The Role of Digital Technology in Driving Financial Innovation and Green Economic Sustainability
DOI:
https://doi.org/10.47747/icbem.v3i1.3267Keywords:
Digital Technology, Financial Innovation, Green EconomicAbstract
The rapid development of digital technologies has become a key driver of financial innovation that contributes to accelerating the transition toward a green economy. The integration of technologies such as big data analytics, blockchain, artificial intelligence (AI), the Internet of Things (IoT), and digital financial platforms has expedited financial innovation capable of enhancing financial inclusion, transaction efficiency, and the transparency of financial systems. Existing literature indicates that digitalization enables greater accessibility to green financing through mechanisms such as fintech lending, green crowdfunding, and data-driven environmental risk assessment. This literature review aims to analyze the role of various digital technologies—including fintech, blockchain, artificial intelligence (AI), big data analytics, and the Internet of Things (IoT)—in creating financial solutions that are more inclusive, efficient, and sustainable. Blockchain technology also contributes to carbon footprint verification, sustainable supply chain tracking, and more accountable issuance of green bonds. Furthermore, the use of AI and big data supports more accurate climate risk measurement and assists financial institutions in making environmentally responsible investment decisions. IoT technologies play an important role by providing real-time data on energy efficiency and industrial operations, thus encouraging companies to improve their sustainability performance. The methodology employed includes a comprehensive literature review of international journals, global institutional reports, and indexed academic publications from 2015 to 2025. The findings indicate that digital technologies can improve the accuracy of green project risk assessments, strengthen the transparency of sustainable financing, and support environmental impact verification through real-time data. However, challenges such as digital inequality, cybersecurity threats, and regulatory readiness remain key obstacles. Overall, this review highlights that digital technology plays a strategic role in driving financial innovation while
reinforcing green economic sustainability, with significant implications for policymakers, the financial sector, and the technology industry.
Keywords: digital technology, financial innovation, green economic
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