Purpose- The study examines the role of digital inclusion and financial literacy in driving technology adoption among customers of Non-Banking Financial Companies (NBFCs). It explores how these factors influence customer engagement with digital financial services, particularly in underserved regions.

Design/Methodology/Approach- This research adopts a qualitative case study-based approach, focusing on two leading NBFCs—Cholamandalam Finance and Muthoot Finance. Primary data is collected through in-depth interviews with customers and NBFC executives, while secondary data is gathered from reports, regulatory guidelines, and company case studies. Thematic analysis is used to identify key challenges and best practices in digital adoption.     

Findings- The study highlights that higher levels of financial literacy and digital accessibility lead to increased adoption of digital financial services. However, significant barriers such as trust deficits, cybersecurity concerns, lack of personalized assistance, and digital literacy gaps continue to hinder widespread adoption. Successful NBFCs address these challenges through financial literacy programs, user-friendly digital platforms, and hybrid service models that blend technology with human assistance.                                             

Practical/Social Implications- The findings provide actionable insights for NBFCs, policymakers, and financial institutions to enhance digital financial inclusion. Implementing customer education initiatives, strengthening cybersecurity frameworks, and adopting localized digital service models can improve technology adoption. Additionally, the study underscores the need for regulatory interventions to support digital financial literacy programs.    

Originality/Value- This research contributes to the limited qualitative literature on digital financial adoption in the NBFC sector. By focusing on real-world case studies, it offers practical recommendations for improving digital accessibility and customer confidence. The study also provides a framework for future research on digital transformation in financial services, particularly in emerging economies