Language Barriers as a Limitation to Achieving Financial Inclusion Through FinTech in India

Abstract

Government policies have been imposed in recent years to create an interconnected financial system to increase financial inclusion in India, using financial technology (FinTech) as a crucial tool in achieving these goals. While partial progress has been made with increased availability of basic financial services, India still has hundreds of millions unbanked – the question as to why has yet to be answered. With over 120 local languages in India, communication barriers that have been shown to have detrimental effects in other industries could exist in financial industries as well; many don’t speak the major languages FinTech is typically developed in and can be excluded from economic participation. Below are results of my survey conducted among Indian financial executives to determine the prevalence of language barriers in FinTech in India, the harmful effects of these language barriers, and potential solutions to the issue. A survey method and data analysis of the responses were performed. It was determined that language barriers prevail in India and adversely impacts the effectiveness of FinTech in increasing financial inclusion, with 87.5% of respondents agreeing that language barriers do limit its benefits. Furthermore, the results indicated a majority of respondents proposed new translation or voice-recognition features as the primary tool for closing language gaps. My findings indicate that the variety of local languages in India do inhibit use of FinTech, and a potential solution that would allow hundreds of millions more to participate in the economy would revolve around voice-recognition services to bridge these barriers.