Digital finance and sustainability: Impacts, challenges, and policy priorities

• Main Authors: BEIRNE, John, FERNANDEZ, David G.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Finance and Financial Management; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7525; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8524/viewcontent/sustainability_15_14830_pvoa_cc_by.pdf
• Institution: Singapore Management University

Digitalization helps to transform economies through supporting inclusive growth and enhancing economy-wide productivity, with the important role of digital finance being a key component of this [1]. This can also underpin progress on reaching targets set for achieving the Sustainable Development Goals (SDGs). More recently, initiatives on sustainable digital finance and green fintech have been at the core of a new strand of research on the nexus between digital finance and environmental sustainability (e.g., [2]). In addition, the promotion of a sound and efficient digital payment system, both nationally and globally, is an important mechanism for reducing inequality (e.g., [3]. Recognizing the faster pace of digital transformation and innovation in digital finance post-pandemic, striking the right balance between financial regulation and enabling financial innovation is key. Likewise, digitalization in trade finance helps to promote greater economic integration and competitiveness. The link between digital finance and sustainable economic and environmental outcomes remains insufficiently understood, while many economies lie at different stages of financial development and digital finance adoption. This editorial provides an overview of 13 articles published in the Special Issue on “Digital Finance and Sustainability”. The Special Issue provides new contributions to the literature on the role played by digital finance in supporting sustainable economic development, particularly in Asia. A conference organized by the Asian Development Bank Institute and the Sim Kee Boon Institute for Financial Economics (Singapore Management University) in December 2022 provided the context for seeking high-quality research contributions in this field. The Special Issue comprises a combination of selected papers that were presented and revised at that conference as well as those gleaned from an open call for papers.