Financial Literacy, Digital Financial Literacy and Women’s Economic Empowerment Study in West Sumatera, Indonesia

Main Article Content

Rita Rahayu
Verni Juita
Annisaa Rahman


: Digital Financial Literacy, Financial Literacy, Women’s Economic Empowerment, Financial Wellbeing, Developing Countries


There have many been studies on women’s economic empowerment (WEE), most related to financial literacy (FL). However, in this digital era marked by the emergence of Fintech, FL needs to be expanded into digital financial literacy (DFL), in making good financial decisions, especially regarding Fintech products. Hence, the study aims to investigate the influence of DFL and FL on WEE. In this study, 259 female respondents participated. Using the PLS Structural Equation Modelling, the study found that both DFL and FL had a positive and significant effect on WEE. However, further analysis found that DFL affects all 5 dimensions of WEE. Meanwhile, FL only affects 3 components of WEE. In addition, the results also show that DFL has a much greater influence on WEE compared to FL. These results prove that, in this digital era, FL is not sufficient for making good financial decisions, but more understanding is needed, especially related to digital literacy. These results are expected to provide a new understanding of the importance of the DFL variable in the study of WEE, as well as input for the Indonesian government to give more consideration to DFL in making policies related to WEE.


Download data is not yet available.
Abstract 264 | 700-PDF-v11n2pp118-138 Downloads 22


Aggarwal, N. (2014). Financial Literacy among farmers: Empirical evidence from Punjab. Pacific Business Review International, 6(7), 36–42.
Alkharusi, H., Aldhafri, S., Alnabhani, H., & Alkalbani, M. (2012). Educational Assessment Attitudes, Competence, Knowledge, and Practices: An Exploratory Study of Muscat Teachers in the Sultanate of Oman. Journal of Education and Learning, 1(2).
Arrondel, L, Debbich, M., & Savignac, F. (2013). Financial literacy and financial planning in France. Numeracy, 6(2), 1-17.
Arora, A. (2016), Assessment of Financial Literacy amongst Working Indian Women. Business Analyst, 36(2), 219–237.
Badan Pusat Statistik. (2020). Potret Sensus Penduduk 2020 Menuju Satu Data Kependudukan Indonesia. BPSRI.
Bahonar, Z., & Sadrabadi, M. (2014). Investing the relationship between financial literacy and prosperity, and the determining association with demographic variables (case study: yazd country schools teachers). Indian Journal of Fundamental and Applied Life Sciences, 4, 1143–1152
Bannier, C. E., & Schwarz, M. (2018). Gender-and education-related effects of financial literacy and confidence on financial wealth. Journal of Economic Psychology, 67, 66–86.
Batra, A. (2013). Financial inclusion & women empowerment: A Myth or Reality. International Journal of Research in Finance & Marketing, 3(12), 16–25.
Beckmann, E. (2013). Financial Literacy and Household Savings in Romania. Numeracy, 6(2), Article 9.
Bhushan, P., & Medury, Y. (2013). Financial literacy and its determinants. International Journal of Engineering, Business and Enterprise Applications (IJEBEA), 4(2), 155–160.
Bonga, W. G., & Mlambo, N. (2016) Financial Literacy Improvement Among Women in Developing Nations: A Case for Zimbabwe. Journal of Research in Business and Management, 4(5), 22–31.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Mahwah, NJ: Lawrence Erlbaum.
Dash, M., Prasad, V. M., & Koshy, C. J. (2016). Women Empowerment through Microfinance Services. Journal of Applied Management and Investments, 5(1), 20–25.
Deka, P. P. (2015). Financial literacy and financial inclusion for women empowerment: A study. International Journal of Applied Research, 1(9), 145–148.
Frame, W. S., Wall, L., & White, L. J. (2019). Technological Change and Financial Innovation in Banking: Some Implications for FinTech. In Berger, A., Molyneux, P., & Wilson, J. O. S. (eds), Oxford Handbook of Banking, 3rd ed., Oxford: Oxford University Press.
Frost, J. L., Gambacorta, L., Huang, Y., Shin, H. S., & Zbinden, P. (2019). BigTech and the Changing Structure of Financial Intermediation. Bank of International Settlements Working Paper, Number 779. Available at
Garrett, J. L., Rodermund, R., Anderson, N., Berkowitz, S., & Robb, C. A. (2014). Adoption of Mobile Payment Technology by Consumers. Family and Consumer Sciences Research Journal, 42(4), 358–368.
Golla, A. M., Malhotra, A., Nanda, P., & Mehra, R. (2011). Understanding and Measuring Women’s Economic Empowerment: Definition. Framework and Indicators. Washington, DC: International Center for Research on Women. Available at
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis, 7th ed. Harlow: Pearson Education Limited.
Hair, J., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Available at
Haque, A., & Zulfiqar, M. (2016). Women’s Economic Empowerment through Financial Literacy: Financial Attitude and Financial Wellbeing. International Journal of Business and Social Science, 7(3), 78–88.
Hundtofte, S., & Gladstone, J. (2017). Who Uses a Smartphone for Financial Services? Evidence of a Selection for Impulsiveness from the Introduction of a Mobile FinTech App. Working Paper.
International Finance Corporation. (2016). Women-owned SMEs in Indonesia: A Golden Opportunity for Local Financial Institutions. In International Finance Corporation (IFC) (Issue March).
Kasturirangan, A. (2008). Empowerment and programs designed to address domestic violence. Violence Against Women, 14(12), 1465–1475.
Kabeer, N. (2005). Gender equality and women's empowerment: A critical analysis of the third millennium development goal. Gender and Development, 13(1), 13–24.
Kumari, D. A. T., Azam S. M., F., & Khalidah, S. (2020). The Impact of Financial Literacy on Women’s Economic Empowerment in Developing Countries: A Study Among the Rural Poor Women in Sri Lanka. Asian Social Science, 16(2), 31.
Lyons, A., Grable, J., & Zeng, T. (2019). Impacts of Financial Literacy on the Loan Decisions of Financially Excluded Households in the People's Republic of China. ADBI Working Paper 923.
Lyons, A., Kass-Hanna, J., Liu, F., Greenlee, A., & Zeng, L. (2019). Building Financial Resilience Through Financial and Digital Literacy in South Asia and Sub-Saharan Africa. SSRN Electronic Journal.
Maheswari, M., & Revathy, B. (2016). Empowering women: Uncovering financial inclusion barriers. Advances in Social Sciences Research Journal, 3(4), 9–29.
Moenjak, T., Kongprajya, A., & Monchaitrakul, C. (2020). Fintech, Financial Literacy, and Consumer Saving and Borrowing: the Case of Thailand. ADBI Working Paper Series (Issue 1100).
Morgan, P. J., Huang, B., & Trinh, L. Q. (2019). The Need to Promote Digital Financial Literacy for the Digital Age. The 2019 G20 Osaka Summit, Japan: The Future of Work and Education for the Digital Age, August, 40–46.
Mourougane, A. (2012). Promoting SME development in Indonesia. OECD Economics Department Working Papers, 995, 39.
Nanziri, L. W., & Olckers, M. (2019). Financial Literacy in South Africa. Cape Town: SALDRU. UCT. SALDRU Working Paper Number 242, Version 1/NIDS Discussion Paper 2019/9.
Neuman, W. L. (2003). Social Research Methods, Qualitative and Quantitative Approaches. 5th Edition. Boston: Pearson Education.
OJK. (2017). Strategi Nasional Literasi Keuangan Indonesia (Revisit 2017). Otoritas Jasa Keuangan, 1–99.
Panos, G. A., & Karkkainen, T. (2019). Financial Literacy and Attitudes to Cryptocurrencies. SSRN Electronic Journal, November.
Panos, G. A., & Wilson, J. O. S. (2020). Financial literacy and responsible finance in the FinTech era: capabilities and challenges. European Journal of Finance, 26(4–5), 297–301.
Peterson, D. L. (2019). 5.87 Trillion Reasons to Work for Women’s Equality. Available at
Postmus, J. L., Plummer, S. B., McMahon, S., & Zurlo, K. A. (2013). Financial Literacy: Building Economic Empowerment with Survivors of Violence. Journal of Family and Economic Issues, 34(3), 275–284.
Prasad, H., Meghwal, D., & Dayama, V. (2018). Digital Financial Literacy: A Study of Households of Udaipur. Journal of Business and Management, 5(I), 23–32.
Putri, C. A., (2021). Sri Mulyani: Perempuan Bisa Sumbang Ekonomi Global US$ 12 T. Available at
Rahayu, R., Ali, S., Aulia, A., & Hidayah, R. (2022). The Current Digital Financial Literacy and Financial Behavior in Indonesian Millennial Generation. Journal of Accounting and Investment, 23(1), 78–94.
Rahayu, R., Juita, V., Rahman, A., Fitriamiranti, S., & Rafles, R. (2022). The level of digital financial literacy and financial well-being of people in West Sumatra Indonesia. Operations Management and Information System Studies, 2(2), 66–76.
Roy, B., & Jain, R. (2018). A study on level of financial literacy among Indian women. IOSR Journal of Business and Management, 20(5), 19–24.
Setiawan, M., Effendi, N., Santoso, T., Dewi, V. I., & Sapulette, M. S. (2020). Digital financial literacy, current behavior of saving and spending and its future foresight. Economics of Innovation and New Technology, 31(4), 1–19.
Siddik, N. A. (2017). Does Financial Inclusion Promote Women Empowerment? Evidence from Bangladesh. Applied Economics and Finance, 4(4).
Singh, C., & Kumar, R. (2017). Financial literacy among women: Indian Scenario. Universal Journal of Accounting and Finance, 5(2), 46–53.
Tabachnick, B. G., & Fidell, L. S. (2013). Using multivariate statistics. Boston, [Mass.]: Pearson
Tony, N., & Desai, K. (2020). Impact of digital financial literacy on digital financial inclusion. International Journal of Scientific and Technology Research, 9(1), 1911–1915.
Ul-Hameed, W., Bin Mohammad, H., & Shahar, H. B. K. (2018). Microfinance institute’s non-financial services and women-empowerment: The role of vulnerability. Management Science Letters, 8(10), 1103–1116.
Wangmo, P. (2018). Assessing the Level and Impact of Financial Literacy on individual saving and spending habits in Royal Institute of Management.
Wise, S. (2013). The Impact of Financial Literacy on New Venture Survival. International Journal of Business and Management, 8(23), 30–39.
World Bank. (2021). Population, Female (% of total population). Available at:
World Bank. (2019).The World Bank Annual Report 2019: Ending Poverty, Investing in Opportunity. Washington, DC: World Bank.
Xiao, J. J. (2021). Financial Literacy in Asia: A Scoping Review. SSRN Electronic Journal, December.
Zheng, X., Men, J., Yang, F., & Gong, X. (2019). Understanding impulse buying in mobile commerce: An investigation into hedonic and utilitarian browsing. International Journal of Information Management, 48(March), 151–160.