Financial development and social progress: the moderating role of information and communication technology

Purpose Over the past years, there has been a notable surge in attention toward the noneconomic implications of financial development, engaging policymakers and researchers alike. This article aims to explore the impact of financial development on noneconomic indicators, especially social progress, while also assessing the moderating impact of information and communication technology (ICT) on these dynamics. Design/methodology/approach This study is quantitative as it adopts a Panel Quantile Regression data approach to find the nonlinear impact of financial development on social progress. Additionally, the research investigates the moderating influence of ICT, focusing on how digital inclusion and connectivity affect these outcomes. Furthermore, this study uses Dawson Graphs to define the moderation effect of ICT. Findings This study emphasizes that the influence of financial development on social progress is nonlinear and varies by income level, with ICT acting as a key enhancer, particularly in low-income countries. Effective governance, digital infrastructure and context-specific policies are necessary for transforming financial growth into inclusive social outcomes. These insights support tailored strategies for achieving the UN SDGs. Social implications This study suggests that societies with diverse income levels require tailored financial development strategies to enhance social well-being effectively. Such insights can guide the formulation of context-specific social planning and development agenda. Originality/value This study addresses a significant gap in the existing literature by examining the noneconomic impacts of financial development, a topic that has been relatively overlooked in high, upper-middle, lower-middle and low-income groups.