Toward Inclusive Finance: A Systems Theory-Based Empirical Model for Indian Financial Institutions
Keywords:
Sustainable Development Goal 8, Financial Inclusion System, Exploratory factor analysis, Financial Intermediaries, SPSS, modelAbstract
Indian Financial Institutions encompass an extensive range of organizations involved in the country's financial industry and are vital to the nation's ability to conduct financial transactions, support economic growth, and facilitate the flow of funds. This study explores the noteworthy factors of the financial inclusion system and how they affect the performance and growth of Indian financial institutions, which aligns with Goal 8 of Sustainable Development. The statistical tool used is Exploratory Factor Analysis using the software package IBM-SPSS Statistics and Confirmatory Factor Analysis using Smart PLS 4. This article comprehensively analyses the significant internal and external factors of the financial inclusion system across the seven subsystems. Also, a model is proposed using the systems theory of financial inclusion. It outlines the primary methodology used and the scholar's views on studying this subject and suggests some crucial areas for further study.
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