PwC Report Finds High Digital Finance Adoption in South India

A joint report by PwC India and Dvara Research Foundation reveals that households in South India have adopted multi-service digital financial services at rates exceeding 70%. The study, based on a survey of 4,000 households across 18 districts in seven states, identifies stark regional differences in how these services are accessed and trusted.

While the West shows the highest acceptance of digital financial services at over 95%, it struggles with a significant activation gap, as 65% of formal credit users report being denied. Conversely, the North records the lowest acceptance at 75.67% and faces persistent gaps in rural infrastructure.

To address these disparities, the report recommends a phygital model that integrates digital channels with physical touchpoints to maintain customer trust and engagement. Vivek Belgavi, a partner at PwC India, stated that the financial services ecosystem must now shift its focus toward financial health. He argued that this requires designing products that account for irregular household cash flows and prioritize long-term customer outcomes over simple access.