SpringerLink
Log in

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

  • Published:
Financial Markets and Portfolio Management Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price includes VAT (Germany)

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Abdo, A.L.B., Bin, L., Zhang, X., Saeed, M., Qahtan, A.S.A., Ghallab, H.M.H.: Spatial analysis of financial development’s effect on the ecological footprint of belt and road initiative countries: mitigation options through renewable energy consumption and institutional quality. J. Clean. Prod. 366, 132696 (2022). https://doi.org/10.1016/j.jclepro.2022.132696

    Article  Google Scholar 

  • Ackah, I.: Accounting for the effect of exogenous non-Economic variables on natural gas demand in oil producing African countries. SSRN 3041934 (2017)

  • Ahlström, H., Monciardini, D.: The regulatory dynamics of sustainable finance: paradoxical success and limitations of EU reforms. J. Bus. Eth. (2021). https://doi.org/10.1007/s10551-021-04763-x

    Article  Google Scholar 

  • Al Dhaheri, A., Nobanee, H.: Financial stability and sustainable finance: a mini-review. SSRN 3538328 (2020)

  • Anser, M.K., Usman, M., Godil, D.I., Shabbir, M.S., Sharif, A., Tabash, M.I., Lopez, L.B.: Does globalization affect the green economy and environment? The relationship between energy consumption, carbon dioxide emissions, and economic growth. Environ. Sci. Pollut. Res. 28(37), 51105–51118 (2021)

    Article  CAS  Google Scholar 

  • Arellano, M., Bond, S.: Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev. Econ. Stud. 58(2), 277–297 (1991)

    Article  Google Scholar 

  • Arner, D.W., Buckley, R.P., Zetzsche, D.A., Veidt, R.: Sustainability, FinTech and financial inclusion. Eur. Bus. Organ. Law Rev. 21, 7–35 (2020)

    Article  Google Scholar 

  • Awan, U., Shamim, S., Khan, Z., Zia, N.U., Shariq, S.M., Khan, M.N.: Big data analytics capability and decision-making: the role of data-driven insight on circular economy performance. Technol. Forecast. Soc. Chang. 168, 120766 (2021)

    Article  Google Scholar 

  • Ballesteros, A., Nakhooda, S., Werksman, J., Hurlburt, K.: Power, responsibility, and accountability: rethinking the legitimacy of institutions for climate finance. Clim. l. 1, 261 (2010)

    Article  Google Scholar 

  • Banga, J.: The green bond market: a potential source of climate finance for develo** countries. J. Sustain. Financ. Invest. 9(1), 17–32 (2019)

    Article  MathSciNet  Google Scholar 

  • Barua, S., Chiesa, M.: Sustainable financing practices through green bonds: What affects the funding size? Bus. Strateg. Environ. 28(6), 1131–1147 (2019)

    Article  Google Scholar 

  • Battiston, S., Dafermos, Y., Monasterolo, I.: Climate Risks and Financial Stability, vol. 54, p. 100867. Elsevier (2021)

    Google Scholar 

  • Bhutta, U.S., Tariq, A., Farrukh, M., Raza, A., Iqbal, M.K.: Green bonds for sustainable development: review of literature on development and impact of green bonds. Technol. Forecast. Soc. Chang. 175, 121378 (2022)

    Article  Google Scholar 

  • Blundell, R., Bond, S.: Initial conditions and moment restrictions in dynamic panel data models. J. Econ. 87(1), 115–143 (1998). https://doi.org/10.1016/S0304-4076(98)00009-8

    Article  Google Scholar 

  • Bocken, N.M.P., Short, S.W., Rana, P., Evans, S.: A literature and practice review to develop sustainable business model archetypes. J. Clean. Prod. 65, 42–56 (2014)

    Article  Google Scholar 

  • Bollen, K.A.: An alternative two stage least squares (2SLS) estimator for latent variable equations. Psychometrika 61(1), 109–121 (1996)

    Article  MathSciNet  Google Scholar 

  • Campiglio, E., Dafermos, Y., Monnin, P., Ryan-Collins, J., Schotten, G., Tanaka, M.: Climate change challenges for central banks and financial regulators. Nat. Clim. Chang. 8(6), 462–468 (2018)

    Article  Google Scholar 

  • Cantarero, M.M.V.: Of renewable energy, energy democracy, and sustainable development: a roadmap to accelerate the energy transition in develo** countries. Energy Res. Soc. Sci. 70, 101716 (2020)

    Article  Google Scholar 

  • Cao, S., Nie, L., Sun, H., Sun, W., Taghizadeh-Hesary, F.: Digital finance, green technological innovation and energy-environmental performance: evidence from China’s regional economies. J. Clean. Prod. 327, 129458 (2021)

    Article  Google Scholar 

  • Chang, L., Taghizadeh-Hesary, F., Chen, H., Mohsin, M.: Do green bonds have environmental benefits? Energy Econ. 115, 106356 (2022)

    Article  Google Scholar 

  • Chen, Y., Kumara, E.K., Sivakumar, V.: Investigation of finance industry on risk awareness model and digital economic growth. Ann. Oper. Res. (2021). https://doi.org/10.1007/s10479-021-04287-7.1-22

    Article  PubMed  PubMed Central  Google Scholar 

  • Chen, W., Zou, W., Zhong, K., Aliyeva, A.: Machine learning assessment under the development of green technology innovation: a perspective of energy transition. Ren. Energy (2023). https://doi.org/10.1016/j.renene.2023.05.108

    Article  Google Scholar 

  • Cheng, M., Qu, Y.: Does bank FinTech reduce credit risk? Evidence from China. Pac.-Basin Financ. J. 63, 101398 (2020)

    Article  Google Scholar 

  • Cheng, J., Sun, J., Yao, K., Xu, M., Cao, Y.: A variable selection method based on mutual information and variance inflation factor. Spectrochim. Acta Part A Mol. Biomol. Spectrosc. 268, 120652 (2022)

    Article  CAS  Google Scholar 

  • Chueca Vergara, C., Ferruz Agudo, L.: Fintech and sustainability: Do they affect each other? Sustainability 13(13), 7012 (2021)

    Article  Google Scholar 

  • Commission, E.: EU Commision. EU Commision. (2021). https://finance.ec.europa.eu/sustainable-finance

  • Cunha, F.A.F.D.S., Meira, E., Orsato, R.J.: Sustainable finance and investment: review and research agenda. Bus. Strat. Environ. 30(8), 3821–3838 (2021)

    Article  Google Scholar 

  • Debrah, C., Darko, A., Chan, A.P.C.: A bibliometric-qualitative literature review of green finance gap and future research directions. Clim. Dev. 15(5), 432–455 (2022)

    Article  Google Scholar 

  • Destek, M.A.: Renewable energy consumption and economic growth in newly industrialized countries: evidence from asymmetric causality test. Ren. Energy 95, 478–484 (2016)

    Article  Google Scholar 

  • Ding, X., Li, W., Huang, D., Qin, X.: Does Innovation climate help to effectiveness of green finance product R&D team? The mediating role of knowledge sharing and moderating effect of knowledge heterogeneity. Sustainability 14(7), 3926 (2022)

    Article  Google Scholar 

  • Disli, M., Yilmaz, M.K., Mohamed, F.F.M.: Board characteristics and sustainability performance: empirical evidence from emerging markets. Sustain. Account. Manag. Policy J. 13(4), 929–952 (2022)

    Google Scholar 

  • Dörry, S., Schulz, C.: Green financing, interrupted. Potential directions for sustainable finance in Luxembourg. Local Environ. 23(7), 717–733 (2018)

    Article  Google Scholar 

  • Douglass, B.J., Clouatre, D.L.: Beyond yellow curry: assessing commercial curcumin absorption technologies. J. Am. Coll. Nutr. 34(4), 347–358 (2015)

    Article  CAS  PubMed  PubMed Central  Google Scholar 

  • Dutta, P., Choi, T.-M., Somani, S., Butala, R.: Blockchain technology in supply chain operations: applications, challenges and research opportunities. Transp. Res. Part e: Logist. Transp. Rev. 142, 102067 (2020)

    Article  Google Scholar 

  • Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E.A., Barlow, C.Y.: Business model innovation for sustainability: towards a unified perspective for creation of sustainable business models. Bus. Strateg. Environ. 26(5), 597–608 (2017)

    Article  Google Scholar 

  • Falcone, P.M.: Environmental regulation and green investments: The role of green finance. Int. J. Green Econ. 14(2), 159–173 (2020)

    Article  Google Scholar 

  • Fan, P.S.: Singapore approach to develop and regulate FinTech. In Handbook of Blockchain, Digital Finance, and Inclusion, Vol. 1, pp. 347–357. Elsevier (2018)

  • Feyen, E., Frost, J., Gambacorta, L., Natarajan, H., Saal, M.: Fintech and the digital transformation of financial services: implications for market structure and public policy. BIS Papers (2021)

  • Finance, C.S.: A stocktake and review of sustainable finance opportunities for Argentina (2018)

  • Giaretta, E., Chesini, G.: The determinants of debt financing: the case of fintech start-ups. J. Innov. Knowl. 6(4), 268–279 (2021)

    Article  Google Scholar 

  • Gnegne, Y.: Adjusted net saving and welfare change. Ecol. Econ. 68(4), 1127–1139 (2009)

    Article  Google Scholar 

  • Gomber, P., Kauffman, R.J., Parker, C., Weber, B.W.: On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. J. Manag. Inf. Syst. 35(1), 220–265 (2018)

    Article  Google Scholar 

  • Grover, P., Kar, A.K., Gupta, S., Modgil, S.: Influence of political leaders on sustainable development goals–insights from twitter. J. Enterp. Inf. Manag. 34(6), 1893–1916 (2021)

    Article  Google Scholar 

  • Gujarati, D.N.: Essentials of Econometrics. Sage Publications (2021)

    Google Scholar 

  • Güney, T.: Renewable energy, non-renewable energy and sustainable development. Int J Sust Dev World 26(5), 389–397 (2019)

    Article  Google Scholar 

  • Guo, Y., Lane, D.A., Wang, L., Zhang, H., Wang, H., Zhang, W., **a, Y.: Mobile health technology to improve care for patients with atrial fibrillation. J. Am. Coll. Cardiol. 75(13), 1523–1534 (2020)

    Article  PubMed  Google Scholar 

  • Haddad, C., Hornuf, L.: The emergence of the global fintech market: Economic and technological determinants. Small Bus. Econ. 53(1), 81–105 (2019)

    Article  Google Scholar 

  • Hannig, A., Jansen, S.: Financial inclusion and financial stability: current policy issues (2010)

  • Heckman, J.J.: Instrumental variables: response to Angrist and Imbens. J. Hum. Resour. 34(4), 828–837 (1999). https://doi.org/10.2307/146419

    Article  Google Scholar 

  • Hu, D., Jiao, J., Tang, Y., Han, X., Sun, H.: The effect of global value chain position on green technology innovation efficiency: from the perspective of environmental regulation. Ecol. Ind. 121, 107195 (2021)

    Article  Google Scholar 

  • Iftikhar, H., **lu, C., Ullah, S., Ullah, A.: Impact of tourism on sustainable development in BRI countries: the moderating role of institutional quality. PLoS ONE 17(4), e0263745 (2022)

    Article  CAS  PubMed  PubMed Central  Google Scholar 

  • Irfan, M., Razzaq, A., Sharif, A., Yang, X.: Influence mechanism between green finance and green innovation: exploring regional policy intervention effects in China. Technol. Forecast. Soc. Chang. 182, 121882 (2022)

    Article  Google Scholar 

  • James, L.R., Singh, B.K.: An introduction to the logic, assumptions, and basic analytic procedures of two-stage least squares. Psychol. Bull. 85(5), 1104 (1978). https://doi.org/10.1037/0033-2909.85.5.1104

    Article  Google Scholar 

  • Jia, Q.: The impact of green finance on the level of decarbonization of the economies: an analysis of the United State’, China’s, and Russia’s current agenda. Bus. Strateg. Environ. 32(1), 110–119 (2023)

    Article  Google Scholar 

  • Jiang, L., Wang, H., Tong, A., Hu, Z., Duan, H., Zhang, X., Wang, Y.: The measurement of green finance development index and its poverty reduction effect: dynamic panel analysis based on improved entropy method. Discret. Dyn. Nat. Soc. 2020, 1–13 (2020)

    Article  MathSciNet  Google Scholar 

  • Jianguo, D., Ali, K., Alnori, F., Ullah, S.: The nexus of financial development, technological innovation, institutional quality, and environmental quality: evidence from OECD economies. Environ. Sci. Pollut. Res. 29(38), 58179–58200 (2022)

    Article  Google Scholar 

  • Johnston, R., Jones, K., Manley, D.: Confounding and collinearity in regression analysis: a cautionary tale and an alternative procedure, illustrated by studies of British voting behaviour. Qual. Quant. 52, 1957–1976 (2018)

    Article  PubMed  Google Scholar 

  • Jünger, M., Mietzner, M.: Banking goes digital: the adoption of FinTech services by German households. Financ. Res. Lett. 34, 101260 (2020)

    Article  Google Scholar 

  • Kahouli, B.: The causality link between energy electricity consumption, CO2 emissions, R&D stocks and economic growth in Mediterranean countries (MCs). Energy 145, 388–399 (2018)

    Article  Google Scholar 

  • Kemfert, C., Schmalz, S.: Sustainable finance: Political challenges of development and implementation of framework conditions. Green Financ. 1(3), 237–248 (2019)

    Article  Google Scholar 

  • Khan, S.A.R., Razzaq, A., Yu, Z., Miller, S.: Industry 4.0 and circular economy practices: a new era business strategies for environmental sustainability. Bus. Strat. Environ. 30(8), 4001–4014 (2021)

    Article  Google Scholar 

  • Kumar, A., Anbanandam, R.: Assessment of environmental and social sustainability performance of the freight transportation industry: an index-based approach. Transp. Policy 124, 43–60 (2022)

    Article  Google Scholar 

  • Kumar, S., Sharma, D., Rao, S., Lim, W.M., Mangla, S.K.: Past, present, and future of sustainable finance: Insights from big data analytics through machine learning of scholarly research. Ann. Oper. Res. (2022). https://doi.org/10.1007/s10479-021-04410-8

    Article  PubMed  PubMed Central  Google Scholar 

  • Lenka, S.K., Barik, R.: Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries? Financ. Innov. 4(1), 1–19 (2018)

    Article  Google Scholar 

  • Li, J., Ding, H., Hu, Y., Wan, G.: Dealing with Dynamic Endogeneity in International Business Research, vol. 52, pp. 339–362. Springer (2021)

    Google Scholar 

  • Li, Q., Sharif, A., Razzaq, A., Yu, Y.: Do climate technology, financialization, and sustainable finance impede environmental challenges? Evidence from G10 economies. Technol. Forecast. Soc. Chang. 185, 122095 (2022)

    Article  Google Scholar 

  • Liu, H., Yao, P., Latif, S., Aslam, S., Iqbal, N.: Impact of Green financing, FinTech, and financial inclusion on energy efficiency. Environ. Sci. Pollut. Res. (2022). https://doi.org/10.1007/s11356-021-16949-x

    Article  Google Scholar 

  • Lu, Y., Gao, Y., Zhang, Y., Wang, J.: Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines.” Energy Econ. 114, 106265 (2022)

    Article  Google Scholar 

  • Macchiavello, E., Siri, M.: Sustainable finance and fintech: can technology contribute to achieving environmental goals? A preliminary assessment of ‘green fintech’and ‘sustainable digital finance.’ Eur. Comp. Financ. Law Rev. 19(1), 128–174 (2022)

    Article  Google Scholar 

  • Manita, R., Bruna, M.G., Dang, R., Houanti, L.H.: Board gender diversity and ESG disclosure: evidence from the USA. J. Appl. Account. Res. 19(2), 206–224 (2018). https://doi.org/10.1108/JAAR-01-2017-0024

    Article  Google Scholar 

  • Matarazzo, M., Penco, L., Profumo, G., Quaglia, R.: Digital transformation and customer value creation in Made in Italy SMEs: a dynamic capabilities perspective. J. Bus. Res. 123, 642–656 (2021)

    Article  Google Scholar 

  • Meng, F., Zhang, W.: Digital finance and regional green innovation: evidence from Chinese cities. Environ. Sci. Pollut. Res. 29(59), 89498–89521 (2022)

    Article  Google Scholar 

  • Morales, M.A., Estrada, D.: A financial stability index for Colombia. Ann. Financ. 6(4), 555–581 (2010)

    Article  Google Scholar 

  • Murshed, M., Ahmed, R., Kumpamool, C., Bassim, M., Elheddad, M.: The effects of regional trade integration and renewable energy transition on environmental quality: evidence from South Asian neighbors. Bus. Strateg. Environ. 30(8), 4154–4170 (2021)

    Article  Google Scholar 

  • Musleh Al-Sartawi, A.M.A., Hussainey, K., Razzaque, A.: The Role of Artificial Intelligence in Sustainable Finance, pp. 1–6. Taylor & Francis (2022)

    Google Scholar 

  • Naidoo, C.P.: Relating financial systems to sustainability transitions: challenges, demands and design features. Environ. Innov. Soc. Trans. 36, 270–290 (2020)

    Article  Google Scholar 

  • Nassiry, D.: The role of fintech in unlocking green finance. In Handbook of Green Finance (pp. 315–336). Springer (2019)

  • Nenavath, S.: Impact of fintech and green finance on environmental quality protection in India: by applying the semi-parametric difference-in-differences (SDID). Renew. Energy 193, 913–919 (2022)

    Article  CAS  Google Scholar 

  • Obobisa, E.S., Chen, H., Mensah, I.A.: The impact of green technological innovation and institutional quality on CO2 emissions in African countries. Technol. Forecast. Soc. Change 180, 121670 (2022). https://doi.org/10.1016/j.techfore.2022.121670

    Article  Google Scholar 

  • Parmentola, A., Petrillo, A., Tutore, I., De Felice, F.: Is blockchain able to enhance environmental sustainability? A systematic review and research agenda from the perspective of sustainable development goals (SDGs). Bus. Strateg. Environ. 31(1), 194–217 (2022)

    Article  Google Scholar 

  • Pedersen, C.S.: The UN sustainable development goals (SDGs) are a great gift to business! Proc. Cirp 69, 21–24 (2018)

    Article  Google Scholar 

  • Polemis, M.L., Tsionas, M.G.: The environmental consequences of blockchain technology: a Bayesian quantile cointegration analysis for Bitcoin. Int. J. Financ. Econ. 28(2), 1602–1621 (2021)

    Article  Google Scholar 

  • Quatrini, S.: Challenges and opportunities to scale up sustainable finance after the COVID-19 crisis: lessons and promising innovations from science and practice. Ecosyst. Serv. 48, 101240 (2021). https://doi.org/10.1016/j.ecoser.2020.101240

    Article  PubMed  PubMed Central  Google Scholar 

  • Rahman, M.M., Velayutham, E.: Renewable and non-renewable energy consumption-economic growth nexus: new evidence from South Asia. Renew. Energy 147, 399–408 (2020)

    Article  Google Scholar 

  • Roodman, D.: How to do xtabond2: an introduction to difference and system GMM in Stata. Stand. Genomic Sci. 9(1), 86–136 (2009)

    Google Scholar 

  • Rupeika-Apoga, R., Thalassinos, E.I.: Ideas for a regulatory definition of FinTech (2020)

  • Saad, W., Taleb, A.: The causal relationship between renewable energy consumption and economic growth: evidence from Europe. Clean Technol. Environ. Policy 20(1), 127–136 (2018). https://doi.org/10.1007/s10098-017-1463-5

    Article  Google Scholar 

  • Sadiq, M., Nonthapot, S., Mohamad, S., Chee Keong, O., Ehsanullah, S., Iqbal, N.: Does green finance matter for sustainable entrepreneurship and environmental corporate social responsibility during COVID-19? China Financ. Rev. Int. 12(2), 317–333 (2022)

    Article  Google Scholar 

  • Semykina, A., Wooldridge, J.M.: Estimation of dynamic panel data models with sample selection. J. Appl. Economet. 28(1), 47–61 (2013)

    Article  MathSciNet  Google Scholar 

  • Setiawan, B., Nugraha, D.P., Irawan, A., Nathan, R.J., Zoltan, Z.: User innovativeness and fintech adoption in Indonesia. J. Open Innov.: Technol. Mark. Complex. 7(3), 188 (2021)

    Article  Google Scholar 

  • Shahbaz, M., Trabelsi, N., Tiwari, A.K., Abakah, E.J.A., Jiao, Z.: Relationship between green investments, energy markets, and stock markets in the aftermath of the global financial crisis. Energy Econ. 104, 105655 (2021)

    Article  Google Scholar 

  • Sharma, G.D., Verma, M., Shahbaz, M., Gupta, M., Chopra, R.: Transitioning green finance from theory to practice for renewable energy development. Renew. Energy 195, 554–565 (2022)

    Article  Google Scholar 

  • Tawiah, V., Zakari, A., Adedoyin, F.F.: Determinants of green growth in developed and develo** countries. Environ. Sci. Pollut. Res. 28(29), 39227–39242 (2021). https://doi.org/10.1007/s11356-021-13429-0

    Article  Google Scholar 

  • Thomson, A.I., Archer, F.I., Coleman, M.A., Gajardo, G., Goodall-Copestake, W.P., Hoban, S., Pérez-Espona, S.: Charting a course for genetic diversity in the UN decade of ocean science. Evolut. Appl. 14(6), 1497–1518 (2021)

    Article  Google Scholar 

  • Udeagha, M.C., Muchapondwa, E.: Green finance, fintech, and environmental sustainability: fresh policy insights from the BRICS nations. Int. J. Sustain. Dev. World Ecol. (2023). https://doi.org/10.1080/13504509.2023.2183526

    Article  Google Scholar 

  • Ullah, A., **lu, C., Ullah, S., Qian, N., Zaman, M.: Impact of intellectual capital efficiency on financial stability in banks: insights from an emerging economy. Int. J. Financ. Econ. 28(2), 1858–1871 (2021)

    Article  Google Scholar 

  • Ullah, A., **lu, C., Ullah, S., Hashmi, S.H.: The dynamic impact of financial, technological, and natural resources on sustainable development in belt and road countries. Environ. Sci. Pollut. Res. 29(3), 4616–4631 (2022a)

    Article  Google Scholar 

  • Ullah, A., **lu, C., Ullah, S., Qaisar, Z.H., Qian, N.: The dynamic nexus of E-government, and sustainable development: moderating role of multi-dimensional regional integration index in belt and road partner countries. Technol. Soc. 68, 101903 (2022b)

    Article  Google Scholar 

  • Usman, M., Jahanger, A., Makhdum, M.S.A., Balsalobre-Lorente, D., Bashir, A.: How do financial development, energy consumption, natural resources, and globalization affect Arctic countries’ economic growth and environmental quality? An advanced panel data simulation. Energy 241, 122515 (2022)

    Article  Google Scholar 

  • Wang, Q., Wang, L.: Renewable energy consumption and economic growth in OECD countries: a nonlinear panel data analysis. Energy 207, 118200 (2020)

    Article  Google Scholar 

  • Wang, T.-Y., Chien, S.-C., Kao, C.: The role of technology development in national competitiveness: evidence from Southeast Asian countries. Technol. Forecast. Soc. Chang. 74(8), 1357–1373 (2007)

    Article  Google Scholar 

  • Weber, C.S.: Central bank transparency and inflation (volatility): new evidence. IEEP 15, 21–67 (2018)

    Article  Google Scholar 

  • Wooldridge, J.M.: Fractional response models with endogeneous explanatory variables and heterogeneity (2011)

  • World, B.: World development report 2019: The changing nature of work. The World Bank (2018)

  • Yang, Y., Su, X., Yao, S.: Nexus between green finance, fintech, and high-quality economic development: empirical evidence from China. Resour. Policy 74, 102445 (2021)

    Article  Google Scholar 

  • Yang, M., Chen, L., Wang, J., Msigwa, G., Osman, A.I., Fawzy, S., Yap, P.-S.: Circular economy strategies for combating climate change and other environmental issues. Environ. Chem. Lett. 21(1), 55–80 (2023)

    Article  CAS  Google Scholar 

  • Yao, S.: On economic growth, FDI and exports in China. Appl. Econ. 38(3), 339–351 (2006)

    Article  Google Scholar 

  • Zaid, A., Jaaron, A.: The impact of green human resource management practices with sustainable and operational performance: a conceptual model (2021).

  • Zhao, N., Xu, Q., Tang, M.L., Jiang, B., Chen, Z., Wang, H.: High-dimensional variable screening under multicollinearity. Stat 9(1), e272 (2020)

    Article  MathSciNet  Google Scholar 

  • Zhou, G., Zhu, J., Luo, S.: The impact of fintech innovation on green growth in China: mediating effect of green finance. Ecol. Econ. 193, 107308 (2022)

    Article  Google Scholar 

Download references

Acknowledgements

We are extremely appreciative of Dr. Atta Ullah, Prof. Chen Pinlgu and Prof. Qian Ningyu for the constructive comments and suggestions that helped to improve the draft.

Funding

The paper is supported by the liberal arts double world-class project of Huazhong University of Science and Technology (The major discipline platform construction Rural Development Research Center of Huazhong University of Science and Technology). 华中科技大学文科双一流建设项目基金资助 (重大学科**台建设华中科技大学农村发展研究中心).

Author information

Authors and Affiliations

  1. School of Management, Huazhong University of Science and Technology (HUST), Wuhan, China

    Muhammad Kashif & Mubasher Zaman

  2. Ziauddin University, Karachi, Pakistan

    Saif Ullah

  3. Chair of the Department of Financial Management at School of Management, Huazhong University of Science and Technology (HUST), Wuhan, China

    Chen **lu

Authors
  1. Muhammad Kashif
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Chen **lu
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Saif Ullah
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Mubasher Zaman
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

MK did conceptualization; data curation; formal analysis; investigation; methodology; software; roles/writing—original draft. CP done conceptualization; funding acquisition; supervision. SU was involved in visualization; writing—review and editing; and validation. MZ performed writing—review and editing; project administration; and resources.

Corresponding author

Correspondence to Chen **lu.

Ethics declarations

Conflict of interest

The authors declare no potential conflict of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendices

Appendix 1: Sample countries

#

Country

#

Country

#

Country

1

Albania

31

Germany

61

Panama

2

Algeria

32

Ghana

62

Papua New Guinea

3

Argentina

33

Greece

63

Paraguay

4

Armenia

34

Guatemala

64

Peru

5

Australia

35

Guinea

65

Philippines

6

Austria

36

Guinea-Bissau

66

Poland

7

Bangladesh

37

Honduras

67

Portugal

8

Belarus

38

Hungary

68

Romania

9

Belgium

39

India

69

Russian Federation

10

Botswana

40

Indonesia

70

Saudi Arabia

11

Brazil

41

Ireland

71

Singapore

12

Brunei Darussalam

42

Israel

72

Slovakia

13

Bulgaria

43

Italy

73

Slovenia

14

Cameroon

44

Japan

74

South Africa

15

Canada

45

Kazakhstan

75

South Korea

16

Chile

46

Kenya

76

Spain

17

China

47

Latvia

77

Sri Lanka

18

Colombia

48

Lebanon

78

Sweden

19

Congo, Rep

49

Lithuania

79

Switzerland

20

Croatia

50

Luxembourg

80

Tanzania

21

Cyprus

51

Madagascar

81

Thailand

22

Czech Republic

52

Malaysia

82

Turkey

23

Denmark

53

Mexico

83

Uganda

24

Dominican Republic

54

Myanmar

84

Ukraine

25

Ecuador

55

Namibia

85

United Kingdom

26

El Salvador

56

Netherlands

86

United States

27

Estonia

57

Niger

87

Uruguay

28

Finland

58

Nigeria

88

Vietnam

29

France

59

Norway

89

Zambia

30

Gabon

60

Pakistan

  

Appendix 2: Description of data

Dependent variable

SFI

PCA index of Adjusted net savings, including particulate emission damage (% of GNI), Current health expenditure (% of GDP), Research and development expenditure (% of GDP) and Financial Stability Index

Financial Stability index based on Capital-to-Asset Ratio, Capital adequacy, Bank provisions to non-performing loans (NPLs), Non-Performing Loans/Total Loans, Return on Assets (ROA), Return on Equity (ROE)

Adjusted net savings are equal to net national savings plus education expenditure and minus energy depletion, mineral depletion, net forest depletion, and carbon dioxide and particulate emissions damage

World Bank (WDI), IMF financial soundness indicators

Independent variable

FinTech

The PCA index has been created based on 26 metrics related to various factors: business and technological innovation, financial access, availability, and utilization. These factors were measured using several indicators, including the number of deposit accounts with credit unions and credit cooperatives per 1000 adults, the number of deposit accounts with commercial banks, the number of commercial banks per 100,000 adults, the number of credit unions, the number of registered mobile money accounts per 1000 adults, the number of all microfinance institutional branches per 100,000 adults, credit cooperative branches per 100,000 adults, the number of registered mobile money agent outlets per 100,000, the number of ATMs per 100,000, outstanding deposits with credit unions and credit cooperatives as a percentage of GDP, outstanding deposits with commercial banks as a percentage of GDP, outstanding loans from credit unions and credit cooperatives as a percentage of GDP, outstanding loans from commercial banks as a percentage of GDP, the value of mobile money transactions as a percentage of GDP, outstanding loans from MFIs as a percentage of GDP, telecommunication infrastructure index, mobile cellular subscriptions per 100 people, e-participation index, online service index, business sophistication, business environment, human capital index, individuals using the internet as a percentage of the population, ICTs, ICT access, and ICT use and innovation linkages

IMF; OECD (Organization for Economic Co-operation and Development); UN (United Nations); World Bank; Global Innovation Index (GII)

Control variables

GI

PCA index based on Trade Globalization (Including Factors), Trade Globalization (Including Institutions), Financial Globalization (Including Factors), Financial Globalization (Including Institutions), Interpersonal Globalization (Including Factors)

Interpersonal Globalization (Including Institutions), Informational Globalization (Including Factors), Informational Globalization (Including Institutions), Cultural Globalization (Including Factors), Cultural Globalization (Including Institutions), Political Globalization (Including Factors), Political Globalization (Including Institutions)

KOF Globalization. The globalization’s

data are taken from Zurich’s Swiss Institute of Technology

IQ

PCA index based on the control of corruption, government effectiveness,

Political Stability and Absence of Violence/Terrorism, Regulatory Quality and

Rule of Law

World Bank (WDI)

SEC

Based on Unemployment, Poverty, and Inflation. Index ranges from 0 to 12 in which 0 represents high risk while 12 represents low risk

International Country Risk Guide (ICRG)

REP

Renewable Energy Use (% of total energy usage). Renewable energy consumption is the share of renewable energy in total final energy consumption

World Bank (WDI)

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Kashif, M., **lu, C., Ullah, S. et al. Evaluating the influence of financial technology (FinTech) on sustainable finance: a comprehensive global analysis. Financ Mark Portf Manag 38, 123–155 (2024). https://doi.org/10.1007/s11408-023-00439-w

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11408-023-00439-w

Keywords

JEL Classification

Search

Navigation