FINTECH'S ROLE IN SUSTAINABLE BANKING PERFORMANCE: ARE GREEN BANKING POLICIES DRIVING SUSTAINABILITY IN PAKISTAN'S BANKING SYSTEM?

Abstract

The technology pervades every aspect of business operations, making it impossible for any organization to evade its presence. The delight of the customer is now the priority of the organization. Adopting the sustainable practice of using fintech to facilitate the customer with ease is the game now for every bank in Pakistan and it needs serious attention. This study explored this gap and added facilitation aspect of green banking practices to the loop. Without the sustainable developmental goals-SDG, no business sees its future growing. Adoption of fintech is one of them. State Bank of Pakistan also promulgated green banking regulation in 2017, which forces the banks to adopt green banking practices in finance, operational, and daily routines of the personnel. Our explanatory, quantitative study assessed the effect of fintech on sustainable green practices and the bank's green practice activities as a mediator through a questionnaire consisting of 31 questions filled by 302 banking professionals in Karachi, Pakistan, & found that the green banking activities mediated the relationship between the fintech adoption and sustainable banking practices but the direct effect of fintech is found to be insignificant as local environment and the mindset of the employee is not ready for it. The study provide vauable information and recommendations.