Environmental pollution has long stood as a pressing global concern, while the evolution of fintech has brought about profound transformations within the financial industry, with finance assuming a pivotal role in environmental governance. This paper aims to investigate the effects of fintech on environmental pollution and the underlying mechanisms through which these effects occur. Using empirical analysis of China’s provincial panel data spanning 2011 to 2021, the study identifies a notable inverse relationship between fintech development and environmental pollution, underscoring fintech’s positive impact on fostering environmentally sustainable economic growth and curbing pollution emissions. The mediating effect analysis reveals that the upgrading of industrial structure serves as a partial mediator in the relationship between fintech innovation and reduced environmental pollution. To achieve harmonious sustainable development of the economy and environment, policymakers should concurrently design adaptive industrial policies aimed at fostering the progress of clean technologies and providing support to the environmental services sector.