Digital Finance, Green Finance and Social Finance: Is there a Link?

Abstract

Identifying the intersection between digital finance, green finance and social finance is important for promoting sustainable financial, social and environmental development. This paper suggests a link between digital finance, green finance and social finance. Using a simple conceptual model, I show that digital finance offers a smooth, efficient and seamless channel for individuals and corporations to fund social projects that deliver a social dividend, and green projects lead to a sustainable environment. The implication is that digital finance is both an enabler and a channel for efficient green financing and social financing.

Assessing the Role of Digital Finance on Shadow Economy and Financial Instability: An Empirical Analysis of Selected South Asian Countries

“…However, on the positive side, the impact of digitalization on financial sector instability is sparse as other determinants contribute excessively towards financial sector instability. Previous studies also conclude that, in the long run, fintech innovation helps in providing a more secure banking and financial sector environment, which we can infer from the data of developed countries [1]. Better and improved technological infrastructure helps in controlling financial fraud to an extent.…”

“…In recent studies, digital finance is defined as the combination of digital technologies and financial services [1]. Previous studies have outlined various benefits of using digital finance.…”

“…Digital finance involves the unification of financial services and digital technologies. The advancement in big data analysis, artificial intelligence, and information technology has made a remarkable contribution toward digitalization [1]. Digitalization in finance means the increased use of digital technologies in the working and product development of the banking and finance sector.…”

“…Developing countries are resorting to excessive use of the fintech revolution and digital finance to increase financial inclusion. However, most developing countries still have insufficient infrastructure and available resources to expedite the process of financial inclusion [1]. For instance, as per the report of the McKinsey Global Institute, 2021, 53% of the population is financially excluded in the emerging countries of South Asia whereas this is only 23% in China, 48% in Latin America, and 39% in Eastern Europe and Central Asia.…”

Impact of green finance and environmental protection on green economic recovery in South Asian economies: mediating role of FinTech

“…It is green financing, which motivates investors to investment eco-friendly resources at industrial level because energy resource is the main aspect of businesses especially related to manufacturing, transport, mining or tourism. Since non-renewable resources are cheap in comparison with renewable resources, thereby, their share in energy mix is greater (Chien 2022a ; Ozili 2021 ). However, their excessive usage has an adverse effect on society, environment and natural resources quality.…”