Assessing Gender Disparities in Formal Financial Services Utilization in Afghanistan: Evidence from the Global Findex Database

Aim: Financial inclusion refers to the availability and use of financial services to individuals and businesses at an affordable cost, without discrimination to any group. This study examines gender disparity in the utilization of formal financial services in Afghanistan, a country where financial exclusion remains a critical issue. Design/methodology/approach: This study is quantitative in nature, using data from the Global Findex data (2011-2021) from the World Bank. The study employs a descriptive summary to provide an overview of the data. The Kruskal-Wallis test and Dunn's post-hoc test are then applied to test the hypothesis considered under this study. Additionally, the study presents key barriers to financial inclusion in Afghanistan using Global Findex 2021 data, analyzed descriptively through graphical representation. Research Findings: The findings reveal significant disparities in account ownership, debit card usage, digital payment adoption, and savings, with males consistently demonstrating higher usage across these services. No disparity was observed for borrowings and mobile money, and low usage levels were exhibited for both men and women. Additionally, barriers to financial inclusion in Afghanistan, such as insufficient funds, distance, trust, documentation and cost, limit access to formal financial services. Theoretical Contribution/Originality: Despite the importance of financial inclusion and gender disparity, Afghanistan remains largely understudied. While numerous studies have examined gender gaps in financial access using the Global Findex database across various countries, research specific to Afghanistan is scarce. This study fills this gap by providing empirical evidence of gender disparities and highlights the need for targeted interventions.