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

Author

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  • 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
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    References listed on IDEAS

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    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.
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