The Road to the SDGs

PURPOSE X Strong trends are identified in the Report, as the traditional business model of banking institutions is challenged by fintech and large tech companies. Among these trends are: – The adoption of environmental, social and governance criteria by institutional investors – The adoption of impact investment mechanisms by social finance institutions – The progressive integration of disruptive technology by private and public institutions to further support the SDGs framework. X Technology is reducing the entry cost for new players: – Lowered barriers to entry are intensifying competition, to the benefit of customers – Cloud computing, distribution across different digital channels and increased digitisation are encouraging financial services customers to switch to direct banking and fintech – FIs can operate in a similar way to consumer companies with multiple points of access and can optimise their distribution model to expand their reach beyond the traditional customer. X Behavioural shifts are shaping access to social and environmental finance: – Through increased awareness of social and environmental imperatives, pushing actors across the spectrum to internalise non-financing goals in their decision making, creating investment opportunities and redefining investment criteria – Through concerted efforts between development, humanitarian and FIs to mobilise alternative finance (philanthropic and charitable) via crowdsourcing platforms. X Payment systems have benefited greatly from new technologies and fintech: – New digital payments are providing consumers and businesses with seamless payment ecosystems, increasing speed, accessibility and efficiency. X Technologies such as blockchain are now used for fast and secure crossborder payment, clearing and settlement. Cryptocurrencies and digital money are fast, secure and low-cost. If better regulated, they have the potential to replace cash in future. Future of the finance industry L ow economic growth, high debt levels and low interest rates have been compounded by fragility contexts and the COVID-19 pandemic IsDB’s ‘Future of Finance’ report addresses these issues as part of its ‘The Future’ publication series, which forecasts economic trends, disruptive technologies and emerging global priorities and their impact on the financial industry for the benefit of MCs Emerging technologies will improve the collection and distribution of charitable funds with greater transparency, monitoring and control, driving more generous participation [ 220 ] SDGs