[Research Contribution] Nexus between fintech and sustainable resource utilization for enhanced economic development: evidence from diverse set of countries

Keywords: Fintech; Green growth; Sustainable economic development; Financial technology; FINDEX; Green finance.

In the period from 2000 to 2022, more than 80% of the population in the countries studied faced air pollution levels exceeding the World Health Organization (WHO) recommended thresholds. In response to the need to balance economic growth and environmental protection, a study by a group of students from the University of Economics Ho Chi Minh City (UEH) clarifies the role of Fintech, while also pointing out that financial technology can only truly support green growth when developed and used with a sustainable orientation.

Fintech (Financial Technology), or financial technology, is the application of technology to innovate products, services, and operational methods in the financial sector. Thanks to this, transactions are carried out more quickly and conveniently, while also expanding access to financial resources for individuals and businesses.

In this study, the level of Fintech development is reflected through the number of secure Internet servers, the number of ATMs, and the FINDEX index constructed from these two factors. Green growth is measured based on various aspects, including economic growth, urbanization, energy, industrial activity, air pollution, and investment in research and development. This approach allows the authors to examine whether the expansion of financial technology simultaneously supports the economy in using resources efficiently and limits negative environmental impacts.

The connection between Fintech and green growth can begin with the digitization of financial activities. Paperless transactions help reduce the use of paper, cash, and some physical resources; while expanded financial accessibility can facilitate the flow of capital to innovative activities and sustainable development projects. However, technology only creates environmental benefits when its implementation and use are appropriately directed.

Does fintech really help make the economy "greener"?

The research results indicate that the number of secure Internet servers is positively correlated with green growth. Safe and developed Internet infrastructure helps people and businesses access information and digital financial services more conveniently, while also supporting the processes of exchange, cooperation, and technological innovation. This is the foundation for economic activities to operate more efficiently and expand resource utilization solutions in an environmentally friendly direction.

However, the results regarding the number of ATMs show the opposite trend. According to the authors, as financial accessibility becomes more convenient, consumer demand may increase, leading to the use of more products, energy, materials, and transportation services. The process of expanding, operating, and replacing equipment can also generate additional electronic waste. This finding suggests that the expansion of financial infrastructure does not automatically bring environmental benefits; the effectiveness also depends on the type of technology and how the technology is used.

When considering the overall picture through the FINDEX index, the research shows that Fintech has a positive correlation with green growth. The digitization of financial activities can enhance transaction efficiency, reduce dependence on paper and cash, and expand access to financial resources. This result demonstrates the potential of Fintech in supporting economic activities and the transition to a more sustainable development model.

For Fintech to truly become a driving force for green growth

Based on the research results, the authors recommend that countries continue to invest in Fintech infrastructure and expand access to digital financial services, especially in rural areas where infrastructure is still limited. Policies supporting Fintech startups, encouraging innovation, and prioritizing funding for technology solutions aimed at environmental goals can also provide additional momentum for green growth.

Developing infrastructure, however, is just the initial condition. Banks and financial institutions need to integrate sustainability criteria into their lending, investment, and insurance activities; at the same time, businesses can apply Fintech to measure, manage, and transparently disclose their environmental impact. When placed within a suitable development framework, Fintech can transcend its role of making transactions faster and more convenient to become an effective resource allocation tool, support green finance, and promote sustainable growth.

The research paper has indirectly contributed to SDG 8, 9, 13. View the full research paper “Nexus between fintech and sustainable resource utilization for enhanced economic development: evidence from diverse set of countries” TẠI ĐÂY

The authors: Nguyen Dang Dinh Loc, Tran Dinh Hoang, Doan Ngo Truong Vu - University of Economics Ho Chi Minh City.

This article is part of the Green Research Community series with the message “Research Contribution for UEH Living Lab Green Campus” UEH sincerely invites the community to follow the next Green Research Community newsletter.

More Information:

SDG 8 – Decent Work and Economic Growth focuses on building an inclusive economy that generates quality, fair, and sustainable jobs for all. This is not only about driving GDP growth but also about improving working conditions, expanding opportunities for youth and women, encouraging innovation, and developing businesses that integrate social responsibility.

SDG 9 – Industry, Innovation, and Infrastructure aims to build resilient infrastructure, promote sustainable industrialization, and encourage innovation. This goal goes beyond advancing technology and production; it also includes narrowing infrastructure access gaps between regions, supporting small and medium-sized enterprises, and applying technology to enhance global competitiveness.

SDG 13 – Climate Action calls for urgent measures to combat climate change and its adverse impacts by reducing greenhouse gas emissions, enhancing adaptive capacity, and raising public awareness. This goal goes beyond national-level policies and requires changes in individual and community behaviors in daily life, especially in areas directly linked to waste generation and management.

News, photos: UEH Green Campus Project, UEH Youth Union - Student Association, UEH Communications and Partnership Development Department

Voiceover: Thanh Kieu