Sustainable Fintech Innovation In Consumer Lending: Advancing Inclusive Credit Through P2P Platforms And Alternative Scoring Models

Abstract

This paper explores how financial technology (fintech) is transforming consumer lending in a manner that promotes sustainability and inclusivity. It focuses on peer-to-peer (P2P) lending platforms and alternative credit scoring mechanisms that utilize big data and artificial intelligence to assess borrower risk beyond traditional credit histories. Drawing on empirical evidence and recent studies, the paper argues that sustainable fintech innovations are not only disrupting traditional banking models but are also facilitating broader financial inclusion, supporting green finance, and aligning with Sustainable Development Goals (SDGs), particularly SDG 9. Key challenges such as regulatory gaps, data privacy, and algorithmic bias are also discussed, with policy and industry-level recommendations proposed for building a more sustainable digital finance ecosystem.