Fintech and Sustainability: Do They Affect Each Other?

Cristina Chueca Vergara,Luis Ferruz Agudo

doi:10.3390/su13137012

Cristina Chueca Vergara, Luis Ferruz Agudo

Open Access

https://doi.org/10.3390/su13137012

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Journal: Sustainability	Publication Date: Jun 22, 2021
Citations: 113	License type: CC BY 4.0

Affiliation: Universidad de Zaragoza

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.

Highlights

More and more new issues are emerging that affect financial management.These are the consequence of increasing customer concerns for sustainability and respect for the environment in the goods and services they purchase and consume, as well as with growing digitization.Important examples of these issues are corporate social responsibility (CSR) and environmental, social, and governance (ESG) factors
The main purpose of this paper is to research the relationship between Fintech and sustainability, analyzing the particular case of two different Fintech initiatives: “Clarity
In this context, according to Moro-Visconti, Cruz Rambaud, and López Pascual, “sustainability has grown from a niche preoccupation for business to a mainstream concern” [14], and the financial sector has the task of financing the investments needed to transform our economy into a more sustainable one [25]

Summary

Introduction

More and more new issues are emerging that affect financial management These are the consequence of increasing customer concerns for sustainability and respect for the environment in the goods and services they purchase and consume, as well as with growing digitization. Important examples of these issues are corporate social responsibility (CSR) and environmental, social, and governance (ESG) factors. Nielsen Media Research reports that “66% of global consumers” (and 73% of millennials) [1] “are willing to pay more for environmentally friendly products When these customers perceive firms to be socially responsible, they may be more willing to buy the products of these firms, and at a higher price” [2].

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