Fintech applications are examined as catalysts for revolutionizing green finance, showcasing their capacity to streamline processes, facilitate transparent transactions, and provide personalized investment options. The functionalities of these applications are dissected, emphasizing their role in mitigating barriers such as information asymmetry and inefficiencies in fund distribution. Blockchain's decentralized ledger system is analyzed for its ability to enhance trust and transparency in sustainable investment. It highlights successful implementations of blockchain in sustainable finance, illuminating its practical benefits in overcoming limitations like fraud risk and reducing administrative costs. This research delves into the transformative potential of integrating financial technology (FinTech) and blockchain in green finance. By transcending traditional barriers, these technologies not only enrich the functionalities of applications but also open new horizons for sustainable investment, paving the way for a more resilient and environmentally conscious financial future.
TopIntroduction
Blockchain technology and financial technology (FinTech) have the ability to unlock the mobilization of green capital. Innovative approaches are necessary to remove obstacles and enable new sources of money in the form of investments given the urgent need to combat climate change and advance sustainable development. These technologies make data management, information sharing, and transactions quick and easy as all of which are essential for the effective implementation of green finance programs. FinTech can bridge the gap between investors and green initiatives by utilizing the power of digital platforms, making it simpler for both sides to engage in sustainable investments (Dorfleitner & Braun, 2019).
The blockchain technology has special benefits for improving the security, traceability, and transparency of green finance transactions. This increased efficiency and trust in financial transactions may entice more investors to support green efforts, ultimately raising more money for sustainable projects. The barriers to the mobilization of green finance are the lack of awareness and understanding among potential investors (Nassiry, 2018). FinTech applications can address this challenge by providing user-friendly interfaces. By empowering individuals with knowledge and tools, FinTech can encourage more people to invest in sustainable projects, thereby unlocking new sources of finance for the green sector (Singh, 2019).
FinTech and blockchain technologies offer innovative solutions to overcome existing barriers in the field, promising not only to enhance the functionality of applications but also to unlock new avenues for investment and financial support in sustainable initiatives. The study critically evaluates both the benefits and limitations associated with the integration of finTech and blockchain in green finance (Singh, 2024). While improved accessibility, reduced costs, and increased liquidity emerge as advantages, challenges related to data privacy, regulatory uncertainties, and technological complexity are acknowledged. The regulatory landscape governing green finance, finTech, and blockchain is scrutinized, emphasizing the need for adaptive regulatory frameworks that foster innovation while ensuring the protection of stakeholders (Chen & Volz, 2021).
FinTech and blockchain can overcome geographical barriers by enabling cross-border investments in green projects. Through digital platforms and smart contracts, investors from around the world can participate in financing eco-friendly initiatives, regardless of their physical location. This global reach not only increases the pool of potential investors but also promotes knowledge sharing and collaboration among different stakeholders in the green finance ecosystem. The functionalities of FinTech applications and the capabilities of blockchain technology have the potential to unlock the mobilization of green finance by overcoming barriers and facilitating new sources of finance through investments. By harnessing the power of digital platforms and decentralized ledgers, FinTech and blockchain can foster transparency, efficiency, and trust in green finance transactions, attracting more investors and driving sustainable development worldwide.