Digital Transformation and Financial Sustainability
Saleh F. A. Khatib, Zubair Mustafa, Alhamzah F. Abbas · Advances in finance, accounting, and economics book series · 2025
Digital transformation is profoundly reshaping the financial sector and enhancing financial sustainability through innovations such as blockchain, AI, ML, and IoT. This chapter explores how these technologies converge to foster a more resilient financial ecosystem. Financial sustainability traditionally involves maintaining financial health through effective governance and resource allocation. In the context of today's rapidly evolving technological landscape, the urgency of financial sustainability has increased, with strategic foresight becoming crucial for stability amid digital transformation. The chapter examines the impact of digital technologies, highlighting blockchain's role in ensuring transaction security, AI and ML's advancements in decision-making, and IoT's contributions to real-time data analysis. These technologies enhance the inclusiveness of the financial landscape but also introduce challenges such as data privacy concerns. Case studies of Goldman Sachs' Marcus and Kenya's M-Pesa illustrate how digital innovations promote sustainability.