These challenges were addressed in the research project The Role of Digital Finance Innovation in Promoting Sustainable Development Goals - implemented within Latvia’s Recovery and Resilience Facility investment framework and the University of Latvia’s internal research grant scheme.
Research Focus and Approach
The DInnoFin project examined how digital, information, and communication technology-based innovations in the financial sector contribute to achieving the United Nations Sustainable Development Goals (SDGs), with a particular focus on climate neutrality and CO₂ emission reduction.
Empirical analysis covered the Baltic States and combined SDG performance indicators with internationally recognised digitalisation and innovation metrics, including the Digital Economy and Society Index (DESI), Global Digitalisation Index, Global Innovation Index, and Financial Development Index.
Key Findings
The research results demonstrate a strong positive relationship between digital finance development and progress towards SDG 9 (Industry, Innovation and Infrastructure) and SDG 8 (Economic Growth). Higher levels of digitalisation are associated with more efficient capital allocation, improved access to finance, and stronger innovation capacity.
At the same time, the findings reveal important structural gaps. The link between digitalisation and SDG 10 (Reduced Inequalities) is considerably weaker, indicating that digital transformation does not automatically lead to inclusive growth. Moreover, despite Latvia’s strong digital competitiveness, the financial sector’s digitalisation potential is not yet fully utilised as a systemic instrument for climate neutrality and broader sustainability goals.
A notable example is the FinTech sector. While Latvian FinTech companies are generally aware of sustainability and ESG principles, these considerations are rarely integrated into their products or business models. Sustainability is primarily interpreted through financial or technological resilience rather than environmental or climate impact.
Policy Implications and Future Directions
Based on the empirical evidence, the project highlights the need for a more integrated and results-oriented policy approach. Key recommendations include defining “green digital finance” in national regulation, integrating digitalisation indicators such as DESI into financial policy planning, strengthening data availability, and supporting regulatory sandboxes and public–private testing platforms for sustainable digital finance solutions.
This research is supported by Project No.5.2.1.1.i.0/2/24/I/CFLA/007 "Internal and external consolidation of the University of Latvia" (RRF project), Project No. LU-BAPA-2024/1–0031, UL and BASBF consolidation grant project.
To get more information, please read the scientific articles listed below:
Mavlutova, I., Spilbergs, A., Romanova, I., Kuzmina, J., Fomins, A., Verdenhofs, A., Natrins, A., The role of green digital investments in promoting sustainable development goals and green energy consumption, Journal of Open Innovation: Technology, Market, and Complexity, 2025, 11(2), 100518,
https://doi.org/10.1016/j.joitmc.2025.100518
Kuzmina, J., Romānova, I., Natrins, A., Spilbergs, A., Mavlutova, I., Innovative Digital Technologies in Finance for Promoting Sustainable Development Goals: Baltic Economies Compared to OECD Countries. Wseas Transactions on Environment and Development, 2024, 20, pp. 973–986, DOI:10.37394/232015.2024.20.89
https://wseas.com/journals/articles.php?id=10179 