IMPACT OF USER PERCEPTIONS ON DIGITAL FINANCIAL SERVICE USAGE: EVIDENCE FROM RURAL HOUSEHOLDS IN THE SAURASHTRA REGION

Abstract

The rapid expansion of digital financial services (DFS) has improved financial inclusion, particularly in developing economies like India. However, despite better access, their actual use among rural populations remains uneven. This study explores how user perceptions influence the adoption of digital financial services among rural households in the Saurashtra region. Using a quantitative approach, primary data were collected from 275 respondents. The analysis focused on three key perception-based factors—perceived usefulness (PU), perceived ease of use (PEU), and perceived risk (PR)—and applied descriptive statistics, correlation, and multiple regression techniques. The findings show that both perceived usefulness and perceived ease of use have a positive and statistically significant impact on usage. In contrast, perceived risk has a negative but statistically insignificant effect. The model explains 31.9% of the variation in usage behavior, indicating moderate explanatory power. Overall, the results suggest that rural users are more influenced by the benefits and ease of using digital financial services than by concerns about risk. This highlights the need to design simple, efficient, and user-friendly platforms. The study offers practical insights for policymakers and financial service providers seeking to strengthen digital financial inclusion in rural areas.