IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i10p468-d1500590.html
   My bibliography  Save this article

Digital Financial Literacy and Its Impact on Financial Decision-Making of Women: Evidence from India

Author

Listed:
  • Deepak Mishra

    (School of Business, UPES, Dehradun 248007, Uttarakhand, India)

  • Naveen Agarwal

    (Centre for Continuing Education, (UPES Online), UPES, Dehradun 248007, Uttarakhand, India)

  • Sanawi Sharahiley

    (Business Studies (International Labour Conventions and Petroleum Industrial Relations), Management Department, Applied College, Jazan University, Jazan 82817-2820, Saudi Arabia)

  • Vinay Kandpal

    (Department of Management Studies, Graphic Era Deemed to be University, Dehradun 248002, Uttarakhand, India)

Abstract

Despite the increasing accessibility of digital financial instruments globally, a number of women encounter obstacles in properly using these platforms due to insufficient digital financial literacy, which profoundly affects their financial decision-making and economic empowerment. This study aims to promote digital financial literacy and Fintech adoption for women in India by examining the effects of digital financial literacy on financial decision-making while considering the mediating effect of government support and digital financial literacy. Furthermore, in this study, we analyzed the relationship between independent variables such as financial attitude (FAtt), subjective norms (SNs), perceived behavior control (PBC), digital financial literacy (DFL), and financial accessibility (FA) on the dependent variable, i.e., financial decision-making (FDM). We also explored how financial decision-making impacts women’ intention towards investment (INT). By analyzing 385 Indian women respondents using Structural Equation Modeling (SEM), this study revealed that financial attitude (FAtt) leads to higher financial decision-making (FDM), exerting moderate effects. Similarly, subjective norms (SNs), perceived behavioral control (PBC), digital financial literacy (DFL), and financial accessibility (FA) significantly lead to financial decision-making. Overall, the five predictors of financial decision-making explained around 71% of the variance. Financial decision-making exerted a significant and robust effect on women’s intention towards investment. Financial resilience significantly moderated the effects of financial decision-making on women’s intention towards investment. These findings emphasize the necessity of implementing a distinct government strategy and programs to enhance the adoption of Fintech among women living in urban and rural regions across India. This study is aligned with UN Sustainable Development Goals, especially Sustainable Development Goal (SDG) 1: No Poverty, SDG 5: Gender Equality, and SDG 8: Decent Work and Economic Growth.

Suggested Citation

  • Deepak Mishra & Naveen Agarwal & Sanawi Sharahiley & Vinay Kandpal, 2024. "Digital Financial Literacy and Its Impact on Financial Decision-Making of Women: Evidence from India," JRFM, MDPI, vol. 17(10), pages 1-23, October.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:10:p:468-:d:1500590
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/10/468/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/10/468/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanawi M. Sharahiley, 2020. "Examining Entrepreneurial Intention of the Saudi Arabia’s University Students: Analyzing Alternative Integrated Research Model of TPB and EEM," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 67-84, March.
    2. Esther Duflo, 2012. "Women Empowerment and Economic Development," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1051-1079, December.
    3. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    4. Jing Xiao & Cheng Chen & Fuzhong Chen, 2014. "Consumer Financial Capability and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 415-432, August.
    5. Kamini Rai & Shikha Dua & Miklesh Yadav, 2019. "Association of Financial Attitude, Financial Behaviour and Financial Knowledge Towards Financial Literacy: A Structural Equation Modeling Approach," FIIB Business Review, , vol. 8(1), pages 51-60, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Godfred Matthew Yaw Owusu & Gabriel Korankye & Octavia Ama Serwaa Otchere & Maryam Kriese, 2022. "Money on the mind: emotional and non-cognitive predictors and outcomes of financial behaviour of young adults," SN Business & Economics, Springer, vol. 2(11), pages 1-22, November.
    2. Nisha Prakash & Aparna Hawaldar, 2024. "Investigating the Determinants of Financial Well-Being: A SEM Approach," Business Perspectives and Research, , vol. 12(1), pages 11-25, January.
    3. Swati Rohatgi & Navneet Gera & Keyurkumar Nayak, 2024. "Has digital banking usage reshaped economic empowerment of urban women?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 543-563, June.
    4. Imad A. Moosa, 2022. "Fintech," Books, Edward Elgar Publishing, number 21229.
    5. Zhao, Chunkai & Wu, Yaqian & Guo, Jianhao, 2022. "Mobile payment and Chinese rural household consumption," China Economic Review, Elsevier, vol. 71(C).
    6. Long She & Ratneswary Rasiah & Marc Arul Weissmann & Harpaljit Kaur, 2024. "Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia," FIIB Business Review, , vol. 13(1), pages 118-135, January.
    7. S Anukriti & Catalina Herrera‐Almanza & Praveen K. Pathak & Mahesh Karra, 2020. "Curse of the Mummy‐ji: The Influence of Mothers‐in‐Law on Women in India†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1328-1351, October.
    8. DeJaeghere, Joan & Pellowski Wiger, Nancy & Le, Hue & Luong, Phuong & Ngo, Nga Thi Hang & Vu, Thanh Thi & Lee, Jongwook, 2022. "Why do aspirations matter for empowerment?: Discrepancies between the A-WEAI domains and aspirations of ethnic minority women in Vietnam," World Development, Elsevier, vol. 159(C).
    9. Sevias Guvuriro & Frederik Booysen, 2021. "Family‐type public goods and intra‐household decision‐making by co‐resident South African couples," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1629-1647, August.
    10. Felix Meier Zu Selhausen & Jacob Weisdorf, 2016. "A colonial legacy of African gender inequality? Evidence from Christian Kampala, 1895–2011," Economic History Review, Economic History Society, vol. 69(1), pages 229-257, February.
    11. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    12. Tendai Zawaira & Matthew W. Clance & Carolyn Chisadza, 2020. "Social Institutions and Gender-Biased Outcomes in sub-Saharan Africa," Working Papers 2020101, University of Pretoria, Department of Economics.
    13. Katherin Carrera-Silva & Olga Maritza Rodríguez Ulcuango & Paula Abdo-Peralta & Ángel Gerardo Castelo Salazar & Carmen Amelia Samaniego Erazo & Diego Haro Ávalos, 2024. "Beyond the Financial Horizon: A Critical Review of Social Responsibility in Latin American Credit Unions," Sustainability, MDPI, vol. 16(18), pages 1-23, September.
    14. Ruixin Su & Tong Zheng & Yuzhao Zhong & Weizhou Zhong, 2023. "Role of Digital Inclusive Finance for High-Quality Business Development: A Study of China’s “Five Development Concept” Policy," Sustainability, MDPI, vol. 15(15), pages 1-21, August.
    15. Alnaa, Samuel Erasmus & Matey, Juabin, 2023. "Women's Access to Post-Secondary Education and Structural Inequalities," MPRA Paper 118327, University Library of Munich, Germany, revised 15 Jul 2023.
    16. Peterson K. Ozili, 2023. "Corporate governance and financial inclusion," Journal of Money and Business, Emerald Group Publishing Limited, vol. 3(1), pages 89-107, May.
    17. Cristina Chueca Vergara & Luis Ferruz Agudo, 2021. "Fintech and Sustainability: Do They Affect Each Other?," Sustainability, MDPI, vol. 13(13), pages 1-19, June.
    18. Saskia Vossenberg, 2014. "Beyond the Critique: How Feminist Perspectives Can Feed Entrepreneurship Promotion in Developing Countries," Working Papers 2014/14, Maastricht School of Management.
    19. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Female unemployment, mobile money innovations and doing business by females," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-26, December.
    20. Mavisakalyan, Astghik & Tarverdi, Yashar, 2019. "Gender and climate change: Do female parliamentarians make difference?," European Journal of Political Economy, Elsevier, vol. 56(C), pages 151-164.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:10:p:468-:d:1500590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.