What is green fintech?

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Broby, Daniel and Yang, Zhenjia (2025) What is green fintech? Journal of Risk and Financial Management, 18 (7). 379. ISSN 1911-8066 (https://doi.org/10.3390/jrfm18070379)

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Abstract

This paper addresses the definitional ambiguity surrounding the term “green fintech” and its distinction from related concepts such as green finance and sustainable finance. We argue that the lack of clarity impedes accountability and facilitates greenwashing. To resolve this, we develop a conceptual framework grounded in a six-step “litmus test” that specifies the necessary conditions for an initiative to qualify as green fintech. These include demonstrable environmental objectives, the application of innovative financial technologies, and regulatory alignment. The test functions as a diagnostic tool, enhancing verifiability and reducing the risk of misrepresentation. We illustrate its practical use and integrate the Dynamic Integrated Model of Climate and the Economy (DICE) to support the analysis. Green fintech is defined as the implementation of green climate objectives through the medium of financial technology. This contribution provides both definitional precision and a means to assess the credibility of green fintech initiatives, offering clarity in an increasingly complex and contested area of sustainable finance.

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