Digital Green Finance: The Role of FinTech in Promoting Sustainable Investment and Environmental Responsibility

Abstract

Digital green finance has emerged as a critical mechanism for aligning financial systems with environmental sustainability through the integration of FinTech innovations. This study examined the role of FinTech, blockchain technology, artificial intelligence, and ESG integration in promoting sustainable investment and environmental responsibility. A quantitative research design was applied, and data were collected from a sample of 400 respondents, including financial professionals, investment managers, and FinTech users. The analysis focused on assessing the impact of digital financial technologies on sustainable investment performance using statistical techniques including regression analysis and model fit evaluation. The results indicated that ESG integration (β = 0.38, p = 0.000) exerted the strongest influence on sustainable investment performance, followed by FinTech adoption (β = 0.31, p = 0.000), blockchain integration (β = 0.27, p = 0.000), and artificial intelligence (β = 0.24, p = 0.001). Model fit indicators confirmed a good fit with Chi-square/df = 2.41, CFI = 0.93, TLI = 0.91, and RMSEA = 0.058. Descriptive results showed that ESG integration recorded the highest mean value (4.01), while artificial intelligence showed the lowest mean (3.78). The findings demonstrated that digital financial technologies significantly improved sustainable investment performance by enhancing transparency, efficiency, and environmental accountability. The study concluded that FinTech-driven digital transformation plays a vital role in accelerating green finance adoption and supporting global sustainability goals. It also highlighted the importance of integrating advanced technologies to strengthen ESG-based investment systems and promote long-term environmental responsibility in financial markets.