FinTechs Contribution to Sustainable Development

Abstract

Theoretical background: The FinTechs phenomenon is worth discussing as its multidimensional character causes difficulties not only with defining it but also with assessing the impact of its development on the economy and society. The impact of FinTechs on sustainable development is a relatively new field of research. Thus, the paper presents exploratory research aiming to analyse the current areas of FinTechs activity, the state of their development in Europe, and the state of the art in European research on their impact on sustainable development goals (SDGs) achievement. The study applied both inductive and deductive research methods, together with comparative analysis. Purpose of the article: The paper aims to analyse the European FinTechs landscape in the context of their impact on sustainability reflected by SDGs and prepare the framework for further research in this field. Research methods: The theoretical analysis conducted in the paper for defining FinTechs was based on an in-depth literature review, including scientific papers, documents and reports. In this section, the inductive method and comparative analysis were mostly applied. The empirical part of the paper includes the analysis of quantitative data published by the European Commission and Eurostat. This analysis is primarily based on comparative analysis. The framework for further research in this field is based on a systemic literature review (SLR). In this section, the PRISMA methodology was applied. Main findings: There is no doubt that FinTechs have already influenced the financial systems worldwide. In Europe, their disruptive development motivated the traditional market players to adapt their offerings, strategies and business models. They were perceived as market disruptors at the beginning of their operational activity. Today, the vast majority of authors notice their huge potential as sustainability enablers. The systemic literature review proved the worldwide systematically increasing scientific interest in surveying the FinTechs and their contribution to SDGs achievement. This trend has not yet been observed in Europe. Only a few papers directly refer to the relationship between FinTechs and SDGs achievement in European countries. The results have shed light on existing academic literature embracing both FinTech and SDGs issues in Europe, explored emerging trends in current research, and identified the main areas for further investigation.