FINTECH MEETS GREEN: DECODING MOTIVATIONS, TACKLING CHALLENGES, AND CRAFTING STRATEGIES FOR SUSTAINABLE INVESTMENTS
Keywords:
green invesment, sustainability, fintect, green platform
Abstract
This study aims to identify holistically the factors that drive the development of green investment platform adoption, analyze the technical, regulatory and social barriers faced, and formulate innovative strategies to improve the effectiveness and efficiency of sustainability-based investments. This research is useful academically and non-academically to build new insights and develop fintech services needed in the green market. This study employs a systematic literature review approach, drawing insights from 30 selected articles. The findings of this study reveal motivations encompassing consumer behavior, perceived benefits, social influence, financial inclusion, environmental regulations, emotional and ethical considerations, global events, technological innovation, collaboration, and stakeholder trust. The challenges identified include issues related to awareness, regulatory inconsistencies, information asymmetry, and global impacts. The strategies proposed emphasize efficiency, accessibility, data analytics, and the development of financial inclusion. This research highlights the urgency of designing an integrative framework that combines fintech and sustainability to promote green investments. By uncovering multidimensional motivations, addressing key challenges like regulatory barriers and information asymmetry, and proposing innovative strategies rooted in efficiency and inclusivity, this study establishes itself as a pioneering effort in transforming sustainable investment practices.
References
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Desalegn, G., & Tangl, A. (2022). Enhancing Green Finance for Inclusive Green Growth: A Systematic Approach. Sustainability (Switzerland), 14(12). https://doi.org/10.3390/su14127416
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Fang, Y., & Shao, Z. (2022). How Does Green Finance Affect Cleaner Industrial Production and End-of-Pipe Treatment Performance? Evidence From China. Environmental Science and Pollution Research, 30(12), 33485–33503. https://doi.org/10.1007/s11356-022-24513-4
Hasan, M. H. (2024). FinTech and Sustainable Finance: How Is FinTech Shaping the Future of Sustainable Finance? Ejmeb, 1(3), 100–115. https://doi.org/10.59324/ejmeb.2024.1(3).09
Hosta, M., & Žabkar, V. (2020). Antecedents of Environmentally and Socially Responsible Sustainable Consumer Behavior. Journal of Business Ethics, 171(2), 273–293. https://doi.org/10.1007/s10551-019-04416-0
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Kumari, V., Assaf, R., Moussa, F., & Pandey, D. K. (2023). Impacts of Climate Pact on Global Oil and Gas Sector Stocks. Studies in Economics and Finance, 41(3), 596–618. https://doi.org/10.1108/sef-03-2023-0149
Lai, J. (2023). Green Finance and Sustainable Development: An Empirical Study Based on Chinese Data. Open Journal of Social Sciences, 11(11), 263–273. https://doi.org/10.4236/jss.2023.1111017
Lakasse, S., Amril, A., Syamsuri, H., & Jusman, I. A. (2024). The Role of Green Finance in Sustainable Business Strategies: Opportunities and Challenges for Business Organizations. Jurnal Penelitian Inovatif, 4(2), 665–672. https://doi.org/10.54082/jupin.379
Lulaj, E. (2024). Money Talks: A Holistic and Longitudinal View of the Budget Basket in the Face of Climate Change and Sustainable Finance Matters. Ekonomika, 103(1), 91–107. https://doi.org/10.15388/ekon.2024.103.1.6
Marginingsih, R. (2021). Financial Technology (Fintech) Dalam Inklusi Keuangan Nasional di Masa Pandemi Covid-19. Moneter - Jurnal Akuntansi Dan Keuangan, 8(1), 56–64. https://doi.org/10.31294/moneter.v8i1.9903
Marini, M., Linawati, L., & Putra, R. E. (2020). Peran Fintech terhadap Inklusi Keuangan pada UMKM Tangerang Selatan. Keberlanjutan : Jurnal Manajemen Dan Jurnal Akuntansi, 5(2), 91. https://doi.org/10.32493/keberlanjutan.v5i2.y2020.p91-104
Mudalige, H. M. N. K. (2023). Emerging New Themes in Green Finance: A Systematic Literature Review. Future Business Journal, 9(1). https://doi.org/10.1186/s43093-023-00287-0
Mukherjee, A., Owen, R., Scott, J. M., & Lyon, F. (2024). Financing green innovation startups: a systematic literature review on early-stage SME funding. Venture Capital, 00(00), 1–27. https://doi.org/10.1080/13691066.2024.2410730
Ozili, P. K. (2021). Making Sustainble Finance Sustainable. Financial Internet Quarterly, 17(3), 64–70. https://doi.org/10.2478/fiqf-2021-0020
Pandey, A., Kiran, R., & Sharma, R. K. (2022). Investigating the Impact of Financial Inclusion Drivers, Financial Literacy and Financial Initiatives in Fostering Sustainable Growth in North India. Sustainability (Switzerland), 14(17). https://doi.org/10.3390/su141711061
Piseddu, T. (2023). Cost Efficiency of Municipal Green Bonds’ Measures: A Marginal Abatement Cost Curves Approach. Studies in Economics and Finance, 41(3), 522–544. https://doi.org/10.1108/sef-06-2023-0294
Rahmantari, N. L. L., Mahyuni, L. P., & Maradona, A. F. (2024). Navigating the Digital Frontier: Motivations and Perceived Behaviors on Digital Investment Platforms. 2024 10th International Conference on Smart Computing and Communication (ICSCC), 507–513. https://doi.org/10.1109/ICSCC62041.2024.10690446
Rakib, M. A. N., Chang, H. J., & Jones, R. P. (2022). Effective Sustainability Messages Triggering Consumer Emotion and Action: An Application of the Social Cognitive Theory and the Dual-Process Model. Sustainability, 14(5), 2505. https://doi.org/10.3390/su14052505
Sajjad, S. (2024). Balancing Prosperity and Sustainability: Unraveling Financial Risks and Green Finance Through a COP27 Lens. Studies in Economics and Finance, 41(3), 545–570. https://doi.org/10.1108/sef-06-2023-0353
Simamora, N., Setyawati, I., & Nurwulandari, A. (2024). Sustainability Finance Involves and Green Investment : A Literature Review Based on the Prisma Method. International Journal of Economics and Management Research, 3(2), 366–379.
Tamasiga, P., Onyeaka, H., & Ouassou, E. h. (2022). Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability. Energies, 15(22), 8658. https://doi.org/10.3390/en15228658
Tsindeliani, I., Proshunin, M., Sadovskaya, T., Tropskaya, S., Davydova, M., & Popkova, Z. (2023). Comparative Legal Aspects of the EU and Russia Policy in the Field of Green Financing. International Journal of Sustainable Development and Planning, 18(3), 877–890. https://doi.org/10.18280/ijsdp.180323
van Niekerk, A. J. (2024). Economic Inclusion: Green Finance and the SDGs. Sustainability (Switzerland), 16(3). https://doi.org/10.3390/su16031128
Vergara, C. C., & Agudo, L. F. (2021). Fintech and Sustainability: Do They Affect Each Other? Sustainability, 13(13), 7012. https://doi.org/10.3390/su13137012
White, K., Habib, R., & Hardisty, D. J. (2019). How to SHIFT Consumer Behaviors to Be More Sustainable: A Literature Review and Guiding Framework. Journal of Marketing, 83(3), 22–49. https://doi.org/10.1177/0022242919825649
Wicaksana, D. Y. (2023). Fintech for Sdgs: Driving Economic Development Through Financial Innovation. Journal of Digital Business and Innovation Management, 2(2), 126–138. https://doi.org/10.26740/jdbim.v2i2.57960
Yuniarti, N., & Safitri, T. A. (2022). Effect of Financial Inclussion and Social Influence on Community Interest in Using Financial Technology. Proceedings Universitas Muhammadiyah Yogyakarta Undergraduate Conference, 2(1), 1–8. https://doi.org/10.18196/umygrace.v2i1.394
Zhang, M., Zhang, C., Li, F., & Liu, Z. (2022). Green Finance as an Institutional Mechanism to Direct the Belt and Road Initiative towards Sustainability: The Case of China. Sustainability (Switzerland), 14(10), 1–31. https://doi.org/10.3390/su14106164
Zhang, Y. (2023). Impact of Green Finance and Environmental Protection on Green Economic Recovery in South Asian Economies: Mediating Role of FinTech. Economic Change and Restructuring, 56(3), 2069–2086. https://doi.org/10.1007/s10644-023-09500-0
Zhao, X., & An, H.-J. (2023). Research on the Mechanism of Heterogeneous Corporate Environmental Responsibility in Z-Generation Consumers’ Sustainable Purchase Intention. Sustainability, 15(13), 10318. https://doi.org/10.3390/su151310318
Zioło, M., Bąk, I., & Cheba, K. (2020). The Role of Sustainable Finance in Achieving Sustainable Development Goals: Does It Work? Technological and Economic Development of Economy, 27(1), 45–70. https://doi.org/10.3846/tede.2020.13863
Aboulamer, A. (2017). Adopting a Circular Business Model Improves Market Equity Value. Thunderbird International Business Review, 60(5), 765–769. https://doi.org/10.1002/tie.21922
Addy, W. A. (2024). Data-Driven Sustainability: How Fintech Innovations Are Supporting Green Finance. Engineering Science & Technology Journal, 5(3), 760–773. https://doi.org/10.51594/estj.v5i3.871
Aicha, E., & Oluoch, O. (2023). Effect of FinTech Services on Financial Inclusion in Kenya. International Journal of Data Science and Big Data Analytics, 2(2). https://doi.org/10.51483/ijdsbda.2.2.2022.1-10
Anjorin, K. F. (2024). The Influence of Consumer Behavior on Sustainable Marketing Efforts. International Journal of Management & Entrepreneurship Research, 6(5), 1651–1676. https://doi.org/10.51594/ijmer.v6i5.1128
Asif, M., Khan, M. N., Tiwari, S., Wani, S. K., & Alam, F. (2023). The Impact of Fintech and Digital Financial Services on Financial Inclusion in India. Journal of Risk and Financial Management, 16(2). https://doi.org/10.3390/jrfm16020122
Banna, H., Kabir Hassan, M., & Rashid, M. (2021). Fintech-based financial inclusion and bank risk-taking: Evidence from OIC countries. Journal of International Financial Markets, Institutions and Money, 75, 101447. https://doi.org/https://doi.org/10.1016/j.intfin.2021.101447
Chen, Y., Siddik, A. B., Li, Y., Dong, Q., Zheng, G., & Rahman, M. N. (2022). A Two-Staged SEM-Artificial Neural Network Approach to Analyze the Impact of FinTech Adoption on the Sustainability Performance of Banking Firms: The Mediating Effect of Green Finance and Innovation. Systems, 10(5), 148. https://doi.org/10.3390/systems10050148
Desalegn, G., & Tangl, A. (2022). Enhancing Green Finance for Inclusive Green Growth: A Systematic Approach. Sustainability (Switzerland), 14(12). https://doi.org/10.3390/su14127416
Ding, R., Shi, F., & Hao, S. (2022). Digital Inclusive Finance, Environmental Regulation, and Regional Economic Growth: An Empirical Study Based on Spatial Spillover Effect and Panel Threshold Effect. Sustainability, 14(7), 4340. https://doi.org/10.3390/su14074340
Elias, O. (2024). The Evolution of Green Fintech: Leveraging AI and IoT for Sustainable Financial Services and Smart Contract Implementation. World Journal of Advanced Research and Reviews, 23(1), 2710–2723. https://doi.org/10.30574/wjarr.2024.23.1.2272
Ezekiel Onyekachukwu Udeh, Prisca Amajuoyi, Kudirat Bukola Adeusi, & Anwulika Ogechukwu Scott. (2024). The role of Blockchain technology in enhancing transparency and trust in green finance markets. Finance & Accounting Research Journal, 6(6), 825–850. https://doi.org/10.51594/farj.v6i6.1181
Fang, Y., & Shao, Z. (2022). How Does Green Finance Affect Cleaner Industrial Production and End-of-Pipe Treatment Performance? Evidence From China. Environmental Science and Pollution Research, 30(12), 33485–33503. https://doi.org/10.1007/s11356-022-24513-4
Hasan, M. H. (2024). FinTech and Sustainable Finance: How Is FinTech Shaping the Future of Sustainable Finance? Ejmeb, 1(3), 100–115. https://doi.org/10.59324/ejmeb.2024.1(3).09
Hosta, M., & Žabkar, V. (2020). Antecedents of Environmentally and Socially Responsible Sustainable Consumer Behavior. Journal of Business Ethics, 171(2), 273–293. https://doi.org/10.1007/s10551-019-04416-0
Jain, P. (2024). The Role of FinTech in Sustainability and United Nations’ Sustainable Development Goals. J. Comput. Mech. Manag, 3(5), 9–17. https://doi.org/10.57159/jcmm.3.5.24168
Kitchenham, B. (2004). Procedures for Performing Systematic Reviews.
Kumari, V., Assaf, R., Moussa, F., & Pandey, D. K. (2023). Impacts of Climate Pact on Global Oil and Gas Sector Stocks. Studies in Economics and Finance, 41(3), 596–618. https://doi.org/10.1108/sef-03-2023-0149
Lai, J. (2023). Green Finance and Sustainable Development: An Empirical Study Based on Chinese Data. Open Journal of Social Sciences, 11(11), 263–273. https://doi.org/10.4236/jss.2023.1111017
Lakasse, S., Amril, A., Syamsuri, H., & Jusman, I. A. (2024). The Role of Green Finance in Sustainable Business Strategies: Opportunities and Challenges for Business Organizations. Jurnal Penelitian Inovatif, 4(2), 665–672. https://doi.org/10.54082/jupin.379
Lulaj, E. (2024). Money Talks: A Holistic and Longitudinal View of the Budget Basket in the Face of Climate Change and Sustainable Finance Matters. Ekonomika, 103(1), 91–107. https://doi.org/10.15388/ekon.2024.103.1.6
Marginingsih, R. (2021). Financial Technology (Fintech) Dalam Inklusi Keuangan Nasional di Masa Pandemi Covid-19. Moneter - Jurnal Akuntansi Dan Keuangan, 8(1), 56–64. https://doi.org/10.31294/moneter.v8i1.9903
Marini, M., Linawati, L., & Putra, R. E. (2020). Peran Fintech terhadap Inklusi Keuangan pada UMKM Tangerang Selatan. Keberlanjutan : Jurnal Manajemen Dan Jurnal Akuntansi, 5(2), 91. https://doi.org/10.32493/keberlanjutan.v5i2.y2020.p91-104
Mudalige, H. M. N. K. (2023). Emerging New Themes in Green Finance: A Systematic Literature Review. Future Business Journal, 9(1). https://doi.org/10.1186/s43093-023-00287-0
Mukherjee, A., Owen, R., Scott, J. M., & Lyon, F. (2024). Financing green innovation startups: a systematic literature review on early-stage SME funding. Venture Capital, 00(00), 1–27. https://doi.org/10.1080/13691066.2024.2410730
Ozili, P. K. (2021). Making Sustainble Finance Sustainable. Financial Internet Quarterly, 17(3), 64–70. https://doi.org/10.2478/fiqf-2021-0020
Pandey, A., Kiran, R., & Sharma, R. K. (2022). Investigating the Impact of Financial Inclusion Drivers, Financial Literacy and Financial Initiatives in Fostering Sustainable Growth in North India. Sustainability (Switzerland), 14(17). https://doi.org/10.3390/su141711061
Piseddu, T. (2023). Cost Efficiency of Municipal Green Bonds’ Measures: A Marginal Abatement Cost Curves Approach. Studies in Economics and Finance, 41(3), 522–544. https://doi.org/10.1108/sef-06-2023-0294
Rahmantari, N. L. L., Mahyuni, L. P., & Maradona, A. F. (2024). Navigating the Digital Frontier: Motivations and Perceived Behaviors on Digital Investment Platforms. 2024 10th International Conference on Smart Computing and Communication (ICSCC), 507–513. https://doi.org/10.1109/ICSCC62041.2024.10690446
Rakib, M. A. N., Chang, H. J., & Jones, R. P. (2022). Effective Sustainability Messages Triggering Consumer Emotion and Action: An Application of the Social Cognitive Theory and the Dual-Process Model. Sustainability, 14(5), 2505. https://doi.org/10.3390/su14052505
Sajjad, S. (2024). Balancing Prosperity and Sustainability: Unraveling Financial Risks and Green Finance Through a COP27 Lens. Studies in Economics and Finance, 41(3), 545–570. https://doi.org/10.1108/sef-06-2023-0353
Simamora, N., Setyawati, I., & Nurwulandari, A. (2024). Sustainability Finance Involves and Green Investment : A Literature Review Based on the Prisma Method. International Journal of Economics and Management Research, 3(2), 366–379.
Tamasiga, P., Onyeaka, H., & Ouassou, E. h. (2022). Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability. Energies, 15(22), 8658. https://doi.org/10.3390/en15228658
Tsindeliani, I., Proshunin, M., Sadovskaya, T., Tropskaya, S., Davydova, M., & Popkova, Z. (2023). Comparative Legal Aspects of the EU and Russia Policy in the Field of Green Financing. International Journal of Sustainable Development and Planning, 18(3), 877–890. https://doi.org/10.18280/ijsdp.180323
van Niekerk, A. J. (2024). Economic Inclusion: Green Finance and the SDGs. Sustainability (Switzerland), 16(3). https://doi.org/10.3390/su16031128
Vergara, C. C., & Agudo, L. F. (2021). Fintech and Sustainability: Do They Affect Each Other? Sustainability, 13(13), 7012. https://doi.org/10.3390/su13137012
White, K., Habib, R., & Hardisty, D. J. (2019). How to SHIFT Consumer Behaviors to Be More Sustainable: A Literature Review and Guiding Framework. Journal of Marketing, 83(3), 22–49. https://doi.org/10.1177/0022242919825649
Wicaksana, D. Y. (2023). Fintech for Sdgs: Driving Economic Development Through Financial Innovation. Journal of Digital Business and Innovation Management, 2(2), 126–138. https://doi.org/10.26740/jdbim.v2i2.57960
Yuniarti, N., & Safitri, T. A. (2022). Effect of Financial Inclussion and Social Influence on Community Interest in Using Financial Technology. Proceedings Universitas Muhammadiyah Yogyakarta Undergraduate Conference, 2(1), 1–8. https://doi.org/10.18196/umygrace.v2i1.394
Zhang, M., Zhang, C., Li, F., & Liu, Z. (2022). Green Finance as an Institutional Mechanism to Direct the Belt and Road Initiative towards Sustainability: The Case of China. Sustainability (Switzerland), 14(10), 1–31. https://doi.org/10.3390/su14106164
Zhang, Y. (2023). Impact of Green Finance and Environmental Protection on Green Economic Recovery in South Asian Economies: Mediating Role of FinTech. Economic Change and Restructuring, 56(3), 2069–2086. https://doi.org/10.1007/s10644-023-09500-0
Zhao, X., & An, H.-J. (2023). Research on the Mechanism of Heterogeneous Corporate Environmental Responsibility in Z-Generation Consumers’ Sustainable Purchase Intention. Sustainability, 15(13), 10318. https://doi.org/10.3390/su151310318
Zioło, M., Bąk, I., & Cheba, K. (2020). The Role of Sustainable Finance in Achieving Sustainable Development Goals: Does It Work? Technological and Economic Development of Economy, 27(1), 45–70. https://doi.org/10.3846/tede.2020.13863
Published
2025-04-08
