Page 380 - Ebook HTKH 2024

It analyzes policy documents, research papers, and case studies within a scope focusing
on advanced Fintech applications and green financial mechanisms in countries like

Germany, the Netherlands, and China. We chose these countries for their diverse
approaches and successful implementation of Fintech solutions in green finance, which
serve as valuable models for Vietnam's context.
3. Theoretical basis
To begin with, green finance is fundamentally associated with environmental
protection and seeks to integrate financial activities with environmental conservation
efforts. According to the United Nations Environment Programme (UNEP), green
finance can be defined as a set of strategies and methodologies aimed at mobilizing and

allocating capital to develop and maintain climate-resilient infrastructure. Its objectives
include addressing environmental pollution, greenhouse gas emissions, and other
pollutants while promoting economic development by encouraging environmentally
responsible investments and urging businesses to adopt practices with minimal adverse
environmental impacts. Consequently, the significance of green finance is clear: It not
only facilitates sustainable development through financial flows and financial

instruments but also fosters innovation within credit institutions. This innovation
enables these institutions to mitigate risks related to businesses that engage in
environmentally damaging activities.
Next, we understand Fintech as technological advancements driving innovation in
financial services, leading to the creation of new applications, products, or business
models related to financial service provision. These new financial business models
involve collaborations between financial institutions and technology companies to

develop a variety of new services such as capital raising, lending, payments, investment
management, and insurance. This integration not only fosters the development of new
business models and applications but also gives rise to novel types of enterprises
offering services such as peer-to-peer lending, third-party payments, and big data credit.
It is evident that the integration of information technology has transformed traditional
finance, with Fintech enhancing the effectiveness of financial services. This raises an

important question: What role does Fintech play in promoting green finance?
4. Roles and applications of fintech in the field of green finance worldwide
4.1. The role of fintech in green finance
Firstly, Fintech reduces transaction costs and enhances capital efficiency.
For example, in the context of executing a green financial transaction, such as
providing green credit, the associated costs can be high due to the comprehensive
assessment required to determine whether a business or project meets the necessary
funding criteria. Fintech integration streamlines this assessment process by leveraging

big data, which provides banks with detailed and relevant information for evaluation.
Consequently, this not only cuts down on time and costs but also guarantees more
accurate capital allocation, enhancing the quality and effectiveness of capital utilization.

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