Role of FinTech Innovations in Promoting Green Finance: Theoretical Insights from Pakistani Banks
Abstract
Purpose: The escalating impacts of climate change have strengthened the demand for sustainable financial systems, especially in emerging economies like Pakistan. Consequently, green finance has extended its significance as a key remedy for channeling financial resources toward environmentally sustainable activities. Instantaneously, the evolution in financial technology innovations, including fintech solutions, AI, digital banking, big data analytics, and blockchain technologies has reformed the strategic and operational dynamics of the banking industry. This study theoretically investigates the key role of financial technology innovation in promoting green finance among Pakistani banks.
Design/Methodology/Approach: Concerning the Technology Acceptance Model, Institutional Theory, and Resource-Based View, the study proposes an integrated framework explaining how financial technology innovations enhance green financing through greater efficiency, transparency, risk management, and financial inclusion.
Findings: Adopting a conceptual, theory-driven approach backed by extant literature, the study interprets the procedures through which digital financial tools facilitate green credit allocation, environmental risk assessment, and sustainable investment decisions.
Implications/Originality/Value: The study will contribute to green finance scholarship and offers policy-relevant insights for regulators and banking practitioners in developing economies. FinTech can grow to promote channels for multiple online products and expand installment strategies for the computerized economy to stay competitive and meet advancing client desires.
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