Editorial: Financial Technology (Fintech) and Sustainable Financing, 3rd Edition

It is an honor to serve as the Guest Editor for this Special Issue, “Financial Technology (Fintech) and Sustainable Financing.” This volume, which compiles 11 research papers, represents a significant contribution to a rapidly evolving and critical field.

The past few years have seen a remarkable convergence of financial innovation and the global sustainability agenda. We have witnessed the rise of Green Fintech, a rapidly expanding area that combines financial technology with environmental sustainability goals. This includes a wide range of innovations like platforms that facilitate the issuance of green bonds, applications that track and verify carbon emissions, and algorithmic tools that help investors assess the ESG (Environmental, Social, and Governance) performance of companies. By leveraging technologies such as blockchain and big data, Green Fintech can enhance the efficiency, transparency, and accessibility of sustainable financial activities, directly addressing the critical need to reallocate capital toward low-carbon and environmentally friendly solutions.

Concurrently, a holistic vision for economic growth is emerging through the blue economy, which focuses on the sustainable use of ocean resources. This concept goes beyond traditional maritime sectors like fishing and shipping to include new and innovative industries such as marine biotechnology, renewable ocean energy, and sustainable coastal tourism. It seeks to balance economic growth with environmental protection and social equity, acknowledging that the health of our oceans is intrinsically linked to global well-being. The financial mechanisms supporting this, such as “blue bonds” and “debt-for-nature swaps,” are innovative instruments that direct capital towards ocean-positive projects.

Meanwhile, decentralized finance (DeFi) has challenged traditional financial models by enabling peer-to-peer transactions through smart contracts on a blockchain, without the need for intermediaries like banks. DeFi’s potential for disintermediation, enhanced transparency, and greater efficiency is immense. Projects within this space are exploring how to tokenize real-world assets, create new credit systems, and build transparent, community-governed financial protocols. While still in its nascent stage, DeFi has the potential to reshape how capital is raised and allocated globally.

The rapid adoption of digital banking in emerging markets is a transformative phenomenon. Driven by high mobile phone penetration and a large unbanked or underbanked population, digital banking platforms are leapfrogging traditional brick-and-mortar financial infrastructure. This shift is not merely about convenience; it is a critical tool for achieving financial inclusion, providing millions with access to essential financial services like savings, credit, and insurance for the first time. For small business owners and individuals in remote areas, mobile financial services have created a direct pathway to the formal economy, fostering entrepreneurial activity and economic resilience.

Despite this progress, significant challenges remain. While overall digital banking adoption is increasing, there is a persistent digital divide based on factors like age, gender, and geographic location. The urban, young, and tech-savvy population often reaps the most benefits, while older, less digitally literate, or rural populations are left behind. Furthermore, issues of cybersecurity, data privacy, and a lack of clear regulatory frameworks create significant risks for both consumers and financial institutions.

Despite this rapid progress, a significant knowledge gap persists. The interdisciplinary nature of this field means that research often remains siloed, with sustainable finance scholars and fintech experts working in isolation. A critical need exists for research that explores the nexus of these two domains—understanding not just how to green finance, but how technology can be a scalable tool to achieve it. This Special Issue was conceived to bridge this gap. The papers within this volume collectively explore this convergence, addressing a range of topics from mobile financial services for sustainable agriculture to the role of crowdfunding in supporting green startups. By bringing these diverse perspectives together, this Special Issue serves as a foundational text that links technological innovation with tangible sustainability outcomes.

The work presented here is just the beginning. The next frontier of research lies in several key areas, particularly concerning the deeper integration and real-world impact of Green Fintech, the blue economy, and DeFi.

For Green Fintech and the blue economy, future research needs to move beyond conceptual frameworks and theoretical models to focus on empirical evidence. We need more data-driven studies that assess the actual impact of these technologies on achieving Sustainable Development Goals (SDGs), especially for SDG 13 (Climate Action) and SDG 14 (Life Below Water). For instance, research should investigate whether Green Fintech genuinely reduces carbon emissions and whether blue finance initiatives demonstrably improve marine ecosystem health. Additionally, scholars must explore the regulatory challenges and opportunities in these spaces, aiming to develop robust policy frameworks that can scale these innovations effectively while preventing greenwashing and ensuring accountability.

For DeFi, a central research challenge is reconciling its decentralized, often unregulated nature with the need for stability, consumer protection, and alignment with sustainable development. Future research should focus on how to build “permissioned” or “hybrid” DeFi models that can work alongside traditional financial systems and regulatory bodies to channel capital into sustainable projects. Another critical area is exploring how decentralized governance mechanisms, such as Decentralized Autonomous Organizations (DAOs), can be structured to make transparent and democratic decisions for environmental initiatives. Research is also needed to address the energy consumption of blockchain technology, with a focus on sustainable consensus mechanisms like Proof-of-Stake.

For digital Banking the work in this Special Issue serves as a springboard for a new and more nuanced research agenda. Future investigations should focus on several key areas. First, there is a pressing need for empirical studies on long-term impact. We must move beyond adoption rates to understand the actual, sustained effects of digital banking on poverty reduction, financial literacy, and gender equality in emerging markets. This research should employ longitudinal methodologies to track how digital financial services influence household welfare over time. Second, the role of governance and regulation requires much deeper scrutiny. Research should examine the effectiveness of different regulatory models, such as sandbox environments, in fostering innovation while protecting consumers. Researchers should also investigate how to create robust legal frameworks that address emerging risks like digital fraud, data breaches, and algorithmic bias, which could disproportionately affect vulnerable populations. A crucial area for future exploration is the behavioral and social dimensions of digital banking. This includes researching the factors that influence trust and acceptance among marginalized groups, exploring the role of financial literacy in technology adoption, and understanding how community-based social networks impact the spread and use of digital financial services. This will allow for the development of more inclusive and user-centric digital banking solutions that truly serve the entire population, bridging the gap between technological possibility and equitable reality.

Finally, a cross-cutting research theme is the social and ethical dimensions of all these technologies. How can we ensure that the benefits of Green Fintech and the blue economy are equitably distributed, preventing a new form of digital exclusion in developing economies? The papers in this issue lay the groundwork for a more cohesive and impactful research agenda. It is my sincere hope that this collection will not only serve as a valuable resource but also inspire the next generation of researchers to explore the exciting possibilities at the intersection of finance, technology, and sustainability.