FINTECH AND THE CIRCULAR ECONOMY: EMERGING SYNERGIES FOR SCALING SUSTAINABLE IMPACT

Abstract

The transition to a circular economy is a strategic priority to address global environmental challenges, promote resource efficiency and support sustainable economic development. At the same time, the rapid growth of financial technologies (FinTech) is resulting in changes to conventional financial systems, offering new ways to access capital, increased transparency and decentralized trading models. This paper focuses on the synergies emerging between FinTech and the circular economy, emphasizing how digital financial tools can support the financing, implementation and scaling of circular business models. The paper explores technologies that could accelerate circular innovation, such as blockchain, tokenization, artificial intelligence-based investment platforms and crowdfunding. The study's approach is based on an in-depth literature review, institutional reports and documented case studies (such as Plastic Bank, Power Ledger and Circulor). This highlights both the opportunities and obstacles that arise at the intersection of these fields. We believe, FinTech has the potential to help the circular transition by facilitating traceability in supply chains, facilitating access to finance for circular startups and increasing the credibility of sustainability claims. All the while, barriers are identified including interoperability issues, lack of digital infrastructure and regulatory uncertainty. The article contributes to the literature on sustainable finance by providing a conceptual framework for understanding these synergies. It also provides applied insights for entrepreneurs, policy makers and researchers who are interested in using FinTech to support the circular economy.