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The Role of Digital Financial Services in Narrowing the Gender Gap in Low–Middle-Income Economies: A Bayesian Machine Learning Approach

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  • Alicia Fernanda Galindo-Manrique

    (Acounting and Finance Academic Department, Tecnologico de Monterrey, Monterrey 64700, Mexico)

  • Nuria Patricia Rojas-Vargas

    (Acounting and Finance Academic Department, Tecnologico de Monterrey, Monterrey 64700, Mexico)

Abstract

Women in emerging economies face unique constraints rooted in cultural norms, socio-economic disparities, and limited access to education and technology. Narrowing the digital gender gap by ensuring access to financial services may reduce the economic inequalities for women in these countries. This study examines the influence of digital finance in narrowing the gender gap, guided by the research question: To what extent do digital financial services contribute to narrowing the gender gap in access to and usage of financial services in low-and middle-income economies? Gender inclusion was measured by the ratio of accounts owned by women over the total number of accounts. Digital financial inclusion was constructed based on eight components: mobile money account, storing money in financial institutions, Internet access, mobile phone owned, savings, savings in financial institutions, making or receiving a digital payment, and mobile phone or use of the Internet for shopping. A Bayesian regression approach was computed using the Global Findex Database data for 73 countries classified as low and lower-middle-income economies from 2011 to 2022. The Machine Learning approach evaluates the model’s ability to predict women’s autonomy and the role of digital finance. The results show that digital financial services would reduce the gender gap in low-income economies while augmenting the number of open accounts, especially for women. The results aid in the establishment of policies to reduce the gender gap. These results are relevant to the UNSDG agenda, mainly Goal 5 and Goal 10.

Suggested Citation

  • Alicia Fernanda Galindo-Manrique & Nuria Patricia Rojas-Vargas, 2025. "The Role of Digital Financial Services in Narrowing the Gender Gap in Low–Middle-Income Economies: A Bayesian Machine Learning Approach," Risks, MDPI, vol. 13(5), pages 1-25, May.
    • Handle: RePEc:gam:jrisks:v:13:y:2025:i:5:p:96-:d:1655821
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    References listed on IDEAS

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    1. Purva Khera & Miss Stephanie Y Ng & Ms. Sumiko Ogawa & Ms. Ratna Sahay, 2021. "Is Digital Financial Inclusion Unlocking Growth?," IMF Working Papers 2021/167, International Monetary Fund.
    2. Stephanie Seguino & Maria Sagrario Floro, 2003. "Does Gender have any Effect on Aggregate Saving? An empirical analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(2), pages 147-166.
    3. Priyanka Roy & Binoti Patro, 2022. "Financial Inclusion of Women and Gender Gap in Access to Finance: A Systematic Literature Review," Vision, , vol. 26(3), pages 282-299, September.
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