Empty digital wallets: new technologies and old inequalities in digital financial services among women

Digital financial services (DFSs) may lower certain costs of accessing finance, but they bring new costs, including difficulties accessing mobile networks. Using the Demographic and Health Surveys and several geocoded databases in Nepal, the Philippines, Senegal and Tanzania, this paper studies the distribution of digital finance use among women and its enabling infrastructure, including mobile phone towers, compared to traditional finance. The potential of digital technologies to lessen inequalities depends on availability and access, particularly for women who may already face gaps in financial inclusion. Mobile phone towers are more unequally distributed than traditional banks, though mobile phone use is near universal. However, digital finance use is still low and almost as unequal as traditional finance, driven by the same inequalities. Wealth, education and location appear to be strongly associated with access to DFSs. The results suggest that old inequalities may constrain the promise of new digital technologies.