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Fintech and Sustainability: Do They Affect Each Other?

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  • Cristina Chueca Vergara

    (Accounting and Finance Department, Faculty of Economics and Business, University of Zaragoza, 50005 Zaragoza, Spain)

  • Luis Ferruz Agudo

    (Accounting and Finance Department, Faculty of Economics and Business, University of Zaragoza, 50005 Zaragoza, Spain)

Abstract

Current concerns about environmental issues have led to many new trends in technology and financial management. Within this context of digital transformation and sustainable finance, Fintech has emerged as an alternative to traditional financial institutions. This paper, through a literature review and case study approach, analyzes the relationship between Fintech and sustainability, and the different areas of collaboration between Fintech and sustainable finance, from both a theoretical and descriptive perspective, while giving specific examples of current technological platforms. Additionally, in this paper, two Fintech initiatives (Clarity AI and Pensumo) are described, as well as several proposals to improve the detection of greenwashing and other deceptive behavior by firms. The results lead to the conclusion that sustainable finance and Fintech have many aspects in common, and that Fintech can make financial businesses more sustainable overall by promoting green finance. Furthermore, this paper highlights the importance of European and global regulation, mainly from the perspective of consumer protection.

Suggested Citation

  • Cristina Chueca Vergara & Luis Ferruz Agudo, 2021. "Fintech and Sustainability: Do They Affect Each Other?," Sustainability, MDPI, vol. 13(13), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:7012-:d:579879
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    References listed on IDEAS

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    Cited by:

    1. Endah Susilowati & Corina Joseph & Vicky Vendy & Indrawati Yuhertiana, 2022. "Advancing SDG No 16 via Corporate Governance Disclosure: Evidence from Indonesian and Malaysian Fintech Companies’ Websites," Sustainability, MDPI, vol. 14(21), pages 1-14, October.
    2. Wei Wang & Dechao Ma & Fengzhi Wu & Mengxin Sun & Shuangqing Xu & Qiuyue Hua & Ziyuan Sun, 2023. "Exploring the Knowledge Structure and Hotspot Evolution of Greenwashing: A Visual Analysis Based on Bibliometrics," Sustainability, MDPI, vol. 15(3), pages 1-35, January.
    3. Edgar Cambaza, 2023. "The Role of FinTech in Sustainable Healthcare Development in Sub-Saharan Africa: A Narrative Review," FinTech, MDPI, vol. 2(3), pages 1-17, July.
    4. Taskin, Dilvin & Dogan, Eyup & Madaleno, Mara, 2022. "Analyzing the relationship between energy efficiency and environmental and financial variables: A way towards sustainable development," Energy, Elsevier, vol. 252(C).
    5. Manaf Al-Okaily & Abdul Rahman Al Natour & Farah Shishan & Ahmed Al-Dmour & Rasha Alghazzawi & Malek Alsharairi, 2021. "Sustainable FinTech Innovation Orientation: A Moderated Model," Sustainability, MDPI, vol. 13(24), pages 1-11, December.
    6. Hrvoje Serdarušić & Mladen Pancić & Željka Zavišić, 2024. "Green Finance and Fintech Adoption Services among Croatian Online Users: How Digital Transformation and Digital Awareness Increase Banking Sustainability," Economies, MDPI, vol. 12(3), pages 1-18, February.
    7. Lisha, Liu & Mousa, Saeed & Arnone, Gioia & Muda, Iskandar & Huerta-Soto, Rosario & Shiming, Zhai, 2023. "Natural resources, green innovation, fintech, and sustainability: A fresh insight from BRICS," Resources Policy, Elsevier, vol. 80(C).
    8. Emmanuel Joel Aikins Abakah & Aviral Kumar Tiwari & Chi‐Chuan Lee & Matthew Ntow‐Gyamfi, 2023. "Quantile price convergence and spillover effects among Bitcoin, Fintech, and artificial intelligence stocks," International Review of Finance, International Review of Finance Ltd., vol. 23(1), pages 187-205, March.
    9. Arvind Ashta, 2023. "How Can Fintech Companies Get Involved in the Environment?," Sustainability, MDPI, vol. 15(13), pages 1-18, July.
    10. Mohsen Brahmi & Luca Esposito & Anna Parziale & Karambir Singh Dhayal & Shruti Agrawal & Arun Kumar Giri & Nguyen Thi Loan, 2023. "The Role of Greener Innovations in Promoting Financial Inclusion to Achieve Carbon Neutrality: An Integrative Review," Economies, MDPI, vol. 11(7), pages 1-18, July.
    11. Javier Sada Bittini & Salvador Cruz Rambaud & Joaquín López Pascual & Roberto Moro-Visconti, 2022. "Business Models and Sustainability Plans in the FinTech, InsurTech, and PropTech Industry: Evidence from Spain," Sustainability, MDPI, vol. 14(19), pages 1-21, September.
    12. Lu, Yin & Tian, Tian & Ge, Chen, 2023. "Asymmetric effects of renewable energy, fintech development, natural resources, and environmental regulations on the climate change in the post-covid era," Resources Policy, Elsevier, vol. 85(PB).
    13. Ibrahim Mutambik, 2023. "Customer Experience in Open Banking and How It Affects Loyalty Intention: A Study from Saudi Arabia," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    14. Goodell, John W. & Corbet, Shaen & Yadav, Miklesh Prasad & Kumar, Satish & Sharma, Sudhi & Malik, Kunjana, 2022. "Time and frequency connectedness of green equity indices: Uncovering a socially important link to Bitcoin," International Review of Financial Analysis, Elsevier, vol. 84(C).
    15. Tiwari, Aviral Kumar & Abakah, Emmanuel Joel Aikins & Shao, Xuefeng & Le, TN-Lan & Gyamfi, Matthew Ntow, 2023. "Financial technology stocks, green financial assets, and energy markets: A quantile causality and dependence analysis," Energy Economics, Elsevier, vol. 118(C).
    16. Xiaoheng Zhang & Keyu Bao & Zebin Liu & Li Yang, 2022. "Digital Finance, Industrial Structure, and Total Factor Energy Efficiency: A Study on Moderated Mediation Model with Resource Dependence," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    17. Mertzanis, Charilaos, 2023. "FinTech finance and social-environmental performance around the world," Finance Research Letters, Elsevier, vol. 56(C).
    18. Luiz Antonio Joia & Joaquim Pedro Vasconcelos Cordeiro, 2021. "Unlocking the Potential of Fintechs for Financial Inclusion: A Delphi-Based Approach," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    19. Yuzhen Ma & Xinyang Wei & Gaoyun Yan & Xiaoyu He, 2023. "The Impact of Fintech Development on Air Pollution," IJERPH, MDPI, vol. 20(4), pages 1-16, February.
    20. Noura Metawa & Rhada Boujlil & Saad Alsunbul, 2023. "Fraud-Free Green Finance: Using Deep Learning to Preserve the Integrity of Financial Statements for Enhanced Capital Market Sustainability," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 610-617, November.

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