COVID-19, Digital Finance, and Existential Sustainability Crises

This paper examines how the digital financial infrastructure that emerged in the wake of the 2008 Global Financial Crisis is being tested and leveraged to meet some of the financial, economic and health challenges presented by the COVID-19 pandemic. The origins of the 2008 crisis and the current crisis are different: the 2008 crisis was a financial crisis that spilt over into the real economy, while COVID-19 is a health and geopolitical crisis spilling over into the real economy. As such, COVID-19 – a pandemic and an existential sustainability crisis – requires different approaches. This paper explores the role of digital finance in this context on two levels. At the macro level, it identifies how digital finance has been used to address areas of systemic risk and underpin wider financial stability. At the micro level, it illustrates how digital financial tools can address a range of emerging challenges particularly relating to recovery. COVID-19 experiences are driving forward a range of efforts to build better infrastructure to address future crises, in particular interoperable electronic payments systems (including central bank digital currencies and other forms of sovereign digital currency), sovereign digital identification (particularly in the context of market integrity and non face-to-face transactions), and use of technology for regulatory, supervisory and compliance purposes, At the same time, we argue that digitization generally and of finance in particular driven by the COVID-19 crisis – while providing effective tools to support the response – have also raised new challenges, particularly around forms of TechRisk arising from control and use of data from both state and non-state actors. Looking forward, these are among the most significant challenges for policy, law and regulation in the 2020s.

This paper examines how the digital financial infrastructure that emerged in the wake of the 2008 Global Financial Crisis is being tested and leveraged to meet some of the financial, economic and health challenges presented by the COVID-19 pandemic. The origins of the 2008 crisis and the current crisis are different: the 2008 crisis was a financial crisis that spilt over into the real economy, while COVID-19 is a health and geopolitical crisis spilling over into the real economy. As such, COVID-19 – a pandemic and an existential sustainability crisis – requires different approaches. This paper explores the role of digital finance in this context on two levels. At the macro level, it identifies how digital finance has been used to address areas of systemic risk and underpin wider financial stability. At the micro level, it illustrates how digital financial tools can address a range of emerging challenges particularly relating to recovery. COVID-19 experiences are driving forward a range of efforts to build better infrastructure to address future crises, in particular interoperable electronic payments systems (including central bank digital currencies and other forms of sovereign digital currency), sovereign digital identification (particularly in the context of market integrity and non face-to-face transactions), and use of technology for regulatory, supervisory and compliance purposes, At the same time, we argue that digitization generally and of finance in particular driven by the COVID-19 crisis – while providing effective tools to support the response – have also raised new challenges, particularly around forms of TechRisk arising from control and use of data from both state and non-state actors. Looking forward, these are among the most significant challenges for policy, law and regulation in the 2020s.

Corporate resilience to the COVID-19 pandemic: The role of digital finance

It has been established in 2030 sustainability objectives as per SDGs that highlight the critical importance of access to affordable, renewable energy, robust, long-term industrial progress, and digital financing in CO2 emission. The intent of study is to test the trilemma nexus between digital finance, renewable energy consumption, and carbon emission reduction with nonlinear ARDL tests. The study acquired the data and applied the nonlinear ARDL test, split analysis tests, and vector-error correction model (VECM) tests. The results of the study highlighted that the increase of digital finance positively enhances the renewable energy and negatively reduces the CO2 emissions which we calculate to be 11.4% of the digital finance funding on renewable energy goods. For this, a 39% increase in digital financing is noticed by the research findings during the COVID-19 crisis period. Such robust study findings present the latest insights that digital financing is an eminent and viable source of financing for the trilemma nexus with renewable energy consumption and the CO2 emissions. Following these, multiple research implications are also presented for the key stakeholders.

The existential COVID-19 crisis, which was unpredictable for entrepreneurs and companies in this form, has triggered unprecedented modernization dynamics in society at large and in the economic sphere. Companies that were already geared toward resilience and agility precrisis—regardless of their size—should emerge strengthened from the crisis. Since such traits also characterize newly founded companies and start-ups, this existential crisis—thanks to a more solid and faster-than-expected economic recovery—has also favored such companies or at least did not put them into substantive disadvantage compared to large and/or well-established companies. In a way, the COVID-19 crisis was also an “equalizer” between established (large) firms and small-scale start-ups. In this respect, there is a chance that there will be more fruitful interactions between start-ups and well-established companies in the years to come, a development that can lead to the formation of more productive enterprise ecosystems. The latter may induce positive macroeconomic growth effects as well. In the context of post-COVID-19 economic cycle, which is particularly geared toward strong nominal growth of GDP globally and in Europe, companies and enterprises that have (hyper) scalable business models in addition to the success factors outlined above should perform particularly well. Moreover, the war in Ukraine has once again demonstrated the need for resilient for resilience and agility in the private sector. KeywordsFirm sizeResilienceScalable business modelEcosystemsDigital economy

Financial inclusion will be accelerated by the technological opportunities for online financial transactions brought forth by the COVID-19 outbreak. As a result, because there were fewer digital financial transactions, the threats to COVID-19 that were present previously are now more substantial. The aim of this article is to assess the dangers, challenges, and opportunities for financial inclusion brought forth by the use of technology by COVID-19. According to the article, the inherent characteristics of financial technology (FinTech) in connection to financial inclusion allow it to reduce the negative economic and social effects of the ongoing COVID-19 situation. Under COVID-19, the introduction of digital financial transactions has sped up corporate operations and cut expense on doing business. As a result, women now have greater access to transactions involving financial technology (FinTech). The growth of digital financial transactions has made contactless and cashless purchases possible throughout the COVID-19 crisis. The expansion of digital financial inclusion makes it easier to swiftly and effectively implement public assistance programs, such as those for epidemic-affected women. Financial inclusion is being boosted by digital finance, which may eventually replace or improve traditional banking institutions. Working from home has undergone a "revolution" in a number of industries during COVID-19, including banking. Businesses should identify the optimal operating model mix for the future and make sure they have the infrastructure to support widespread, mass flexible working. This calls for reevaluating the function and application of corporate real estate. Since the labor force is likely to become more automated at the same time, resilience is essential. Conceptual Framework of this study is based on the financial inclusion and FinTech concepts which are the main variables guiding the study and it is underpinned by the theories of diffusion of innovation and the Financial Intermediation.

Digital finance or more specifically mobile finance made us realize about its strong existence in this critical juncture of socio-economic repercussion amid COVID-19 crisis. Concerning over usage of contagious products like cash and card, mobile-based payments are seemed to be safer and resilient in this contagious pandemic and have the potential to be a game changer for digital finance. Having shielded with patchy social distancing and protection measures, mobile finance comes as a saviour for govt to provide timely, hassle-free and efficient financial services to the vulnerable public overcoming the financial apocalypse. While cash and card can act as carrier for the novel coronavirus, there mobile finance offer contactless digital payments.

The Turkish state’s responses to existential COVID-19 crisis

Purpose - The aim of the study is to examine the impact of digital payment systems on individual savings rates and spending habits in Türkiye. Additionally, it is to evaluate the impact of digital payment systems on individual spending and savings within the framework of the COVID-19 crisis. Methodology - The research aims to examine the impact of digital payment systems on individual savings rates and spending habits by adopting a quantitative approach. Additionally, as a sub-objective, it aims to evaluate the impact of digital payment systems on individual spending and savings within the framework of the COVID-19 crisis. In the study, quarterly data for the period 2016Q1-2023Q4 were analyzed using household consumption expenditures, gross savings amount, digital payment systems (mobile payment, online banking, contactless payments, and all other digital payment methods), consumer price index, deposit interest rate, consumer credit interest rate, and consumer confidence index. The Newey–West Standard Errors Estimator has been used for data analysis. Findings - It has been shown digital payment systems have a statistically significant and positive effect on household final consumption expenditures and gross savings. Again, it has been concluded the pandemic period had a statistically significant and negative impact on household final consumption expenditures and gross savings. Additionally, it has been observed digital payment systems had an impact on increasing household consumption expenditures and savings during the pandemic period. Conclusion - - In the study, the effects of digital payment systems in Turkey on individual savings rates and spending habits were examined. The findings obtained indicate that digital payment systems have a statistically significant and positive impact on household final consumption expenditures and gross savings. In addition, it has been determined that the COVID-19 pandemic has a statistically significant and negative impact on household consumption expenditures and gross savings. Additionally, it has been observed that digital payment systems played a positive role in increasing individuals' consumption expenditures and savings during the pandemic period. These findings reveal how digital payment infrastructure shapes individuals' financial behaviors during times of crisis, providing an important foundation for future research examining the interaction between digital finance and crisis dynamics. Keywords: Digital payment systems, household final consumption expenditure, gross savings rate, Covid-19 pandemic. JEL Codes: D12, E21, E32

The COVID-19 pandemic has impacted digital financial inclusion trends across the world in many and complex ways. In developing and emerging contexts, this crisis also holds the potential to propel an unprecedented acceleration in the process of financial digitization and turn out to be a game-changer for digital financial inclusion. The aim of this study is to illustrate the opportunities and risks associated with the surge in uptake and use of digital financial service, providing ideas on how to leverage the paradigm changes affecting the overall approach and perspective towards digital financial services on the part of various stakeholders to advance financial inclusion and development. It also seeks to showcase how digital financial services have been used in both traditional and innovative ways to mitigate the impact of the COVID-19 crisis on economies and societies, by both public and private actors.

The COVID-19 crisis created conditions for digital finance to accelerate financial inclusion in the Philippines. This paper explores different sources, including survey, administrative, and market data, to compare trends in account ownership and usage before and after the pandemic. Stylized facts about financial inclusion and demographic information across periods are then drawn based on probit regressions, with special focus on digital financial services. This is followed by an analysis of how service providers, consumers, and the government have shaped and continue to shape the digital finance landscape. The paper closes with conclusions and policy recommendations moving forward.

The COVID-19 coronavirus crisis is putting unprecedented strain on markets, governments, businesses and individuals. The human, economic and financial costs are increasing dramatically, with potentially huge impact on developing countries and emerging market countries in addition to developed countries and regions. Across all of these, the greatest toll is likely to fall on those least able to bear it, with terrible damage to human development across the world.This paper examines how the digital financial infrastructure that emerged in the wake of the 2008 Global Financial Crisis is being, and can be, leveraged to overcome the immediate challenges presented by the pandemic and manage the impending economic fallout. The origins of the 2008 crisis and current crisis are different: 2008 was a financial crisis spilling over into the real economy. 2020 is a health and geopolitical crisis, spilling over simultaneously into financial markets and the real economy. As such, this crisis requires different approaches.This study operates at two levels: • At the macro level, it seeks to identify areas of systemic risk and strategies and frameworks to support policy coordination and action; and • At the micro level is seeks to illustrate how digital finance tools may be able to assist addressing some of the challenges emerging.Strategies to address financial aspects of the crisis in order to reduce the economic and human impact include: (1) ensuring sufficient liquidity to support market functioning and underpin demand; (2) intensifying information exchange on health and financial / economic matters in an effort to ensure accurate information despite forces that work against this; (3) heavy, temporary financial support for individuals; for small, medium and large enterprises to avoid loss of infrastructure and preserve the capacity for an orchestrated response (by avoiding mass insolvency); and potentially, in some cases, for governments; (4) leveraging digital finance and payments to reduce human-to-human contact, while organizing support for the elderly and other digitally excluded people who would normally use physical channels; (5) establishing a well-funded coordination body as a crisis management tool to ensure information exchange; (6) directing financial resources to medical infrastructure; and (7) directing financial resources to digital infrastructure and connectivity to support all other aspects of society and the economy, including, especially, the online facilitation of education and widespread work-from-home policies.At the same time, the digitization of financial services in the last decade offers alternative and more direct means by which it may be possible to stimulate the real economy, which will be critical in mitigating the economic impacts and maintaining social cohesion. Tools that support financial inclusion, sustainable development and achievement of the UN Sustainable Development Goals can also provide useful tools during a crisis. These short term strategies are expected to generate deeper structural changes long-term. For now, one cannot predict the new world that will emerge post crisis, but this issue will require focussed attention going forward as the immediate situation eventually comes under control and recovery begins.

The COVID-19 crisis has dramatically altered our lives-both at the micro and macro levels. Apart from bringing in deaths, illnesses and devastations, it also struck at the most elementary level of our society - the children. The pandemic has forced educational institutions and offices to shift to an online mode, thus intensifying the already existing childcare crisis. In the midst of such an existential crisis, it is interesting to note that in many families, grandparents have stepped in for helping out their adult children who are already overwhelmed by work pressure, childcare and household responsibilities. Against such a background, an attempt has been made to understand the challenges that the grandparents have experienced in dealing with the pandemic childcare crisis. The paper also aims to understand the qualitative contribution of grandparents towards their children, grandkids and the coping strategies that the senior and middle generations have used in fighting with this unprecedented crisis.

PurposeDuring the COVID-19 crisis, diversified attitudes and behaviors of structural equation modeling (SME) retailers were observed in using social media marketing that could have helped mitigate the adverse effects of this crisis on businesses. This paper aims to present a thorough investigation of these perceptions and limited acceptance of social media marketing among SME retailers in a developing country during a crisis.Design/methodology/approachThe investigation was designed using a mixed-method design. A qualitative investigation, as the first part, explored SME retailers’ perceptions of the use of social media marketing when they were faced with mandatory lockdown that stifled their business activity. The insights from qualitative study and literature helped devise the second part of the study, a quantitative study using the technology acceptance model (TAM). Analysis of responses from a sample of SME retailers (n = 149) was done using SEM in this study.FindingsIn the qualitative study, SME retailers were found to have a varying outlook toward social media marketing. Some ventured into social media marketing while others were impeded by their limited understanding. The second (quantitative) study showed the general applicability of TAM such that perceived ease of use through perceived usefulness influenced SME retailers’ attitudes toward the usage of social media marketing during the COVID-19 crisis. An important finding in both studies was that business owners’ education level influenced their perceptions of social media marketing.Research limitations/implicationsThe investigation, albeit a comprehensive one, was conducted in a particular market and for SME retailers. This opens avenues for conducting similar studies in other segments of entrepreneurs to generate insights based on comparative analysis across segments and scenarios.Originality/valueLimited or no marketing in the physical marketplace amid lockdown meant almost an existential crisis for entrepreneurs, especially SME retailers, in developing countries during the COVID-19 crisis. While technology acceptance by SME retailers has been discussed in the literature, there are limited discourses on technology acceptance among entrepreneurs and SME retailers during a crisis. These findings from the COVID-19 crisis explicate the possibilities and limitations of technology usage as a means to mitigate challenges faced by entrepreneurs during a crisis.

In 2020, the coronavirus crisis ruptured societies and their everyday life around the globe. This article is a contribution to critically theorising the changes societies have undergone in the light of the coronavirus crisis. It asks: How have everyday life and everyday communication changed in the coronavirus crisis? How does capitalism shape everyday life and everyday communication during this crisis? Section 2 focuses on how social space, everyday life, and everyday communication have changed in the coronavirus crisis. Section 3 focuses on the communication of ideology in the context of coronavirus by analysing the communication of coronavirus conspiracy stories and false coronavirus news. The coronavirus crisis is an existential crisis of humanity and society. It radically confronts humans with death and the fear of death. This collective experience can on the one hand result in new forms of solidarity and socialism or can on the other hand, if ideology and the far-right prevail, advance war and fascism. Political action and political economy are decisive factors in such a profound crisis that shatters society and everyday life. Two episode sof the tripleC-podcast focus on this paper:https://triplec.podbean.com/e/everyday-life-and-everyday-communication-in-coronavirus-capitalism-part-1/https://triplec.podbean.com/e/christian-fuchs-podcast-communication-capitalism-critique-episode-2-everyday-life-and-everyday-communication-in-coronavirus-capitalism-part-2-1586813458/