FROM BANKING INNOVATION TO MEANINGFUL FINANCIAL INCLUSION: THE MEDIATING ROLE OF FINANCIAL EMPOWERMENT AND THE MODERATING ROLE OF FINANCIAL RESILIENCE AMONG RURAL HOUSEHOLDS IN COASTAL KARNATAKA

This research aims to investigate the relationship between banking innovations and financial inclusion in Coastal Karnataka's rural population while exploring the role of financial empowerment and resilience (as mediating and moderating influences, respectively). Although there has been a push to increase access to financial institutions for those who live in rural areas, many members of these communities have not been able to access or effectively use the products provided by these institutions. Through this framework, this research will assess the extent to which banking innovations have enabled meaningful levels of financial inclusion. To examine this relationship, a cross-sectional, quantitative research design was used. A survey consisting of a structured questionnaire was administered to all participants in coastal Karnataka's rural areas, resulting in 291 valid responses. The survey contained items related to demographics and measurement items (the accessibility of digital banking, the availability of assisted banking, financial empowerment, and financial resilience) and financial inclusion. Descriptive statistics and structural equation model were used to calculate analysis of the relationships between the study variables. According to the results of this study, innovative banking products and services have a significant impact on an individual's level of financial inclusion. Financial empowerment serves as a mediating factor indicating that an individual's level of financial knowledge and capacity is important for converting access to financial products and services into actual financial inclusion. Financial resilience also contributes to this relationship by influencing the extent to which an individual can maintain regular financial participation. Therefore, these findings will help financial institutions and policymakers develop approaches that increase the access to, enhance the ability to utilize, and promote the long-term sustainability of financial resources. Keywords: Banking Innovation, Financial Inclusion, Financial Empowerment, Financial Resilience, Rural Households, Digital Banking Accessibility, Assisted Banking Support