The evolution of green fintech: Leveraging AI and IoT for sustainable financial services and smart contract implementation
1 Smith Business School, University of Maryland, USA.
2 Industrial Systems Engineering, College of Engineering, Alabama, USA.
3 Department of Communications Studies, New Mexico State University, USA.
4 Nigeria Deposit Insurance Corporation (NDIC), Strategy Development Department (SDD).
5 Department of Computing and Mathematical Science, School of Engineering, University of Wolverhampton.
6 Department of Managing Innovation and Information Technology, Salford Business School, University of Salford, Manchester.
7 Accounting Finance Economics and Decisions, Western Illinois University, Illinois, USA.
Review Article
World Journal of Advanced Research and Reviews, 2024, 23(01), 2710–2723
Publication history:
Received on 16 June 2024; revised on 24 July 2024; accepted on 26 July 2024
Abstract:
The convergence of financial technology and sustainability has given rise to green fintech, an innovative field leveraging cutting-edge technologies to address environmental challenges through financial solutions. This review explores the evolution of green fintech, focusing on the transformative roles of Artificial Intelligence (AI), Internet of Things (IoT), and smart contracts in developing sustainable financial services.
Through a comprehensive analysis of recent literature and case studies, we examine how AI enhances ESG assessments, enables data-driven sustainable investment strategies, and facilitates green lending practices. We investigate IoT applications in environmental monitoring, supply chain transparency, and smart grid integration, highlighting their contributions to sustainable finance. The implementation of smart contracts for sustainability is explored, discussing their potential in green bonds, carbon credit trading, and renewable energy markets.
The paper addresses key challenges facing green fintech, including data quality issues, privacy concerns, and regulatory uncertainties, proposing future directions for research and development. Our findings suggest that the integration of AI, IoT, and smart contracts in green fintech has significant potential to accelerate the transition to a sustainable global economy by embedding environmental considerations into financial decision-making at all levels.
This article contributes to the growing body of literature on sustainable finance, providing insights for practitioners, policymakers, and researchers. It underscores the need for a multidisciplinary approach to overcome technological, regulatory, and socio-economic barriers, paving the way for a more sustainable and technologically advanced financial ecosystem.
Keywords:
Green Fintech; Artificial Intelligence; Internet of Things; Smart Contracts; Sustainable Finance; Environmental Social and Governance (ESG)
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0