The growing attention paid to technological innovations in finance is creating substantial momentum to develop sustainable digital finance ecosystems, both at global and national levels. Acknowledging the key role that the finance industry has to play in financing the UN 2030 Agenda, grounded in the so-called ‘FinTech revolution’, several players and institutions are aiming to cooperate to steer the (digital) finance industry’s transition to more sustainability- oriented and inclusive business models. The ultimate goal is to ensure that the development of financial innovations is guided by global challenges, such as the achievement of the SDGs.
This foraus policy paper discusses the question: What would be the ideal governance model for the global sustainable digital finance ecosystem? Based on desk research, discussions with experts, and the results from the participatory process FinTechs & Sustainability: Envisioning Sustainable FinTech Bridges, the authors argue that a grassroots governance approach should be adopted following three recommendations for action, linked to three identified phases of implementation, to provide a level playing field where different players, no matter their size, can be heard, learn from each other’s experiences and support the expansion and adoption of innovations across the different ecosystems.