Digital Financial Services and Economic Empowerment in Developing Countries: A Systematic Literature Review

Abstract

This article reviews how digital financial services influence economic empowerment in developing countries, with a focus on understanding their role in expanding access to finance and reducing economic vulnerability. The study applies a systematic literature review to synthesize evidence from research published until 2021, analyzing studies on mobile money, mobile banking, fintech applications, and related innovations. The review examines how these services affect financial inclusion, savings, credit access, entrepreneurship, and household resilience. Findings show that digital financial services have improved financial participation, supported small-scale business growth, and increased the capacity of households to manage shocks. The discussion integrates results from multiple regions, highlighting both the opportunities and persistent barriers associated with digital financial services. Overall, the review concludes that these innovations contribute significantly to economic empowerment but are limited by factors such as digital literacy gaps, gender inequalities, and infrastructure challenges.