United Nations
Secretary-General’s Task Force on
Digital Financing of the Sustainable Development Goals
June 2019
With support from Accenture Development Partnerships
Table of contents
4 Executive summary
6 Section 1: How will digitalization reshape financial markets and monetary systems?
11 Section 2: How is the digitalization of finance affecting how the Sustainable Development Goals are financed today?
20 Section 3: What are the biggest opportunities as well as the potential impacts associated with the digitalization of finance for the Sustainable Development Goals?
26 Section 4: What are the biggest barriers and risks associated with the digitalization of finance for the Sustainable Development Goals?
30 Conclusion
Executive summary
In 2018, the United Nations Secretary-General established a Task Force on Digital Financing of the Sustainable Development Goals (SDGs).
One role of the Task Force is to highlight opportunities, challenges and means to advance the convergence of digital technology, the financial ecosystem and the SDGs.
This paper builds upon research as well as discussions with Task Force members to analyse the following three questions:
-
How will digitalization reshape financial markets and monetary systems?
-
How is the digitalization of finance (DoF) affecting how the SDGs are financed today?
-
What are the biggest opportunities, barriers and risks as well as the potential impacts associated with DoF for the SDGs?
While other research has attempted to answer a subset of these questions, there is a limited understanding of how the digitalization of the financial sector will comprehensively impact—positively or negatively—the flow of money across the SDGs.
This knowledge gap elevates the importance of the Task Force’s undertaking and underscores the need to consider the findings below as a starting point to an iterative and ongoing dialogue.
Primary conclusions
1. There is a fundamental shift happening in financial markets
• Incumbents are restructuring their technological backbone while leveraging data and analytics to become more efficient and offer hyper-relevant products.
• Disruptors are fragmenting the finance industry through digital-first business models, accompanied by a proliferation of platform-based non-financial business models enabled by DoF.
• Digitalization of money and lending is beginning to challenge the current understanding of monetary systems as countries move more aggressively toward cashless systems, with cryptocurrency looming as a potential, yet unproven, source of disruption.
2. Disruption is already evident in SDG financing, with room to scale
• Digitalization is changing how the SDGs are financed, far beyond financial inclusion.
However, the pace of disruption is highly uneven across digital solutions, sectors and geographies.
• Digital business models traditionally associated with broadening access to financial products (payments, credit and insurance) have attracted the most money and attention, experienced the most innovation and led to new business models in the real economy.
• Private investors, often through capital markets, are creating innovative financing instruments in data-heavy sectors such as climate action and clean energy.
3. DoF presents new opportunities but is not without risks
• While digitalization alone cannot bridge the financing gap, significant opportunities exist to mobilize new financing, reallocate limited resources to areas of greater impact and improve the efficiency of financing distribution.
• Digitalization is poised to disrupt some sectors immediately, while others require enabling policies or infrastructure before DoF can reach its potential.
• Significant barriers and threats remain, including lack of enabling infrastructure and policies, data privacy concerns, cyber-security risks, illicit financial flows, data-driven discrimination and a widening digital divide.
Section 1
How will digitalization reshape financial markets and monetary systems?**
Digitalization is transforming global financial markets at a structural level.
The shift is occurring through changes in market participants, new technologies, evolving business models and innovations that directly influence how money is created, stored, transferred and invested.
These developments fall into three major trends:
1.1 Incumbents are transforming their technological foundations
Traditional financial institutions are rebuilding core systems that were often decades old.
They are adopting cloud computing, artificial intelligence, data analytics and automation to drive efficiency.
At the same time, incumbents are:
• Offering increasingly personalized services powered by real-time data.
• Reducing operating costs by retiring legacy systems.
• Expanding digital channels to remain competitive with fintech entrants.
The result is a hybrid financial ecosystem in which long-established institutions rely more heavily on digital platforms, open banking partnerships and data sharing.
1.2 Disruptors are reshaping the market with digital-first business models
Fintech companies and platform-based providers are entering the market rapidly.
They compete by being more agile, user-centric and cost-efficient.
These disruptors typically:
• Offer lending, insurance, payments or investment services entirely online.
• Leverage mobile-first designs and automated underwriting.
• Integrate financial services into non-financial ecosystems such as e-commerce and social media.
This trend contributes to a more fragmented financial landscape, challenging the dominance of traditional institutions and creating new consumer expectations around speed, transparency and convenience.
1.3 Digitalization of money is accelerating a shift toward cashless economies
Countries around the world are moving quickly toward digital forms of currency:
• Mobile money platforms are becoming the default payment method in parts of Africa and Asia.
• Central banks are exploring or piloting Central Bank Digital Currencies (CBDCs).
• Cryptocurrencies remain experimental, but they represent potential long-term disruption.
Digital money reduces transaction friction, lowers costs and widens access.
At the same time, it raises questions about monetary sovereignty, financial stability, cybersecurity and regulatory frameworks.
Section 2
How is the digitalization of finance affecting how the Sustainable Development Goals are financed today?**
Digitalization is already influencing how funds flow into SDG-related sectors.
The impact varies significantly across geographies, technologies and industries.
Three dynamics define the current state:
2.1 Digital payments, credit and insurance are expanding financial inclusion
While financial inclusion is not the only area affected, it remains one of the most visible.
Mobile money, alternative credit scoring and microinsurance have opened access to millions previously excluded from the formal financial system.
Examples include:
• Mobile payment systems enabling small merchants to transact securely.
• Digital lending platforms using behavioral and mobile data to assess creditworthiness.
• Parametric insurance products that automate payouts for farmers and households affected by climate events.
This progress directly supports several SDGs, including poverty reduction, gender equality, economic growth and resilience.
2.2 Capital markets are integrating digital tools to fund SDG sectors
In data-heavy sectors such as clean energy, climate action and sustainable infrastructure, investors are using digital platforms to:
• Track environmental performance indicators.
• Structure green bonds and other sustainability-linked assets.
• Mobilize capital through crowdfunding and tokenized securities.
These tools improve transparency, reduce information asymmetry and help align capital flows with sustainability priorities.
2.3 Digital business models are reshaping real-economy sectors tied to SDGs
Digitalization drives investment opportunities beyond finance itself.
In sectors such as health, agriculture, education and energy, technology-enabled services attract new funding streams.
Examples include:
• Telemedicine platforms expanding healthcare access.
• Precision agriculture systems improving crop yields.
• Digital learning platforms lowering the cost of high-quality education.
These innovations encourage private-sector participation in SDG-aligned investments and accelerate progress at scale.
Section 3
What are the biggest opportunities as well as the potential impacts associated with the digitalization of finance for the Sustainable Development Goals?**
Digitalization presents opportunities to accelerate progress toward the SDGs.
At the same time, the potential impacts vary across sectors and depend on enabling conditions such as infrastructure, governance and policy.
The opportunities fall into three broad categories:
3.1 Mobilizing new sources of financing
Digital platforms are expanding the pool of capital available for SDG-aligned investments.
They enable:
• Retail participation in sustainable investment products through mobile apps and low-fee platforms.
• Crowdfunding and peer-to-peer models that connect investors directly with entrepreneurs.
• Tokenization of assets, which allows fractional ownership and increases liquidity in traditionally illiquid sectors.
These mechanisms lower barriers to entry and help attract capital from both institutional and individual investors.
3.2 Improving allocation of resources to areas of greater impact
Digital tools offer more accurate, real-time data that improves decision making.
This supports:
• Better targeting of public funds and subsidies.
• More efficient distribution of development financing.
• Enhanced ability to track outcomes and measure progress.
For example, digital identification systems can help ensure that benefits reach the intended recipients, reducing waste and corruption.
3.3 Increasing efficiency in how financing is delivered
Automation, data analytics and digital platforms reduce transaction costs and processing times.
This enables:
• Faster disbursement of loans and aid.
• Streamlined compliance and reporting.
• Integrated value chains that improve economic productivity.
Digital supply chain tools, for instance, help farmers and small producers access working capital more easily and at lower cost.
Potential impacts of digitalization on the SDGs
While the opportunities are significant, the impacts depend on how digital systems are designed and governed.
Digitalization can:
• Strengthen resilience by improving access to financial safety nets.
• Accelerate innovation in climate and energy sectors.
• Expand entrepreneurship and market access for marginalized groups.
However, unintended consequences may arise if digital growth is not inclusive or adequately regulated.
**Section 4
What are the biggest barriers and risks associated with the digitalization of finance for the Sustainable Development Goals?**
Despite the promise of digitalization, substantial obstacles remain.
These challenges influence the extent to which digital finance can support the SDGs.
The main barriers and risks include:
4.1 Lack of enabling infrastructure
Many regions still lack the foundational infrastructure required to support digital finance.
These gaps include:
• Limited internet coverage.
• Unreliable electricity supply.
• High costs of mobile devices and data.
Without these basics, digital finance cannot reach underserved populations.
4.2 Weak regulatory and policy frameworks
Effective digital finance requires clear rules that balance innovation with consumer protection.
Key challenges include:
• Outdated regulatory systems not built for digital business models.
• Fragmented or inconsistent policies across jurisdictions.
• Difficulty in overseeing cross-border digital transactions.
Weak governance can reduce trust, hinder innovation and create systemic vulnerabilities.
4.3 Data privacy and cybersecurity risks
Digital finance systems rely heavily on data collection and connectivity.
This creates exposure to several risks:
• Misuse of personal data.
• Cyber-attacks targeting financial infrastructure.
• Breaches that undermine consumer confidence.
As digital financial services scale, these threats become more significant and complex.
4.4 Illicit financial flows and fraud
Digital channels can be exploited for illegal activities if monitoring systems are inadequate.
Risks include:
• Money laundering.
• Terrorist financing.
• Large-scale digital fraud and identity theft.
Robust, adaptable surveillance mechanisms are essential to manage these risks.
4.5 Risk of deepening inequality and exclusion
If not managed carefully, digitalization may widen existing gaps.
Potential issues include:
• Exclusion of individuals without digital literacy.
• Algorithmic bias leading to unfair credit or insurance decisions.
• Concentration of market power among large digital platforms.
These dynamics can disproportionately affect vulnerable populations.
Conclusion
Digitalization of finance has the potential to transform how capital is mobilized, allocated and delivered in support of the Sustainable Development Goals.
It offers powerful tools for expanding financial inclusion, improving efficiency and unlocking new investment opportunities.
However, realizing these benefits requires addressing the barriers and risks that accompany rapid technological change.
This includes strengthening infrastructure, improving regulatory frameworks, safeguarding data and ensuring that digital systems remain inclusive and equitable.
As the digital financial ecosystem continues to evolve, ongoing dialogue and collaboration among governments, private sector players and international institutions will be essential.
The findings highlighted in this report form a foundation for that continuing conversation and a roadmap for harnessing digitalization to advance the SDGs.