<p>This study investigates the mechanism through which financialization and digital transformation influence economic performance in emerging and transition economies. Using partial least squares structural equation modeling and cross-sectional data from for the year 2022, the analysis examines both the direct impact of financialization on economic development (ED) and the indirect effect mediated by digitalization, measured through ICT access. The findings offer three key insights. First, financialization has a significant positive effect on ED by improving capital mobilization, investment efficiency, and risk allocation. Second, ICT access independently promotes economic performance by enhancing connectivity, productivity, and the accessibility of financial services. Third, ICT access functions as a partial mediator in the relationship between financialization and ED, enhancing the influence of financial systems through digital expansion. The mediation analysis, supported by both the variance accounted for method and the Sobel test, shows that ICT access explains approximately 22.3% of the total effect. This confirms that the mediation is statistically significant yet partial, indicating that while digital infrastructure boosts the developmental benefits of financialization, it serves as a complementary pathway rather than a primary driver. These findings hold important implications for policymakers and development practitioners. They highlight the need for integrated strategies that simultaneously advance financial and digital infrastructure. By emphasizing the complementary role of digital transformation in enhancing the impact of financialization, the study contributes to a more holistic understanding of how to achieve inclusive and sustainable ED in the digital age.</p>