Gender Disparity in Digital Financial inclusion and Challenges Affecting Women in Developing Countries

Abstract

Digital financial inclusion could help in the empowerment of women and the completion of the United Nations 2030 Sustainable Development Goals (SDGs) in developing countries, by improving access to financial services and reducing financial as well as economic exclusion. This paper examines the challenges toward the digital financial inclusion of women in developing countries. The results of the review were mixed. The findings reveal that these challenges involve gender bias and discrimination in the financial services sector, lack of collateral, social, cultural and economic factors, cost of accessing digital financial services, safety concerns and risks leading to lack of trust in digital financial services. This paper concludes by articulating that mitigating the identified challenges could improve digital financial inclusion of women in developing countries, while yielding benefits such as increased access to economic and empowerment opportunities, enhance financial security and independence of women and reduce gender inequality (SDG5). The review also established that while digital financial inclusion of women can help them gain financial autonomy, it can also indirectly fuel gender based violence as men resort to violence when losing financial control. Due to digital literacy challenges these financial services can perpetuate financial exclusion of women instead of reducing it. The paper recommends the reduction in the cost of digital financial services, increasing the safety of financial services by constructing laws against cybercrimes.  Strengthening security and risk management of digital financial services, increasing education on the benefits and risks of digital financial services and address gender bias.