Digital-Finance

Digital Finance

The global financial system is undergoing immense changes through business innovation underpinned by digital finance. Digital finance, which includes an ecosystem of technologies such as big data, artificial intelligence, mobile platforms and blockchain, is demonstrating its ability to overcome a number of barriers to scaling sustainable finance and drive environmentally sustainable growth. For instance, fintech providers are having positive effects on financial inclusion in emerging and advanced economies, as well as enabling greater transparency, traceability, accountability and information sharing to regulators, citizens and businesses. Applications could include verification of green investments or supply chains, assisting in certification schemes and reducing transaction costs.

In the green financing landscape, technology and innovation are revolutionizing sectors such as digital infrastructure, smart shipping and digital energy solutions, with clear environmental and social positive impacts. For investors, the risks of diversifying their portfolios into emerging technologies can be outweighed by the risks of not responding to these trends. The Sustainable Digital Finance Alliance was set up in 2016 to address the potential for digital finance and fintech to reshape the financial system in ways that better align it with the needs of sustainable development.

Research

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