DefinePK

Abstract

The impact of FinTech Adoption integration on the banking sector has spurred its rapid integration and has helped in the financial sustainability through efficiency, financial inclusion and environmentally responsible banking. The research seeks to contribute to the empirical understanding of how initiatives driven by FinTech Adoption can contribute to sustainability in financial institutions in a developing economy. The research design is quantitative and Structural Equation Modeling (SEM) is applied to verify the hypothesized relationship. Structured questionnaire was used, which was based on essential existent data gathered from 368 banking professionals including operational and branch managers. To have a representative sample of the banking sector, a cluster sampling technique was used to ensure that banks from different regions of Pakistan and from various financial institutions were represented. The results of the study prove that the use of FinTech adoption, green finance and green innovation has a significant effect on the sustainability of Pakistan’s banking sector. In addition, both green finance and green innovation play a significant role in the link between using FinTech adoption and sustainability. Yet, the results did not show a significant impact of IT governance in the relation between FinTech adoption and sustainable performance. The study contributes to the fact that the findings highlight the necessity that financial institutions and policymakers should enhance the green financial products, implement financial technology for sustainability tracking, and integrate the technology driven risk assessment models. It further implies that it is necessary to restructure IT governance frameworks that support sustainability objectives instead of strictly compliance.