The Task Force on Digital Financing of the Sustainable Development Goal, a special group belonging to the UN, has drawn up a report on the changes that digital finance could bring to sustainable development. One of the themes underlying this report is the digitization of financial and monetary systems and, consequently, the spread of the online bank.
The objective of the task force is to define guidelines for the UN General Secretariat, but also for individual local governments, regarding interventions and policies that are able to make better use of digitization, in order to accelerate and increase the financing of actions aimed at pursuing the Agenda 2030 goals.
Digital innovation is of fundamental importance to ensure that people become an aware actor in the financial system, which is why the report highlights various opportunities that digitization could offer to sustainable development:
- increase of funds mobilization allowing national savings to be directed towards long-term investments
- poverty reduction by exploiting the savings resulting from the spread of the online bank
- improvement of government budgets
- increase of international mobilization for development financing, thanks to a more careful measurement of risks and impacts
- improvement in the use of funds, with an increase in the performance of public funding through targeted impact and superior monitoring
- boosting investor performance, increasing quality and reducing tracking costs
- improvement of government actions thanks to data and regulatory support
As shown by the report, although there has been a great deal of progress related to financial inclusion, 1 billion and 700 million people are out of the banking circuit. Moreover, it was found that another 4 billion people are completely offline and, consequently, unable to participate in the digital economy.
If you need more information about digital finance or about the advantages that an online bank can offer, don’t hesitate to contact us.