The impact of fintech on green finance: Empirical evidence from Vietnamese Banks

Abstract

Green finance is considered a critical strategy for every country striving for sustainable economic development. However, there is still limited research on the relationship between fintech and green finance at the bank level. This study analyzes the fintech index using text mining and entropy methods as proposed by Wan et al. (2023). A dataset from 27 commercial banks in Vietnam, spanning the period from 2016 to 2022, was collected for analysis. The author group conducted descriptive statistics, correlation matrices, multicollinearity tests, OLS regression, FEM, REM, tests for heteroscedasticity and autocorrelation, and ultimately used FGLS to address model deficiencies. The results of the final regression model show a strong positive impact of fintech on green finance. Additionally, the study identifies the influence of bank size and non-interest income ratio on the green credit of the banks. The research findings contribute to the proposal of various policies to promote the development of green finance in Vietnam through fintech advancement.