Impact of digital finance on economic growth

Abstract

The advent of information and communication technologies (ICT) and the resulting innovations have considerably deepened the financial sector, thanks in particular to mobile money technology which promotes financial inclusion. Digital finance has enabled populations traditionally excluded from the financial sector to have access to financial services. According to the existing literature on the link between economic growth and digital finance, it is likely to be a source of economic growth. Countries therefore have an interest in advocating for policies aimed at developing digital finance, while considering the risks that arise from this finance. Digital finance has the potential to compensate for the shortcomings of traditional financial services through innovative financial products. The main objective of the article is to evaluate the effects of digital finance on economic growth. In this article, the authors also demonstrate how the literature has addressed the impact of ICT in relation to traditional finance. The data source is the World Bank’s Global Fintech database. Linear regression method is used to analyse the data.