Digital Banking and Sustainable Economic Growth: A Pathway to Inclusive Finance

Abstract Digital banking is emerging as a transformative force in the global financial ecosystem. It’s contribution in reshaping how individuals, businesses, and governments interact with financial services is highly significant. This conceptual paper explores the relationship between digital banking and sustainable economic growth, emphasizing its role in promoting financial inclusion and environmental sustainability. Drawing upon the Financial Intermediation Theory and the Sustainable Development Theory, the study develops a comprehensive conceptual framework that links digital innovation, inclusion, and sustainability. The paper is an effort to synthesize existing literature to demonstrate how digital banking enhances accessibility, efficiency, and transparency while supporting green finance initiatives. It also highlights the challenges of digital inequality, cybersecurity, and regulatory gaps that may hinder inclusive growth. The study concludes that digital banking, when guided by ethical governance and sustainability principles, can serve as a catalyst for inclusive and long-term economic development.