DIGITAL FINANCIAL SERVICES ON FINANCIAL INCLUSIONS AND ECONOMIC EMPOWERMENT IN NEPAL

Abstract

This study investigates the impact of digital financial services (DFS) on financial inclusion and economic empowerment in Nepal. DFS, encompassing mobile banking and digital wallets, have become vital in extending financial services to previously underserved regions, particularly in rural and remote areas. Utilizing a mixed-methods approach, the research combines quantitative analysis of DFS usage with qualitative insights from user experiences. The findings indicate that DFS substantially enhance financial inclusion by providing access to essential financial products, such as savings accounts and credit, for populations previously excluded from the formal financial system. Furthermore, DFS facilitate economic empowerment by improving financial management, enabling access to credit, and supporting business growth. However, challenges remain, including disparities in digital literacy, infrastructural limitations, and regulatory issues. The study emphasizes the need for targeted interventions, such as digital literacy programs, infrastructure enhancements, and adaptive regulatory frameworks, to overcome these barriers. Recommendations are provided for policymakers and financial institutions to optimize DFS benefits, promote inclusive economic development, and improve livelihoods in Nepal. This research highlights the transformative potential of DFS in driving financial inclusion and economic empowerment. Keywords: Digital financial