IMPACTS OF FINANCIAL INCLUSION ON WOMEN EMPOWERMENT AND POVERTY ALLEVIATION: A STIMULATIVE ROLE OF INFORMATION TECHNOLOGY

Year 2025, Volume: 12 Issue: 2 , 177 - 191 , 31.12.2025

Muhammad Ayub Mehar

https://izlik.org/JA88ZT86GK

Abstract

Purpose- The core purpose of this study is to assess the impacts of financial inclusion on poverty, unemployment, and women's
empowerment through empirical evidence. The stimulative role of information technology was ascertained, and the determinants of financial
inclusion have also been identified in the study.
Methodology- The statistical analysis is based on the annual data of 217 countries for 25 years (from 2000 to 2024), and the panel least squares
technique was applied. The pre-requisite tests to identify the appropriate statistical techniques have been conducted before applying the panel
least squares techniques.
Findings- The positive effect of financial inclusion as an important determinant of women's empowerment, creating employment
opportunities, alleviating poverty, and encouraging women to participate in the labor market was identified. It was noted that the higher
percentage of the population using the Internet enhances the number of borrowers from banks and other financial institutions. It implies that
the use of the internet facilitates access to banks and financial institutions by online submission of applications, documents, and other peices
of evidence. Similarly, the magnitude of domestic credit from banks and financial institutions indicates the availability of credit, which induces
borrowers. The greater availability of credit is itself a cause to attract borrowers.
Conclusion- It was concluded that lending from non-banking financial institutions alleviates unemployment, but borrowing from commercial
banks aggravates unemployment. This requires direct intervention of monetary authorities to relate the lending from commercial banks to
employment creation in marginalized groups: women, poor peoples, and rural households. It was inferred that the use of the Internet
stimulates financial inclusion and enhances the number of borrowers.

Keywords

Financial democratization , financial institutions , lending , poverty , unemployment

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