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Evaluating the influence of financial technology (FinTech) on sustainable finance: a comprehensive global analysis

Author

Listed:
  • Muhammad Kashif

    (Huazhong University of Science and Technology (HUST))

  • Chen Pinglu

    (Huazhong University of Science and Technology (HUST))

  • Saif Ullah

    (Ziauddin University)

  • Mubasher Zaman

    (Huazhong University of Science and Technology (HUST))

Abstract

This paper aims to investigate the influence of financial technology (FinTech) on sustainable finance. The sample for this study spans from 2010 to 2021, encompassing data from 89 countries. The study employed a two-stage least-square regression approach with the instrumental variables and confirmed the findings using a two-step system generalized method of moments. The findings show that FinTech has a significant favorable impact on sustainable finance. Other factors such as institutional quality, socioeconomic condition, and renewable energy have a significant and beneficial influence on the trajectory of sustainable finance, except the impact of globalization, which is positive but insignificant. Furthermore, FinTech is crucial to driving the transition toward a sustainable future distinguished by a lower carbon economy. The study found that FinTech has extensive application across various sectors of sustainable finance and has substantial potential to create long-term positive effects in this regard. FinTech can further integrate with other technologies to facilitate diversified growth in sustainable finance. Additionally, this study highlights FinTech-related trends and research opportunities in sustainable finance, demonstrating how they can help each other advance worldwide with significant policy implications for countries seeking to advance sustainable finance through technology.

Suggested Citation

  • Muhammad Kashif & Chen Pinglu & Saif Ullah & Mubasher Zaman, 2024. "Evaluating the influence of financial technology (FinTech) on sustainable finance: a comprehensive global analysis," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 38(1), pages 123-155, March.
    • Handle: RePEc:kap:fmktpm:v:38:y:2024:i:1:d:10.1007_s11408-023-00439-w
    DOI: 10.1007/s11408-023-00439-w
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    More about this item

    Keywords

    Sustainable development goals; Sustainable finance; Financial technology; Globalization; Institutional quality; Renewable energy;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • G2 - Financial Economics - - Financial Institutions and Services
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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