Enabling economic empowerment through financial inclusion: a study of self-help group-bank linkage programme in West Bengal

This working paper defines the critical role that financial inclusion has played in empowering women's economic growth. It utilises Self-Help Group-Bank Linkage Programs (SHG-BLP) in West Bengal, India, to determine, through primary data collected from 500 women, including 450 SHG-BLP participants and 50 non-participants. How specific indicators of women's economic empowerment are influenced by opening or not opening a bank account, as well as the acquisition of assets. The results demonstrate robust positive correlations between these indicators and financial inclusion, indicating that there is transformative potential in formal financial access for women. The paper further analyses the effects of socio-demographic variables, particularly education and age, on determining empowerment outcomes. In this case, older women are involved in asset accumulation. It is, therefore, a call to understand the complex interaction between financial inclusion and its socio-demographic determinants. This study has highlighted actionable policy interventions, focusing on removing persistent barriers to financial inclusion, including narrow financial literacy, cultural, and digital exclusion. Some of these targeted financial literacy programs, gender-sensitive financial products, SHG infrastructure, and the utilisation of technology, such as mobile banking, will help create an inclusive financial ecosystem that empowers women and promotes gender equality. The findings are significant to stakeholders, including policymakers, financial institutions, and development organisations, as they can increase economic independence for women by easing systemic barriers to financial access, thereby contributing to the broader agenda of sustainable development. It supports knowledge development on the involvement of women in empowerment and financial inclusion processes. It will therefore lead to the development of guidelines that are both financially system-inclusive and complementary to SDG-5, resulting in the achievement of gender equality.