Empowering Women through Digital Financial Inclusion: Comparative Study before and after COVID-19

Abstract

The COVID-19 crisis seems to have disproportionately impacted women’s financial resilience. In fact, women’s economic involvement in the financial sector remains unequal. This study compares the impact of digital financial inclusion on women’s economic empowerment before and after the COVID-19 epidemic in Saudi Arabia. Using data collected from the Global Financial Inclusion Database for 2017 and 2021 and ordered probit models, the paper examines the relationship between economic women’s empowerment and digital financial inclusion. Findings indicate that using digital financial services has become more crucial since the pandemic. The results demonstrate that women now play a more significant economic role in decision-making than they did before the epidemic because they have access to a variety of digital financial services that could affect their choices and decisions. The findings are consistent with a number of previous studies, which found that financial digitization is a significant factor in women’s economic empowerment. The distinctiveness of this study is that it provides a recent assessment of Saudi women’s present financial circumstances and assesses current Saudi government initiatives to enhance women’s economic empowerment and leadership capabilities. The research conclusions provide insights for regulators and implications for future research in promoting digital financial inclusion and ensuring Saudi women’s economic empowerment.