforms.

Methodology: A structured primary survey was administered to a demographically diverse sample to capture variations in credit card usage and perception. The questionnaire assessed factors such as usage frequency, satisfaction, accessibility, and trust. Statistical tools including frequency analysis, t-tests, and ANOVA were applied to examine behavioral patterns and to identify significant differences across demographic variables such as age, gender, income level, and occupation.

Analysis: The results indicate notable disparities in credit card adoption and satisfaction across socio-economic groups. Younger, higher-income, and urban respondents demonstrated greater engagement with credit card usage and higher satisfaction levels. Conversely, certain demographics, particularly lower-income and rural respondents, exhibited limited access and lower satisfaction, primarily due to lack of awareness, digital literacy, and perceived trust issues.

Implications: The findings underscore the necessity for targeted financial literacy initiatives and product innovations tailored to diverse user groups. Enhancing trust, accessibility, and user-centric design in credit card services can significantly contribute to a more inclusive digital financial ecosystem. The study provides strategic recommendations for policymakers, financial institutions, and fintech developers to fortify India’s credit-based digital infrastructure and ensure equitable financial participation on the path to Viksit Bharat 2047.Credit cards have become pivotal instruments in fostering inclusive financial growth and accelerating the shift toward digital banking in India’s journey toward Viksit Bharat 2047. Their increasing adoption reflects a broader transformation in consumer financial behavior, accessibility to credit, and digital literacy. This research investigates the perceptions of both consumers and bankers regarding the role of credit cards in enhancing financial inclusion, convenience, and trust in digital transactions. A primary survey was conducted using a structured questionnaire targeting a diverse demographic segment. Frequency analysis was applied to understand usage trends and behavioral patterns. Further, ANOVA and t-tests were conducted to assess significant differences in credit card usage and satisfaction across variables such as income level, age, gender, and occupation. The analysis revealed disparities in adoption and satisfaction based on socio-economic backgrounds, highlighting the need for tailored financial education and innovation in credit card services. The study offers strategic insights to strengthen credit-based digital financial infrastructure and ensure equitable access across all sections of society.