Financial inclusion for women empowerment in South Asian countries
| DOI | https://doi.org/10.1108/JFRC-11-2021-0092 |
| Published date | 04 March 2022 |
| Date | 04 March 2022 |
| Pages | 489-502 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation |
| Author | Faisal Aziz,Salman Masood Sheikh,Ijaz Hussain Shah |
Financial inclusion for women
empowerment in South Asian
countries
Faisal Aziz,Salman Masood Sheikh and Ijaz Hussain Shah
Department of Management Sciences, Superior University Lahore,
Lahore, Pakistan
Abstract
Purpose –This paper aims to address the issues of Asian countriestoward why females are discouraged
and more likely to be removed from the formal financial system than males. Further, whether there is any
connectionbetween religion and women’sfinancial inclusionis also addressed.
Design/methodology/approach –This paper explores gender disparities in the use of structured
financial servicesthrough multilevel models tailored to the individual.The data from 2004 to 2017 have been
used for eight South Asian countries, including Bangladesh, India, Pakistan, Sri Lanka, Afghanistan,
Maldives, Nepaland Bhutan. We used a multilevel modeling methodology to estimatethe impact of the socio-
economic climate on women’sfinancial inclusion while controlling for individual-level features, with all
controlvariables included, the two-level logistic regressionmodel used for this study.
Findings –The results of this studydemonstrate that sex appears to be strongly correlated with theusage
of financial services. The study also found that in nations where religious restrictions limit women’s
willingness to work for a living, they are less likely than males to own a bank account. However, through
legislation and regulations, countriesthat encourage gender equality in the labor market and have effective
regulatorymechanisms to maintain these initiativesappear to have more financially active women.
Practical implications –This research advises that government authorities strengthen women’s
empowermentin South Asian countries.
Originality/value –To the best of the authors’knowledge, thisis the first paper that explains the linkage
between financialinclusion and women empowerment andwill contribute to existing knowledge.
Keywords Women empowerment, Financial inclusion, South Asian countries
Paper type Research paper
Introduction
A growing body of research shows that financial inclusion can serve as a driver of the
economic empowerment of women (Aker et al., 2016a;Emara and Mohieldin, 2020) and plays
an important role in developing their capacity as active participants in reducing poverty and
equitable growth (Prina, 2015). However, women’s access to financial services is still limited
worldwide (Demirgüç-Kunt et al.,2015). According to the Global Financial I nclusion (Global
Findex Database), two billion adults worldwide lack access to structured financial products
and services. Women are especially vulnerable to being removed financially. The gender
difference in the ownership of bank accounts is 07 percentage points: 58% of women and 65%
of men in 2014 held a bank account. Although gender differences in account ownership are
universal, in developing nations, they are more pronounced. In low- and middle-income
countries, the gender difference in formal account ownership is nearly twice (9 percentage
points) that of high-income countries (5 percentage points) (Holloway et al., 2017).
Indeed, gender disparity in accessto formal financial services could be even greaterthan
current evidence indicates. Research suggests that women are more likely to access formal
Financial
inclusion for
women
empowerment
489
Received1 November 2021
Revised23 December 2021
26January 2022
Accepted8 February 2022
Journalof Financial Regulation
andCompliance
Vol.30 No. 4, 2022
pp. 489-502
© Emerald Publishing Limited
1358-1988
DOI 10.1108/JFRC-11-2021-0092
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