Assessing statistical link between FinTech PEST environment and achievement of SDGs

  • Received April 18, 2021;
    Accepted June 23, 2021;
    Published July 15, 2021
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/pmf.10(1).2021.05
  • Article Info
    Volume 10 2021, Issue #1, pp. 47-66
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Implementation of SDGs is the unified goal of 193 UN Member States. FinTech plays a crucial role in achieving it. Therefore, the development of FinTech must be facilitated through proper policy-making and public finance, creating beneficial PEST conditions. However, the interaction of the FinTech PEST environment and achievement of SDGs is a topic that has not yet been addressed. The purpose of this study is to assess the link between these two indicators using statistical methods, indicate SDGs having the strongest link to FinTech PEST environment, and explain the interface to facilitate its useful application within government and financial regulations, as well as administration of the state and municipal financial entities. The results show that the economic and investment potential of Northern Europe is caused by the most favorable PEST environment for FinTech sector development, and demonstrate the existence of a statistical link between FinTech PEST environment and SDG4, SDG8, SDG9, SDG16. There is a clear trend – the more favorable the FinTech PEST environment, the better the achievement of SDGs, the better results of Sustainable Finance indicators, and the higher the Sustainable Finance typology assigned to the country. These results suggest that the goals, targets, and indicators of SDG4, SDG8, SDG9, and SDG16 contribute to the formation of a favorable environment and are conductive to the sustainable development of the FinTech industry in a country. Therefore, sustainability in the development of FinTech industry and finance, and the achievement of SDGs, is a circular process of three interacting factors.

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    • Figure 1. Total global investment in FinTech by year, billions of dollars
    • Figure 2. Link between FinTech PEST environment and four SDGs
    • Figure 3. Link between Sustainable Finance model, SDGs, and PEST environment for the sustainable development of FinTech industry
    • Table 1. Assessment tool for FinTech sector environment based on the PEST analysis of FinTech sector external environmental indicators
    • Table 2. FinTech PEST environment assessment tool adaptation
    • Table 3. Values of the FinTech PEST environment assessment presented in descending order
    • Table 4. Values and ranks of Sustainable Development Goals for 2016
    • Table 5. Kendall, Pearson, and Spearman correlation coefficients measuring the strength of association between FinTech political, economic, social, technological environments and SDG scores
    • Table 6. Assignment of SDGs to different FinTech environments according to the correlation strength
    • Table 7. Kendall, Pearson, and Spearman correlation coefficients measuring the strength of association between FinTech PEST environment and SDGs
    • Table 8. SDG ranking according to the strength of association between FinTech PEST environment scores and SDG scores
    • Table 9. Overall trend among the 15 countries in FinTech PEST environment, SDG achievement, and finance model
    • Table A1. Assessment tool for FinTech sector environment based on PEST analysis of FinTech sector external environmental indicators
    • Table A1 (cont.). Assessment tool for FinTech sector environment based on PEST analysis of FinTech sector external environmental indicators
    • Table B1. Normalized values of FinTech PEST environment indicators and their significance
    • Table B1 (cont.). Normalized values of FinTech PEST environment indicators and their significance
    • Table C1. Goals, targets, and indicators of SDG16, SDG4, SDG8, SDG9, presented in order of SDGs statistical link strength with the FinTech PEST environment
    • Table C1 (cont.). Goals, targets, and indicators of SDG16, SDG4, SDG8, SDG9, presented in order of SDGs statistical link strength with the FinTech PEST environment
    • Conceptualization
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Data curation
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Formal Analysis
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Investigation
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Methodology
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Resources
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Validation
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Writing – original draft
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Writing – review & editing
      Gintarė Pauliukevičienė, Jelena Stankevičienė
    • Supervision
      Jelena Stankevičienė