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Digital Finance and Sustainable Finance: Is Financial Efficiency Important?

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Sustainable finance is essential for the growth of companies because it is described as a type of financial instrument that integrates environmental, social, and governance (ESG) considerations into their investment decisions. To achieve sustainable financial commitments, companies need proper financial management. Financial efficiency is a key reference point because when companies manage their finances efficiently, they can optimize their financing and other business needs. One key reference that can drive financial efficiency in banking is digital finance, as it can reduce other costs with the increase in digital adoption. This study aims to determine whether digital finance has an impact on sustainable finance, with financial efficiency serving as a mediating variable. Digital finance is proxied by ADF, financial efficiency by BOPO, and sustainable finance by SF. The sample in this study consisted of a commercial bank registered with the Indonesian Financial Services Authority (OJK) for the period from 2019 to 2023 and we used purposive sampling for sample selection and the total sample are 16 companies that had published annual reports and sustainability reports, including information on Internet banking and mobile banking transactions. This study used panel data regression and the Sobel test analysis tool for test the research hyphoteses. The study's results found that digital finance had an impact on financial efficiency. Financial efficiency has a significant impact on sustainable finance. Digital finance does not affect sustainable finance. Financial efficiency can mediate the relationship between digital finance and sustainable finance. This study suggests that banks can continue to adopt technology that enhances digital finance, thereby achieving financial efficiency and encouraging sustainable finance commitments. Keywords: Digital Finance, Financial Efficiency, Sustainable Finance, Internet

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Informasi Detail

Penerbit

: ICSEMA., 2025

Bahasa

English

ISBN/ISSN

-

Edisi

Vol. 01 No.01 Tahun 2025

Lampiran Berkas

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