Page 381 - Ebook HTKH 2024

Secondly, Fintech facilitates the expansion of green finance.
By reducing transaction costs, Fintech makes green financial services more

attractive to a broader audience. Additionally, the increased competition among banks
and technology firms drives the development and wider dissemination of green financial
services. These institutions achieve this through enhanced communication and
promotional efforts, thereby broadening the reach and adoption of green finance among
users.
Thirdly, Fintech helps mitigate and manage risks more effectively.
Financial risks often arise from the lack of accurate information from relevant
parties. By utilizing big data, Fintech enables a thorough evaluation of businesses and

projects concerning their safety and reliability when providing green credit. This
capability helps banks manage the risks associated with green credit issuance.
Additionally, big data supports businesses in identifying and mitigating environmental
and climate-related risks during project execution.
Fourth, Fintech promotes comprehensive green finance.
The reduction in transaction costs and the expansion of green finance demonstrate

that Fintech not only provides green financial services to large enterprises and
government entities but also extends its reach to small businesses and individuals at a
more affordable cost. This indicates that Fintech is driving a shift towards greener
practices among organizations, businesses, and individuals in society.
4.2. Applications of fintech in the global green finance sector
We have chosen Germany, the Netherlands, and China as case studies for their
diverse yet successful Fintech applications in green finance. Germany is a pioneer in

sustainable digital banking and renewable energy funding. The Netherlands is known
for its strong commitment to sustainable finance and innovative financial products.
China has rapidly advanced fintech for environmental sustainability, particularly
through green credit and digital platforms for ecological initiatives. These examples
offer diverse strategies and practices that are applicable to developing green finance in
Vietnam.

In Germany, "Tomorrow" is a digital bank that specializes in offering green and
sustainable financial solutions. With no physical branches and all of its operations taking
place online, tomorrow's mobile application lets users open accounts, handle their
money, and make transactions. It is the only bank that exclusively offers
environmentally friendly financial solutions to foster sustainable growth. The bank
participates in efforts and projects to lower CO2 emissions, such as funding programs
for environmental preservation and renewable energy. The bank dedicates itself to
avoiding investments in environmentally harmful sectors such as coal, oil, and weapons.

Tomorrow's transparent business model enables clients to easily comprehend the
investment and usage of their money (Cite Nenavath & Mishra, 2023).
Based on a crowdfunding approach, Ecoligo is a German finance firm that works
in the field of renewable energy, specifically solar energy. By connecting investors with
renewable energy projects via an online platform, they are able to raise a

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