SOCIAL SUSTAINABILITY VIA DIGITAL FINANCIAL INCLUSION IN THE BANKING INDUSTRY

Abstract

Purpose- The present study aims to offer practical perspectives concerning how banks can increase their image, grow their market share and boost their profitiability by focusing on the social dimension of sustainability. The present paper also (i) elaborates on how different financial institutions create social value by serving the needs of underprivileged groups via digital financial platforms through recent practices in the world banking industry, and (ii) seeks to offer some insights for the industry as well as scholars, who are intrigued by social aspects of sustainability. Methodology- The present study lemploys both academic and gray literature, which particularly include recent social sustainability practices in the banking industry. Findings- Sustainability comprises of economic, environmental, and social dimensions. Digital Financial Inclusion (DFI) is one of the sub-dimensions of social aspect of sustainability. DFI came to the fore in 2010 with the “G20 Principles for Innovative Financial Inclusion” and it seeks to enable access to digital financial services for people and enterprises, particularly for underrepresented or “unbanked”. Research has shown that while around 1.2bn adults opened bank accounts for the first time over the past decade, 1.7bn remain outside the formal banking sector worldwide. In today’s sustainability-oriented post-growth era, DFI seeks to ensure local empowerment, diversity, equality, as well as inclusiveness, such as inclusion of senior citizens, women with low socio-economic status, refugees, and disabled people by providing them micro-entrepreneurial tools, such as micro-investment and micro-credit opportunities. Today, the banking industry aims to serve the needs of the so-called market segments considering the social aspects of sustainability. Digital financial platforms also require the collaboration between financial and non-financial institutions, such as educational and training institutions that aim to reskill and retrain the above-mentioned underprivileged groups as well as the unbanked. Conclusion- Research has demonstrated that increasing financial inclusion contributes to socioeconomic development, stronger economic growth, better life quality, and higher living standards. Thus, post-growth via digital financial platforms may be substantial in tackling poverty, hunger eradication, unemployment, exclusion and inequalities that have been addressed under Sustainable Development Goals (SDGs) of the United Nations (UN). More importantly, banks that focus on digital financial inclusion may increase their image, grow their market shares, and boost their profitability.

Keywords

• Sustainability marketing
• digital platforms
• sustainable growth
• sustainable growth strategies
• digital financial inclusion

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