INVESTIGATING THE RELATION BETWEEN FINTECH AND SUSTAINABLE BANKING

Abstract

Since the Global Financial Crisis (GFC) in 2007 two important outcomes have affected banking development. The first refers to the launching of Bitcoin and distributed ledger technology that opened the doors to decentralized finance (DeFi), and thereby threatening to disintermediate banks in the banking value chain, while the second one relates to the increased visibility of the phenomenon of sustainable banking that highlights the importance of environmental awareness, social responsibility, transparency, and accountability. Even though these two outcomes may seem to lead banking development into divergent pathways, one might ask can the fintech companies contribute to building a more inclusive, resilient, and sustainable banking system. The aim of this research paper is to explore the intersection of fintech and sustainable banking by analyzing its purpose, fintech development and its role as a facilitator in the sustainable banking and, finally, by finding the intersection between them.