Can digital transformation serve as a strategic lever for reducing gender-based disparities in access to and use of financial services in Sub-Saharan Africa?
Keywords:
Digital transformation, financial access, disparities, sub-Saharan AfricaAbstract
This article examines the effect of digital transformation on disparities in access to and use of formal financial services in sub-Saharan Africa. To this end, it applies the double least squares method proposed by Lewbel (Lewbel-2SLS) and the fixed-effects model with clustered standard errors and instrumental variables (FE-IV + Clustered SE) to triennial data from the Global Findex for the period 2011-2021, across 28 sub-Saharan African countries. The results reveal that digital transformation significantly improves access to and use of formal financial services among both men and women. It also appears that gender-based inequalities in access to and use of these services are narrowing in this region as a result of digital transformation. These findings show that the digitalisation of banking helps women to gain better access to financial services. It helps to reduce the barriers that often hinder their access to traditional banks, thereby helping to reduce inequalities. Consequently, this article highlights the need for financial intermediaries, particularly banks, to invest more in mobile banking and digital financial instruments in order to expand financial inclusion amongst marginalised groups, particularly women, and to reduce gender disparities.
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