The appearance of Financial Technologies (FinTech) is considered a major breakthrough in the financial services industry. With it comes the promise of increasing economic efficiency and performance, achieving equitable social growth, and reducing the degradation of the environment. The present study empirically measures the impact of FinTech on economic, social, and environmental sustainability. As such it aims to fill the gaps in the literature and settle the debate regarding whether FinTech promotes or hinders economic and social development and if it can mitigate environmental degradation.
The study uses econometric modeling to test the relationships between FinTech and economic, social, and environmental sustainability. It relies on annual panel data from 20 OECD countries for the period between 2005 and 2021.
Results show that FinTech positively affects sustainable economic development and has a positive social impact. Findings also confirm that FinTech enhances environmental sustainability. Further, the results of the study confirm the resource curse as natural resources rent is shown to decrease economic growth and adversely affect environmental sustainability.
The study differs from previous works as it is not limited to investigating the impact of FinTech on environmental sustainability but rather considers the three dimensions of sustainable development: economic, social, and environmental. The results of this study offer insights for policymakers and regulators to promote and support the agenda of FinTech with higher levels of conviction and confidence.
