Role of financial technology (FinTech) innovations in driving sustainable development: a comprehensive literature review and future research avenues

Purpose The purpose of this paper is to conduct a thorough analysis of the current body of literature about the role of financial technology “FinTech” innovations in driving sustainable development, pinpointing significant patterns, obstacles and prospects and identifying thematic clusters. In addition to filling up knowledge gaps, this research will suggest future directions for an investigation that will advance our comprehension of how FinTech might promote sustainable development. Design/methodology/approach A comprehensive review, based on the publications indexed in the Web of Science and Scopus databases, has been prepared. The framework involves consolidating the literature using VOS viewer software to identify gaps extracted from primary literature on the topic under review to suggest future research directions. Findings This review demonstrates that FinTech innovations have a great deal of potential to advance sustainable development through increasing resource efficiency, lowering carbon footprints, and fostering accessible financial services. Research limitations/implications This study has several limitations. The fast development of FinTech technologies and the scope of the reviewed literature may not include all pertinent studies. The findings of this study may not be fully generalizable because of the incomplete exploration of the complexity and diversity of regulatory environments across different regions. Moreover, this study mainly draws from extant literature, which might not accurately reflect contemporary industry practices and innovations. Practical implications This study provides valuable insights for decision-makers and financial managers. This study suggests that FinTech is significantly enhancing and improving green finance, financial inclusion and sustainable business practices. Important technological developments such as mobile banking, blockchain and artificial intelligence have shown great promise in enhancing accountability, transparency and access to financial services. Social implications This study presents socially responsible and valuable policy implications for financial managers and policymakers of FinTech innovations and sustainable development, in addition to contributing insightful data to the academic discourse. FinTech-based microfinance and microfinance services, such as alternative financing options tailored to specific underserved groups that cannot afford the costs of traditional financial services, are the main focus of these recommendations, which also aim to improve and/or develop an environment that supports financial inclusion or environmental reporting. Originality/value This paper contributes to the knowledge by providing an in-depth, comprehensive and accurate analysis of the role of FinTech innovations in promoting and accelerating sustainable development, in contrast to previous studies that often focused on specific components or technologies. To the best of the authors’ knowledge, this study is one of the unique studies that provide an in-depth analysis to understand the role of Fintech innovations in improving sustainable development and provides future research avenues that help study Fintech innovations in different sectors.