South India Leads in Multi-Service Digital Financial Adoption, Finds PwC-Dvara Research Survey
National: Households in South India have recorded the highest adoption of multi-service digital financial services (DFS), with usage exceeding 70%, according to a survey conducted by PwC India in partnership with the Dvara Research Foundation. The study also highlights the need to shift the focus of financial inclusion from account ownership to long-term financial resilience.
Titled “Rethinking Financial Health for Meaningful Impact,” the survey covered 4,000 households across 18 districts in seven states, examining the financial well-being of underserved households in India’s Bharat segment.
The report defines financial health as a household’s ability to meet present needs, prepare for the future and withstand financial shocks. It notes that measuring financial inclusion solely through bank accounts or cards issued is no longer sufficient, emphasising the importance of meaningful financial outcomes such as resilience, confidence and the ability to manage income volatility.
The survey follows an input-output-outcome framework that assesses access to financial products, their usage and the extent to which they improve household financial security. The framework aligns with the Reserve Bank of India’s National Strategy for Financial Inclusion (2025–30), which focuses on measuring financial well-being rather than account ownership alone.
Among the regional findings, South India recorded the highest multi-service digital financial services adoption at over 70%. The study found that 44% of financial advice in the region comes from third-party providers, while 40% is sourced through social networks. Formal financial service providers account for 13% of financial advice.
The report also observed regional differences across the country. In eastern India, 37% of households have never sought financial advice, while 23% sought advice but did not receive it. Additionally, 78% of informal loans in the region originate from a single source, increasing concentration risk.
In western India, digital financial services acceptance exceeds 95%, but 65% of formal credit users reported experiencing loan denial at some point. Newer customers in the region recorded high access levels but comparatively lower usage.
Northern India recorded the lowest acceptance of digital financial services at 75.67%. The survey found that 40% of households lack access to financial services within walking distance, while newer customers continue to report lower trust and engagement.
The report also highlights income volatility as a major challenge affecting financial health. It notes that financial products designed around fixed monthly incomes, including regular EMI schedules and recurring deposits, often fail to match the irregular income patterns of many households in the Bharat segment.
According to the survey, 65% of renters in eastern India are unable to mobilise ₹30,000 during emergencies, reflecting the financial vulnerability of many urban households.
The study concludes that financial service providers need to redesign credit, savings and insurance products around irregular cash flows while combining digital services with trusted human support. It also recommends measuring success based on financial resilience and customer outcomes rather than transaction volumes or account openings alone.
