THE ROLE OF DIGITAL FINANCE IN FACILITATING INTERNATIONAL BUSINESS EXPANSION WITHIN SAARC NATIONS

Abstract

This study explores how digital finance serves as a transformative catalyst for international business growth within the SAARC region, with a specific focus on Pakistan, India, and Bangladesh. By investigating the impact of financial technologies—such as mobile banking, Online and digital payment systems. The research addresses a significant gap in understanding how these tools facilitate cross-border trade and global market integration in emerging economies. The study utilized a quantitative methodology and a positivist approach, gathering data from 101 professionals across various industrial sectors.The empirical analysis demonstrates that digital finance is a powerful predictor of global expansion, accounting for 83.8% of the variance in international business growth. A notable finding is the organizational shift toward digital-first models, largely propelled by a "digital native" workforce, as 83% of the participants were under the age of 35. The research identifies a high correlation between expansion success and foreign client connectivity (r = 0.85), with the accelerated speed of international transactions cited as the most vital operational advantage (Mean = 4.19).However, the findings also highlight a "security-adoption paradox," where substantial benefits are tempered by significant challenges, most notably cyber security threats (Mean = 4.16) and complex regulatory barriers (Mean = 3.92). While companies are actively decreasing their reliance on traditional banking institutions, the study concludes that long-term success is contingent upon closing digital literacy gaps and developing secure, unified regional financial frameworks. This research offers a strategic framework for both organizations and policymakers to harness digital finance for sustainable economic development.