New research reveals that knowledge, not just access, is the key to women’s economic independence in Islamic finance
The Knowledge Gap: What Women Really Need
Imagine being handed the keys to a car without ever learning how to drive. That, according to new research, is precisely what happens when financial inclusion outpaces financial literacy.
A comprehensive study of 140 Indonesian women conducted by researchers from Universitas Nahdlatul Ulama Surakarta, Universitas Tidar, and Sakarya University in Türkiye reveals a powerful truth: knowledge transforms lives more effectively than access alone. The research, published in early 2026, found that women who understand Islamic financial principles and digital tools experience significantly greater economic empowerment than those who merely have access to financial services.
The findings challenge conventional wisdom that expanding financial access automatically empowers women. While financial inclusion remains a valuable policy goal, its impact depends heavily on basic financial literacy that enables women to translate knowledge into economic action.
This insight carries special weight in Indonesia, home to the world’s largest Muslim population. According to the Financial Services Authority (OJK), Islamic financial literacy has reached 43.42%, yet Islamic financial inclusion lags at just 13%. A yawning gap exists between understanding Islamic finance and actually participating in it.
| Age Group | Percentage of Respondents |
|---|---|
| 18-25 years | 6.43% |
| 26-35 years | 57.86% |
| 36-50 years | 33.57% |
| Over 50 years | 2.14% |
Digital Literacy: A Game-Changer for Women
The digital revolution has opened unprecedented opportunities for women to participate in the economy. Women equipped with digital financial skills can access market information, manage financial risks, and engage in the digital economy without relying on traditional banking channels.
| Occupation | Percentage |
|---|---|
| Housewife | 45.71% |
| Entrepreneur | 32.14% |
| Professional | 8.57% |
| Unemployed | 1.43% |
Digital financial literacy emerged as a particularly potent driver of empowerment. Women who understand digital platforms can navigate Islamic financial products, protect themselves from cybercrime, and make wiser financial choices. This skill set has become increasingly essential as financial institutions in Indonesia adopt digital innovations that allow people to easily access services through their own devices.
The study’s demographic profile reveals a sample of women in their productive and family-oriented years. Most respondents (57.86%) were aged 26-35, with another 33.57% in the 36-50 range. Nearly half (45.71%) were housewives, while entrepreneurs comprised 32.14% of respondents—underscoring the critical role of women in both household financial management and micro-enterprise.
Why Inclusion Alone Falls Short
If financial inclusion alone doesn’t empower women, what does? The answer lies in understanding the distinction between passive access and active capability.
The researchers identified two primary barriers preventing financial inclusion from translating into empowerment:
First, infrastructure gaps remain significant. Although Islamic financial institutions have grown, their reach in rural areas remains limited. Women may be aware of Islamic products but cannot access them physically or digitally. The OJK’s data confirms this gap: despite growing literacy, Islamic financial inclusion has not shown significant improvement.
Second, literacy is a prerequisite for effective inclusion. Women need to understand Islamic principles, profit-sharing concepts, and digital tools to become strategic users rather than passive customers. Without this foundation, having a bank account remains symbolic rather than transformative.
This finding aligns with broader research on gender and financial inclusion. Studies show that gender inequality persists in entrepreneurial participation across 97 countries, with women facing systemic barriers that access alone cannot overcome. In Indonesia, women often face traditional roles that confine them to domestic spheres, limiting their opportunities to engage with financial systems meaningfully.
The Way Forward: Education First
The study’s implications for policymakers and financial institutions are clear. Strengthening financial literacy programs—both digital and Islamic—must become a priority in efforts to advance women’s empowerment.
Several concrete recommendations emerge from the research. Islamic financial institutions should move beyond simply providing access to products and invest in user education through tutorials, interactive features, and customer support tailored to different literacy levels. Digital financial service providers can transform access into meaningful empowerment by designing products that align with women’s everyday financial needs.
The research also suggests that financial literacy programs should address women’s specific needs, building confidence and financial management skills that lead to asset ownership and investment participation. Islamic microfinance, which provides interest-free loans, has shown particular promise in reaching low-income women and improving their livelihoods.
Conclusion
This study provides compelling evidence that financial literacy—not just access—drives women’s empowerment. In a nation where 137 million women are of productive age, the stakes could hardly be higher. By prioritizing education alongside inclusion, Indonesia can unlock the full potential of its female population, creating a more prosperous and equitable society for all.
The findings resonate beyond Indonesia’s borders, offering valuable insights for OIC member countries grappling with similar challenges. As the study’s authors note, creating environments that promote both financial literacy and access to Islamic financial services can amplify women’s empowerment and contribute to social equity.
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