Digital Financial Literacy and Financial Inclusion among Rural Tanzanian Women: A PLS-SEM Mediated Moderated Model

Abstract

This study investigates how digital financial literacy (DFL) affects financial inclusion (FI) among rural Tanzanian women. It addresses a critical gap in understanding how behavioral enablers such as confidence and attitude and also infrastructural factors like mobile network quality interact with digital literacy to influence financial inclusion. The study tests the direct relationship between DFL and FI, with financial confidence and financial attitude as mediators, and mobile network quality as a moderator. A cross-sectional survey design was used to collect data from 301 rural women across Mbeya, Dodoma, and Kigoma regions in Tanzania. Participants were selected through purposive sampling based on their access to mobile phones. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. The model assessed the measurement properties of constructs and evaluated structural relationships including mediation and moderation effects.
The results show that digital financial literacy has a direct positive impact on financial inclusion. Financial confidence and financial attitude serve as mediators, explaining how knowledge translates into financial behavior. Mobile network quality moderates the DFL–FI relationship, indicating that better infrastructural conditions enhance the efficacy of digital financial literacy interventions. This study is among the first to simultaneously examine cognitive mediators and infrastructural moderators in the context of rural women’s financial inclusion. By integrating behavioral and contextual variables, the research offers a novel explanatory framework that moves beyond conventional linear models of financial literacy. The findings underscore the importance of a multidimensional strategy for enhancing financial inclusion that incorporates digital literacy training, psychological empowerment, and infrastructural improvement. These insights are valuable for policymakers, NGOs, and financial service providers designing inclusive financial ecosystems for underserved populations.