Meeting ESG (environmental, social, and governance) standards is becoming an essential goal for businesses, one that is supported by both investors and customers. FinTech can help companies evaluate and reduce their environmental effect, as well as investors channel their operations toward more sustainable assets. Embracing sustainability has become one of the priorities for many fintech companies today. Green fintech innovations have provided technologically enabled solutions for financial services that help in increasing the flow of financial resources for sustainable development. Recognizing the importance of green fintech in today's scenario, this chapter will initially focus on the components of the fintech ecosystem and IoT and AI-enabled fintech innovations in India, drivers of green fintech potentials of green fintech IoT, and AI-enabled green fintech from global perspective and has highlighted the green fintech solutions provided by the topmost companies.
TopIntroduction
The financial crisis, which began in 2009 and continues to this day, had a great impact on the development of Fintech. Due to changes in market conditions, many Fintech innovations have emerged. As a result, the Fintech industry's emergence in the modern period is becoming more competitive (Arner et al., 2015). Fintech (financial technology) is one of the most commonly used buzzwords in the financial industry today (Mello, 2018). Fintech refers to a relatively new movement within the financial sector in which digital start-ups or existing IT corporations take use of society's rising digitization and connectivity to produce creative digital solutions to financial services (Gomberet al., 2017). Mobile payments, cryptocurrency, crowdsourcing, and other similar services are examples (Gozmann et al., 2018; Gomber et al., 2017; Punschmann, 2017).
Fintech has the potential to unlock green finance by disrupting technologies like Block chain, the Internet of Things, and big data, which were created concurrently with the Paris Agreement and the Sustainable Development Goals (Nassiry, D., 2018). The Fintech Ecosystem is a term used to describe the ecosystem of financial technology. Fintech ecosystems are intricate and dynamic. They've quickly grown to be one of the most important and difficult areas of the financial services business.
Fintech transformation has been implemented in different phases. In Fintech 1.0 the major focus was on transmission media and computers configurations. The financial technology products, such as SWIFT and ATMs, are result of these technologies. The Internet of Things was one of the related technologies during Fintech 2.0, but more data technologies like Big Data, AI, are utilized during Fintech 3.0 (Leong, K., and Sung A., 2018). Fintech 4.0 is the era of BigTech digital finance platforms (Arner, D. W.,et al., 2017).
AI research was first proposed in the 1950s by Alan Turing, while the name Artificial Intelligence was coined in 1955 by John McCarthy. Education, engineering, finance, healthcare, and marketing are just a few of the domains where AI has had a big impact. Artificial intelligence (AI) makes objects to extract, analyze, and respond instinctively like human mind, and does all this with higher accuracy, speed and correctly (Forbes, 2021).
Artificial intelligence (AI) is a disruptive technology that is in combination with robotics, is revolutionizing the operating model of all businesses (Ruiz-Real et al., 2021). AI in the financial sector retrieves requirements of the business for financial firms, agencies and markets and connects them with technological proficiencies (Golić, 2019). The major role of AI in Fintech are simulation, analysis, computations, predictions, forecasting, planning, optimizing, fault detections and recommendations (Cao, 2018). Artificial Intelligence and Big Data technology utilized in green insurance is priced smartly considering environmental risk for example Alipay for personal carbon account, AntForest to convert virtual tree plantation to real one, digital agricultural system where sensors collect real time ground data which is of high volume, velocity and variety and it is the transmitted to actuators to operate smartly and data is sent to AI for analysis and utilized by financial institutions for real time decision making (Yang, 2020).