The impact of financial literacy on women’s economic empowerment: exploring the mediating role of digital financial services

This study investigates the impact of financial literacy on women’s economic empowerment, particularly through the use of digital financial services. It examines how improving financial literacy can enhance women’s engagement with digital financial platforms, facilitating their economic participation. Using structural equation modeling in Smart PLS 4, this research employs a quantitative approach grounded in an extended ‘Technology Acceptance Model (TAM)’ and the ‘Theory of Planned Behaviour (TPB)’ to analyze the relationships among financial literacy, digital financial services, and economic empowerment among women. The findings reveal that financial literacy significantly amplifies the benefits of digital financial services in promoting women’s economic empowerment. Specifically, a positive correlation exists between financial literacy and the usage of digital financial services, which in turn is linked to increased economic empowerment among women. These results underscore the critical importance of integrating financial literacy into digital financial services, as doing so can enhance women’s economic engagement and promote gender equality. The implications of these findings suggest that policymakers and practitioners should prioritize financial literacy initiatives within digital platforms to maximize their effectiveness. Future research should focus on identifying best practices for implementing financial literacy programs, as well as evaluating their long-term impacts on women’s economic outcomes. By establishing these connections, this study contributes to the broader discourse on women’s empowerment and economic growth, highlighting the necessity of targeted interventions that support financial literacy.