Fintech and Sustainability: A Comprehensive Literature Review

This report examines the evolving relationship between Fintech and sustainability, focusing on the impact of digital transformation and the rise of sustainable finance. It explores how Fintech innovations, such as digital platforms and applications, are influencing green finance, green investment, and socially responsible investing (SRI). The report delves into the challenges of greenwashing and deceptive practices within the financial sector, emphasizing the importance of consumer protection and regulatory oversight. It analyzes the potential of Fintech to promote sustainability by facilitating access to green investments and enhancing transparency. Furthermore, the report provides examples of Fintech initiatives like Clarity AI and Pensumo, along with proposals to improve the detection of misleading environmental claims by firms. The conclusion highlights the common aspects of sustainable finance and Fintech and underscores the significance of European and global regulations in this evolving landscape. The report also touches on the role of digitization, internationalization, and risk analysis in the financial field, highlighting the importance of Fintech's advantages, such as greater customer control and rapid financial decision-making.

sustainability
Review
Fintech and Sustainability: Do They Affect Each Other?
Cristina Chueca Vergara * and Luis Ferruz Agudo
Citation:Chueca Vergara, C.; Ferruz
Agudo, L. Fintech and Sustainability:
Do They Affect Each Other?.
Sustainability 2021, 13, 7012.https://
doi.org/10.3390/su13137012
Academic Editors: Salvador
Cruz Rambaud, Joaquín
López Pascual and Bruce Morley
Received: 14 April 2021
Accepted: 19 June 2021
Published: 22 June 2021
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Attribution (CC BY) license (https://
creativecommons.org/licenses/by/
4.0/).
Accounting and Finance Department, Faculty of Economics and Business, University of Zaragoza,
50005 Zaragoza, Spain; [e-mail]
* Correspondence: [e-mail]
Abstract: Current concerns about environmental issues have led to many new trends in techn
and financial management.Within this context of digital transformation and sustainable financ
Fintech has emerged as an alternative to traditional financial institutions.This paper, through a
literature review and case study approach, analyzes the relationship between Fintech and s
ability, and the different areas of collaboration between Fintech and sustainable finance, from
a theoretical and descriptive perspective, while giving specific examples of current technol
platforms. Additionally, in this paper, two Fintech initiatives (Clarity AI and Pensumo) are descri
as well as several proposals to improve the detection of greenwashing and other deceptive be
by firms. The results lead to the conclusion that sustainable finance and Fintech have many as
in common, and that Fintech can make financial businesses more sustainable overall by promo
green finance. Furthermore, this paper highlights the importance of European and global regu
mainly from the perspective of consumer protection.
Keywords:Fintech;sustainability;green investment;socially responsible investing (SRI);green
finance; greenwashing; digitization
1. Introduction
Currently, more and more new issues are emerging that affect financial managem
These are the consequence of increasing customer concerns for sustainability and res
for the environment in the goods and services they purchase and consume, as well as
growing digitization.
Important examples of these issues are corporate social responsibility (CSR) and e
ronmental, social, and governance (ESG) factors. Similarly, the 2030 Agenda for Susta
Development Goals (SDGs) promoted by the United Nations plays an important role
combating climate change.
The growing awareness of global warming and its negative impact on the plane
means that customers are increasingly demanding ecological or environmentally frie
products for a more sustainable lifestyle. Customers, investors, and public administrati
are exerting increasing pressure on organizations to obtain more transparent informa
on the environmental impact of their activities.For example,Nielsen Media Research
reports that “66% of global consumers” (and 73% of millennials) [1] “are willing to pay
more for environmentally friendly products. Thus, when these customers perceive firm
be socially responsible, they may be more willing to buy the products of these firms, an
a higher price” [2].
Hence, firms strive to differentiate their products and their brands from their c
petitors,setting up “green marketing” campaigns and modernizing their technologie
In addition, they compete for consumers’ approval by advertising their products as
vironmentally friendly.These green marketing initiatives “are helpful to consumers b
letting them know which products possess said green properties, but only if the claim
advertisements and product descriptions are honest and accurate” [3].
Sustainability 2021, 13, 7012. https://doi.org/10.3390/su13137012 https://www.mdpi.com/journal/sustainability

Sustainability 2021, 13, 7012 2 of 19
On the one hand, the innovations of green technologies provide additional financ
resources, because green investment is an alternative option for financing such mode
tion. On the other hand, the existing competition for obtaining green-oriented inves
and consumers leads to the use of “greenwashing” by companies as an unfair market
instrument [4].
Greenwashing is a set of deceptive behaviors or practices that deliberately mis
consumers about the ecological activities of an organization or the environmental ben
of a given product, which appear to be sustainable but are not. Such practices are cond
using ambiguous words and images in the description of the environmental feature
a product or via vague, unprovable, and even false ecological claims, exaggerating
ecological features of the product by omitting or masking important information, o
presenting data in a misleading way.
In other words, “greenwashing” is an attempt by a company to make its produc
appear environmentally friendly when, in reality, they are not. The concept was cre
by Jay Westerveld in 1986 and can be defined as “the intersection of two firm beha
iors: poor environmental performance and positive communication about environmen
performance” [5].
Certain factors, such as CO2-neutral certification, contribute to this phenomenon
they allow a highly polluting company to appear ecologically sound by attaching a gre
label with this kind of certification for its products. However, such labels are not al
meaningful,and it is important to distinguish reliable companies and those providing
independent verification with standardized protocols from those that are not.
Greenwashing practices undermine the credibility of any corporate social respons
ity (CSR) endeavor, since they threaten to negate the effects of communicating a comp
efforts to act in an environmentally and socially responsible manner. At the same time,
threaten to erode customer confidence. “Whereas reporting about corporate social re
sibility (CSR) initiatives is a reasonable and even often economically sound thing to
greenwashing threatens to dilute the entire CSR movement, thereby reducing the pre
on companies to act economically and socially responsibly”. Moreover, we must cons
that “greenwashing is hard to detect with reasonable effort, so it goes unnoticed m
the time”, and “even if greenwashing is detected, it is not perceived as very negative
As a result, “consumers increasingly mistrust statements regarding CSR, as they
pect they are being lied to, or important information is being withheld”. Moreover, bec
greenwashing is not often detected, it “thereby does not have any negative conseque
for the respective manufacturer or vendor” [3].
In addition, concern for the environment and sustainability not only affects consum
but also investors,who increasingly consider certain non-financialattributes in their
investments,such as environmental,social,and governance (ESG) criteria.Related to
this is socially responsible investment (SRI),which “appeals to investors who wish to
go beyond the financial utility of their investments and derive non-financial utility b
investing in companies that reflect their social values” [7].
It must also be considered that “investors are increasingly willing to incorpora
into their investment decisions not only financial criteria (returns and risk), but als
non-financial attributes of SRI” [8] and that “country-specific factors tend to affect the
relationship between corporate social and financial performance” of a company. Anot
issue to bear in mind is that “there is some evidence that the label “socially respon
might be more a marketing strategy, thus not assuring investors that an SRI fund is r
socially responsible” [8].
Related to the above are “green bonds”, a type of fixed-income instrument app
exclusively to the partial or full financing or refinancing of eligible green projects, whe
new and/or existing,which are in line with the four core components of Green Bond
Principles (GBP) [9]. There are different kinds of green bonds on the market, and in 201
$257.7 billion in green bonds were issued, a 51% increase on the 2018 figure and cons
a new world record [9].

Sustainability 2021, 13, 7012 3 of 19
Furthermore,as the supply and demand for sustainable financing have evolved,
several providers of (new) products and services have emerged over recent years. T
providers offer solutions for the (new) needs or demands set out in the new sustainab
paradigm.These new products and services have emerged in support of the ecologic
transition process to promote the link between sustainability and economic and finan
activities. Their various objectives include increasingly available information on clim
support for the design of more sustainable products and services; and the improvem
of public transparency and information. For example, in Spain, the Fundación Ecolog
Desarrollo, or ECODES (Ecology and Development Foundation), offers a climate-chan
risk assessment model that enables the financial sector to assess the predisposition to
and opportunities of its credit and investment portfolios. This service was designed to
used by the banking sector, but is also useful for other financial sector entities, such as
managers, investment advisers, insurance companies, and public sector entities in ch
of socio-economic planning and development [10]. On a global level, the organization that
conducts this kind of activity is the Intergovernmental Panel on Climate Change (IP
the United Nations body for assessing the science related to climate change [11].
Notwithstanding the above, digitization, internationalization, and risk analysis m
not be forgotten.These are some of the most widespread business practices in the cu
rent era and are being increasingly used in the financial field, in general, and finan
management, in particular.
Within the digitaland technologicalcontext,the specialimportance of so-called
“Fintech” must be highlighted. Fintech refers to the latest technologies used in innov
financial products and services. This is one of the most important new markets in re
times, and this cutting-edge business model has great potential for the collaboratio
different types of institutions, both public and private.
Fintech [12] comprises digital innovation and modern technology to improve,de-
velop, and automate financial services and is used to assist and support firms, inve
and customers in managing their financial activities using specialized applications
software [13]. Fintech generally attracts customers with more user-friendly, efficient, tr
parent, and automated products and services [14].
More specifically, Fintech includes new applications, processes, products, and bus
models in the area of financial services, consisting of one or more financial services, m
or entirely provided over the internet, “simultaneously by various independent serv
providers,typically including at least one licensed bank or insurance company” [15].
Some of the financial services provided may include investment advice (robo-advisi
credit decisions, asset trading, digital currencies, automatic transactions, payment se
crowdfunding, person-to-person transactions (P2P), and smartphone wallets [15].
The current era in the evolution of Fintech is called “Fintech 3.0”, which began
2008,and whose first years were dominated by the global crisis and financial turmo
when there was a loss in trust in the banking system.Then, technological firms began
to operate using peer-to-peer networks outside the regulatory framework (in fact, 2
of these platforms were developed in China) [16] and to apply new technologies in the
financial markets, changing the way of doing business in all financial sectors [17]. This
development is ongoing [17], and banks today are being displaced by technological fi
and start-ups at a rapid pace [16]. According to Moro-Visconti, Cruz Rambaud, and López
Pascual, some of the reasons for this rapid evolution of Fintech are the sharing and cir
economy, favorable regulation, and information technology [14].
Initially, the largest Fintech market was developed in the US, followed by the U
(the most important Fintech market in Europe) [18]. The European and American Fintech
properties and background differ from the Asian Fintech, which specifically offers solu
for a lack of existing banking infrastructure [19].
Establishing Fintech is easier in well-developed economies, because the infrastruc
and market regulations are there already. This infrastructure and affordable technolog
critical to creating sustainable, unique financial innovation, although Fintech developm

Sustainability 2021, 13, 7012 4 of 19
often occurs in economies where access to loans is more difficult [18]. In fact, “scalability
plays a key role in new financial start-ups, and Fintech’s profits remain quite small
a scalable number of customers has been convinced. This scalability of processes c
achieved by platform creation,which leads to economies of scale and,hence,reduced
costs, and user networks being built” [17]. Additionally, “financial inclusion can positively
affect the economy in terms of poverty reduction and economic growth, and innovatio
in digital finance can positively influence banks’ performance and profitability” [17,20].
“Fintech’s key advantages are greater control of customers’ personal finance, rapid fin
decision-making, and the ability to make and receive payments within seconds, althou
this results in a trade-off between efficiency and (data) security” [17,20]. Therefore, “from
a regulatory perspective, the greatest challenges are then to ensure both consume
investor protection and to guarantee financial stability” [17].
Fintech “allows performing business transactions from anywhere at any time, wh
gives flexibility to all actors” [13]. Companies that have developed Fintech have more
innovative methods of extending banking services to customers and investors throu
cellphone apps, with increased flexibility and efficiency of financial services, and with
promise of saving time and costs through the use of digital technologies [13]. Furthermore,
Fintech is a key driver “for financial development, inclusion, social stability, and integ
and consequential sustainable development through building an infrastructure for
innovative digital financial ecosystem” [12]. It makes financial services more accessible,
efficient,and affordable for customers and changes the ways of providing traditiona
services, representing the digitization of the financial industry [17].
“Fintech is also regarded as an engine for sustainable economic growth as a ne
industry having different characteristics from the traditional financial industry”. With h
expectations for growth, global Fintech investments have greatly increased. In fact, K
reported that “global investment in Fintech has doubled more than six times, from $
billion to $111.8 billion between 2013 and 2018” [21].
Moro-Visconti, Cruz Rambaud, and López Pascual state that, “despite the young
of Fintech,many of these firms are experiencing significantly faster growth than the
traditional financial services peers” [14]. In addition,since they belong to a growing
industry and not a mature one, they are slightly more volatile than IT firms and mu
more volatile than traditional, established banks.This higher volatility was reflected in
March 2020 in a much steeper fall than banks,followed by a more sustained recovery,
“incorporating the digital resilience typical of most technological firms”. “Whereas Fint
and technology stocks have fully recovered from the negative peak of 23 March 2020,
(as of 30 June 2020) were still some 25% below their pre-COVID-19 prices” [14].
Experts claim that “Fintech has the potential to disrupt and transform the finan
sector by making it more transparent, secure, and less expensive” [15], as financial products
traditionally offered by licensed credit institutions (payment services and loans, am
others) are now also offered by Fintech.It supports a greater diversity of products and
providers, and offers improved risk management, with its ability to obtain instant custo
feedback and use it to power real-time adjustments in the services offered [14].
However, for the last decade, large financial institutions have increased their inte
along with investments, in Fintech innovations, to the point that, in 2019, most compet
financial institutions considered Fintech to be their major investment [15]. Both operate
in the same (financial) market and sometimes share customers [14]. In fact, it is expected
that financial institutions will be able to reduce their costs and increase customer incl
with the help of Fintech,leading to an increase in profits.Thus,Moro-Visconti,Cruz
Rambaud,and López Pascual also believe that Fintech will “disrupt and reshape the
financial industry by cutting costs, improving the quality of financial services, and crea
a more diverse and more stable financial landscape” [14]. It will also lead to greater access
to finance and investment, which offers great potential to transform not only finance
economies and societies, in general, through financial inclusion and sustainable, bala
development [14].

Sustainability 2021, 13, 7012 5 of 19
At present, new sector entrants aim to develop new, more customer-centric and d
itally enabled services and, with key technology evolving “rapidly alongside changi
consumer needs, industry leaders will be forced to compete with start-ups and tech com
nies for the new business models” [15]. Market leaders can benefit from this technological
disruption, since “they have more financial resources and greater economies of sca
introducing new lines of business, compared to competitors”, and the “amount of resou
allocated to R&D&I can increase the agility of market leaders to mitigate damage f
potential external disruptive innovations” [15].
“Fintech’s technological advantage over traditional financial institutions is the
driver of success and competitive advantage. Fintech’s technologies should have a va
added for the customer (“customer-centricity”), and mobile and data-based services
enhance efficiency.Another characteristic of Fintech is its ability to connect people o
services through platforms” [17].
“Nowadays,customers choose the best service from a variety of companies,and
traditional financial institutions increase their investments in external financial star
to stay competitive” [17]. This type of collaboration between Fintech and traditional
institutions can take different forms, such as partnering, outsourcing, or investmen
venture capitalist [17].
Banks have changed their role in funding new financial technology entrepreneu
since they now serve as a major provider of funding for young companies. Thanks to di
technology development, they have shifted from traditional money-lending activitie
become stakeholders in Fintech and, therefore, equity investors [17]. Some authors [17]
recommend “collaboration and trust-based relationships to mutually benefit Fintech a
established banks”, as Fintech “must be operated by experienced founders with a c
vision”,because “investors expect founders to run the business successfully from D
1” [17]. Moro-Visconti, Cruz Rambaud, and López Pascual state that all these ideas ca
summarized by the word “co-opetition”, according to which Fintech and banks are b
able to compete and cooperate [14]. It is frequent practice for banks to internalize Fintech
by buying it, so both “converge towards a common market, with co-opetition strate
that reduce conflicts of interest and other governance concerns. This strategic conver
is also catalyzed by the very fact that banks are digitizing their business models,thus
reducing their atavistic differences” [14].
Fintech is the most cutting-edge technological innovation in the field of finance
though most Fintech is specialized in one market segment, it can create value in ev
field of finance, using different business models, such as: payments, wealth managem
crowdfunding,lending,and capital market business models [17]. They also use vari-
ous tools, such as “cryptocurrencies and blockchain, new digital advisory and tradi
systems, artificial intelligence and machine learning, peer-to-peer lending (P2P), eq
crowdfunding, and mobile payment systems” [22]. Currently, M-banking (mobile banking)
and digital payments are the most popular Fintech solutions, with growing significa
due to contactless pandemic prescriptions [14].
Fintech is quite disruptive because of its great innovations for the financial sys
and other infrastructure, which affect many other areas, such as the economy, societ
the energy sector [22]. Furthermore, Fintech has several effects on social, environmen
and ecologicalbenefits in promoting the use of funds for energy and environmental
projects, as well as the construction of renewable energy and environmental infrastru
“leading to environmental and ecological development by providing cheap and adequ
financing” [22].
To summarize, Fintech offers new ways of doing business in financial markets thro
the implementation of platforms, thanks to “technological implementation, related di
economy business models, and integrated services from different areas”, providing “o
ings beyond the traditional banking boundaries” [17]. Moreover, technology is creating
value in financial services, as costs are being dramatically cut (for instance, branch

Sustainability 2021, 13, 7012 6 of 19
customers do not need to spend time or energy going to the bank), revenues are increa
because banking is available anytime and anywhere, and transactions are faster [14]
The main purpose of this paper is to research the relationship between Fintech
sustainability, analyzing the particular case of two different Fintech initiatives:“Clarity
AI” [23], a technological platform aimed at aligning financial portfolios with ESG crite
and “Pensumo” [24], which is linked to consumption and savings for pension plans.
Specifically, the effect of greenwashing in Fintech companies and the possibility of
Fintech to promote sustainability will be analyzed, and how “Clarity AI” and “Pensum
can contribute to this goal will be discussed. A set of recommendations and improvem
measures will be proposed for apps related to sustainability, corporate social responsib
(CSR), and greenwashing, all via a literature review and case study approach.
This paper contributes to a global view of the subject by harmonizing theoretic
literature about Fintech,the digital transformation context,and sustainability,as well
as presenting several practical examples that consider sustainable and environmen
concerns. Furthermore, the paper proposes a wide range of improvement measure
emphasizes the importance of consumer protection in the digitization and financial con
The paper is organized as follows: first, the materials and methods used in the rese
will be explained; then, the Fintech and sustainability research results will be analy
paying particular attention to two Fintech platforms (Clarity AI and Pensumo). Propo
for improvement will then be discussed, and conclusions will be drawn.
2. Materials and Methods
This paper will analyze and study the relationship that exists between Fintech
sustainability via a fundamentally theoretical and descriptive methodology, with a rev
of the literature and several current Fintech examples.
To conduct the research,this paper builds upon a number of articles and reports,
selected mainly from SSRN and the Sustainability journal, as is the case with Moro-Vis
R.; Cruz Rambaud, S.; López Pascual, J., Sustainability in FinTechs: An Explanation thr
Business Model Scalability and Market Valuation.Sustainability 2020, 12, 10316.These
authors firmly believe that Fintech plays a key role in the quest for sustainability.
These articles pose several issues related to greenwashing, sustainability, and Fi
from a general perspective, offering examples of currently sustainable Fintech, as se
Table 1.
Two interesting reports from Afi and Spainsif have been used for further introduct
information.
In addition to these academic resources,several Fintech websites were visited for
actual examples, and the sites of Pensumo and Clarity AI were used to provide an in-de
description of Fintech. Other Fintech websites visited are listed in the References sec
(The Pensumo Brochure was a useful tool in describing Fintech).
Table 1. Literature Review.
Section Articles
Introduction
de Freitas Netto, S.V.; Sobral, M.F.F.; Ribeiro, A.R.B.; Soares, G.R.L. Concepts and forms of greenwash
systematic review. Environmental Sciences Europe 2020, 32(19).
Gräuler, M.; Teuteberg, F. Greenwashing in Sustainability Communication—A Quantitative Investigation
Trust-Building Factors. 2014.
Pimonenko, T.; Bilan, Y., Horák, J.; Starchenko, L.; Gajda, W. Green Brand of Companies and Greenwas
under Sustainable Development Goals. Sustainability 2020, 12(4), 1679.
Delmas, M.A.; Burbano, V.C. The Drivers of Greenwashing. California Management Review 2011, 54(1)
Gräuler, M.; Teuteberg, F. Greenwashing in Online Marketing—Investigating Trust-Building Factors Influe
Greenwashing Detection. 2014.
Badía, G.; Cortez, M.C.; Ferruz, L. Socially responsible investing worldwide: Do markets value corporate
responsibility? Corporate Social Responsibility and Environmental Management 2020, 27, 2751–2
Badía, G.; Ferruz, L.; Cortez, M.C. The performance of socially responsible investing from retail investo
perspective: international evidence. International Journal of Finance & Economics 2020.

Sustainability 2021, 13, 7012 7 of 19
Table 1. Cont.
Section Articles
Results
Zhang-Zhang, Y.; Rohlfer, S.; Rajasekera, J. An Eco-Systematic View of Cross-Sector Fintech: The Case of Al
and Tencent. Sustainability 2020, 12, 8907.
al Hammadi, T.; Nobanee, H. FinTech and Sustainability: A Mini-Review. SSRN Electronic Journal 20
Moro-Visconti, R.; Cruz Rambaud, S.; López Pascual, J. Sustainability in FinTechs: An Explanation throu
Business Model Scalability and Market Valuation. Sustainability 2020, 12, 10316.
Kabulova, J.; Stankeviˇcien˙e, J. Valuation of FinTech Innovation Based on Patent Applications. Sustainability2020,
12, 10158.
Fernandez-Vazquez, S.; Rosillo, R.; de La Fuente, D; Priore, P. Blockchain in FinTech: A Mapping Stud
Sustainability 2019, 11, 6366.
Hommel, K.; Bican, P.M. Digital Entrepreneurship in Finance: Fintechs and Funding Decision Criteria
Sustainability 2020, 12, 8035.
Haddad, C.; Hornuf, L. The emergence of the global Fintech market: Economic and technological determ
Small Business Economics 2019, 53, 81–105.
Arner, D.W.; Barberis, J.; Buckley, R.P. The Evolution of Fintech: A New Post-Crisis Paradigm? Georget
Journal of International Law 2016, 47, 1271–1319.
Ozili, P.K. Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review 2018, 18,
Ryu, H.S.; Ko, K.S. Sustainable Development of Fintech: Focused on Uncertainty and Perceived Quality I
Sustainability 2020, 12, 7669.
Deng, X.; Huang, Z.; Cheng, X. FinTech and Sustainable Development: Evidence from China Based on P2P
Sustainability 2019, 11, 6434.
Alonso, A.; Marqués, J.M. Financial Innovation for a Sustainable Economy. Banco de España Occasional
2019, 1916.
Macchiavello, E.; Siri, M. Sustainable Finance and Fintech: Can Technology Contribute to Achieving
Environmental Goals? A Preliminary Assessment of ‘Green FinTech’. European Banking Institute Workin
2020, 71
Arner, D.W.; Buckley, R.P.; Zetzsche, D.A.; Veidt, R. Sustainability, FinTech and Financial Inclusion. Eur
Banking Institute Working Paper 2019, 41; University of Luxembourg Law Working Paper 2019, 006;
Research Paper 2019, 63; University of Hong Kong Faculty of Law Research Paper 2019, 038; Europea
Organization Law Review (Forthcoming).
Anshari, M.; Almunawar, M.N.; Masri, M.; Hamdan, M. Digital marketplace and FinTech to support agricu
sustainability. Energy Procedia 2019, 156, 234–238.
Leong, C.; Tan, B.; Xiao, X.; Tan, F.T.C.; Sun, Y. Nurturing a FinTech ecosystem: The case of a youth mic
startup in China. International Journal of Information Management 2017, 37(2), 92–97.
Caseiro, N.; Coelho, A. The influence of Business Intelligence capacity, network learning and innovativen
startups performance. Journal of Innovation & Knowledge 2019, 4(3), 139–145.
Crovetto, M. Proyectos Sociales—La Responsabilidad Social Corporativa. Final Degree Dissertation,
Universidad de Barcelona, Barcelona (Spain), June 2017.
Discussion
Macchiavello, E.; Siri, M. Sustainable Finance and Fintech: Can Technology Contribute to Achieving
Environmental Goals? A Preliminary Assessment of ‘Green FinTech’. European Banking Institute Workin
2020, 71.
Moro-Visconti, R.; Cruz Rambaud, S.; López Pascual, J. Sustainability in FinTechs: An Explanation throu
Business Model Scalability and Market Valuation. Sustainability 2020, 12, 10316.
3. Results
3.1. Fintech and Sustainability
In recent years, considerable progress has been made in the areas of both Fintech
sustainability [14]. The financial sector plays a key role in the challenge to mitigate clim
change, one of the primary risks facing our society in the coming decades. In this con
according to Moro-Visconti, Cruz Rambaud, and López Pascual, “sustainability has gro
from a niche preoccupation for business to a mainstream concern” [14], and the financial
sector has the task of financing the investments needed to transform our economy i
more sustainable one [25]. There are various initiatives in the private financial sector aime
at introducing “sustainability” into its decision-making process to “achieve a balance sh
with a smaller carbon footprint and to develop a business strategy aligned with respon
investment principles and international standards” [25]. These new financial services

Sustainability 2021, 13, 7012 8 of 19
relating to sustainability are provided by both traditional suppliers and, above all, Fint
It must be noted that the COVID-19 pandemic has demonstrated the existing link betw
sustainability, finance, and technology, since all countries have been urged to re-thin
traditional models and to rely more heavily on technology and sustainability [26].
The development of new technologies has transformed the financial sector, and cli
risk management is an important part of this transformation. Furthermore, sustainab
criteria may play an important role in all these changes. Certain initiatives are being in
ingly used, such as applications that employ artificial intelligence techniques to mo
the sustainability metrics cited in firms’ annual reports and financial statements [25]
Although technology is not often associated with environmental goals, Fintech sho
coherence and continuity with the ESG world, aimed at a “more inclusive, ESG-resil
circular, and environment-friendly financial system supporting sustainable developme
In fact, “the G-20 has included “Sustainable digital finance” as one of its 2030 work-str
and the UN,since 2016,has been studying the link between Fintech and Sustainable
development” [26].
Digital finance and Fintech both play a part in SDG achievement. One of the way
which they do so is by enhancing the allocation of existing financial resources to supp
sustainable development, which occurs through “business models, incentives, policies,
regulations to redirect financial resources globally and in individual countries to prov
SDG-related finance”. Some examples of this process include ESG and socially respon
investment (SRI) and the significant growth of ESG-related financing in the EU, China,
Japan [27].
The authors of [14] state that Fintech “could help accelerate the development of
green and inclusive financial markets and help realign finance to support sustainab
development”, as “it offers the prospect of quickening the integration of the financial s
with the real economy, which will in turn enhance opportunities for greater decentraliz
and increased participation”.
Moreover, the traditional barrier between developed economies and emerging
kets is being lowered thanks to the rapid digitization and development of the Finte
industry. Thus, Moro-Visconti, Cruz Rambaud, and López Pascual state that Fintech
“the potential to mobilize green finance and, for instance, enable poorer people aroun
world to access innovative clean energy projects” [14]. In addition, these authors believe
that Fintech “can unlock greater financial inclusion for new businesses that will de
both impact and financial returns; mobilize domestic savings at scale by providing chan
or platforms for retail investors to access impact investing opportunities; collect, ana
and distribute information on both financial performance and impact performance
better economic decision-making, regulation, and risk management; and provide finan
markets with the level playing-field and market integrity needed for long-term sustaina
investment” [14].
One of the main fields of collaboration between Fintech and sustainable financ
crowdfunding, which involves either individuals or enterprises being provided with
large number of small amounts of money from other users via an online platform. T
green crowdfunding platforms and apps can help environmentally sustainable firms ob
finance and resources in a faster, cheaper, and more affordable way. In addition, these
crowdfunding platforms offer investors the chance to invest their money in sustain
initiatives [26].
Some examples of this are the following: “Abundance” [28] (UK), which allows invest-
ments in renewable energy projects and in generating and selling low-carbon elect
having set up a marketplace where users can buy or sell financial instruments previo
issued on the platform; “Ecomill” [29] (Italy), which promotes online equity investments to
low-environmental impact projects and local renovation; and Lendosphere [30] (France),
which provides loans from individuals for enterprises in the renewable energy sector26].
In addition, blockchain technology has great potential in the sustainable finance se
In fact,tokens are usually used to reward contributions to lower carbon emissions o

Sustainability 2021, 13, 7012 9 of 19
other green behaviors, thus creating incentives for the use of solar panels.For instance,
Drop in the Ocean [31] (Switzerland) is a platform that brings together individuals and
businesses and rewards responsible behavior with a virtual currency, which can be
to buy services or products from participating businesses. Climatrade [32] (Switzerland)
has created a market in carbon credits represented by tokens, which can be used to o
carbon emissions by buying from mitigation projects.Similarly, SolarCoin [33] rewards
solar energy producers with coins that can be exchanged, used in participating busine
or traded in market exchanges; and Power Ledger [34] (Australia) has created a trading
platform based on blockchain technology where residents can trade solar energy [26
Then, artificial intelligence (AI) and big data analytics are used to collect and pro
information on companies and their environmental behavior. For instance, RepRisk35]
(based in Switzerland but with a global reach) uses both artificial intelligence and hu
analysis to translate big data (not only publicly disclosed information but also satel
data), in twenty languages, into research and metrics, evaluating the ESG risks of liste
non-listed companies [26]. Sustainalytics [36] (Netherlands) uses big data and AI for the
cheaper incorporation of ESG considerations into investment decision-making [26]. Other
initiatives are Your SRI [37], which uses traditional financial data, ESG data and carbon
data to automatically determine a fund’s ESG score and its carbon footprint [26], and APG
(Netherlands), which [38] “has scanned more than 10,000 companies in twelve month
for sustainability contributions, while Ecochain [39] software maps the entire life cycle
of companies, including their environmental footprint, allowing the creation of carb
savings certificates digitally” [26].
All the tools and platforms mentioned above are summarized in Table 2.
Table 2. Green Fintech fields/tools and main platforms.
Fields/Tools Platforms
Crowdfunding
Abundance (UK)
Ecomill (Italy)
Lendosphere (France)
Blockchain technology
Drop in the Ocean (Switzerland)
Climatrade (Switzerland)
SolarCoin (global reach)
Power Ledger (Australia)
Artificial intelligence (AI) and
big data analytics
RepRisk (based in Switzerland but with a global reach)
Sustainalytics (Netherlands)
Your SRI (available in 14 countries)
APG (Netherlands)
Ecochain (Netherlands, but available in more than
10 countries)
Prepared by the authors, based on [26].
In addition to these platforms, it is necessary to highlight the important role of Fin
in the process of transforming agriculture’s business process into a more sustainable
In this context, Fintech offers farmers different ways of obtaining funding, through cro
funding and digital payment systems, as well as a digital marketplace that can connect
actors (farmers, landowners, investors, and consumers) into a platform that can prom
transparency, empowerment, resourcefulness, and public engagement in agriculture”.
strategy contributes to increasing competition among suppliers and improves the sus
ability of agricultural products, since customers are able to see prices, compare prod
and be aware of their sustainable features, paying directly using Fintech [40].
Other Fintech, such as 007fenqi in China, gives young people greater access to fin
products and services, as they are often excluded from most financial services. 007fenq
only offers microloans to college students but is centered on their needs and offers ser
in four areas: spend, loan, earn, and invest. For instance, it offers them assistance in fi

Sustainability 2021, 13, 7012 10 of 19
part-time jobs or internship opportunities “so that they can earn an income and make t
repayments on time”, and “one of its main purposes is to educate Chinese youth about
importance of financial responsibility” [41].
To summarize, it is possible to verify that “sustainable Finance and Fintech sec
present many common aspects, and their linkage offers interesting synergies and g
potential” [26]. In fact, Fintech can make the overall financial business more resilient a
sustainable, as it promotes both sustainable development and green finance [14]. “Financial
technology is also an excellent tool to build sustainable communities and lift povert
it promotes responsible consumption and production” [14]. In addition, “Fintech itself
is environment-friendly, facilitating green finance, reducing asymmetric informatio
investors, promoting efficiency, valuing nature’s assets, and backing sustainable lifes
inspired by a sharing or circular economy” [14].
Two Fintech initiatives related to sustainability, socially responsible investment,
green behavior are described and examined below. The first is Clarity AI, a global Fin
which operates in the artificial intelligence sector, and the second is Pensumo.
Among the reasons for the choice of Clarity AI are the great potential of the artifi
intelligence sector, as well as the numerous awards that this Fintech has won in re
years. Moreover, it is worth noting its unique methodology, which can have a signifi
impact on the decision-making process of investors and could be extended to other ar
As far as Pensumo is concerned,there are many reasons that justify the choice of
this Fintech.Firstly,it is a financial services Fintech company that we know in depth
because of professional reasons. Secondly, it has received many national, European
international awards and has an excellent track record of growth. In addition to consid
sustainability from a financial perspective, it seeks to promote responsible behavio
attitudes among consumers by rewarding certain actions and proposes an original met
to complement the pensions system.
3.2. Clarity AI
Clarity AI [23] is a global Fintech company founded by Rebeca Minguela in 2017, wi
offices in the USA, UK, and Spain and clients all over the world.
Clarity AI is a “societal impact rating agency and tech company offering a softw
solution for investors to optimize the societal and environmental impact of their investm
portfolios”.It allows investors to manage the social impact of their portfolios throug
technological platform using big data and machine learning to assess the sustainability
environmental impact of more than 30,000 firms in 198 countries, 187 local governm
more than 200,000 funds, and following 1000 indicators.
The main objective of Clarity AI is to measure the social and environmental imp
of companies. Investors often find it difficult to assess the impact of their investments
there are limited and unreliable data, so it is laborious and expensive for them to d
clear and simple conclusions. Clarity AI offers an easy solution to this problem through
technological platform. It “aggregates multiple data sources and selects the most reli
ones” and “offers the largest coverage of social and environmental impact data abo
publicly traded securities in the market, with the highest level of reliability and accur
Clarity AI contributes to more socially and environmentally efficient capital allocat
To achieve this goal, it provides decision makers with “the most reliable and comprehe
tools to understand and optimize social and environmental impact, leveraging scien
research and the latest technologies” [23].
Fintech offers an “end-to-end technology solution based on scientific research, qu
tative assessment, and global preferences that optimizes the societal impact of invest
portfolios” [23]. To do this, Clarity AI enables investors to import or create a portfolio
securities and either select their social and environmental personal preferences or
Clarity AI to apply the global standard.Then,it shows investors the social and envi-
ronmental impact and the financial performance of the portfolio they have created.
portfolio can be rebalanced by considering Clarity AI’s recommendations on how to o

Sustainability 2021, 13, 7012 11 of 19
mize social and environmental impact and financial performance. As a result, inves
have a rebalanced portfolio based on their initial preferences, interests, and conscienc
by considering social and environmental issues and leveraging multiple sources of
and information.
It must be noted that Clarity AI has a unique and proprietary societal impact meth
ology, which measures and assesses not only how companies behave but also, and
importantly,the social impact of these companies.This Fintech company believes the
traditional ways of financial markets to evaluate and measure the impact of companie
society, which consists of using ESG indicators, is limited, because it considers only
companies behave in the three dimensions of ESG (environmental, social, and governa
without considering the relevance to society of the products and services offered by t
companies. With its methodology, Clarity AI expands the ESG framework to “clarify
real impact of the companies on society” [23].
An important part of the mission of Clarity AI is to communicate “the importan
of understanding and optimizing societal impact, leveraging the latest technologies
recent years,this revolutionary Fintech company has received wide recognition for it
positive impact and innovative approach and was selected as a 2020 Technology Pio
by the World Economic Forum.In addition, it was selected by the Harvard Innovation
Lab “as one of the most innovative projects in the United States to participate in a one
research project to develop the social impact measurement methodology”.It has also
gained funding from Horizon 2020 and the European Union Research and Innovati
program and has been ranked among the top 14 start-ups with global impact from
more than 1900 candidates by Impact Growth.
This is an example of business intelligence (BI), since it uses technology to pro
information in order to improve decision making and to predict the behavior of portfo
and companies with a degree of certainty. Clarity AI converts data into useful knowle
and then makes better and faster decisions. In fact, this knowledge is a source of comp
advantage for Clarity AI,as there is a positive relation between business intelligence
characteristics and innovation in startups [42].
3.3. Pensumo
The Fintech Pensumo (Pension by Consumption) was created by José Luis Orós
Its main objective is to make micro-contributions to a private pension plan through
daily consumption,and its vocation is a collaborative and responsible economy to ob
tain social benefit.
It is registered in Spain and Europe under the corporate name “Plataforma de
delización PENSUMO S.L.” and aims to introduce the so-called “Pension by Consumpti
into Spain, a new (non-equity) savings model that links the daily actions of consumpti
recycling, sports activities, and good practices as a citizen, for example, with the rece
users of economic micro-contributions for a lifetime, in a savings plan that grows as t
actions are carried out for as long as money accumulates in the plan [43].
Due to the aging of the European population, the decrease in the number of So
Security contributors,and the inability of the general population to save enough,the
viability of the pension system is in danger. In this context, the European Union’s W
Paper on Pensions proposed improving private savings plans and developing plans
promote long-term saving by the public through the introduction of certain incentiv
Along the lines of these European recommendations, Pensumo provides an innovative t
to supplement pension savings.
According to several market studies and the data obtained in the two pilot years w
almost 2000 users and 100 stores, it was estimated that 6.5% of the Spanish popul
over the age of 18, that is, around 3 million people, will be Pensumo users. These user
mainly women between the ages of 35 and 40 who shop at service stations, hairdre
and sports stores [43], who are concerned about their future but lack the ability to save
a regular basis.

Sustainability 2021, 13, 7012 12 of 19
Thus, Pensumo can be said to offer a unique savings system. The app and the C
that controls the data must be downloaded and, from then on, customers go about
everyday activities (shopping,recycling,sports activities,cultural consumption,road
safety, and volunteering, among others) and justify them via the app, so that these ac
are measured and rewarded by businesses and partners.Thus, consumers can use their
smartphone as an instrument to save from contributions given as an incentive and in re
for sustainable, responsible, and ethical purchases made or activities performed. In sh
is a system of savings generated from a set of responsible actions measured via cellph
There are two ways of saving using Pensumo: either purchases in affiliated store
by taking part in challenges, as the app promotes campaigns that motivate responsible
collaborative actions (e.g., recycling, road safety, and “I go by bike”), whose condit
are indicated in detail for each campaign.For purchases, each business has a different
contribution percentage, whereas for challenges, contributions are fixed but can vary
one challenge to another.
To justify the purchases, all that is required (in the app) for physical commerce
photo of the purchase receipt from the associated stores. Meanwhile, online purchases
be made through the app, and the user then sends a confirmation email [24]. In addition,
contributions to the savings plan are variable and are limited by time and the numb
activities, to ensure users do not consume too much in order to receive incentives.
Currently, many of the activities proposed by Pensumo are aimed at sustainabi
that is, they contribute toward developments capable of meeting current needs, wi
jeopardizing the resources and possibilities of future generations.Examples of this are
purchases made in local stores, using bicycles to move around the city, and recycling, a
these activities are considered sustainable.
Every day,small amounts of money (cents,most of the time) accumulate in the
savings policy guaranteed for each consumer. As indicated above, the consequence o
widespread use of this system by most people would be the emergence of a new typ
pension system. This would supplement that of the Social Security and would be uniq
insomuch as it is free and voluntary for the beneficiaries [44], as indicated above.
Whenever a challenge is completed or a purchase made by consumers in an estab
ment associated with Pensumo (both online and physical), micro-contributions to th
savings plan are made, which means they are saving for their future, as the cents a
mulated generate the profitability determined in the final product they are invested
Currently, this final product is a guaranteed savings plan with a 0.5% annual retur44].
In addition, more savings can be made by making extraordinary contributions adde
the existing savings or by disseminating the app to new users (such as friends or fam
and new businesses, as this also has its benefits. Moreover, Pensumo users can check
accumulated savings on the website and in the app.
The money accumulated is managed by the insurance company Allianz in an op
collective insurance policy, with the sole requirements being to be of legal age and to
a confirmed registration. This policy has no maintenance costs and does not requir
user’s account number until the moment the money is redeemed [24].
Redeeming the money can be requested by the user through the website by do
loading and completing a PDF request form stating the account number where the m
is to be deposited. The Allianz product conditions specify that the money can be redeem
in 5-year liquidity windows, without penalty. The money can also be redeemed after
first year, although with a corresponding penalty [24]. In short, consumers cannot use or
dispose of the money whenever they wish but must wait for the aforementioned 5-y
liquidity windows or pay a penalty if they redeem it after the first year, which may
inconvenient for many users. In addition, it must be considered that this penalty impli
cost, whose amount should be known and compared with the savings in order to as
the actual profitability obtained by the consumer.
The main income for this Fintech company comes from a 1% commission on sa
Pensumo does not have fixed fees,but each business decides the percentage of each