Research on the Mechanism of Fintech on Green Credit

Abstract

China’s green credit has gone through three stages of enlightenment, rapid development and standardized development, and by the end of 2023, the balance of green loans had reached RMB 30.08 trillion, showing strong growth momentum. However, the development of green credit still faces challenges such as structural imbalance, inaccurate measurement of environmental benefits, difficulty in adapting traditional credit-granting models to emerging areas and uneven development among banks. This paper focuses on how FinTech empowers green credit, pointing out that FinTech can optimize the pre-lending review process of green credit, improve the efficiency of approval, and comprehensively identify enterprises with green innovation potential; at the same time, FinTech can also strengthen post-credit supervision, achieve the dynamic tracking of the whole life cycle of green funds, and prevent the misuse of funds. Therefore, FinTech has become a key tool to alleviate the information asymmetry between green credit investment and financing parties and improve financing efficiency. This study not only enriches the theoretical system of the integration and development of fintech and green credit, but also provides practical guidance for government departments and commercial banks.