Role of Microfinance and Technology Disruption in Driving Economic Development: A Study of Marginalized Women in Karnataka, India

International Journal of Economics and Management Studies

© 2025 by SSRG - IJEMS Journal

Volume 12 Issue 9

Year of Publication : 2025

Authors : Kashika Kiran Reddy

10.14445/23939125/IJEMS-V12I9P103

How to Cite?

Kashika Kiran Reddy, "Role of Microfinance and Technology Disruption in Driving Economic Development: A Study of Marginalized Women in Karnataka, India," SSRG International Journal of Economics and Management Studies, vol. 12,  no. 9, pp. 28-39, 2025. Crossref, https://doi.org/10.14445/23939125/IJEMS-V12I9P103

Abstract:

This study examines the intersection of microfinance and technology disruption in driving the economic development of marginalized women in Karnataka, India. Microfinance has long served as a catalyst for women’s economic empowerment by providing access to credit and enabling participation in income-generating activities. However, persistent barriers such as patriarchal norms and limited financial literacy continue to restrict women’s agency over financial resources. Recent advancements in disruptive technologies, including mobile banking, digital bookkeeping, and AI-enabled credit scoring, are transforming how microfinance is delivered and accessed. The study uses a mixed-methods approach to examine how these innovations impact women’s financial autonomy, income stability, and social participation. It gathered data from 79 women respondents from three main districts of Karnataka. Further, interviews had been conducted to support the results. Case studies from districts like Davangere, North Karnataka, and Mysuru revealed that digital tools can strengthen Self-Help Groups (SHGs), improve repayment discipline, and expand outreach to remote communities. The findings highlight that digital adoption remains uneven due to literacy gaps, cultural norms, and infrastructural limitations. The research underscores that while technology amplifies the benefits of microfinance, it must be rooted in inclusive design, trust-building, and community based capacity-building to avoid reproducing existing inequalities. The study contributes to understanding how grassroots development can be enhanced through digital innovation.

Keywords:

Microfinance, Technology Disruption, Marginalized Women’s Economic Development, Digital Financial Inclusion, Fintech, Self-Help Groups (SHGs), Community-Led Empowerment.

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