Women’s economic empowerment (WEE) has emerged as a pivotal development concern, with so much attention over the past decade (Pike & English 2022). This heightened awareness is in response to the sustainable development goals (SDGs), with particular emphasis on Goal 5, which seeks to promote gender equality and empower all women and girls (Ojo 2022). Sustainable development goals have yielded substantial progress, benefiting women and girls. However, significant gaps and inequality remain because evidence shows that only the relatively affluent benefited, while a significant segment of the population comprising women and girls was excluded (Chimhowu, Zeitlyn & Dada 2012; Stuart & Woodroffe 2016; Techane 2017). Because of this, there is a growing body of literature on how to facilitate gender equality and empower women and girls in marginalised and developing communities in Africa (Eslen-Ziya & Yildirim 2021).

Digital financial services (DFS) rely on digital technologies for consumer delivery and use (Ojo 2022; Pazarbasioglu et al. 2020; William & Suri 2014) and are policy instruments that facilitate the SDGs’ actualisation, along with WEE, gender equality and financial inclusion (Mabrouk et al. 2023). They can reach marginalised societies, particularly women and girls (Garz et al. 2020). In recent years, the integration of DFS has revolutionised how financial transactions are conducted, bridging gaps in access to financial resources and services (Wezel & Ree 2023). Concurrently, women’s economic advancement has gained significant attention to foster gender equality and women’s participation in economic activities (Garz et al. 2020). The intersection of DFS, WEE and the domain of women domestic workers (WDW) presents a dynamic framework to address gender disparities, promote economic inclusion and elevate the status of a historically marginalised workforce. Even though a growing literature exists on the nexus between DFS and WEE, there needs to be more evidence on the unequal and distinct effect DFS may have on WDW’ space (David-West et al. 2020).

Domestic workers in sub-Saharan Africa, predominantly women, undertake essential household tasks, such as caregiving, cleaning, cooking and other domestic chores (Akalin 2007; ILO 2021). Despite their crucial role in economies and societies, domestic workers lack legal protection, face precarious employment conditions and grapple with inadequate wages and social insecurity (Blackett 2011; Chin 2019; Ganle, Afriyie & Segbefia 2015; ILO 2021). Their work is frequently undervalued, disempowering and largely invisible, perpetuating a cycle of economic vulnerability and marginalisation (Kabeer 2014). Their disempowerment manifests in various ways, including a lack of financial agency, limited control over wages and instances of nonpayment of salaries (Chin 2019; Ganle et al. 2015). Lack of financial agency and privacy leads to the absence of proper mechanisms to manage earnings and access financial services and makes them susceptible to manipulation and exploitation by employers or other third parties.

The inherent vulnerabilities of domestic workers make them an ideal litmus test for the effectiveness of DFS in enhancing WEE. Thus, our rationale for selecting WDW lies in the belief that if DFS can positively affect this group, it can yield similar benefits for other women in both the informal and formal sectors (William & Suri 2014). As Duflo (2012) noted, interventions targeting the most disadvantaged and vulnerable groups can be effective testing grounds for understanding broader social and economic dynamics. With proper access to digital financial tools such as mobile banking, digital wallets and secure remittance channels, domestic workers can circumvent the intermediaries that previously exploited their lack of financial agency.

The prevalent approaches in the study of WEE in developing nations frequently centre on women’s roles within the context of their husbands or families; however, our study adopts a distinctive lens (Chabal 1986). We have directed our focus towards comprehending WEE through the prism of the individual woman as an autonomous agent. This departure from conventional methodologies echoes the sentiment articulated by Fierlbeck (1995), emphasising that the trajectory of women’s empowerment could be markedly enhanced through a paradigm shift wherein both women themselves and society at large perceive them as distinct individuals, transcending their roles as mere constituents of social collectives.

By anchoring the investigation in this perspective, the study aims to uncover a more nuanced understanding of WEE that acknowledges the intricate interplay between individual agency and societal frameworks. This theoretical stance underscores the potential for women to actualise their capacity for decision-making and self-determination more expansively when they are accorded recognition as unique entities independent of their relational affiliations. In doing so, we contribute to a broader discourse that not only redefines the conceptual underpinnings of WEE but also underscores the pivotal role of perspective in shaping women’s empowerment pathways within developing contexts. This study, therefore, explores how DFS impact WDW’ economic empowerment, using data from a qualitative survey in Southwest Nigeria. Precisely, the study addressed two research questions:

According to Pereznieto and Taylor (2014:233), ‘economic empowerment of women and girls is understood as a process whereby women and girls experience transformation in power and agency, as well as economic advancement’. In economic empowerment, women can make financial choices independent of other third parties. Thus, those previously denied the ability to make financial choices are equipped to do so in empowerment. Empowerment theory explores how people, including WDW, gain access and control over productive resources and their recognition as independent economic contributors in the family. The theory recognises that such choices are exercised using three elements: resources, agency and achievements (Kabeer 1999). The author viewed resources as ‘material, human, and social expectations’ (p. 436). When applied to WDW, they can regain their power of choice and become economically empowered by accessing resources such as DFS. Kabeer (2001) stated that where women had been neglected and disempowered, access to credit improved self-perception and their role in decision-making in the family. Hence, the study assumes that empowerment theory points to a possible relationship between women’s use of DFS and involvement in paid work and their economic empowerment and enhanced decision-making capability in the family.

The survey employed a qualitative approach to gain insights into how ownership of mobile phones and transaction accounts affect the economic empowerment of WDW. Using the qualitative method allowed participants to describe their experiences as WDW, which can only be obtained from them directly (Theys & Barkhuizen 2022). Thus, interpretivism philosophy and qualitative approach were used to obtain more profound insight into the lived experiences of WDW and thus obtain insight into the research questions. For example, WDW will provide information on how their use of DFS drives their economic empowerment, and common themes will be drawn to represent the answers to the research questions. The researchers recruited seasoned interviewers in all the locations covered by the study. The interviewers were, however, exposed to the instruments used in the study, trained and deployed to interview the WDW. The interviews were captured using recording instruments and transcribed before analysis. The interviews were done between October 2022 and December 2022.

The essence of the study is to determine how DFS drives the economic empowerment of women domestic workers, a group that is marginalised and often dehumanised because of the non-recognition of the role they play in sustaining the formal sector (Eslen-Ziya & Yildirim 2021; ILO 2021). In doing this, the study addressed two research questions: What are the Digital Financial Services utilised by women domestic workers? and, How does DFS powered by phone and transactional account ownerships enhance domestic women’s economic empowerment?

The study elicited the role of DFS in driving WEE from the women directly while treating them as independent persons who are members of the social collectives. The study demonstrates that WDW want to be recognised as individuals with the right to financial agency, privacy and security and, as such, must be empowered to manage their affairs without interference from the social groups they belong to. They see themselves as people who should have the freedom to acquire and manage their resources, and when this is not granted, they feel exploited and undervalued. One of the participants made the following comment:

This participant sees herself as an individual who desires to own money and use it as she wishes without interference from family members.

Data acquired show the three components that determine the WEE of WDW. The first is the enabler of DFS, which is the ownership of mobile phones. The second is the DFS, which includes owning transaction accounts, savings and investments, receiving and sending money and accessing government loans. Having a transaction account has a direct effect on WEE and also has an indirect effect through other DFS. The third is the drivers of WEE, namely, financial agency, privacy and security.

Ownership of mobile phones was identified as the foundation of the utilisation of DFS by WDW. The ownership and use of mobile phones have been linked to greater empowerment and use of digital services (see Hossain & Samad 2021). This is because using mobile phones allows women to open and operate transaction accounts and make choices in social networks, attitudes and life changes. Even participants who owned less sophisticated mobile phones with limited capabilities still acknowledged the importance of their mobile phones. The work of Lo Prete (2022) and Wezel (2023) identified financial literacy as the primary source of financial inclusion; this study positions ownership of mobile phones as a critical factor in the utilisation of DFS by WDW. Sixty percent of the respondents had only primary education, yet they could navigate and use DFS on their phones without hassles.

Economic empowerment arising from using DFS is evident in all the comments of WDW. It facilitated their financial privacy, agency and security. The interview comments that reflect these themes resonated throughout the description of the roles of various DFS by the women. The themes empower them to engage with the formal financial system, make informed financial decisions and plan for their future because they have exclusive rights to their funds. Through these services, WDW managed to liberate themselves from the constraints of intermediaries, secure their financial well-being and actively contribute to their economic empowerment.

Financial autonomy and agency have been conflated with WEE (Solanke, Dandago Isa & Manukaji 2013). This arises from the idea that autonomy is the vision of people controlling, to some degree, their destiny through successive decisions throughout their lives (Kumar et al. 2023; Vijayamohanan & Asalathaa 2012). However, this study shows that autonomy and agency alone cannot drive the entire WEE but represent essential starting points and significant facets of the broader empowerment process, which includes the other themes. This understanding aligns with the perspective that true empowerment materialises when there is a convergence of autonomy, agency, financial security and privacy (Kabeer 2009, 2014).

Past studies have shown evidence of the impact of DFS on WEE (see Bhattia & Singh 2019; Hendriks 2019; Kumari 2020; Seguino 2010; World Bank 2012) but did not demonstrate the pathway to such impact and are mainly cross-country studies. This study complements past studies by providing the pathways to the impact of DFS on WEE.

Furthermore, it was demonstrated that DFS has the added significance of reducing the exploitation of women. For example, the participants in the study constitute a highly vulnerable demographic, often exposed to significant challenges and vulnerabilities, particularly concerning their financial well-being. Often employed in private households, these workers experience various forms of financial exploitation and abuse within their work environments. This finding highlights the potential complications that can arise when WDW do not have direct access to their wages. The WDW interviewed expressed that savings provided direct access to their money, knowing they could access and use the money they had laboured and toiled for. Sangeetha, Ranjittha and Sharma (2020) described how Indian women who controlled their finances could pursue their interests, achieve their goals and break free from dependence on others.

This study has demonstrated the remarkable improvement through increased economic empowerment of WDW through their use of DFS. Such improvement has positioned the WDW as distinct individuals with relevant roles as community members instead of being treated as members with no recognisable contributions. Despite this, there are specific issues that future studies must resolve. In sub-Saharan Africa, many WDW face similar challenges (Herrera & Torelli 2013; Nayupe et al. 2023). Hence, the result obtained here can be applied in other countries. Firstly the unregulated nature of the domestic work industry has led to diverse negative consequences for the women involved in the work. For example, the comment below by IDI/LG10/35 years shows her experience when she was treated as a low-ranking human being:

The above comments by IDI/EK3/37 years and IDI/LG3/25 years, who are live-out domestic workers, indicate the lack of control that WDW have over their time. They do not have specified working periods and are prone to long working hours and inability to achieve work–life integration. Consequently, there should be engagement with relevant Non-governmental organisations (NGOs) and government agencies to bring this situation to light.

Secondly, is that while women identified the importance of investment, government loans and other incentives, most have yet to pursue these paths. Thirdly, is that WDW identified the role some DFS can play in their empowerment; however, they were yet to take advantage of them. The DFS listed include internet banking, mobile banking, use of credit cards and E-wallet. Even though past studies have provided theoretical reasons for this gap (David-West et al. 2020; Monguna & Atanda 2022), future research should elicit the reasons for the actions of the women directly from them and use the results to develop appropriate interventions to raise their interest in these and enhance their economic empowerment further. In doing this, future studies should borrow from the work of Women’s World Banking (2021) in designing remittance solutions for domestic workers in Indonesia to enhance their digital remittance experience. The author explored what was necessary for the domestic workers and their recipients, and the barriers of current remittance methods and used them to design an effective method that considered the characteristics of the domestic workers. This approach will be followed in analysing WDW to develop an evidence-based intervention process.