Fin Tech as a Catalyst in the developement of sustainable banking

Abstract

The growing importance of environmental sustainability has led to increased focus on the role of the financial sector, particularly banks, in supporting green projects and promoting eco-friendly practices. In this context, financial technology (fintech) has emerged as a determinant in advancing green finance and promoting sustainable banking initiatives. This thesis seeks to investigate the relationship between fintech and sustainable banking. It focuses on green lending context to determine the impact that fintech has in sustainable banking when financing pro environmental projects. We formulated a research hypothesis based on a theoretical framework and tested it using panel data from 14 countries, based on a 5-year period from 2018 to 2022. Using regression techniques such as pooled OLS, fixed effects and random effects model, we explored the relationship between these two phenomena where green lending was used to represent sustainable banking. The results show that fintech has a significant impact on the development of sustainable banking.