DefinePK

Abstract

The strategy of financial inclusion proves essential for reducing income disparities although its results differ among different economic systems. This study investigates the impact of digital financial inclusion (DFI) on income inequality, with a particular focus on gender disparities, across countries with varying levels of financial development. The research utilizes MS excel statistical software and Stata to run data regression analysis from 2010 to 2021 using data obtained from World Bank Global Findex and IMF Financial Access Survey. The research analyzes three financial indicators namely bank account ownership and access to credit through boundary conditions between high-income and low-income countries. The research shows that financial infrastructure strength enables DFI to boost economic development and equality by improving women's service access. The combination of undeveloped financial systems and DFI leads to economic growth yet it results in worsened gender inequality because women lack access to digital tools and education. Previous research supports these findings because financial infrastructure functions as a key factor that shapes the positive effects of DFI. The complete utilization of DFI to minimize income inequality needs specific policies that enhance digital infrastructure and financial education for underprivileged groups particularly women. Studies should examine both long-term effects of implemented policies and technological advancements that support inclusive economic development in forthcoming investigations.