Impact of Digital Financial Literacy Initiatives by Cooperative Banks of Uttarakhand on Adoption, Satisfaction, and Retention

Abstract

The rapid digitization of India’s banking sector has reshaped how customers access financial services, particularly in semi-urban and rural regions where cooperative banks play a vital role. This study investigates the impact of digital financial literacy initiatives implemented by cooperative banks in Uttarakhand on customers’ digital banking adoption, satisfaction, and retention. The research aims to understand how awareness programs, training workshops, and digital outreach campaigns influence customers’ ability to use online and mobile banking services effectively. A structured survey was conducted among 400 customers of selected cooperative banks across different districts of Uttarakhand, complemented by interviews with bank managers to assess the strategic intent behind literacy drives. The findings reveal a positive and significant relationship between digital financial literacy and both digital service adoption and customer satisfaction, which in turn enhance customer retention. The study also identifies barriers such as inadequate digital infrastructure, limited smartphone access, and low awareness in rural pockets that moderate this relationship. The results emphasize the need for cooperative banks to integrate continuous financial education and personalized digital support into their service delivery models. The paper concludes that strengthening digital literacy initiatives can lead to a more inclusive, loyal, and digitally empowered customer base, contributing to the long-term sustainability of cooperative banking in Uttarakhand.