Fintech Innovation and Green Investing: How Digital Infrastructure Drives Investor Behaviour in India

Abstract

India’s 2070 Net-Zero commitment requires an estimated $10 trillion in green capital. While the India Stack has revolutionized financial access, the systemic transition to a sustainable financial system depends on aligning technological innovation with investor behaviour. The study examines the role of Digital Public Infrastructure (DPI) as a catalyst for sustainable finance by analysing its impact on investor awareness and behavioural intentions. The study combines both secondary analysis of green bond trends (2020–2025) and a primary survey of 200 retail investors. The empirical results indicate that the Unified Lending Interface (ULI) and API-based ESG dashboards have reduced information asymmetry by 28%. Furthermore, investor awareness of green instruments has surged, but actual capital allocation is heavily mediated by the "perceived ease of use" of fintech platforms. The study assesses how the India’s DPI-led model which provides a global blueprint for using innovation helps to bridge the "Awareness-Action Gap" in sustainable finance.