Financial literacy for women's empowerment in emerging countries: what can we do to overcome the current gaps?

What the paper says

Purpose This article explores the critical role of financial literacy in advancing women's economic empowerment in emerging economies, where systemic barriers such as gender inequality, limited education and cultural restrictions persist. Design/methodology/approach A systematic review of 68 peer-reviewed articles indexed in the Web of Science and Scopus databases was conducted to examine the intersection of financial literacy and women's empowerment. Findings The findings reveal that financial literacy significantly enhances women's economic outcomes, improving entrepreneurship, savings behavior and access to credit, while reducing psychological barriers like low risk tolerance and limited retirement planning. However, a persistent gender gap in financial literacy is driven by entrenched social norms and institutional inequalities. Promising initiatives include financial education programs, fintech solutions and gender-sensitive financial products. Digital financial literacy, in particular, emerges as a key enabler, especially in rural and low-income contexts. Yet, challenges remain, such as the lack of culturally sensitive approaches and standardized metrics for evaluating financial literacy. Originality/value This study contributes to the literature by offering a comprehensive synthesis of research on financial literacy and women's empowerment in developing economies. It emphasizes the transformative potential of financial knowledge to foster gender equality and inclusive development. The review calls for multi-stakeholder efforts, from policymakers, financial institutions and educators, to design inclusive financial systems and eliminate structural barriers, ensuring broader participation of women in the economy.