Impact of financial literacy on financial inclusion in nepalese share market

Abstract

The objectives of this research are to evaluate the current status of financial literacy, financial technology, financial innovations, and financial inclusion in Nepal’s share market; to examine the relationship between financial literacy, financial technology, and financial innovations with financial inclusion; and to analyze the impact of these factors on financial inclusion in the share market. The study uses both descriptive and causal research designs. The population consists of share market investors, with a sample of 384 participants selected through purposive sampling. Primary data were collected from investors in the Kathmandu Valley using a questionnaire as the main data collection tool. Reliability and statistical analyses were conducted, employing descriptive statistics, correlation, and regression analysis. The findings reveal that investors in the Nepalese share market are financially knowledgeable, actively utilize technological tools, and are positively influenced by financial innovations, which together contribute to a strong level of financial inclusion. The relationships between financial literacy, financial technology, and financial innovations with financial inclusion are positive and significant. Additionally, these factors have a significant effect on financial inclusion. Keywords: financial literacy, financial technology and financial innovations, financial inclusion and share market investment