The role of Fintech and green bonds in sustainable finance: a comparative study among developing countries

Abstract

The research examined how financial technology (Fintech) and green bonds contributed to strengthening sustainable financing in developing nations. In recent years, there has been notable growth in the adoption of Fintech solutions in countries such as India, Brazil, Mexico, South Africa, and Indonesia, which has expanded access to financial services focused on environmental and social criteria, especially in traditionally excluded sectors. In India, technology companies such as Paytm and Razorpay facilitated digital transactions and promoted responsible investments. Brazil positioned itself as a pioneer in Latin America by issuing green bonds for forest conservation and renewable energy projects, supported by a regulatory framework that favored digital banking. In Mexico, the development of the green bond market was driven by institutions such as the Mexican Stock Exchange, while Fintech startups promoted products with an environmental and social impact. South Africa advanced by combining financial technology with sustainability-focused policies, financing projects in clean energy and green infrastructure. For its part, Indonesia stood out by launching the first Islamic green bond (Green Sukuk), accompanied by the support of digital platforms that channeled resources toward small-scale green initiatives. The study details that the integration of technological innovation and green financial mechanisms played a crucial role in these countries, contributing not only to economic development but also to addressing environmental challenges more efficiently.