LAUSR

Purpose This study aims to analyze the relationship between financial sustainability and peer-to-peer (P2P) lending platforms. Design/methodology/approach To do so, an extensive literature review on sustainability, FinTech, P2P lending and their associated risks was conducted using a fundamentally theoretical and descriptive methodology. Findings In addition, this study shows that finance can accelerate the transition to a low-carbon circular economy by allocating investments in sustainable projects and businesses. Moreover, FinTech P2P lending platforms can help to vitalize green digital finance by using the internet and information technology in the lending market. Nevertheless, anonymous lending and borrowing ventures can produce potential risks such as money laundering, terrorist financing, fraud risk and information asymmetry. Originality/value Sustainable finance remains an emerging and relevant area; however, the literature has not sufficiently addressed compliance concerns. To address this gap, this study aims to contribute to the literature by analyzing the link between sustainable finance and P2P platforms and drawing attention to the compliance risks listed above.