Financial inclusion for women empowerment in South Asian countries

Purpose - This paper aims to address the issues of Asian countries toward why females are discouraged and more likely to be removed from the formal financial system than males. Further, whether there is any connection between religion and women’s financial inclusion is also addressed. Design/methodology/approach - This paper explores gender disparities in the use of structured financial services through 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, Nepal and Bhutan. We used a multilevel modeling methodology to estimate the impact of the socio-economic climate on women’s financial inclusion while controlling for individual-level features, with all control variables included, the two-level logistic regression model used for this study. Findings - The results of this study demonstrate that sex appears to be strongly correlated with the usage 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, countries that encourage gender equality in the labor market and have effective regulatory mechanisms to maintain these initiatives appear to have more financially active women. Practical implications - This research advises that government authorities strengthen women’s empowerment in South Asian countries. Originality/value - To the best of the authors’ knowledge, this is the first paper that explains the linkage between financial inclusion and women empowerment and will contribute to existing knowledge.