FINTECH ADOPTION AND SUSTAINABLE PERFORMANCE IN BANKING INSTITUTIONS: THE ROLE OF DIGITAL TRANSFORMATION

Abstract

Grounded in Resource Based View (RBV) and Technological Innovation System (TIS); this study aims to explore the role of FinTech in sustainability performance through mediating role of digital transformation. The data is collected through an adapted self- administered survey questionnaire from employees (N=349) of commercial banks in Pakistan. The PLS-SEM results revealed that FinTech has a significant and positive effect on sustainable performance of Banks. Further, digital transformation significantly mediates the relationship between FinTech and sustainable performance. This suggest that FinTech solutions improve performance, increase access to financing and sustainability goals through the use of improved technology and digital applications. The findings provide novel insights and contribute to existing theorical knowledge in of sustainability. Moreover, findings provide practical guidance to the policymakers and banking professionals for enhancing sustainability performance through Fintech and digital transformation.