The relationship between education level and banking adoption among street vendors – A financial inclusion viewpoint

Abstract

The educational attainment of individuals has long been recognized as a significant factor in shaping their financial behaviours and attitudes, particularly when it comes to the adoption and usage of banking services. There is generally a positive relationship between the education level of individuals and their adoption of banking services. This relationship can be attributed to the fact that higher levels of education are often accompanied by increased incomes, better financial management skills, and a greater understanding of the importance of financial planning and wealth accumulation. This paper aims to provide a comprehensive view of the current understanding of the relationship between education level and banking adoption among underprivileged sections of the society especially the street vendors. To address the research question, data was collected through a structured questionnaire from 477 street vendors in the Virudhunagar district of Tamilnadu state in India.  The research reveals that although most of the respondents have a bank account irrespective of their education status, the number of respondents not having a bank account is higher among those who have lower education level. Based on the outcome of the research certain policy implications and recommendations are made. This research aligns with the Sustainable Development Goals 4, 8 and 10 (SDG 4, 8 & 10).