Exploring the influence of Bank fintech on green credit: Insights from Vietnam

Abstract

Green finance, particularly green credit, has been regarded as an important strategy by the Vietnamese government to develop a green economy. However, few studies have explored the relationship between bank-level FinTech development and the growth of green credit in the Vietnamese market. To address this gap, the research team utilized selective data from 28 commercial banks during the period 2014 - 2023. A panel data regression method was employed, specifically the Feasible Generalized Least Squares (FGLS) regression analysis, focusing on investigating the impact of FinTech on green credit distribution in Vietnamese commercial banks. The results indicate that FinTech can significantly promote the development of green finance, positively influencing the level of green credit through enhancing banks' operational capabilities in Vietnam, although it has a counterproductive effect on risk management capacity. This academic research makes a significant contribution by providing empirical evidence and proposing functions to optimize FinTech, supporting commercial banks in achieving sustainable development goals.