Background

Across India, the rapid expansion of digital technology has really transformed the way people access financial services, government schemes and educational opportunities. From digital payment platforms and online banking platforms to welfare distribution systems and identity-linked services, participating in everyday life is becoming more and more connected to digital access. However, while technological infrastructure has increased significantly, access to and understanding of these systems remain uneven, particularly among underserved communities. For many, obstacles like limited digital literacy, lack of access to good devices, and unfamiliarity with handline finances in general; continue to restrict meaningful participation in a growing digital economy.

At the same time, financial inclusion has emerged as one of the most important development priorities of the last decade. According to the World Bank’s Global Findex Database, approximately 79% of adults in India now possess a financial account, a substantial increase from just 35% in 2011. Yet access alone does not necessarily lead to confidence, usage, or financial empowerment. Reports further suggest that nearly 14%-16% of account holders continue to maintain inactive accounts, highlighting the persistent gap between ownership and participation in formal finance. Similarly, while digital payment systems such as UPI have  rapidly spread across the country, disparities in digital literacy and technological familiarity continue to shape who is able to benefit from things like this most effectively.

The challenge, therefore, is no longer only one of connectivity, but also of accessibility, and understanding. As financial services, job opportunities and public resources become increasingly digitized, ensuring that vulnerable groups are equipped with the knowledge and tools required to navigate these has become essential. Through its humble endeavours, Connected Capital hopes to contribute to this by exploring the intersection of financial literacy and digital inclusion for underserved groups in India.