Linking Financial and Social Inclusion: A PLS-SEM Analysis in the South Gujarat Region

Financial and social inclusion are increasingly recognized as key enablers of equitable and sustainable development. This study investigates the structural relationship between social inclusion and financial inclusion among adults residing in the South Gujarat region. Using a quantitative research design, data were collected from 400 respondents aged 18 years and above, each holding a bank account. A structured questionnaire measured the multidimensional constructs of financial inclusion (comprising accessibility, availability, awareness, usage, penetration, and quality) and social inclusion (encompassing participation, sense of belonging and connectedness, and citizenship). Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to assess the measurement and structural models. The results indicate that social inclusion has a positive and significant influence on financial inclusion, suggesting that greater community engagement, social participation, and sense of belonging contribute to improved financial inclusion outcomes. The measurement model demonstrated satisfactory reliability and validity, confirming the robustness of the constructs. This study contributes to the literature by integrating financial and social dimensions of inclusion within a unified analytical framework and offers policy implications for promoting inclusive financial systems through social empowerment initiatives.